1. Starting this business online, there are more weaknesses than strengths. The strengths might involve things like existing inventory and any brand equity that the store has built up, but there might be little of either. If the store is old-established it might have built up some good brand equity in the local community, or even from visitors if the area attracts a lot of tourists. The weaknesses are mostly a reflection of the fact that the company does not currently exist. This means that there are no systems in place to take or process orders; the website has no traffic; the brand is not strong outside of the immediate vicinity of the physical store and the company has no experience in e-business.
Moving into the online sphere carries with it tremendous opportunity. Online retail is expected to be worth $279 billion in the US alone by 2015 (Wauters, 2011). Thus, a new entrant does not need to establish much market share in order to generate significant income. In other words, the biggest opportunity is just getting into the business, because there is near limitless upside. Clothing is more of a challenge, since people like to try clothes on before they buy, so the best opportunities within the current product range are clothes like t-shirts, baseball hats and accessories that people do not need to try one before buying.
There are a number of threats to taking this business online. The first is that the competition is intense. A new player in the market cannot
I decided to use the FTI consulting Inc firm to help you understand how this FTI consulting Inc helps other businesses and small owners to create a successful online retail marketing business. The FTI will illustrate through this research how to successfully market your product online. Keep in mind, that FTI is one of many firms that can help you to make your online store a success story and that there are many ways to go about marketing your company online. I choose this FTI consulting firm, because they know how to navigate a company’s product into the online marketing world. They will help us to understand how to not only get your successful product online but how to expand your company to other medias online. What I like about this FTI firm is that they will illustrate the advantages and disadvantages as well showing you what you need to do to become one of the successful company’s online. The greatest part of online retail store is that anyone can become an online retail owner if they follow the necessary steps outline in this report and to use the FTI consulting firms’ strategies to become successful in operating an online retail store. In addition, the BigCommerce firm owned by Mitchell Harper, and Eddie Manchaalani will help anyone who is serious about starting an online company regardless of your experience and knowledge of business background.
Threats to the success of entering online sales that do not exist in a store are competition and fraud. Once a store decides to sell online, they are competing against every other clothing store on the Internet (Tattrie). On the Jersey Shore boardwalk, the competition is limited to other store on the boardwalk and immediate area. Customers there are going to be in the mood to buy there and will buy what they like from the limited places that are there. However, when shopping online, customers will be able to choose from a countless number of stores. Selling clothing online will also open the company up to more fraud. When you sell something online, you have no idea who the customer actually is. Someone might place a large order online and it end up being credit card fraud. If this happens too many times, the losses might be so great that if forces the company out of business.
With the critical prospects indicated by e-commerce, Nordstrom alongside its rivals significantly profit by online sales. This online presence permits shoppers in different nations to buy products from Nordstrom and ship them globally. This type of innovation has been extremely helpful in Nordstrom coming to a worldwide business market.
On the other hand, online businesses are a recent invention and are far from reaching a point of saturation. It is impossible to imagine a world without internet.
Online commerce was introduced to consumers in the mid-1990’s, and in the years since, it has grown exponentially. It started out virtually nonexistent and has become a multi-billion dollar industry. Nearly every retail sector has entered online commerce; clothing, electronics, home, health and grooming items, even food and groceries are starting to gain traction online. Online commerce sites rival traditional brick and mortar stores such as Walmart and Target, as well as other big-box stores. As online retailers such as Amazon continue to expand, many brick and mortar stores have been making their way online, indicative of an increasing movement towards online commerce. With more than 80% of the online population having made an online
The internet offers the potential to achieve a global market success for any business. Businesses that go online increase their opportunities to reach their target market and is cost effective when compared with other forms of marketing. It creates opportunities, benefits and challenges for a business but in the long run is worth it for the added publicity and hopefully profits. Going online has benefited many organisations including Tesco PLC. I will be using Tesco as my example of the benefits, opportunities and challenges for a business by using the internet. Tesco has operated on the Internet since 1994 and started an online shopping service named 'Tesco Direct' in 1997 which
Quick to react to market trends due to its supply chain design, operation & delivery
Regardless of your business status you are surrounded by easily accessible alternatives that could always improve upon or even help expand your business based upon delivery of the content for which you provide online.
In an increasingly digital age, I would choose to set up shop online. I would explore selling several items ranging from clothing and electronics, to food and essentials.
Industry not as attractive as before for new entrants due to impact of online shopping
There are also business related challenges like process redesign; existing processes needs to be altered and streamlined onto the new way of doing business. Technology requirements need to be considered, the business needs to find the right technology to fit its needs. When all of the above has come together, the online store is up and running, and consumers are visiting the site, we need to find a way convert them to customers, will competitive pricing be enough? And finally we have the issue of order fulfillment, to be successful we need to ensure, stock is readily available for prompt
Since the creation of the the internet over 20 years ago a lot of stuff has changed. Some things are for the better and others for the worse. My entire life I have seen the progression of the internet and what is possible with the it, I remember back to the first purchase I made on ebay and the first time I sold something to someone I didn’t know and would never meet face to face. Shopping on the internet then and now is an exhilarating experiences that is accompanied by a wait and rewarded the gratification of finally receiving a package that you waited almost two whole days for if you forked over the extra money for express shipping. If I had the opportunity to create a business using the internet as leverage I would take full advantage
Businesses in the same industry compete against each other to meet their organization goals and sustain competitive advantage over one another. But to meet those goals, it’s important for businesses to analyze their internal and external environment to allow them to come up with new business strategies beneficial to the business. Firms can use SWOT as a starting point. SWOT is a basic technique that can be used by business owners to analyze their business and industry condition (Dess, G., Lumpkin G.T., Eisner, A., McNamara, G, 2013). Using SWOT will help business owners understand the strengths, weaknesses, opportunities and threats of their business. It would help them analyze and come up
Infosys is an IT consulting company based in India but primarily doing business with North American firms looking to outsource their IT needs. With the rise of the popularity in this form of business between the United States and India, there have been several political factors in both countries that will affect the way Infosys does business. In the US, President Obama made outsourcing a hot topic of his campaign platform. With speeches such as “Say no to Bangalore, yes to Buffalo” he is looking to provide incentives to American companies to keep all of their jobs on American soil, close tax loopholes and eliminate breaks given to companies that outsource to firms such as Infosys. On the flip side though, the US government is also looking to change immigration policies to restrict H-1B visas that would have previously allowed foreign skilled technical workers to be brought in to the US on work visas. While they won’t be eliminating them, they are seeking to restrict them which would force Infosys to hire employees from the US for any work they would be doing in the country and restricting the available talent pool. Meanwhile, the government in India is making changes of their own, particularly with reforming the tax code. To encourage the growth of the Software and Technology fields the Indian government had established significant tax breaks which are now coming to an end. In addition, they have
With an online business, there would be a wider skill set and gap to fill. For example, there would be a need for IT professionals, network designers, website designers, antivirus, theft protection specialists, supply chain managers, marketing specialists, and customer service representatives. Hiring would have to be done through online forums, and staffing agencies rather than filing positions with word of mouth and local high school students.