Introduction to Internet & E-business
Project report described the e-business model that conducts electronic business over the internet. Exquisite Wear Ltd. adopts two e-business models, Business to Business (B2B) and Business to Consumer (B2C) model to generate revenue and expand sales area. With help of internet and websites, they can carry out their business in an effective way. Hence, both the model would be helpful for organization to improve their business methods on web. Considering this, firm should adopt new technology and reduce the dependency on traditional method that will increase efficiency and reduce cost in significant manner.
AC 1.1 Illustrate the different e-business models that can be used to generate revenue for a business
Exquisite Wear Ltd has faced several problems related to survival and decline in sales. In such kind of situation, reputed firm should appoint consultants who are specialized in Internet & E-business technology. To solve out the current problem, it is recommended that the firm adopts B2B and B2C model and offer secure e-business platform to customers. It will help organization to understand the need of them and propose better service on time (Cassidy, 2005).
B2B model: Company could use this model to offer services like buying, selling, partnering with customers and trading with other business partners in an easy way. Model helps establish firm to improve their strategy and run business on web in a successful manner. It increases the efficiency of processes and reduces cost so that it can better compete with other rivals.
Company can contract with business buyers and establish good relationship with them to create own brand identity. It can enhance sales of garment products online in an effective way. This model gives organization value-based service and provides process-centric approach so they can improve its customer’s service and digitize the communication with capturing large area (Funabashi and Grzech, 2005). Exquisite Wear Company should introduce educational and awareness building activities to successfully execute B2B model within organization.
B2C model: Established organization can adopt this model to direct selling of its products or services to consumers online. This type of electronic transaction helps garment firm to enhance its sales and deliver products or services directly to consumers in effective manner. Reputed firm can takes benefit from this model and increase their involvement in community activity so it can penetrate large targeted market in flexible way. Model works on the concept of product driven approach and has shorter sales cycle. Company focused on merchandising and purchase activities to maximize the value of the business transaction. In B2C model reputed firm can direct sales of their clothes and leather products online. Through repetition and imagination, firm can create its brand identity and target more customers towards brand (Joshi and Phippen, 2004).
Exquisite Wear organization takes decisions in proper manner with understanding the customers demand and basis and on that set, the features of products. By adopting this approach, reputed firm create their own trusted brand and improves in quality of services which they offer. Firms open online store for sale of clothes and leather products, by which they can expand their business area and attract more customers towards brands without spending so much. By doing this, it can save cost & time and cover their losses. Example of B2C is Amazon.com that offers products online and maintains strong supply chain management to fast delivery of services to customers in a well planned manner (Tanskanen, and Yrjölä, 2002).
AC 1.2 Analyze each model in terms of its capacity to generate revenue
B2B and B2C business model helps Exquisite Wear organization to enhance their sales and penetrate more customers towards brands with reducing cost. B2B model generate opportunities for survival and helps them to makes business more profitable and compatible. Company can appoint talented sales people that have proper knowledge related to products and features. In this model, it is essential to maintain good relationship with clients. This model presents flashy pictures on customer minds so they are pulled towards the product and generate growth with strong return on investment in business. This model helps firm to improve their business process on web. It increases the efficiency and cost cutting in a significant manner to reap market opportunity (König and Robinson, 2006).
While B2C require lot of updates on frequent basis and firm adopts this model to have direct online communication with customers and understand their needs. By knowing their needs, firm can improve the quality of products and increase their online sales. It helps firms to generate revenue and reduces other kinds of loses. In this model, SAS software is used that retrieve data from social media accounts and capture information by clients’ feedback. Basis on that, firm takes corrective action and improve business performance. By gathering the data, they can bring alterations in product verticals. It shows flashy photos and short descriptions about products so that customers get complete information about goods that are offered by reputed firms. By adopting this approach, reputed firm make their brand trusted and improve in quality of services which they offer. Customers can easily select products, place an order and with help of effective agreed logistics channel arrange delivery (Adrian, 2010). Reputed firm should hire community managers and social media experts to collect data proficient manner that helps them to reach targeted audience. By offering products online, firm can use their shop as a distribution or warehouse place and appoint skilled sales people. By doing this, firm takes order online and delivery of products is done to customer in a flexible manner.
Hence both models would be helpful for organization to improve their business methods on web and increases efficiency and cut down business costs in significa