0 оценок0% нашли этот документ полезным (0 голосов)
74 просмотров12 страниц
This document provides information about a proposed online marketplace called "The Market". It aims to provide affordable online retail space for small New Zealand retailers who cannot otherwise afford their own websites. The business section outlines the vision, industry analysis, customers and their needs, products and services, suppliers, strategy, value chain activities, and key business processes for market research and product development. The overall strategy is cost leadership through competitive pricing compared to owning a standalone website.
This document provides information about a proposed online marketplace called "The Market". It aims to provide affordable online retail space for small New Zealand retailers who cannot otherwise afford their own websites. The business section outlines the vision, industry analysis, customers and their needs, products and services, suppliers, strategy, value chain activities, and key business processes for market research and product development. The overall strategy is cost leadership through competitive pricing compared to owning a standalone website.
This document provides information about a proposed online marketplace called "The Market". It aims to provide affordable online retail space for small New Zealand retailers who cannot otherwise afford their own websites. The business section outlines the vision, industry analysis, customers and their needs, products and services, suppliers, strategy, value chain activities, and key business processes for market research and product development. The overall strategy is cost leadership through competitive pricing compared to owning a standalone website.
Name Christina Lobb NetID clob579 Group Number: 419 Website Link: http://infosys1102014s1group419.blogspot.co.nz/ Tutorial Details Tutor: Day: Time: Kit-Wah Huang Friday 12pm Time Spent on Assignment: 20 hours Word Count: 1643
2
2 THE MARKET INTRODUCTION Having an online store is becoming more important for retailers as a means to generate revenue and expand their market share. Unfortunately, many of the smaller retail brands cannot afford the extreme costs of owning a well functioning website. The Market, as a centralised site for all New Zealand retailers to sell their goods, aims to reduce the costs that come with website ownership and maintenance, thus making a website possible for all retailers despite size. 3. BUSINESS SECTION 3.1 Vision To provide all New Zealand retailers with an affordable means of having an online retail presence on a seamlessly functional, centralised space; ensuring increased market share for all small retail stores. 3.2 Industry Analysis: Online Retail Industry in New Zealand Force: High/Low: Justification: Buyer power: Low There are lots of buyers in the online retail industry, especially in comparison to the number of NZ retail websites. According to Statistics NZ, 55% of New Zealanders shopped online in the 12 months prior to the survey (Statistics NZ, 2013, pg 2). This shows that there is quite a high amount of dependency, on the online retail industry, and each buyer has little power. Supplier power: Low The suppliers to the online industry are very numerous, and as such there is a lot of choice for
3
3 the firms in the industry as to which suppliers they use. For example there are many website designers in Auckland who offer a similar service. The lack of differentiation results in the firms in the online retail industry being almost indifferent towards suppliers. Threat of new entrants: Low The high start up costs in owning and maintaining a website are a significant barrier to entry. Websites can cost up to $20,000 to setup, as well as $2400 hosting fee, maintenance, data collection and advertising (Edwards, 2012). For most businesses the costs and the effort required are too much to warrant. The high cost barrier to entry is enough to deter many new entrants. Threat of substitutes: High There are many substitutes to the online retail industry, the main one being physical stores. NZ online retail sales are thought to have reached around 4% of the total market last year (Adams, 2012). As a percentage of the total sales, the online sector actually takes up a relatively small amount. The substitute of physical stores is very high. Rivalry among existing competitors: High The online e-commerce industry is competitive, partially due to the continual developments to technology. Websites often try to out-compete each other by offering such benefits as free shipping and offering premium service. The
4
4 internet forces managers to change their ideas, experiment, invent and plan constantly also to face the reality that competitive advantage can appear and disappear overnight (Yoffie & Cusumano, 1999). Overall attractiveness of the industry: Overall the e-commerce industry can be quite profitable. It is a growing market in New Zealand, with many potential buyers in every demographic. The low supplier power and low threat of new entrants increases potential profits being made. However there is still a high threat of substitutes to the industry, mainly being physical retail. The fierce competition in the e-commerce industry means that its difficult for the retailers to remain ahead of the competition. 3.3 Customers and Thei r Needs The main customer of The Market are small New Zealand retailers who would benefit from having a website on which to sell their goods, but cannot afford or dont have the time or expertise to do so. The needs of our customers stem from the fact that owning a website, while an increasingly vital part of business in the modern world, is not possible for many New Zealand businesses. According to a recent NZ survey, 97% of New Zealanders search the internet for goods and services but only 38% of retailers have a website (Brunton, 2014, p. 3). Those who dont have a website are missing out on potential revenue from those who primarily search for goods online. 3.4 The Product and Service The Market will solve the needs of its customers by creating a very affordable way for them to sell their goods online, without the ordinarily expensive costs. The Market would essentially be their own website, without the customers having to pay the costs of ownership. It would be designed and maintained by experts without any cost to the customer, resulting in a smooth-running website that would otherwise cost thousands of dollars.
