Moncler Store e-business
Explain how the e-business Value Networks Operate
E-business is the use of information technology to manage and operate a business by using the internet to interact with external business partners and conduct other activities that are relevant to the business structure. In particular, it involves conducting business processes over the internet to enable the smooth running of the strategic activities that are essential to the continuity of the business. The e-business models explain how the company operates, how the services offered are to be delivered and how new and emerging technologies are too adapted to support the necessary departments with the overall strategic goals in mind.
Value networks are the departments and persons used to do any work or act as salespersons and by extension create plans and strategies that benefit the whole company (Amit and Zott, 2001, p. 496). It symbolizes an ecosystem and the experts in the field for presentation mapped it out several times. The relationships in a value network are symbiotic as the participants somehow benefit from each other in the network. Thus, if any of the participants in the network lags behind, then the whole chain might suffer the consequences of the same.
In a value network, the most important components are the goods, services and revenue, and intangible benefits that cannot be conclusively determined but are essential to the operations and strategic goals of the business. Different departments work together to achieve a value network in an e-business environment. Several value exchanges that are the driving force of a value network are supported by predetermined mechanisms that aid their transactions and make them a success. A department, for example, the sales, and advertisement department works with relevant government agencies to engage and collaborate with the company on various public events and occasions. Moreover, it collaborates with third-party individuals for the supply of necessary materials and talents. The department creates a good and reputable image for the company and in the process generates more revenue to the company and helps the society through corporate social responsibility and creating more jobs for the locals contributing to a reduction in unemployment in the economy; this is a value network.
Assess the Role of Macro and Micro Economic Factors on the e-business Environment
For every e-business, there are micro factors that are internal to the firm and there are macro factors that are external and beyond the control of the business itself. Both types of factors affect how the e-business operates and determines their strategic objectives in the long run.
In addition, the microenvironment factors are suppliers to the business, customers, competition, and the local population where the company operates. The suppliers hold a strategic position in the industry as they provide the goods for sale to the customers and they profoundly determine the perception of the buyers by the quality of the goods they deliver. The customers are another core factor as they can either be B2B or B2C and their product perception and their reason for buying their hugely determine how the marketing and sales team approach their target market and packaging of the products. The competitors in the e-business market niche need to be appreciated and taken care as they are the sole threat to the revenues of the company and their selling strategy regarding packaging and price needs to be noted and a counter strategy provided to guarantee business survival.
Furthermore, the macro environment is external to the firm, and its control is highly limited to the business itself. Some if the factors include demographic, economic factors. Technological factors, political and legal factors and even the social and cultural forces that are hugely in play. The demographic forces are a fundamental pillar on the macro environment because it determines where the business is selling its products and the target market (Berthon et al. 2008, p. 708). The technological factors are a key factor that I external to the business as it hugely determines how the e-business platform employed by the company operates and how new emerging technologies are going to be embedded in the business model and be able to work towards the common objective of the company. The social and cultural forces also determine in a big way the types of products sold to a particular people as the perception of a particular region will reflect the revenues and opinion generated by the products. The legal forces also apply to the business as the rules and regulations meted out by the respective government agencies determine how the business will operate.
Formulate, Develop, and Evaluate an e-business Strategy
A business strategy is an essential tool for any online business as it defines accurately the short-term and long-term objectives targeted by the business. It involves a lot of skilled planning to ensure realistic goals are formulated and met in the long run. The company could formulate and develop many strategies to help the company achieve the set goals in the long-term.
One of the key strategies that a company should formulate and develop is an advertising strategy that will see the company access more customers and eventually increase its revenues (Olson, Slater, & Hult 2015, p. 49). One of the most successful ways to advertise an e-business is by offering promotions to attract customers. The company would be required to come up with a good deal as customers love offers and would be an excellent way to generate more visits to the company websites and consequently more sales and revenue. This is an ideal manner to reach a target audience, say athletes who need to buy perfect shoes for their training, by offering them good deals at lower prices and quick delivery of quality shoes that will ideally help in attracting them and making them buy the shoes. These promotions would popularize the business and generate more sales and revenue boosting the company image overall and making it more pronounced generally.
Formulation
E-Procurement Strategies
The electronic procurement strategies are a good start for any given business entity. The formulation of the policies follows a given set of protocols based on a code of ethics that is applicable and acceptable in the business world (Tran et al. 2011, p. 133). The recommendations that govern the implementation of the strategies include the e-procurement system requires the formulation of a national procurement website for the Moncler Store to act as a gateway for the procurement activities involving the entire team of suppliers, buyers as well as the public affiliated with the company (Tran et al. 2011, p. 133).
Secondly, to cater for the general procurement procedures, it is imperative to devise a content of the management framework to make information accessible to the desired parties through the national website (Tran et al. 2011, p. 133). As a result, all people will get to know the progress of the various systems relating to an organization because through the public platform information can reach a wide area.
Thirdly, the management of the website takes place at the highest office or the headquarters of the company to ensure uniformity and an organized way of doing procurement related activities (Tran et al. 2011, p. 135). Additionally, the website should serve the various purposes, for example, the information regarding the tenders for the supply of the different necessities.
