E-COMMERCE

Assignment: 1
TO: Sir Asad Ul Rehman
From: Eisha Iftikhar
Roll no: 60
Date: 29-11-18
TOPIC: E-commerce Business Model
 E-commerce Business Model
Introduction:
I am going to develop a footwear and clothing website. This retail store is one of the leading
store in Pakistan. Now the store has decided to start its business skills online and provides its material all
over the world by electronic means.

Summary:
Retail store is one of fastest growing industries of this internet era. Selling foot wear and
clothing in an online store attracts customers and it reduced cost through internet because of removal
of intermediaries.

Components of E-commerce Business model:

In Retail industry, retailer use business-to-customer e-commerce model. This is
the most commonly used business model as the producers can directly contact the customers in this
model. The main components of e-commerce business model are:

Value preposition:
Value preposition fulfills the needs of customer through company product. It is a
meeting point of customer and product.

Price: All the Products that we are going to sell through this websites must be cheaper as compared
to other websites.

Newness: In footwear and clothing, customer always like to buy which is in trend not that which is
outdated.

Reduction Risk: The basic aim is to relief the customer by reducing the risk and makes them feel safer
with the product they have purchased.

Competitive advantage:
It is a mechanism which help the organization to do better than its competitors.
Following strategies followed by us.

Focus strategy: In footwear and clothing, they mainly focused on customers requirement. what
they use and what can help in their healthier living.

Differential Strategy: They specifies to deliver product which are different from the regular ones.
They create innovation so that our product look different from others to attract the customers toward
the product.

Market strategy:
 Before starting business, plan you put how you intend to enter a new market and
attract new customers.

Promotional strategies: It is the process of advertising the product to attract the customers. They use
facebook, twitter and youtube to promote their products. They post their content on the sites for free
and in this way customers become part of the marketing staff.

Organizational Development:
Customer based organizational have been used in this website to carry out the
business plan required to run an online business. It solves all the problem that organization is facing like
technical, managerial and cultural. The main focus is on the performance of organization not the
individual. The organizational goal must be achieved so that the employees and owner also feel
satisfaction by seeing the increasing revenue of the organization.

Revenue Model:
It describe how firm will generate profits and produce a superior return on invested
capital.

 Our company use advertisement forum to promote their product and services for the revenue.
 Our company gives a certain level of product or services for free, but then charge a subscription
fee for premium levels of the product or service.
 Our company receives a fee for enabling or executing a transaction.
 Our company derives revenue by selling goods, information or services.

Management team:
The most important element of business model is management team. A strong
team gives model instant credibility to outside investors. Our company team has a very cooperative and
experienced. For competitive advantage and disadvantage skilled managers are main sources. The
challenge is to find people who have both experience and ability is to face the situation. A skilled
manager should be fulfilled the function of marketing, production, finance or operations.