5
5 The Market would draw its revenue from the customers paying a small fee to sell their goods on the website, which would be minimal in comparison to what the service would otherwise cost. 3.5 Suppliers and Partners The suppliers that The Market would need would be a website designer to create the functionalities of the website, for example Little Giant a designer who has designed websites for Mont Blanc and Yellow Pages. A second supplier would be needed to provide maintenance, such as Webtrix who charges for by-the-minute services. They would benefit our product by creating a flawless, easy-to-use and attractive website ensuring visitors are impressed and find the website usable, as well as making sure that it remains competitive by providing updates. We could partner with Googles Premier SME Partner program, which would increase our scope. They help to provide local knowledge, expertise and access to Google technology to create high-performing local campaigns (Google, 2014). We would also need to partner with the New Zealand banks in order to make online payments possible. Westpacs online payment solutions provide the ability to accept credit card transactions from your website (Westpac, 2014), as well as integration of the payment page and sensitive data management. 3.6 Strategy The Market aims towards a large segment of the market; retail businesses in New Zealand, particularly (but not exclusively) to small businesses. It could be used by any business that would benefit from having an online website, which is is not a small percentage of businesses. The Market aims to gain market share by being competitively priced. In comparison to other methods of owning a website this product is severely the price-conscious one, as the cost minimal in comparison to those required in setting up your own website. The overall strategy is therefore Cost Leadership.
6
6 3.7 Value Chain Activity The most important value chain activity for this business is Product and Technology Development. In order for The Market to remain a viable product for New Zealand businesses, and fulfil its vision, it must have the best technological features and be running seamlessly, which requires constant updates. Otherwise other websites would soon out- compete The Market and it wouldnt appeal to as large a percentage of the market, which it aims to do as part of its strategy. 3.8 Business Processes 3.8.1. MARKET RESEARCH PROCESS Our aim is to provide a seamless website, for our customers, which entails that market research must be done. This will allow us to know the needs of the customers, with respect to the product, and where changes should be made. This is related to our value chain activity because in order for essential developments to be made to The Market we must be aware of which changes are the most important to our customers.
7
7 Start Define the problem that needs to be solved, allowing for the research to be focused Plan the Research Design, allowing for structure to the Process. Market Research Process Determine the Research Sample Conduct Market Research Analyze the Results Re-form the data into meaningful information. END Marketing Department Management Information Systems- Used to make Market Research Meaningful. Process of Observing and Conversing
8
8 Start Brainstorm of Products and Ideas, to collect all potential improvements. Evaluate the Ideas to find the best ones. Product Development Process Receive Feedback on ideas from the Market Research Process Analyze the Results of the Feedback Create a Prototype of the new product or design. Test Marketing- Try out the Product or design on several customers, to receive feedback from their point of view (so the product is tailored to them) Is the Feedback Positive? Make any necessary Changes/ Improvement Launch the new Product END NO YES Product Design Department Quality Management System
3.8.2. PRODUCT DEVELOPMENT PROCESS The research conducted is crucial before developing new products. This process is important in creating new features for the product, which will ensure that it remains competitive, while taking the customers needs into account. The best ides are developed, so as to create improvements for the customers.
