Modern Electronic Retailing - Assignment Example

?E-RETAILING By Table of Contents Introduction E-tailing (Electronic Retailing) is the process of selling of retail products or services using the internet. Historically, the idea of electronic retailing was emerged in internet debates in 1995. Additionally, this idea appeared approximately predictable accumulation to e-business, e-mail and e-commerce. In addition, it is identical to the business-to-consumer (B2C) transaction. However, the e-tailing framework started to work for a number of large-level corporations and smaller entrepreneurs in 1997 when Dell Computer Business stated that they have attained multimillion dollar orders through their website. In the same way, the achievements of Amazon.com accelerated the development of Barnes and Noble's e-tail website. In addition, the issues and problems regarding secure order-taking retreated. In 1997, Auto-by-Tel successfully sold their millionth car over the internet. As well, CommerceNet/Nielsen Media stated that they have attained more than 10 million people on the Web. According to Jupiter research the e-tailing has raised to $37 billion by 2002. Moreover, the e-tailing has also allowed the growth of e-tailware, software tools for producing online catalogs as well as dealing with business associates by performing e-tailing. In this scenario, a new movement is the price assessment sites that are able to rapidly compare prices from a number of dissimilar e-tailers as well as establish a connection between you and them (Schappell, 2000). This report will present a detailed analysis of a company that is specialized in e-retailing of business. This report will present a comprehensive analysis of some of main areas and aspects of the business’s e-retailing enhancement and establishment of more effective strategy for the potential management of business in a much better way. For this report I have chosen Maplin Electronics business. In this scenario, the main idea is about developing an expanded internet shopping capability for Maplin Electronics company website (Maplin Electronics, 2011). Business Overview I have selected Maplin Electronics Corporation, which needs to improve its web based business and also create a better opportunity for the possible expansion in overall business and working arrangements. Maplin Electronics is one of the UK’s major corporate retailers of consumer electronics. Maplin Electronics business comprises a complete national network of 185 stores those are the main goldmine of valuable consumer technologies and gadgets. Maplin Electronics offers a variety of products including communication, cables, computing, components, music, home & car, power, TV & Satellite systems also Sat Navigational tools (Maplin Electronics2, 2011). In addition, Maplin Electronics is specialized in consumer electronics areas. Maplin Electronics is proud to present the most excellent and the majority informed customer recommendations on the high street. Additionally, the business encompasses a huge team of over 2,000 customer service support officers that facilitate thousands of customers to make informed selections regarding technology purchases each and every day; from technology fans to the entire novices. Moreover, this business was initiated by two technology devotees in 1972 who were irritated by the lack of high-quality electronics products and components. Soon after the establishment of the business the Maplin Electronics rapidly turned out to be the experts’ preference, with a standing for the most excellent product variety and skills. In fact, Maplin Electronics Corporation has developed with high speed since launching over 30 years ago, its standing as the United Kingdom’s simply true experts in consumer electronics is yet at the heart of Maplin Electronics nowadays (Maplin Electronics2, 2011). Furthermore, Maplin Electronics Corporation allows its customers to buy products from more than 185 stores located in United Kingdom and Ireland. Maplin Electronics also allows its customers to place orders through the phone or by logging on to the website at www.maplin.co.uk (Maplin Electronics2, 2011). Main Business Issues Maplin Electronics is running its business through physical stores. The business also has a product ordering system, which allows it to take orders through phone calls. The business has recently established a web based arrangement in order to capture the ecommerce market for the potential business enhancement and corporate operational management. Additionally, it allowed the business to attract the customers by targeting the basic products. However, the basic goal of the business is to attract whole UK’s community towards the business and provide them with a better opportunity to buy products via company’s web site. However, the main issues here are lack of customer loyalty regarding web based business. In this scenario, there exists a wide variety of market competitors that is offering excellent customer support and working capabilities. Proposed Solution for Maplin Electronics In this section I will discuss the possible solution for Maplin Electronics business in order to improve their business productivity and corporate working using web based channel. The key recommendation is about the establishment of a web based business platform for potential business development and improvement. Additionally, business and marketplace studies showed that the current expansion rate of the