MODULE BMG814

E-Business

Introduction1

1. Online and Offline Environments1

1.1 Selling Offline1

1.2 Selling Online2

1.3 Comparison of Online and Offline Operations2

2. How Value is created?3

2.1 Value Chain Model4

3. Recommendations4

3.1 Recommendation 15

Strengths5

Weaknesses5

Opportunities5

Threats5

3.2 Recommendation 26

3.3 Recommendation 37

E-Marketing Mix7

4. Summary9

References10

E-Business

Introduction

The product group chosen for this product is clothes. Clothes are something that is a part of every person's shopping list. The reason for choosing this category of product is that there are many retailers and manufacturers, and on top of that there is a lot of potential to enter the online medium.

1. Online and Offline Environments

The product is sold online on websites where the consumers can view the prices, and how the product looks. Apart from that, the product offers a zoom feature where the consumers can look at the product in detail. Offline the product is sold in malls, brick and mortar outlets, and retailers. The difference between the two mediums is that, in one channel it can be touched and felt physically. Online, only the sample can be viewed as to how the product looks (Kim & Forsythe, 2008, p.45-48).

1.1 Selling Offline

Offline the product is sold by the consumer selecting the product through browsing it physically, and trying it out. The customer compares the product with all the available options, and looks at the alternatives that can be purchased. Once the customer makes the final choice, he or she proceeds to the sales counter where the payment is made in cash or credit card.

1.2 Selling Online

Online is pretty similar to the offline environment, but the customer has to browse on the website. He or she cannot try it out, and has to rely on the product description and sample of how it looks once worn by a person. After finalizing the choice, the customer proceeds to the virtual checkout where either the payment is made by credit card or cash on delivery. After the product is delivered, the customer gets the product, and some companies offer the return policy if the customer is not satisfied with what they get.

1.3 Comparison of Online and Offline Operations

Marketing Mix Model (MMM) has existed for quite some time and its guarantee has tantalized the senior administration groups of first customer bundled products associations and, in the most recent 10 years, monetary administrations, telecommunications, retailers, amusement, pharmaceutical associations and a few different commercial ventures also. They are naturally tantalized in light of the fact that certain associations have tackled its potential with huge victory, while others have could not increase the noteworthy profits it offers (Constantinides, 2002, p.57-76).

Universal MMM is established in an attitude where diverts exist in magnificent segregation from each one in turn. Today's world is considerably more mind boggling as clients regularly bounce from one channel to another. Numerous TV viewers, case in point, have a tablet or cell phone available, and look in view of a commercial they've perceived. There is a need to catch the aforementioned channel impact variables while attempting to resolve how viable the channels ...