Introduction
This paper entails a business plan outline for an e-commerce business which will operate under the name Decca Galleria. The business entails the sale of various forms of artwork which include paintings, assorted furniture, and many other similar antique products. This entity will operate entirely as an online business, which will target both local and international customers in its operations. The business plan for this entity is highlighted in this paper, and it includes an in –depth analysis of the various components that will influence directly the success of the venture.
According to Laudon and Carol (67), the e-commerce platform is important due to a number of distinct advantages that are associated with this framework. Firstly, e-commerce enables a business entity to reach a wider global audience at minimal costs, when compared to business ventures that only operate locally. Secondly, the e-commerce platform leads to a reduction in the operating costs because it minimizes the requirement for an organization to operate a physical location. Lastly, the interaction between the seller and the buyer on an e-commerce platform enables the business to source for its raw materials and production inputs from a wider geographical scale, compared to business entities that are strictly domiciled locally (Laudon and Carol 67).
Deca Galleria will integrate two e-commerce business models into one, and this unified model will act as it primary framework for its operations. The two models in question are the Storefront Model and the Business-to-Business Model. According to Laudon and Carol (68), the Storefront Model entails the selling of the products of a company to its targeted customers through a website. On the other hand, the Business-to-Business Model entails the selling of a company’s products to other business entities through a website (Laudon and Carol, 68).
E-Commerce Infrastructure
According to Laudon and Carol (68), the e-commerce infrastructure is comprised of four distinct components that work together to deliver the necessary framework for the facilitation of business transactions. These components are the e-commerce or web application; the World Wide Web; the Internet; and finally, the Data Communication Network.
The Data Communication Network refers to the interconnection of different networks that are provided by internet service providers and which facilitate the movement of information across these networks. These networks act as a foundation stone or backbone on which the internet communications are layered and designed. Without these networks, the communication messages would not be able to reach their targeted audience due to the lack of an effective movement channel (Laudon and Carol 69).
After the Data Communication Network has been established by an internet service provider, this network is then connected to similar networks created by other providers so as to form a bigger, cross-border network. This resulting network is referred to as the internet (Laudon and Carol 70). As the name suggest, the internet refers to a combination of international data networks into a single network which enables the movement of information and communication beyond geographical boundaries.
The third component of the e-commerce infrastructure according to Laudon and Carol (70) is the World Wide Web. This component refers to the end user platform which is created by an enterprise and which acts as the access points of the information and communication which the entity wishes to relay. In the case of Deca Galleria, the World Wide Web refers to its website, which is www.decagalleria.com. Finally, the e-commerce or web application refers to the physical interface where the website is accessed by it prospective users (Laudon and Carol 70).
Online Security and Payment Systems
According to Laudon and Carol (72), there are several existing online payment systems that can be used by e-commerce enterprises such as Deca Galleria. These payment systems include the use of debit and credit cards; various established online payment systems; and finally, the use of mobile money transfer systems.
In this regard, the online payment systems that Deca Galleria will provide to its customers entail a combination of credits cards and established online payment systems. The business will provide a portal which will enable its customers to enter the details of their credit cards as they are checking-out on their purchases. These credits will be linked immediately with the customer`s bank accounts which will be credited with the total amount of the customer`s purchase. At this point, the transaction will have been completed and the customer will be able to take ownership of the goods that they will have purchased.
The second payment option which Deca Galleria will avail to its customers is the use of various online payment systems that are supported by related companies. These payment systems include MoneyGram, Payoneer, Money Bookers, PayPal and Western Union, among several other similar systems. Some of these systems are linked to bank accounts, whereby the payee`s account is credited with the amount of the purchase once the transaction is initiated. Other systems are entirely independent of any financial institutions, and they will collect these payments on behalf of the company. In this regard, Deca Galleria will enter into partnership agreements with these companies so as to avail a variety of online payment options to its targeted customers.
E-Commerce Marketing Concepts
According to Laudon and Carol (80), there are several marketing concepts that are used by e-commerce enterprises to advertise their products and to reach their targeted consumers. These strategies include search engine optimization, email marketing, social media marketing, affiliate marketing and content marketing, among many other similar strategies. Deca Galleria will apply several of these strategies in marketing its products to its targeted customers. The strategies that the company will use are highlighted below.