Additionally, to implement the management as well as the facilitation of the catalog management systems, the implementation models deemed and proved suitable to serve the purpose should take priority, and effected after the creation of the website (Tran et al. 2011, p. 135). In that connection, the management of the Moncler E-business should assess the subsectors of the company, to get a shared transaction support e-procurement system that enables the operations of all the branches of the business at the same point.
Finally, the company should come up with an e-procurement standards working group to run the activities for the company on an online platform and manage the platform, making changes whenever possible (Tran et al. 2011, p. 135). Under the national operations unit, the management team for the company needs to assess the website and all the affiliate subsystems to ensure that they are operational and in line with the governmental regulations about the electronic systems for businesses.
E-marketing Strategies
The formulation of e-marketing strategies for an e-business like Moncler stores can follow the following procedures (Tran et al. 2011, p. 136). To begin with, since the company is already in operations, a recommendation regarding the sale of the clothes involve the strict adherence to its vision which a statement written down to guide the endeavors of the company concerning its business operations.
Secondly, it is a valuable recommendation the management of the company considers studying the external environment of the business, to know the weak points of the company as well as its strengths and identify the opportunities that the competitors can take advantage and fill the gaps early enough (Tran et al. 2011, p. 137).
Thirdly, an e-marketing system should involve the combination of the vision, mission, as well as the company profile to place the entire information about the company on an online platform for access by the various groups of people and organizations that use the internet to seek various services as well as marketing their products (Van 2012, p. 81).
Additionally, it is prudent to recommend that the Moncler e-business gets to decide on a budget and allocate resources to the electronic endeavors, to acquire a larger market capture based on the short-term plans of the business (Van 2012, p. 81). Such an initiative will enable the smoother operations of the online platforms as well as the website created in the e-procurement section of the business.
e-CRM Strategies
The best technique for the formulation of the e-CRM strategies for an electronic business like the Moncler stores involves an understanding of the customers (Van 2012, p. 81). Some customers like buying items on an online platform and some are too aggressive such that the slight delays in the process of the delivery of the commodities cause them to feel demeaned.
After understanding the customers that the business is dealing with, the information technology department of the organization needs to improve the infrastructure to save time and get to capture a larger customer base due to its reliability and punctuality (Van 2012, p. 81). Thirdly, an e-CRM needs the company to understand the various organizations in its line of business, for example regarding their frequency of purchasing the clothes, as well as the specific types of clothes they take in large amounts.
Additionally,it is recommendable that the management develops the commitment required to enable them to get involved in every step of the business for a better performance of the company, getting to assess the effectiveness of commodities like the proposition charts in going about various activities within the organization (Grant 2016, p. 36).
Finally, the regulation of the information technology outsourcing (ITO) procedures is necessary to ensure that the competitors do not copy the innovations generated by the workforce of the company (Grant, 2016, p. 36).
Evaluation of the Strategies
Firstly, the e-procurement strategies are part of the e-business strategy because it is a good platform for operating the various business sectors, for example, the allocation of tenders are adequately achievable through an e-procurement system (Grant 2016, p. 36). Secondly, the e-procurement system will enable the management as well as the other stakeholders of the company to track the operations of the various segments of the electronic entity (Grant, 2016, p. 37).
Concerning the e-marketing strategies, they make an important section of the e-business by enabling the Moncler stores to explore larger markets as well as the various market segments through advertising the commodities in an online platform (Grant 2016, p. 39). An e-business cannot perform well if the online marketing platform is poorly developed hence failing to cater for most people who spend their time browsing the internet in the contemporary era of technological advancement (Van 2012, p. 83).
Additionally, the E-CRM system is a sensitive part of the e-business strategy because it is a better way of improving the customer relationships with Moncler Stores from all over the world. An excellent customer relation means a strong financial base for the company because it will be able to make more sales within a short span of time (Grant 2016, p. 40).
Conclusion and Recommendation
In conclusion, the e-business is a global business. Therefore, it is imperative that better strategies apply, to ensure that the Moncler stores can serve its wider customer base, regardless of their location and distance from the stores (Grant 2016, p. 40). In that connection, it is prudent to recommend that, the Moncler stores distribute the clothes to the various countries all over the world, to deliver the goods to its customers immediately. Most importantly, suggesting that the strategies mentioned above get to apply immediately, to effect a better performance of the e-business (Van 2012 p. 83).
Reference List
Amit, R. and Zott, C., 2001. Value creation in e‐business. Strategic management journal, 22(6‐7), pp.493-520.
Berthon, P., Pitt, L., Cyr, D. and Campbell, C., 2008. E-readiness and trust: macro and micro dualities for e-commerce in a global environment. International Marketing Review, 25(6), pp.700-714.
Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.(37-45)
Olson, E.M., Slater, S.F. and Hult, G.T.M., 2005. The performance implications of fit among business strategy, marketing organization structure, and strategic behavior. Journal of marketing, 69(3), pp.49-65.
Tran, Q., Huang, D., Liu, B. and Ekram, H.M., 2011. A construction enterprise's readiness level in implementing e-procurement: A system engineering assessment model. Systems Engineering Procedia, 2, pp.131-141.
Van den Mooter, G., 2012. The use of amorphous solid dispersions: A formulation strategy to overcome poor solubility and dissolution rate. Drug Discovery Today: Technologies, 9(2), pp.e79-e85.
