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Table of Contents

1.0 Introduction .......................................................................................... Error! Bookmark not defined.
2.0 The e-Marketplace ............................................................................. Error! Bookmark not defined.
3.0 Organization ......................................................................................................................................... 2
3.1 Possible Internal Organization & Functions.......................................................................................... 2
3.2 Possible firms, suppliers, business partners ............................................................................................ 3
3.3 Possible business processes ...................................................................... Error! Bookmark not defined.
3.4 Possible technologies ...................................................................................................................... 4
3.4.1 Hardwares, Softwares & Network and Telecommunications Technology ................................... 4
3.4.2 Payment systems and security issues .................................................................................................. 5
3.5 Value of the e-business system ..................................................................................................... 7
3.5.1 Tangible benefits and alignment with company vision/mission/strategy/objective ................. 7
3.5.2 Intangible benefits and alignment with company vision/mission/strategy/objective............... 8
4.0 Possible e-business issues .................................................................................................................... 8
4.1 Security and privacy issues ........................................................................................................................ 8
4.2 Marketing issues ........................................................................................................................................... 10
5.0 Conclusion ........................................................................................................................................... 11
6.0 Reference List................................................................................................................................12
7.0 Appendix.......................................................................................................................................13



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1. Introduction
Doorstep Retails Sdn Bhd represents Malaysias largest online grocery shopping, offering a
wide selection of products for both household and corporate consumption. Inculcated in
November 2009, Doorstep provides its customers with the convenience of shopping through
its online website, www.doorstep.com.my for groceries, lifestyle products, stationery and
even catering services. The innovative shopping experience Doorstep introduced has
proved to be successful, as evidenced through its escalating revenue; earning RM1.5million
in 2010 and RM7.5million in 2011 (Singh, 2012). This was achieved by thoroughly embracing e-
commerce platforms wherein management, security, logistics, marketing, IT, customer
service and operations are integrated to reach maximum time and inventory efficiency.
2. The e-marketplace
Doorstep operates a typical pure play e-marketplace in which customers and seller carry out
different types of transactions and customers exchange goods and services for money
(Turban, King, Lee, Liang & Turban, 2012). The company conducts a private sell-side e-
marketplace, where products are offered to many individuals and businesses; a one-to-
many approach in e-commerce. Its B2B product offering include catering services and office
pantry supplies whereas household consumers can shop for groceries and lifestyle products.
Apart from its main operation of an electronic storefront, Doorstep also has plans to launch
an electronic mall in the third quarter of 2012 (Augustine, 2012). The latter is distinguished
from an electronic storefront in that it displays electronic catalogs from several suppliers or
stores (Timmers, 1998). Front-end activities in the company include electronic catalogs,
shopping cart, search engine, payment gateway and a user-friendly website. To
accommodate the operation of the business, back-end activities such as order fulfilment,
inventory management, payment processing and delivery are put into place.
3. Organization
3.1 Possible Internal organization functions
3.1.1. Finance
Computes customer bills and receipts electronically and sends it to customer via electronic
medium- in Doorsteps case, customer emails. Facility of online transactions simplifies and
improves efficiency and accuracy of transactions.
3.1.2. Sales and Marketing
Doorsteps marketing strategies include penetrating social media such as Twitter, Facebook
and others to raise awareness and promote the brand (see Appendix 1-6). Web-based
analytics and potentially, cookies are also used in online traffic monitoring and subsequently
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predict consumer behaviour. This enables Doorstep to conduct behavioural targeting and
collaborative filtering. On the other hand, graphic designers ensure that the website is user-
friendly and appealing to its customers. Once the electronic mall is launched, the sales and
marketing division will also be responsible for ad space offered to participating companies.
3.1.3. Customer Service
Apart from being able to contact Doorstep via its toll-free customer care hotline, consumers
are also able to field enquiries and feedback through its 24-hour order support website and
email. Prompt response is ensured by the company.
3.1.4. Logistics and warehousing
Doorstep implements a warehouse complete with office automation systems, thus allowing
for better inventory management. To maintain a high quality level, Doorstep refrains from
outsourcing warehousing. With an integrated system between customer order, inventory,
delivery and packing, efficiency of operations are sharpened. For example, customer orders
are immediately checked against available inventory. The delivery team is also able to
organise items based on delivery times allocated by customers, thus ensuring they deliver the
right products to the correct customers at the appropriate time.
3.1.5. Public Relations
Doorsteps public relations team deals with media communication. Examples include radio
interviews on BFM 89.9 and press releases involving Doorsteps corporate activities.
3.2 Possible firms, suppliers and business partners
3.2.1. iPay88
Doorstep has a strategic partnership with Malaysian payment service provider, iPay88,
allowing them to accept a variety of secure online payment option such as credit card,
debit card and bank transfers when customers transact with the company. iPay88 also offers
developed payment plug-in for shopping carts.
3.2.2. Large retailers
With the impending launch of the electronic mall, Doorstep seeks to form alliances with large
retailers nationwide to extend its reach to customers in Malaysia. For example, when a
customer enters his/her postcode in Doorsteps web portal, the system automatically links the
customer to retailers in that area who supply products that the customer seeks.

