E-Business Planning Report

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ABSTRACT

This project will look into the intricate details associated with the development of an e-business; it will try to identify business models, revenue models and collection systems, network and communication infrastructure necessary to operate an electronic business, along with legal and other issues involved. The findings of this project will hopefully prove to be a vital resource for all business looking into adopting an e-business model and implementing e-commerce business technologies.

INTRODUCTION

As the world has become a global village over the past few decades, it has become immensely important for the business to remain viable. This can be achieved by creating an online presence in order to remain accessible. By an online presence, a business can increase its chances of having more customers. Also it enables the business to fasten the speed with which it conducts business by reducing the time involved. It enables a business to reach large customer markets, provides a medium for online support to retain the customers, as well as enables a business to compete more efficiently with fewer resources utilized. Conducting business over the internet is especially an effective tool for small and medium enterprises. It helps them to run a business with fewer costs involved while making huge benefits (Johan, 2009).

E-BUSINESS BUSINESS MODEL FOR AUSNAT

As AusNat is a SME company that has its own business and requires extensive coordination with its suppliers dispersed across regional boundaries as well as enhance its online retail business. Therefore it requires creating a dual e-business model to entertain both its suppliers as well as its customers. This means that AusNat requires creating a business to business and a business to customer model. As a B2B model, AusNat has to establish a NET MARKETPLACE in order to connect to its suppliers. The type of business model that will be required to connect AusNat with it suppliers and growers while creating new channels for online sales and marketing is “E-distributor”. According to this business model a single company creates an online channel to mange supplies. On the converse, it requires to maintain an online network with the customers to carry out the functions of sales and marketing. For this reason it will have to establish an e-tailer network. According to this business model, as the company has a store for selling its products and in support of which it creates an online retailing store to increase its sales. This kind of retailing is attractive to customers who are time starved and prefer online shopping to save time consumed in shopping. This business model is product based and involves obtaining the price of the product to the customers (Laudon and Traver, 2007).

REVENUE DERIVED BY E-COMMERCE BUSINESS

The e-tailer sector is highly competitive and has numerous online retailers for each single product creating an intense competition among the retailers. However as this sector does not require much start up cost therefore the barriers to entry are low. It is because of this that to remain profitable in such a business ...