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Running Head: E-COMMERCE AT MARKET PLACE

E-COMMMERCE AT MARKET PLACE


Student Name
University
ProIessor`s Name
Course Code

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Contents

ntroduction ...................................................................................................................... 3
Profile of company ........................................................................................................... 3
History and background ................................................................................................... 3
Current Status ................................................................................................................. 4
Profile of Competitors ...................................................................................................... 5
Failure Success factors ................................................................................................... 5
Strategies Employed........................................................................................................ 6
Recommendations and Enhancements ........................................................................... 8
References ...................................................................................................................... 9
APPENDECE .............................................................................................................. 10
APPENDCE ............................................................................................................... 11
APPENDENCE .......................................................................................................... 12

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Introduction

elisicity.com was launched by Mr. Abid eli in Karachi. t was one of the best e-
commerce website on which Pakistani's could trust because of its commitment with its
clients and delivering what is promised as seen on website. From nine odd years,
eliscity is being providing services to Pakistanis enabling them to buy top class things
at an affordable rate (Hussain, 2009). One of the main attractions of this website is that
delivery is free of cost anywhere in Pakistan.
rofile of company

eliscity is originally created and launched from Karachi, Pakistan. Mr. Abid eli
is the CEO of the firm whereas team comprises of 25 individuals. These individuals are
assigned tasks in different departments as it is being mentioned in organogram in figure
1 in appendece (eli, 2009). The departments include a web developing section, an
inventory management section, online packages for courier services, finances, and for
procurement. These departments are glued up with each other so that organizational
structure keeps on functioning without any hindrance.
istory and background

eliscity was created by Mr. Abid eli who is an entrepreneur. When internet
boom came around the world in 2000, many foreign companies started to establish their
business in third world countries in information technology sector so to have cheap
programmers as compared to programming costs and other information technology

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costs in Unites States or in UK. E commerce has improved over the time in Pakistan.
Neighbouring ndia is far ahead than Pakistan related to services provided through e
business and e commerce because of government policy to pursue it on the fast track
basis (ullis, 1999). Pakistani government finally decided to draft policies which would
be assisting e commerce in the country which created a multiplier effect because as
internet and computers became easily available, people wanted to use services on
internet instead of going and purchasing things by their own presence at the shop. Mr
Abid looks into this opportunity and acted upon it which clicked masses of people as
they can now shop easily from home.
urrent Status

f we analyze eliscity status financially, goods turnover is 10.5 percent which is

quite high as compared to industry (eliscity, 2009). This shows that products are being
purchased on regular basis by the customers as they trust this website and want to
have more transaction from this platform. n third world countries like Pakistan, due to
weak law enforcement on cyber crime, people do hesitate to shop on these websites as
credit card numbers can be hacked but here both options are being given to customer;
either to pay on spot through card or pay when the goods are delivered. The latter
policy gives confidence to risk averse customers who after seeing and checking the
product can do payment on spot. eliscity makes free delivery to all sorts of clients in
main cities of all kinds but do not provide services to rural areas where address
verification is hard to make (Hussain, 2009).

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rofile of ompetitors

eliscity had many indirect competitors in Pakistan's market as nobody deals in

so much variety. f we see its product outline, it goes on from electronic devices which
includes cellular items, electronics, laptops, Music, US devices to flowers and gifts,
toys and games, hardware, beauty products, fragrance and jewellery. Even car
accessories are available at eliscity. Such a huge product line is not currently offered
by any of the competitor of eliscity.
f we look at the competitors we see that some of the main ones who are there in
the business from quite a long time have had excelled in their field but have not been
into head on collision with eliscity because the latter has a lot more to offer rather than
others who are concentrating only few products. For example myshop.com.pk has a lot
to offer only in laptops and printers but they do not deal in mobile phones or any other
product such as mp3 players or iPod.
ailure Success factors

Failure or Success factors can only be seen by the table below which clearly let
us know about the positions of different competitors in the market. y seeing other
strengths, we can fairly conjure up the status of failure or success for eliscity. n the
table 1 shown in the Appendices , we see that major e commerce sites have been
taken and they are being rated against what they are offering to their customers.