The first strategy which will be used by Deca Galleria in its marketing activities is email marketing. This strategy entails the preparation of a sales pitch, which is then sent to the prospective customers through their email addresses, inviting them to purchase the products of the company. Deca Galleria will employ an email marketing consultant who will oversee this strategy.
The second strategy which the company will employ in its marketing activities is the Search Engine Optimization approach. This strategy entails the linking of the company’s website to certain key words that are used by web users in search engines such as Google to search for specific information about certain products and services. In this regard, Deca Galleria will link its website to key words such as antiques, furniture or paintings sales and so forth. Since this strategy implies an intricate process of its design, the company will employ a Search Engine Optimization expert who will oversee this marketing strategy.
Finally, Deca Galleria will use its social media presence as marketing tool to sensitize its prospective customers on the goods and merchandize available for sale. The social media platforms that the company will use in this regard include Facebook, Twitter, Instagram and You tube among several other emerging platforms that the company will deem fit.
E-Commerce Marketing Communications
Laudon and Carol (82) have highlighted several communication channels that can be used by an e-commerce entity to relay its communication to its targeted consumers. These communication channels are directly related to the preferred marketing strategies that such an entity adopts in the course of its operations. However, an e-commerce entity can use different communication channels that may not be necessarily linked to its marketing approaches.
In line with the company’s marketing strategy of using emails to reach its consumers, Deca Galleria will also apply this mode of communication to reach its potential and existing customers with the appropriate communication, whenever the need will arise. This mode of communication is effective to the company because it is cheap, fast and it reaches the targeted audience within a relatively short period.
Secondly, the company will also apply the telephone-marketing approach as strategy to communicate any prevailing information with its existing and prospective customers. These communication methods entail the use of sales representatives who will call these customers and relay the intended messages to them accordingly.
Thirdly, the company will also use its social media pages to communicate with the customers who it engages with, using these platforms. In this regard, communication messages will be posted on the company`s Facebook, Twitter and Instargram pages so that it may reach the users of these platforms who are part of the company’s social media networks.
Finally, the company may also opt to communicate to its customers using the traditional communication channels such as newspaper adverts, television commercials and radio advertisements. These communication channels are costly and will only be used in the event that the company will have an urgent message which will have to reach its customers within the shortest period possible.
Ethical, Social and Political Issues
According to Laudon and Carol (90), there are several ethical, political and social issues that may affect the smooth running of an e-commerce business entity such as Deca Galleria. These issues are further compounded by the fact that these enterprises operate across geographic borders, and these operations further exposes them to operational issues that may differ from one country to another.
The first ethical issue which Deca Galleria is likely to encounter relates to the quality of its services. The company customers will expect to receive high quality services for the products that they will purchase from the company` s website. However, some logistical issues may arise which may compromise the quality of the services that the company will offer to some of its clients.
Secondly, the company`s operation of a furniture and artwork business may expose it to intellectual property rights issues relating to some of the merchandise that it will offer for sale to its customers. These issues may arise because some artwork is considered proprietary, and its original authors may have initiated measures that will limit its movement and subsequent resale.
Thirdly, the company may be exposed to cyber-crime syndicates that may compromise its operation by hacking into the entity`s system. These syndicates are dangerous because they may steal classified information relating to the company`s operations such as it financial records, consequently resulting in adverse effects.
Online Retailing and Services
According to Laudon and Carol (99), e-commerce businesses can adopt a variety of approaches in support of the online retailing and merchandizing services that they offer to their customers. The suitability of these approaches is largely dependent on the business`s underlying strategies in regards to its preferred method of managing its inventory.
Accordingly, Deca Galleria can adopt a variety of these retailing approaches based on their suitability to the venture. Firstly, the company can adopt the decentralized market places approach, which entails the storing of a company`s inventory in different locations. This inventory is then shipped to the customers depending on their proximity to the locations where the inventory is stored.
Secondly, the company can adopt the centralized inventory approach. As the name suggests, this approach entails the storing of a company`s stock in a central location from where it is shipped once it has been purchased by different customers, their physical locations notwithstanding.
Thirdly, Deca Galleria can also adopt the multi-channel retailing approach in the management of its stock. This approach entails the combination of a company`s web presence with a physical location to match it. This combination enables the customers to decide where they prefer to collect their online purchases based on how convenient these pick-up points are to the customers.
Finally, Deca Galleria can also opt to enter into partnership commerce arrangements with exiting business entities. Through this approach, the customers of the business will be able to collect their online purchases from designated physical business places that are in partnership with Deca Galleria, and which may not necessarily be involved in the company`s core business.
