Online Shoe Store - E-Business Downturn - Example

Heading: Online Shoe Store Your name: Course name: Professors’ name: 23rd August, 2014 Table of Contents Heading: Online Shoe Store 1 Table of Contents 2 Introduction 3 Body of Analysis 3 Alternative Solution 4 Conclusions/Recommendations 6 Implementation Plan 7 References 10 Introduction E-business planning requires the utilization of several skills that are considerate of factors such as business knowledge, competition, company valuation and marketing. These skills are important in the process of establishing a business and coming up with a business plan. This analysis will look into the establishment of an online shoe store in the Australian e-commerce industry. Australia’s $ 12 billion e-commerce industry is growing at fast pace and this analysis will look into factors and strategies of establishing an online shoe store in Australia. Body of Analysis This business analysis will analyze the establishment of an online shoe store operating from Australia. Establishing an online business is dependent on several factors which are dynamic in nature due to the fast paced changes in the online industry. The global shoe industry is estimated at $ 180 billion and this will continue to grow based on adoption of technology and the economic growth in several developing nations. Online shopping is a phenomenon that has caught on in a swift mode and it has transformed the footwear industry. Online footwear/shoe shopping e-commerce sites have developed across major locations globally and it is still dominated by huge companies such as Zappos, JC Penney and other retail outlets. Several factors shape the online footwear industry such as customer service, shipping, cost and choice (Rowley 2010). These factors are a major differentiator between the different e-commerce sites that deal in footwear sales. In Australia, the e-commerce business is worth over $ 22 billion and it is predominantly dominated by the large retailers such as Target, BigCommerce, Amazon and EBay. These e-commerce stores serve the online consumer market in competition with locally based online stores in the region. Experts have predicted a growth in the online retail industry in Australia by around 19% annually for the next 3 years and this will benefit consumers who will have a wide choice. The online footwear industry in Australia is still in its infant stages and this phenomenon is likely to change due to the growth in online buying and selling activity in the country (Maurer 2013). Australia has witnessed a shift in shopping habits as more and more people go online to buy stuff such as electronics, shoes and other items. Research shows that 47% of Australians made use of smartphones to search for products online. The value of Australian online trade today stands at $ 12.8 billion with the average size of single online purchase standing at $ 41. Most of the items and goods purchased online originate from domestic retailers and 82% of these online buyers purchase domestic and household items (Hansen 2013). More statistics also show that most of the online shopper comprised on people aged between 25 -34 years that constitute 82% while people aged between 35 and above constitute about 65% of people who access the internet. Most of the online shoppers were attracted by three major factors; convenience (74%), a wider availability of products and services (16%) and lower prices (38%). These are the major factors that shaped the online shopping industry but the use of social media marketing also drove more people and shoppers online (Mayer 2012, pp. 107-109). Online shoe shopping sites and shoppers grew significantly and thus contributing majorly to the online shopping experience (Porter 2009). The growth on locally based retailers helped drive online shopping numbers due to the fact that Australians trust home based companies. Alternative Solution The implementation of the business plan will culminate into the formation of an e-commerce solution or website responsible for selling and marketing shoes in the Australia market. The e-commerce shop will stock a variety of shoes for people of all ages and sizes so as to ensure a wide variety of shoes is available for customers. The e-commerce store we intend to launch will cater exclusively for the Australian market and it will include several elements such as customer service, incorporate several e-payment platforms available in the region (Niamh 2006, pp. 184-188). Therefore the implementation of the e-commerce store should leverage on these 3 main goals; Business will be anchored on customer service; the online shoe store’s motto is ‘delivery on your service’. In order to be competitive in the online shoe industry, a company should leverage its competitiveness on customer service. Our online shoe store will listen and implement the wishes of our customers based on quality service. Business will offer a wide array of goods under the slogan ‘All sizes, colour and fit in one store’ and this will supplement customer service offered by the online shoe store. Online shoppers comprise of people of all ages and thus we have