E-commerce and IT - Term Paper Example

E-commerce and IT Certain developments in the world of Information Technology have drastically changed how business is conducted. Today, it is not uncommon to find organizations operating online. This means that the world has embraced e-business, which allows companies to market their products and services to the online market (Li, 2007). Companies operating online normally have their own websites from where they conduct business directly with their customers (Boone and Kurtz, 2010). Carsdirect.com is one of the websites that deal with e-business. The main business of the website is to sell cars, both new and used. The cars available here are wide varied, from all the major manufacturers in the world. Other than selling cars, other services offered by the website include: auto loans, car insurance, research and trade-ins. On eBizMBA, carsdirect.com ranks is ranked at position 6,197 with an estimated number of unique monthly visitors of 560,000. Other rankings of the website include: 3,375 in Compete rankings, 3,603 in Quantcast rankings and 10,698 on Alexa (Carsdirect.com, 2011). The following is an in-depth analysis of the e-business and its business model. How Can the Site be found? One of the easiest ways of finding any website is through searching for them on search engines (Jelassi and Enders, 2008). Search engines like Google, MSN and Yahoo are good options if one wants to easily find a website on the internet. Carsdirect.com can be fund on any of the search engines by typing the words “carsdirect.com”. On the Google and Yahoo search engines, such a search will bring the website as the first result. However, words such as “online car sellers” and “online car dealers” will also lead one to find the website, though not as fast as searching using “carsdirect.com”. Online directories are also authentic sources for information regarding various online businesses (Jelassi and Enders, 2008). The carsdirect.com website can be found in many online directories which contain information on online car dealers. An example of a web directory where the website can be found is iNeed and ShopSmart. Other than online directories, other places where the website can be found are on website ranking sites. These include Alexa, Quantcast, compete and eBizMBA. A simple search in these websites will give positive results for carsdirect.com. Since carsdirect.com is ranked as one of the best car websites by many ranking companies, it is not difficult finding it. The Security of the Site Security is one of the most important issues for e-businesses. Normally, e-businesses tend to face higher levels of risks than the traditional brick and mortar businesses. This is mainly due to large number of people who have access to the online business when compared to those who have access to the other off line businesses (Shaw, 2001). At carsdirect.com, there are various security solutions in place so as to ensure that the integrity, authenticity and privacy of the website are protected at all times. Some of the security aspects found on carsdirect.com include: internet or cyber security and virus protection. These also happen to be the most vulnerable areas in terms of risk and the need for protection (Smith, 2004). The website also offers a comprehensive statement outlining the terms of its use. Some of the issues covered in the Terms of Use include: visitors’ rights and the company’s responsibilities, terms and conditions, disclaimer and limitation of liability. In short, the Terms of Use statement highlights the rights of the visitor to use the website, and the responsibility of the company itself to ensure that all the content is and updated and as accurate as possible. There is also a disclaimer to warn customers of the risks involved in e-business. It is also in the disclaimer where the business reaffirms its right to “change or discontinue at any time any aspect or feature” of the website (Carsdirect.com). Carsdirect.com has also put up measures for physical security on all the pages on the website. This includes keeping all information regarding customers such as their phone numbers and credit card numbers confidential. The website has a customer protection policy that restricts “access to non-public personal information” about customers only to those staff members who are authorized to access such information (Carsdirect.com, 2011). The website also has a mechanism of assessing new technology so as to protect sensitive information on a continuous basis. The e-business also makes use of high level anti-virus programs to keep their system secure from malicious hackers (Smith, 2004). How Customers Are Attracted To the Site Carsdirect.com has a heavy presence in all major social network sites. This is an important place to find potential customers and to keep the existing customers interested in the products available. The website also contains some catchy content which not only attracts a large number of customers, it also serves as the tool the business uses to retain the customers that it already has. The content is not only simple; it is also quite clear and does not bit around the bush when communicating a point. Most of the content found in the website contains Search Engine Optimization words and phrases which makes it for customers to find it in search engines such as Google and Yahoo. The Intended Customers of the Site