Online Content and Media
Laudon and Carol (95) note that an e-commerce business such as Deca Galleria is primarily driven by the online content and media which its posts on its website in relation to its products and services. This content and media forms the first basis of the interaction between the entity`s products and services with the prospective buyers. In this regard, Laudon and Carol have highlighted below the four main components that the online content of an e-commerce entity must comprise of, for the entity to duly succeed in this industry.
The first quality of a successful e-commerce entity`s online content is relevance. In this regard, the content which is published in an e-commerce entity`s website must be in tune with the needs and requirements of the targeted online users. These users must be convinced by this content that the products and services in question will fully meet their needs and requirements once they duly purchase these products.
Secondly, the online content and media of an e-commerce entity such as Deca Galleria must comprehensively describe the underlying products and services that the company purports to sell to its targeted customers. This description is important because it appeals directly to the mental psyche of the targeted consumers, and they will subsequently decide whether or not to purchase the said products and services.
Thirdly, Laudon and Carol (120) add that an entity` online content and media must be displayed in a visually attractive manner that attracts and retains the attention of the targeted customers. This characteristic is important because of the high number of websites and e-commerce entities that could be selling the same products as the underlying business entity, in this case, furniture and artwork.
Social Networks, Auctions and Portals
As previously mentioned, Deca Galleria will use its social media presence as a primary marketing and communication tool with its prospective and existing customers in the course of its operations. Laudon and Carol (101) have emphasized the importance of these platforms in the successful running of an e-commerce enterprise in the current business environment.
According to Laudon and Carol (101) social media platforms provide one of the most effective and efficient communication channels for e-commerce enterprises in the contemporary business world. Their effectiveness is based on their relatively low costs of operation, and their ability to reach a large number of targeted consumers instantaneously. These platforms also provide a feedback mechanism which ensures that the entity is able to collect the necessary feedback relating to its products from the relevant targeted consumers. Social media platforms also include audio-visual features that enhance the users’ experiences in relation to the advertised products and services of an entity. Examples of these platforms include Facebook, Twitter, Instagram, WhatsApp and many other similar platforms.
E-commerce entities can also use various web portals that directly relate to the products and services that the entities offer to their targeted consumers. According to Laudon and Carol (110), web portals refer to websites that contain about other web links offering similar products and services, all collected into a single webpage.
Online auctions are also other avenues that can be used by e-commerce entities to market their products to the targeted consumers. These auctions facilitate the sale of specific products and are therefore, viable options for both the entities and their corresponding consumers who are looking for particular products and services to use in equal measure.
Business-to-Business E-commerce
As previously mentioned, Deca Galleria will integrate the Business-to-Business (B2B) Model into its overall e-commerce strategy so as to facilitate the sale of its products to business entities as well as individual consumers. According to Laudon and Carol (123), the B2B concept entails the movement of goods and services between two or more online enterprises either on a partnership basis, or through a buyer-seller arrangement.
In this regard, the B2B Model can be applied by an e-commerce entity such as Deca Galleria to manage its supply chain through the use of the decentralized market places approach of holding and delivering the company’s stock to the targeted consumers.
The B2B Model can also be used by a business enterprise to provide its customers with a variety of purchase options that further facilitate the movement of its products. These options include the collaborative commerce approach, which would enable the customers of an entity to rent the products on offer and to return them once they are through with them (Laudon and Carol145). For example, customers of Deca Galleria can rent some of the furniture and artwork on offer for certain special occasions, and return them once the occasions or events have ended.
Conclusion
This paper has outlined the business plan which will be adopted by Deca Galleria, an e-commerce entity which specializes in the sale of furniture and unique artwork. Various aspects of this business entity`s operations have been discussed in this business plan. These aspects include the company`s business model; the breakdown of the e-commerce infrastructure; the online security and payment options that the company will offer its customers; and the marketing strategies that the company will adopt. Other aspects that have been discussed in this business plan include the company`s communication approaches and the ethical and operational issues that the company is likely to encounter in the process of its operations.
In closing, it is expected that Deca Galleria will achieve it corporate goals and objectives if it duly follows the strategies and approaches that have been clearly articulated in this business plan.
Works Cited
Laudon, Kenneth, C., and Carol, G. Traver. E-commerce. New York: Pearson, 2009. Print.