internet purchases has been extremely high as compared to previous years, as well as in spite of the circumstances of the real world financial disaster that made the online orders registration an equivalent decrease; things still look extremely brilliant for the internet. Thus, according to this viewpoint, people who encourage a service or product as fraction of an internet trade have plenty of things to perform previous to they are able to see the money roll in (Rockefeller, 2011) and (Rao, 2011). In fact, the e-retailing turns into a gainful internet business, however intense marketing support is essential to survive in ever-increasing competition as well as generate revenue. Following the inclusive online web catalogs that trade us the entire types of things, there remains a huge amount of work to maintain not simply the web pages however to run a constant marketplace analysis and have a real image of where the company stands on the internet market. In addition, the web based business with the maximum probability to make the business transaction is one that comes into view initially when a visitor types a particular keyword in the search box of the online search engine. As a result, the huge competition among the variety of companies starting online is to build a high-quality page rank as well as an appropriate position in the search engines. However, it could be done through a qualified support of the web pages as well as constant supervision of the website operational performance, from a number of visitors and the consequential transactions (Rockefeller, 2011) and (Rao, 2011). In addition, similar to real life money making chances, a business over internet necessitates cautious planning. Therefore, a company first targets the marketplace, collects data and information on the struggle, makes sure the availability of high-quality resources, and draws finances and funds if essential and applies the operations that build customers' devotion. Additionally, relying upon the kind of product or service presented, on the internet could necessitate the strategic partnership with other partners. As a result, for each internet business (for instance, for Maplin Electronics business) we have to find out whether there is a marketplace to deal with. After that, if we lack the budget to spend, we require discovering options in financing alternatives to encourage us with industrial aspirations. Furthermore last however not least, we should never neglect the website budget. The web site design and constant support that is necessary for running an internet business can cost us a small monthly investment (Rockefeller, 2011) and (Rao, 2011). Maplin Electronics E-Retailing E-retailing or internet retailing is typically stated as covers retailing with a multiplicity of dissimilar media or technologies. However, it can generally be a mixture of two or more elements. For instance, it unites new technologies with elements of customary stores and direct mail models and with new technologies to restore elements of direct mail retail or store. Additionally, the internet retail as well has a number of elements similar to direct mail retailing business. For example, e-mail messages can be used in place of mail messages and telephone that are utilized in the direct mail model as ways of offering data, communication and information as well transactions through on-line catalogues can be used in place of printed catalogues. With direct mail Maplin Electronics business’s critical accomplishment factors comprise: (123HelpMe, 2011) and (Umanath & Udhayakumar, 2011) Simple ordering Making use of customer databases Fast delivery Functional components that the internet retail business model shares with both retail store and direct mail models comprise: (123HelpMe, 2011) and (Umanath & Udhayakumar, 2011) Development of customers interest Associations with suppliers There are several elements that are common between internet retail and traditional retail models. Certainly, majority of successful internet retailers have been those that have been capable to productively transport critical elements from customary retailing to the internet, like that customer service and product displays (123HelpMe, 2011) and (Umanath & Udhayakumar, 2011). Thus, to be successful in internet retailing Maplin Electronics business must be successful in traditional business management. E-Store Design Enhancement of Maplin Electronics E-Retailing This section presents a detailed analysis of some of the important aspects for the improvement of Maplin Electronics’ E-Retailing business. In this scenario I will assess the quality of the e-retailing and corporate operational framework. In order to improve the e-retailing capabilities of Maplin Electronics, there is need for offering a better online business service that is defined as a degree to which a website makes possible effectual and well-organized purchasing. Additionally, the unique better quality management of the Maplin Electronics E-Retailing business would be offering later developments that lead to better customer and corporate support and capability. In this scenario, the scope of e-commerce service quality can be separated into 3 groups: (Fransi & Viadiu, 2007) (i) Tangibles (ii) Responsiveness, assurance and reliability (iii) Empathy In addition, a number of customary dimensions of service quality (like that courtesy, competence, comfort, clarity and friendliness) are not applicable to online sales. On