Factors That May Have Contributed to the Success of Notonthehighstreet.com - Essay Example

NOTONTHEHIGHSTREET.COM: Success, Challenges, Opportunities & Threats Factors that may have contributed to the success of notonthehighstreet.com There are several high profile e-commerce businesses that have sprung up across the globe. One of these notable and very high profile leading businesses is notonthehighstreet.com. It is located in the United Kingdom and focuses on innovation, excellent customer value and the provision of high quality products. There are several factors that may have significantly contributed to the successful development of notonthehighstreet.com. These factors are described below (http://www.smarta-tucker-and-sophie-cornish-notonthehighstreetcom). First and foremost, the brains behind the business including the friends of Holly Tucker and Sophie Cornish have had a wealth of experience in marketing and the media industry, having worked with big brands including the top five advertising agencies, major magazine houses, the Boots and L’Oreal. This must have injected a lot of skills and knowledge into the business successfully making it one of the awards winning online market places whose popularity cannot be overemphasized across the globe. The reputation of these brains has gone unchallenged. It follows then that they must have contributed immensely to the success of the business (Press release, 2010). The fact that the business has a variety of products ranging from garden to gourmet, bracelets to handbags, lingerie to linen, cushions to kid’s clothes, and scarves to stationery has also contributed a great deal to the success of the business. Furthermore these products are originally made (Gilmour, Matthews & Holden, 2011, p.103). This has boosted the business attracting customers from across the globe. Indeed, fantastic is the word to describe the products. People love beautiful things; they want to be associated with such fantastic products. These products are found in notonthehighstreet.com. As such people come flowing for the products that are largely seen to enhance their individual happiness and social well being. Another factor that is likely to have contributed to the success of this high profile business is the early realization of the importance of the modern information and communication technologies. The business has significantly taken advantage of the modern technologies thereby enhancing its marketing. The use of the internet for the promotion of the services, online marketing is a fundamental tool that this business has used to get to the point where it is. Difficulties faced in the first years Companies like notonthehighstreet.com are likely to face certain challenges especially during the first years of operation. One of such major challenges is the task of attracting the customers. During the initial periods of inception, the customers are still not aware of the business; neither do they believe in the quality of its services. Many of the prospective potential clients therefore shy away from such businesses during the initial years of operation. This is a huge challenge since any business exists for the clients and not the other way round (Fisk, 2010, p.56-7). Another very major challenge that most of these businesses are likely to face is the inadequacy of capital. At the inception of the business, a lot of capital is required to build an effective infrastructure and ensure that the business is propelled to great heights of success. Unfortunately, during the first few years, there are few customers and the business may not make a lot of profits. Many times, the businesses end up making more losses than profits during these initial periods. They have to spend a lot of money in attracting customers, finding the best promotional strategies and also building on the best infrastructure including huge investments in the information and communication technologies. All these require huge capital investment hence a significant challenge to these businesses. The opportunities that the company faces At the moment, notonthehighstreet.com is facing several opportunities that it should actively take advantage of. Firstly, the business has attracted a huge number of customers due to its vast quality products. This is a welcome reality and an opportunity that the business must be very aware of. As such it takes the advantage of this and effectively uses the available promotional strategies to attract even more potential clients (Barrow, Barrow & Brown, 2012, p.56-9). Furthermore the company’s continued good reputation is essentially an opportunity to propel it to even more success. In the year 2010 alone, the company had more than 7.5 million web visits. Its rapid growth rate is a fact that no one can deny, it is at 135% a year, an ideal opportunity to take advantage of and expand the scope of the products. The company has also created a unique shopping site that resembles no other. This is aimed at bringing a sense of fulfillment and satisfaction to customers who feel bored with the offerings of high street. They have also created a unique marketplace of small business that specializes in the selling of very high quality and creative products. This is an ideal opportunity indeed (Cornish & Tucker, 2012, p.78). The fact that the business has the best brains well endowed with knowledge and skills to advance it to a successful height is also a fundamental opportunity that cannot go unmentioned. This is an opportunity that the business has clung to and has made it very successful. Threats There are also certain threats that the business faces in an attempt to promote and sell its products among the real and potential customers. One such threat is the continued high competition from other similar businesses. There are many other businesses that equally specialize in the products that are sold by this business. Sometimes the clients just shy away from notonthehighstreet.com because of location problems. This is especially when there is another business offering the same products (Barrow, Barrow & Brown, 2012, p.56-9). Another threat that is facing this business and the similar one is the issue of security of the information. With the advancement in the use of information and communication technologies, security challenges come about very significantly. The nature of the business makes it even more vulnerable to these security issues. Being an online market place, the issues of unauthorized access to its website, manipulation of its very sensitive information by malicious hackers, cracking, and a variety of cyber crime prospects loom large. This is very serious and should be vehemently addressed (Jones, 2011, p.34). Reducing the risks The company can reduce these risks by first investing in information security. It has to put effective backups in place to reduce the threats brought about by hackers, computer viruses, warms and other malicious software. Access to its sensitive information must also be restricted to the authorized users only. Besides, there should be effective, enforceable and practical policies regarding information access and use (Finer & Nash, 2011, p.97). The business should also expand its services as much as possible to counter the ever rising and very stiff competition streaming from similar businesses. Bibliography http://www.smarta.com/advice/general/holly-tucker-and-sophie-cornish-notonthehighstreetcom Barrow, C., Barrow, P., & Brown, R. (2012). The Business Plan Workbook. London, Kogan, p.56-9. Cornish, S., & Tucker, H. (2012). Not On The High Street. London, Simon & Schuster. P.78. Gilmour, K., Matthews, D., & Holden, G. (2011). Starting And Running An Online Business For Dummies. New York, John Wiley & Son. P.102-4. Http://Public.Eblib.Com/Eblpublic/Publicview.Do?Ptiid=819282. Finer, N., & Nash, E. (2011). More To Life Than Shoes: Kick Start Your Career And Do Something Fantastic. London, Hay House. P.97. Fisk, P. (2010). People, Planet, Profit: How To Embrace Sustainability For Innovation And Business Growth. London, Kogan Page. P.45-78. Jones, E. (2011). Turn Your Talent Into A Business: A Guide To Earning A Living From Your Hobby. Petersfield [England], Harriman House. P.34. Institute Of Marketing and Sales Management, & Institute Of Marketing. (1968). Marketing. London, Haymarket Press. (23/2). Press release. 2010-08-02. http://www.prnewswire.com/news-releases/notonthehighstreetcom-secures-75-million-pounds-investment-from-index-ventures-and-greylock-partners-99736489.htm Read More