to attract all customers since they have different preferences and fittings when it comes to shoes. Business will offer a wide array of payment services for goods under a slogan ‘Your money is accepted by us anytime’ and this will be implemented by partnering with different payment platforms. The main purpose of having goals as the drivers of the business is it will make the implementation of different functions easy. For instance, in the implementation of customer service we have to ensure that customer preferences and queries are factored in business decisions. In the process of implementation of the business plan, the company might face several challenges that might hinder the development of the e-commerce show store (Zentes 2012). As a result, the best alternative solution would be to partner with a leading online shoe retailer with experience. This is because the successful implementation of an online store requires collaboration with various entities such as courier companies, payment providers and content creators such as advertisers and marketers (Blackwell 2011). For successful implementation of e-commerce shop, it is imperative to ensure effective selling and marketing campaigns are undertaken to ensure successful consumer exposure. Consequently, since the online shoe store is still new, there will be need to implement aggressive marketing to publicize the store to online consumers (Walmsley 2009, pp. 88-92). Therefore, the online store should implement smart marketing strategies through channels such as social media sites and targeted online advertising campaigns. Relations with suppliers are very vital in the running of an online shoe store and therefore, the company should maintain a good relation with suppliers (Berry 2004). This will allow smooth inventory and avoidance of stock outs and since the company intends to deliver value to customers this should be factored in the running of the store. Conclusions/Recommendations In the implementation of the e-commerce site, we undertake several assessments to ensure our business plan is sound and can be effectively implemented. These considerations include business, legal, ethical and competitive considerations. For instance, in the implementation of the e-commerce platform, we have to ensure that the website is easily accessible and easy for customers to use. For instance, the website should allow people to easily register and provide their details i.e. payment and location details. E-commerce sites and online stores have different implementation of their business functions and thus industry competition and standards have to be analyzed (Pinson 2008). It is highly recommended that an analysis of the online standards and trends are analyzed in the implementation of our business plan. For instance, in the development of this Australian online store, we realize most of the online shoppers are between the ages of 18 and 65 years and thus we have to stock shoes to all these consumers. Moreover, the other issue we have to make sure that is properly implemented is the delivery service (Blackwell 2011). Delivery of shoes should be undertaken by a reliable service provider with the capability and understanding to implement the online store’s delivery plans. Customers require their good and shoes to be delivered on time and in good condition and therefore, as a recommendation, the company should partner with a reliable courier service. In the implementation of the e-commerce shoe store, we have to make sure that online security is afforded to users of the site. Therefore, we have to make sure that security is provided to consumers registered in the site due to increased activity from hackers and crackers. Online security issues have affected the businesses of major online retailers and therefore we have to ensure that these security issues are addressed in the implementation process. In the process of selling and marketing, it necessary to analyze the major selling points for online shoes stores (Cannon 2008). Research has shown that shoppers prefer stores which provide low prices, variety in terms of stock and convenience in terms of easy payments and delivery. There a store should ensure that they implement a strategy that will ensure key consumers concerns are turned into key organizational success factors. In the process of ensuring better business management of the online store, supplier agreements should be maintained to ensure smooth inventory management for the store (Barrow 2008). Implementation Plan The implementation of the e-commerce in Australia will be undertaken through the use of different skills and methods. The implementation of the online shop will look into the main goals of the company and ensure value is created for the customer. The first goal will be leveraging on customer service as a competitive edge over other companies. Customer service looks into the implementation of functions such handling customer complaints, inquiry and issues (Yianakos 2006, pp. 91-92). The online shop will be an online chat function and complaints service for customers and other potential users of the website. Companies