the other hand, numerous other issues (for instance communication, accessibility, appearance and credibility) are significant for establishing an effective online environment. I have discussed below some of the possible dimensions for the improvement of e-retailing at Maplin Corporation. In this scenario, we need to take care for some of the below given aspects for improving business website: (Fransi & Viadiu, 2007) Improving website working performance Improving website operational features Developing and maintaining better website structure Aesthetics Reliability of online business dealing Offering serviceability Security and system integrity in case of web based business operations Customer trust building Responsiveness to customer request Product/service differentiation and customization Web store policies establishment Building and maintaining business reputation Assurance of customer needs and demands Understanding and fulfilling to customer requests Branding On the Web The penetration of web and digital media into the characteristics of people’s lives has caused basic transformations in how people take and perceive brands and set-up brand loyalty. In this scenario, the propagation of social media and the union of digital media indicate the age of e-relationships. Thus, in order to be successful in this digital age Maplin Electronics will need a unique way of business marketing (Manzoor, 2011). In addition, Maplin Electronics needs to establish effective relationships with partners or clients to achieve a competitive edge in this varying digital landscape by using an exclusive blend of artistic design, technology and business novelty. For this purpose Maplin Electronics can use following guidelines: (Manzoor, 2011) Developing as well as continuously improving organization's brand awareness online Building and maintaining e-relationships with our customers Building trust with effective leadership in our industry as well as driving sales through web centric solutions Making use of information technology as a strategic differentiator in our business Growing customer contentment as well as service delivery levels as slashing IT expenses E-Retailing Models We are going to suggest few improved E-Retailing models for Maplin Electronics business. In this scenario, we have chosen specialized e-stores e-retailing models for Maplin Electronics business. However, the initial category of model that we stated in e-retailing was dedicated e-store and here we are able to differentiate between two dissimilar types of specialization. These types of specialization include more conventional specialization along product lines and specialization through utility. When we talk about the specialization through product line, fundamentally it refers to a store that makes a decision to choose one particular business product line, for example in case of Maplin Electronics business we have consumer products like oven, iron, washing machine, and they sell simply this particular product line. However, they can as well decide to place themselves in a particular fraction of the product line, for example washing machine. On the other hand, they could decide to place themselves at extremely expensive end of the marketplace selling brand names like LG Electrics. In its place they can carry out more mass marketing by selling non-brand names at a great deal lower cost, or it could move into discount selling. Consequently, we are able to develop an interest through product line, and then we could have positioning and specialization inside that product line to provide a particular fraction of the marketplace. On the other hand, another modern kind of specialization is rising on the internet. Usually when one buys an item at an extremely short notice (for example a travel business), he/she frequently pays some extra charges, which is an additional amount in order to ease the booking of journey at the last minute. So we can say that the air-ticket is probable to be more costly if he had purchased it by a number of hours previous to traveling and made use of different promotions or discounts (Manzoor, 2011). Thus, Maplin Electronics can think about this kind of specialization while developing its e-retailing. Market Segmentation One of the most important tools for the better e-retailing could be better segmentation of the market for potential improvement of corporate working and operational aspects. Maplin Electronics Corporation is running its business by selling electronic products that are sold through the web and also available at local stores. In this scenario, there is need for establishment of better market segmentation framework that can be better managed and assessed for the effective performance of the corporation. Here we will target the basic home products that can be managed easily. For this purpose, we need to classify the business, office, entertainment and other related market products in order to improve the e-retailing management. Consumer Behavior Management For the sake of potential enhancement of e-retailing business, Maplin Electronics needs to assess possible behavior of customers. In this scenario they need to extract the basic needs through buying combination of people approaching the web based stores. In addition, we need to estimate the possible offers and promotions that can be offered to the customers for the potential enhancement of business and corporate operations. In order to access and manage customer’s