Jersey Shore Boardwalk Online Clothing Store

Jersey Shore Boardwalk Online Clothing Store

Introduction

In today's world, emergence of new technologies provides companies a way to conduct their businesses in a radical way. Electronic commerce is a platform for not just larger business but for small businesses as well to sell their products in a virtual global market. Since its emergence in mid 90s, the internet trading has significantly increased and attracted many small, medium and large businesses. The clothing industry has started using the Internet to increase business or sales, develop global customer-base, improve the efficiency of business and provides customers access to information about products. It can be seen that many large or small clothing stores are now going online to offer their customers a unique as well as convenient way of purchasing goods. Corral (2002) describes internet shopping as “the most valuable aspects of Internet shopping, as compared to store-based ad catalog shopping, are typically perceived to be competitive pricing, one-source shopping, convenience and time-savings”. Since the internet is an ideal place for small businesses to grow without investing millions of dollars, Jersey Shore Boardwalk (JSB) clothing store decides to start its website in order to increase revenue. Though starting online clothing store can be seen as an easy process, it requires enormous efforts in order to achieve desired results (Liflander, 2000).

It is important to understand that, at initial phase, focusing a specific market helps company to narrow the competition as well as utilize existing resources in a better fashion to manage marketing, advertising, purchasing activities online (Liflander, 2000). Company, going online, should also need to choose a specific product to fulfill the need of niche, which may include summer clothes or winter clothes or baby clothes, etc. Further, in order to succeed in this medium or market, it is important to analyze market situation, benefits of online business, opportunities and threats in the market by using SWOT.

SWOT Analysis

Strengths

Winter clothing is the most selling products of JSB

Local web infrastructure with global customers reach

Marketing products online will reduce marketing cost.

JSB's customers can compare the prices within a short time and without going outside.

Advertising products on the web is also cost effective.

JSB does not require more costly staff for doing business online.

Low penetrating cost.

Weaknesses

Lack of brand recognition.

Limited financial capital.

Opportunities

Opportunity to increase sales as number of Internet users is increasing at a rapid pace.

Opportunity to increase sales by offering attractive deals of leftovers seasonal items.

Websites of large or established clothing companies are also increasing numbers of internet buyers.

Opportunity to improve product or brand image.

Threats

In general, internet has no entry barrier and anyone can compete

Reluctance of buyers for online shopping internet crimes

Individuals or groups that damage the trust of internet buyers for online shopping.

Issues of product quality from out-land or global suppliers

Buying power of big or well-established clothing stores

Advantages

The most strategic benefit of online business is that company does not require huge investments at the initial stage and online clothing store can be started with lower capital. In addition, JSB's online store will be available to customers 24x7, ...