Online Retail Industry in the US - Essay Example

The Internet is a good place for doing business since it provides a platform for interaction with a myriad of users from any part of the world. This means that the effective use of the Internet in the marketing of a business will ensure that a business succeeds.

Business Description and Vision

Quirk Stores is one such type of business that utilizes the Internet to succeed. The business is an online retail store that is not physically located; the main form of operation is through order and delivery via the Internet. The business is a pretty straightforward arrangement, a customer enquires about the price of an item and places an order, the management of the company finds out the price from the nearest wholesaler, places a mark-up on the price, and delivers it to the customer. This means that at no point does the company have any stock or inventory, and at no point does the company own any assets other than the goodwill of the website. The vision for the business is to be the global provider of all business needs and to be able to expand to countries other than the parent country.

Market Description

As already stated, the Internet market is very competitive, but with the right plan, a business can succeed where others have failed. The main needs for most individuals are to find a business that will provide them with any product at any time. Therefore, the targeted clients are people who will call in looking to find anything from a car to a baby carrier to a toilet seat all in one delivery from the same store.

Service Description

As can be seen from the above definitions, the business is a service business, where the company does not own any physical products. The main service is provided to the customers is a simplified method of doing their shopping. This means that a customer will not have to go to different online stores to find the different products that they want. Since the store does not own any physical products, it merely serves as a conduit between the actual product seller and the customer. This means that the store can sell any product, regardless of the provider or customer.

Strategy

From an analysis of the online business platform, it appears that the business has a lot of potential for success in the market. This is because the provision of services on the Internet is backed up by more than 2 billion users, and it is logical that even a tiny percentage of these users need to buy. Therefore, the business will be spread by rapid Internet advertisement targeted at reaching consumers all over the world, which will ensure that the service is completely recognized. This business is trying to build on the eBay principle, but it goes a step further by not requiring that a seller and buyer must interact. Therefore, it is evident that the company has the potential to succeed since the major requirement is the provision of a good marketing strategy.

The pricing strategy for the business is based on a mark-up system, where the customer states the product needed, the management finds the product in the nearest store, and adds a mark-up price for resale. This will ensure that the customer, the wholesaler, and the store get a fair price for the product.  

The main asset that the business holds is the goodwill and brand name that would be developed from the business, so it does not require a complicated form of business ownership. This will ensure that not all the profits from the business are shared, and the liability from the business is transferred to the owner. The advantage of this form of business is that the owner owns all the profits, though the liability can be detrimental. The business is targeted to break even in the first year of operations since there are no envisioned losses or major start-up expenses.