Being an online business, the website’s customers come from all over the world. However, the niche market that the website target is the adult group whose ages range from 16 to 50 years. This is evidenced by the types of cars that are sold on the website. For instance, there are low cost models, and some second hand cars which the younger generation, aged between 16 and 24 years, can buy. There are also top of the range cars which are on the higher side of the price range, and this are sold to older customers since they are more likely to afford such vehicles than younger people. The target audience of the website can also be classified as those who have jobs or those who have dispensable income. This are the people who have enough money to take care of their personal needs, and at the same time have some left to buy something like a car. The Prevailing Business Model The e-business model functions as a description of how an online company operates, how it generates income, how it provides its products to the customers and how it adapts to new markets and techniques. In this case, the business model followed by carsdirect.com is the storefront model. In this model, the e-business has features that include: security, transaction processing, online payment and storage of information (Currie, 2004). This model presents a situation whereby the seller and buyer interact directly. In the case of carsdirect.com, there is ample security to enable customers and visitors go about their transactions without fear that their confidential information will be leaked out to third parties. The website carries out its own transaction processing once a customer want to buy a car or get any available service offered. All online payments done by the customer are verified and processed by the e-business itself. The e-business also makes arrangements for shipping of vehicles to their customers. The website accepts different types on online payments including credit cards and wire transfer of funds. The website also has features that allow it to safely store confidential information about its customers. Carsdirect.com does not rely on third parties to make contact or deal with customers. Instead, they have mechanisms in place which allow them to communicate with their customers and potential customers directly. Features of the Site a Customer May Find Beneficial The website allows for users to review the products on offer. The visitors not only post reviews, they also make comments, ideas and suggestions which they think should be considered by the company. This is a feature that is beneficial to the customer as it allows them to give feedback as they deem fit. Communication is a very important feature in any business, and allowing customers to present their views about their experience dealing with the website is a good way of engaging them and making them feel valued. Any communication from customer is allowed, as long as it does not contain any form of obscenity or content that is illegal or defamatory. The user reviews are quite effective since they normally lead to more sales for the website. The protection level of the website is also quite high. This gives visitors to the website a reason to trust it with their transactions. There are also features for value added services such as tips on how to buy cars online and also newsletters on the latest car arrivals in the market. There are also articles that help the visitor to learn more about the cars on offer on the online car company. Among its content is an Outback News section that gives customers and potential customers a chance to know more about the car industry and information regarding different manufacturers. The website also has applications that allow customers to get insurance and loans when they want to buy a car. These value added features give the customer an opportunity to explore different aspects of the website without leaving it (Kidd, 2002). Another feature of the website that is favorable to customers is the general arrangement and design. It is a user-friendly website, which allows users to navigate through freely. The user interface is not as complicated as it normally is in many other websites (Li, 2007). One can look for whatever kind of car he wants to look at by simply clicking. The fact that there are thousands of car models to look at makes an experience surfing through the site worthwhile. The customer is also able to look for car information by making specifications by indicating the model or entering the price range of the car they want. Another attractive feature of the website is its communication system which allows for immediate and direct feedback once a customer makes an inquiry. Like most e-businesses, the website provides round the clock customer care services. This means that customers can log into the website and conduct business at any time of day or night. Features of the Site a Customer May Find Annoying or Frustrating There is too much irrelevant advertising which takes up some of the meager space that the website has for its own marketing and advertising. This can be annoying considering that many of the visitors who access the website are looking for particular products. Too much on the website only acts as an unwanted distraction, which has the potential to turn many a customer. Content crowding is also one of the things that a customer may find annoying about the