behavior we need to segment the possible customer needs and demands for offering better customer support service and promotions. This will help the business to attract more customers toward the business products and services. For the customer satisfaction we need to offer special bundle offers that should be based on the customer buying behavior. In this scenario we can make use of intelligent data mining tools that can assess the combination of the needs and requirements of the users. CRM (Customer Relationship Management) Customer relationship management is one of the most successful methods used for the assessment and management of the customer behavior. In this scenario, the implementation of customer relationship management tools for the business of Maplin Electronics can be helpful in customer relationship management. Additionally, the application of CRM tool at the Maplin Electronics business will offer them an excellent opportunity to effectively manage the customer services. In this scenario, by implementing some kind of automated customer services management system we will be able to have a superb control over business operations. These all aspects will offer competitive advantage to business arrangement that will possibly enhance the overall performance of the corporate and operations management. Moreover, they will increase customers’ confidence over the services/products offered by Maplin Electronics business. Data Mining Tools For Maplin Electronics Maplin Electronics can also use any data mining tool in order to improve business performance and customer behavior. These all aspects will add value to the business of Maplin Electronics. In addition, by using data mining tools, business management would be able to assess customers’ behavior. In this way they would be able to better judge the basic needs of customers and can be able to suggest a better solution for customer management. Moreover, the application of customer management tool and extraction of customer buying behavior trends will help the business to take effective decisions. Conclusion E-tailing (Electronic Retailing) is the process of selling of retail products or services using the internet. Historically, the idea of electronic retailing was emerged in internet debates in 1995. For this report I have selected Maplin Electronics Corporation’s web site for the enhancement of web based business of the company and also creating a better opportunity for the web based business development to possible expansion in overall business and working arrangements. Maplin Electronics is one of the UK’s major corporate retailers of consumer electronics. Maplin Electronics business comprises a complete national network of 185 stores those are the main goldmine of valuable consumer technologies and gadgetsMaplin Electronics is one of the UK’s major corporate retailers of consumer electronics. Maplin Electronics business comprises a complete national network of 185 stores those are the main goldmine of valuable consumer technologies and gadgets. Maplin Electronics is running its business through physical stores. The business also has a product ordering system, which allows it to take orders through phone calls. The business has recently established a web based arrangement in order to capture the ecommerce market for the potential business enhancement and corporate operational management. However, the main issues here are lack of customer loyalty regarding web based business. In this scenario, there exists a wide variety of market competitors that is offering excellent customer support and working capabilities. In this report I have suggested some of the important points that can help the business develop better marketing platform. I have also given suggestions regarding effective target marketing; customer needs segmentation and application of data mining tools for overall enhancement of the business performance. References 123HelpMe, 2011. E-Retailing. [Online] Available at: http://www.123helpme.com/e-retailing-view.asp?id=164721 [Accessed 05 August 2011]. Fransi, E.C. & Viadiu, F.M., 2007. E-retailing Management Analysing the Spanish E-consumers Behaviour. IADIS International Journal on WWW/Internet, 5(1), pp.98-112. Manzoor, A., 2011. E-COMMERCE TECHNOLOGY AND MANAGEMENT. [Online] Available at: http://www.scribd.com/doc/40219342/65/Scope-of-Internet-Marketing [Accessed 02 August 2011]. Maplin Electronics, 2011. Maplin Top Sellers. [Online] Available at: http://www.maplin.co.uk/ [Accessed 02 August 2011]. Maplin Electronics2, 2011. Welcome to Resources. [Online] Available at: http://www.maplin.co.uk/help-centre?helppageid=24#anclocator [Accessed 02 August 2011]. Rao, S., 2011. E-tailing in India. [Online] Available at: http://www.chillibreeze.com/articles_various/E-tailing.asp [Accessed 05 August 2011]. Rockefeller, E., 2011. E-Retailing: An Internet Business. [Online] Available at: http://e-commerce.bestmanagementarticles.com/a-31443-e-retailing-an-internet-business.aspx [Accessed 03 Augut 2011]. Schappell, D., 2000. e-tailing (electronic retailing). [Online] Available at: http://searchcio.techtarget.com/definition/e-tailing [Accessed 02 August 2011]. Umanath, K. & Udhayakumar, J., 2011. E-Retailing- A New Strategic Foundation and Business Tool for Textile and Garment Industry. [Online] Available at: http://www.fibre2fashion.com/industry-article/free-retail-industry-article/e-retailing/e-retailing1.asp [Accessed 07 August 2011]. Read More