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Now when we interpret the data below we see that eliscity is the only site who
has representation in majority of categories. eliscity sells mobile phones, electronic
related items, computers and laptops, jewellery and fragrance, kitchen wear and gifts.
eliscity does not cater the needs of customers who needed things in personal care for
example shavers, beauty creams etc. Now when we see shop hive, we see that
shophive competes eliscity in two areas only, one is computers and other is mobile
phones. Shophive has no representation in other areas whereas if u visit my shop.com,
it only deals with laptops and accessories which mean that it is targeting a niche market
only.
Then if we compare tvbrands.com with eliscity, we see that the former only
deals in the products which are shown on TV and are placed for advertisement on the
internet. Also tvbrands.com only targets products related to kitchen and personal ware
because both the items are fairly and squarely advertised for females on television and
as their target market is females only which include working women and house wives
mostly, they have the mentioned products at their website. Lastly, two famous gift
shops, ethufa.com and giftwala.com have identical products on the internet but
ethufa.com differentiates itself by not selling personal care products where as
giftwala.com is indulged in marketing personal care products too on its website.

Strategies Employed

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n marketing terms, a generic strategy is being employed by eliscity.com which
targets many households and individuals from a same platform. Whereas other
websites have found their niche markets in which they hold expertise. The operational
functions behind every firm is the same which is that everyone is having a ware house,
has established a state of the art networking system which looks after order
replenishment, order booking, payment generation and service and support but the only
thing which keeps eliscity going is not to make profits only but to create a customer
network which would be beneficial for them in the long run. For this eliscity keeps itself
updated to all the latest trends which are there in the market according to customer
needs because they are maintaining a customer relationship software which keeps
them in track of all the purchases done by the customer and also keep in customer's
feedback to see what has made it go for the purchase. Also, to make eliscity the
popular online shopping brand of Pakistan, advertisements have been placed in many
retail outlets and with popular fast food outlets across the country. Also, marketing
department of eliscity keep its self updated with he changing trends in customer needs
and wants and tries that it invests in products before being notified by customers in the
market that is why whenever a new product is going to be launched for example a cell
phone or any laptop, eliscity try to have details of the product so to avoid
embarrassment when customer comes up with an order. Also, eliscity makes an initial
purchase of 25% of the new product and if the product is successful, they order more to
replenish the account. The layout of eliscity of how it works is shown in figure 2 in
APPENDCE .

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Recommendations and Enbancements

eliscity is catering the needs of customers well but it can do more

enhancements in its product line. Enhancement can be done by segregating the
business into different units with different brands because right now there is too much
crowding on its website which sometimes even misses out the main product a customer
is looking for. Too many options can really confuse a person of what to choose because
by looking at many options there is a possibility that if a customer goes for buying a
laptop, an exclusive offer at a mobile phone can lure him away to choose a mobile
phone instead of a laptop. Then too much crowding makes people less competent in
making decisions. y making units, a person would be able to choose only one product
category at a time and would be more focused on to it. Also by handling such a big
product line, a huge ware house at the moment is required and large number of people
also required keeping up things with the orders posted on the net. y segregation, every
unit would be having its own warehouse and would be responsible for the assigned
products only. Making small teams though would make handling easily and would not
put much pressure on the main team which is based on 25 odd individuals.

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References

eli, A. (2009, December 5). Rise of eliscity.com. (N. Chughtai, nterviewer)
eliscity. (2009). Yearly Financial Statements. Karachi.
ullis, D. (1999). Preparing for Electronic Commerce in Asia. Praeger.
Hussain, J. (2009, January 12). Rising nternet Activity in Pakistan. Spider , pp.
55-58.

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ENDEE I
ORGANOGRAM

I|gure 1 Crganogram

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ENDIE II

COMPARISON OF WEBSITES WITH PRODUCTS THEY ARE OFFERING

L CCMMLkCL
WL8IS1L
L|ectron|cs (Mp3
p|ayers]Iods]V|deo
Games)
Mob||e
hones
and
Accessor|es
Computers (|aptops
accessor|es]US8]r|nters)
Iewe||ery]Iragrance k|tchen Ware ersona|
Care
G|fts
8e||sc|tycompk
Shoph|vecom
Myshopcom
1v8randscompk
Lthufacom
G|ftaw|acom
1ab|e 1Compar|son of 8e||sc|ty w|th d|fferent Lcommerce webs|tes

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ENDENE III

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I|gure 2 Crder I|ow