such as Zappos.com leveraged on customer service as part of ensuring that the customer has a big say in the implementation of their business (Katsioloudes 2007). Therefore, to ensure that our plan and strategy works, we will undertake customer satisfaction surveys to ensure that the company undertakes prudent customer centric services. Moreover, the company will make sure that consumers have a huge variety of selection of shoes through supplier agreements and engagements. As a result, the company would need not to maintain a huge inventory but will ensure seamless ordering based on demand (Pinson 2008). Having an efficient customer service will ensure that value is delivered to customers with ease. In the implementation of the e-commerce shoe store in Australia, we have to analyze the regions and competition. Since the e-commerce shoe store targets consumers from the Australian online shoppers, we have to target urban regions and markets within the cities of Melbourne, Brisbane and Sydney. This is due to the convenience of these locations in terms of distance and large number of urban online shoppers (Walmsley 2009, pp. 87). Other locations such as Perth, Alice Springs and Darwin are remotely located and will established delivery constraints especially for the company since it’s a start up. The analysis of target market locations is illustrated; a) Melbourne: this is an urban location with over 3.7 million online users present the opportunity to market and sell online. Moreover, the population is made up of young people who tend to spend most of their time and money online. b) Sydney: this city is made of over 3 million users and presents the infrastructure to ensure the implementation of technology and logistical support. c) Brisbane: this is a city located along the Sunshine coast and it boasts one of the cosmopolitan residencies with a huge population of over 1 million online users. The lack of major outlets and online shops located in the region affords an opportunity for an online shoe store. In terms of competition, we will analyze three Australian based online shoe stores that the company should look in terms of developing sales strategies as outlined; a) Showshoe.com.au – this is an online retailer of ladies shoes and it offers a wide range and variety of shoe stocks. However, the online store offers limited payment methods which are though debit and credit cards. Moreover, this store offers delivery by Australian post and the store allows shopper to buy directly without subscription. The store also offers other items such as bags and some clothing as part of business diversification. b) Styletread.com.au – this site is dedicated to the sale of men and women shoes with large displays making selection of goods difficult. However, the store offers varies payment methods and a comprehensive return policy on sold items. c) Zushoe.com.au – this is an online store based in Perth with a variety of men and women shoes for sale. The store offers payment through debit and credit cards alone and one can shop as a guest or registered shopper with different restrictions. The store has a return policy and order tracking for its registered users. From the analysis above, the competitors have a different format of offering shoes for sale on their online platforms. References Barrow, C., 2008, How To Survive The E-Business Downturn. Sydney: Cengage Publishing. Berry, T, 2004, Hurdle: The Book on Business Planning. Englewood Cliffs, N.J.: Prentice-Hall. Blackwell, E., 2011, How to Prepare a Business Plan: Create Your Business Strategy. Chicago, IL: John Wiley and Sons. Cannon, J., Perreault, W. and McCarthy, E., 2008, Basic Marketing: A Global-Managerial Approach. London: Palgrave Macmillan. Hansen, F., 2013, “Global E-Commerce Growth.” Business Credit, 105(9), pp. 99 – 103. Katsioloudes, M. and Hadjidakis, S., 2007, International Business. Los Angeles, CA: Bolt, Beranek and Newman Maurer, E., 2013, Internet for the Retail Travel Industry. Sydney: Ladybird Publishing. Mayer, R., 2012, “Shopping from a List: International Studies of Consumer Online Experiences.” The Journal of Consumer Affairs, 36(1), pp. 107-110. Niamh, R., 2006, “Building a Global One-Stop Shop, T.D. Waterhouse Adds U.K. Broker.” American Banker, 165(86), pp. 183-189. Pinson, L., 2008, Anatomy of a Business Plan: A Step-by-step Guide to Starting a Business. New York, NY: Ashgate Publishing. Porter, M., 2009, Competitive Advantage: Techniques For Analyzing Industries and Competitors. Savanah, GA: Jossey-Bass. Rowley, J., 2010, E-Business: Principles & Practice. Boston, MA: John Wiley and Sons. Walmsley, A., 2009, “Andrew Walmsley on Digital: Consumers Are Leading Double Lives.” Marketing, 5(1), pp. 87-92. Yianakos, C., 2006, “Nameless in Cyberspace: Protecting Online Privacy: Online Commerce Was Predicted to Become a Key Feature of the Payments System but Privacy Concerns Have Stymied Its Growth.” Journal of Banking and Financial Services, 116(6), pp. 89-92. Zentes, J., Morschett, D. and Schramm-Klein, H. 2012, Strategic Retail Management: Text and International Cases. San Francisco, CA: Routledge. Read More