website. Although it is a fact that the number and models of cars that are available for sale are very many, the website does not have to have all their details at one place. The links to other websites are sometimes too many and they can be annoying. These links are normally run by third parties in whom customers may not necessarily be interested. The website, in its terms of use, warns its customers about the presence of these links, which it claims it cannot regulate or control. The website has an infinite number of cars and sometimes it can be quite difficult for customers to find the specific cars that fit their preferences. In some cases, the pricing on some of the cars is never accurate, and this is a great put off to most customers who would want to order for vehicles from the website. At other times, the images provided for particular cars are not the accurate. When people visit a website, they expect to find the exact product that they know should be there. When a part of the content is not a true representation f the products on offer, it may put off customers. There are times when the site may have typographical errors on some of its content. Ordering, Payment and Fulfillment The ordering, payment and shipment of cars bought at carsdirect.com is quite straightforward. All that one needs to make an online order of any car is an account that has a verifiable email address. The e-business also requires its customers to accurately fill in all the relevant financial information before they are allowed to make their orders. The payment is normally in the form of credit cards. The website has a system that allows users to enter their credit card information so that they are able to make their purchases without any problem. Shipping is done on an as-is basis. The shipping costs and duration depends on the location of the customer. The further away the customer is from the physical location of the company the more expensive it is and longer is takes for his car to get to him. Overall, the services offered at the website are at a higher level than in many other websites that offer similar products. Many of the user reviews shows that customers are normally content or satisfied with the services they got. Recommendations for Immediate Improvements Carsdirect.com is an e-business that has attracted the attention of many internet visitors. However, there is still room for improvement if it wants to generate more traffic and therefore improve on its success. One of the immediate improvements that I would recommend for the website is an improvement on the layout of the content. There is too much written content especially on the opening page and this might make customers to give up on the site easily. Instead of a lot of written text, the website can opt for catchy images that will not only attract the attention of the customer, but also keep the interest of those visitors so that they are convinced and driven to make purchases (Shaw, 2009). Some images of flashy cars will definitely get the attention of the website’s visitors. Improving on the search engine optimization will also greatly enhance accessibility to the website since it will be easier for people to see it on all search engines (Kidd, 2002). Other Relevant E-Commerce Options One of the relevant e-commerce options that I would recommend to carsdirect.com would be to enhance their presence in the social media scene (Canzer, 2009). This is where a bulk of their target market can be easily found, since the website already has established itself as a reliable seller of cars, it would not take much convincing to get people to visit the website to see all the cars on offer. Another option would be to make pricing more open. Since the website has already established and made a name for itself in the industry, there is no need to be all secretive about the prices of cars available. For marketing purposes, the website can work with third party websites, where they can carry advertisements or offer links leading to the website (Chaffey, 2006). There is no refund and return policy and there is, it is not easily accessible. The company should craft a reasonably fair return or refund policy, to increase the trust level of its customers (Shaw, 2009). References Boone, L. and Kurtz, D. (2010). Contemporary Business. Hoboken, NJ: John Wiley & Sons. Canzer, B (2009). E-Business. London: Cengage Learning. Carsdirect.com. (2011). Accessed September 29: http://www.carsdirect.com/ Chaffey, D. (2006). E-Business and E-commerce Management: Strategy, Implementation and Practice. New York: Prentice Hall. Currie, W. (2004). Value Creation From E-Business Models. Burlington, MA: Elsevier Butterworth-Heinemann. Jelassi, T. and Enders, A. (2008). Strategies for e-business: creating value through electronic and mobile commerce: concepts and cases. New York: Prentice Hall. Kidd, P. (2002). E-Business: Key Issues, Applications and Technologies. London: IOS Press. Li, F. (2007). What is e-Business: How the Internet transforms organizations. Malden, MA: Blackwell Publishing Shaw, P. (2001).E-business privacy and trust: Planning and Management Strategies. Hoboken, NJ: John Wiley & Sons. Shaw, M. (2009). E-Business Management: Integration of Web Technologies with Business Models. Norwell, MA: Kluwer Academic Publishers. Smith, G.E. (2004). Control and Security of E-Commerce. Hoboken, NJ: John Wiley and Sons. Read More