Farleigh Dickinson University, New Jersey www. classiccarparts. com AN E-COMMERCE BUSINESS PROPOSAL ELECTRONIC COMMERCE Spring 2006 Professor: Dr. Valdimir Zwass OUTLINE ? ? ? ? ? ? ? ? ? ? ? INTRODUCTION BUISNESS OPPORTUNITY DESCRIPTION OF BUSSINESS ORGANIZATIONAL ASPECTS MARKETING ASPECTS TECHNOLGICAL ASPECTS BUSSINESS MODELS COMPETITIVE ANALYSIS MARKETS COST BENEFIT ANALYSIS FUTURE IMPROVEMENTS INTRODUCTION ? ? Starting and managing a business takes motivation and talent.
It also takes research and planning The reason for setting up a business on our own are for the following reasons: Self-management: It allows us to have control over our business. Financial independence: No need to depend on anybody. Creativity: Ability to implement ones own ideas and do something unique. Putting ones knowledge to test: The ideas gained from previous experience can be put to good use. ? ? ? ? BUISNESS OPPORTUNITY ? Our entrepreneurial business opportunity in the field of ecommerce is the elling of Classic/Vintage car parts online. we intend to register the domain name classiccarparts.
com The term 'classic car' is now accepted as applying to any car over say 15 years of age that has some fan base to draw upon The classic car parts industry is one of the fastest growing industry in north America. ? ? ? ? The reason for selecting the business of classic car parts is as follows ? Not many people know where to get parts for a particular model ?Parts are not easily available to the customer in the open market DESCRIPTION OF BUSSINESS ? The purpose of this site is to allow users to look for parts offered for sale ? It allows for a company to advertise their product and/or services prominently on whichever page that best fits with their business. ORGANIZATIONAL ASPECTS ? The success of an e-commerce company will depend not only based on its product, but by having a well-organized business structure and a secure, well-designed website. ?Providing a 360-degree view of the customer relationship, defined as ensuring that all employees, suppliers, and partners have a complete view, and the same view, of the customer Constructing a commercially sound buisness model,this is one of the most important organizational aspects of any buisness. ? ? Engineering an electronic value chain in which one focuses on a "limited" number of core competencies the opposite of a one-stop shop. (Electronic stores can appear either specialist or generalist if properly programmed.
in this case my site specialises only in the sale of classic car parts and nothing else . ? Streamlining buisness process, possibly through information technologies. MARKETING ASPECTS ? Marketing is based on the importance of a customer to business. The two important ideas to be followed in marketing are All company policies and activities should be directed toward satisfying customer needs. Profitable sales volume is more important than maximum sales volume ? ? ? ? ? ? ? The three main ides that we will follow are Market Research: Market research will identify trends that affect sales and profitability.
Population shifts, legal developments, and the local economic situation should be monitored to quickly identify problems and opportunities. Market Strategy: A marketing strategy identifies customer groups which a particular business can better serve than its target competitors, and tailors product offerings, prices, distribution, promotional efforts, and services toward those market segments. Target Marketing: It is used to focus on one or few key market segments to maximize the return. TECHNOLOGICAL ASPECTS ? ? ?Technology plays an important part in the success of any business be it click and mortar or brick and mortar the technological aspects of my business can be classified into the following characteristics Providing reliability and security. Parallel servers, hardware redundancy, fail-safe technology, information encryption, and firewalls can enhance this requirement.
Providing an attractive website. The tasteful use of color, graphics, animation, photographs, fonts, and white-space percentage may aid success in this respect. ? ? ? ?We also plan to use the following new technologies Product feed is a file containing information about the products listed on our site. Product feeds are used by ecommerce companies to provide information about products in an online store to search engines, product comparison websites, and other similar aggregators of e-commerce information. Secure electronic transaction (SET) is a standard protocol for securing credit card transactions over insecure networks, specifically, the Internet.
E-marketing is a type of marketing that can be defined as achieving objectives through the use of electronic communications technologyBUISNESS MODELS ? It is a way of doing buisness by which our company can generate revenue to sustain itself,the type of buisness model that we are going to use is the online direct marketing model Have our own web hosting Online direct marketing: In this model our company provides products or services directly to the customer The primary methods of doing business are as follows Business-to-Consumer ECommerce Business-to-Business ECommerce ? ? ? ? COMPETITIVE ANALYSIS ? ? ? ? Business takes place in a highly competitive, volatile environment, so it is important to understand the competition.Who are our five nearest direct competitors? Who are our indirect competitors? Is their business growing, steady, declining? The next step is to know the strategy of ones competitors starting a file on each of our competitors including advertising, promotional materials, and pricing strategies. Reviewing these files periodically, determining how often they advertise, sponsor promotions, and offer sales. COMPETITIVE ANALYSIS ? Ideas for gathering information about competitors Internet Personal visits Viewing Competitors' ads ? ? ? COMPETITIVE ANALYSIS ? Some of our main competitors are Partstrain.
om Classicpartsfinder. com Classic carautoparts. com E –bay ? ? ? ? MARKETS ? ? ? ? ? A market is a social arrangement that allows buyers and sellers to discover information and carry out a voluntary exchange. The main type of market for our products would be the e market because we do not have any physical store electronic store fronts electronic malls our business falls in the category of electronic store fronts COST BENEFIT ANALYSIS ? Running cost @10,000 per month:120,000 Web Site Fixed expense one time only: 80,000 Transportation and logistics Staff expenditure: 150,000 : 70,000 ? ? COST BENEFIT ANALYSIS ? ? ? ? Inventory: 100,000 Marketing : 30,000 All costs are in dollars for one year Most of the business by our competitors get an average of 7 to 10 thousand customers a year since we are a new company we expect to get at least the minimum 7000 customers per year FUTURE IMPROVEMENTS ? We plan to add the following improvements in a few years Including auctions Creating a discussion board/chat room Currently our business is restricted to North America only in the future we plan to expand our services to other countries also ? ? ?