9
9 3.9 Functionalities 3.9.1. MARKET RESEARCH PROCESS Identify where improvements are necessary Determine customers perceptions on potential solutions 3.9.2. PRODUCT DEVELOPMENT PROCESS Receive feedback on product improvements Develop an improved product 3.10 Systems
3.10. 1. MARKET ANALYSI S SYSTEM The main purpose of this system is to determine where changes need to be made, in relation to the market. This involves the marketing team finding information on the market and customer needs, and making them available to managers. In order for the product to remain competitive the market analysis system must continuously identify potential improvements, so as to make the product usable for the customer. 3.10. 2. CUSTOMER FEEDBACK ANALYSI S SYSTEM This system is crucial for better understanding the customers views on the potential solutions to the customers needs (in relation to market analysis) and to the capabilities of the product improvements in solving these problems. Without taking into account customer feedback we would not be accurately tailoring the product to the customers needs and so would not be fulfilling our vision to provide a seamless product. 3.10. 3. PRODUCT DEVELOPMENT SYSTEM This System is involved in changing the product, taking the customers views and market analysis into account. Without any changes to the product being made then it would not be tailored to the customers needs. In the retail industry there is strong competition, mainly due to the fact that there are always technology improvements relevant to the industry, in order to keep up and remain competitive the product must be developed constantly.
10
10 3.11. Summary Table: Value Chain to Systems Value Chain Activity Processes Functionalities Specific Information System(s) Broad Information System(s)
Product and Technology Development 1. Market Research Process 1. Identify where improvements are necessary
2. Determine customers feedback on potential solutions Market Analysis System
Customer Feedback Analysis System Decision Support System
Decision Support System 2. Product Development Process 1. Receive feedback on product improvements
2. Develop an improved product Customer Feedback Analysis System
Product Development System Decision Support System
Decision Support System
11
11 CONCLUSION The Market is an online retail collaboration project, which helps to provide an easy and affordable solution for retail businesses and to the currently inefficient online model, by enabling small retailers to exploit the e-commerce revenue. Using Information Technology decisions can be better made to develop and improve the product, in order to provide retailers access to the limitless online demographic.
REFERENCES
1. Adams, C. (2012, April 30). Web-based retail sales tipped to peak. NZ Herald. Retrieved from http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10802305 2. Brunton, C. (2014). .NZ domain name research 2014. Retrieved from .nz Registry Services website: http://www.getyourselfonline.co.nz/sites/default/files/nzrs_report_2014_v7.pdf 3. Edwards, A. (2012, November 9). Setting up an online store [Totali Limited]. Retrieved from http://www.totali.co.nz/blog/post/19/2012/11/09/setting-up-an-online- store 4. Google (2014). Find a Premier SME Partner to help grow your business Google AdWords Premier SME Partner program. Retrieved from http://www.google.co.nz/intl/en_nz/ads/premiersmbpartner/advertisers- findpartner.html 5. Saha, A. (2011, March 15). Mapping of Porters value chain activities into business functional units. Retrieved from http://www.managementexchange.com/hack/mapping-porter%E2%80%99s-value- chain-activities-business-functional-units
12
12 6. Statistics NZ (2013). The online retail market in New Zealand. Retrieved from The NZ Retailers Association website: http://www.retail.org.nz/downloads/Online%20retail%20market%20in%20NZ_web.pd f 7. Westpac New Zealand Limited (2014). Payment solutions | Online & eCommerce - Westpac NZ. Retrieved from http://www.westpac.co.nz/business/payment- solutions/acceptingcards-online/ 8. Yoffie, D. B., & Cusumano, M. A. (1999, February). Judo Strategy. Harvard Business Review, pp. 70-81.