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3.3 Possible business processes
3.3.1 Integrated accounting platform
Customer orders and payment are automatically updated in Doorsteps accounting
platform. The integration of finance and accounting allows for accurate and automatic
generation of trade statements, thus enabling retailers to make informed and swift business
decisions.
3.3.2 Order fulfilment
This represents e-commerces key to success; being able to give customers what they want,
when they want it and how they want it with the lowest cost (Ricker & Kalakota, 1999).
Doorstep integrates its distribution with transportation planning and scheduling, thus ensuring
optimal time efficiency. Doorsteps automated inventory system also allows the company to
continuously monitor and receive alerts should inventory fall below a prerequisite level. This
prompts the company to immediately- and possibly automatically- contact suppliers for
restock (see Appendix 7).
3.3.3 Customer relationship management (CRM)
CRM oversees the aspect of customer relationships to improve loyalty and customer
retention, subsequently boosting a companys profitability (Baltzan, Phillips & Haag, 2009).
Doorstep embraces social media such as Facebook and Twitter to empower customers with
information and sales promotion, whilst incurring minimal costs. Feedback and enquiries can
also be directed to the company via discussion on Facebook or by emailing the 24/7
customer support.
3.4 Possible technologies
3.4.1 Hardware, software and network telecommunications technology
The widespread use of Internet in e-commerce can greatly reduce barriers of distance and
improve access to global economy (Graham, 2008). This is however, not accomplished
without the hardware, software and network communication technology that provides
virtual and physical integration of business components.
Hardware used at Doorsteps headquarters in Batu Caves includes computers, fax machines
and multi-peripheral printers. These machines provide Doorsteps employees with the ability
to carry out back-end operations.
Software employed at Doorstep includes web-based analytics that allows the company to
monitor online traffic and consumer behaviour. An online inventory management system is
also in place to control and oversee the level of stock-in-hand. It is further presumed that
Doorstep uses Flash and Adobe Photoshop software within its marketing department to
design appealing graphics on its Website. In addition, Doorstep implements a highly
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interactive website using Web 2.0, which provides customers the ability to share and
comment on information content in the Website, not to mention its Facebook and Twitter
account. Electronic data interchange (EDI) is also widely used in Doorsteps e-commerce
platform. EDI allows for the exchange of business documents with external entities, and
integrates the data from those documents into Doorsteps internal system, thus increasing
seamless information transfer.
The most prominent network and communication technology used by Doorstep is the
Internet, which represents the main gateway through which communication between
customer and company- and ultimately, revenue generation- takes place. Through the
Internet, customers are able to view products, conduct online transactions and provide
feedback to the company. An intranet, which employees of Doorsteps are granted access
to, allows for information sharing, collaboration, sales and customers relationship
management and project management (Bernard, 1997). On the other hand, mobile
commerce technology allows the Doorstep website to be viewed on mobile phones. This
provides greater convenience and access by Doorsteps customers.
3.4.2 Payment systems and security technologies
Doorstep offers its customers a variety of payment methods in recognition of different
customer needs and level of confidence. Three main payment methods are available; cash
on delivery, credit/debit card and Internet transfer.
Cash on delivery is the safest method from the perspective of the customer, where financial
exchange is done at the time of actual delivery of products. An issue that arises from this
payment method is fraud and prank callers. To mitigate the problem, Doorstep requires a
credit card number before a delivery is sent.
Doorstep supports credit and debit card payment to keep up with the increasing usage of
such payment methods online. Stringent rules such as security protocol and procedures
applied by credit/debit card issuers such as MasterCard and Visa must be complied with by
Doorstep. This may include having a certificate from an authorised certification authority
(CA) who provides PKI infrastructure for securing credit/debit card transfer. In addition,
Doorsteps credit card payment system requires customers to obtain a pin number from
respective issuing banks before confirming the payment (see Figure 1). To enhance
customers level of confidence in transaction with credit/debit cards, Doorstep also includes
the verified by Visa and Mastercard Securecode logo on their website (see Figure 2).


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Figure 1: Pin code request prior to confirming payment via credit card.
Figure 2: Payment security in Doorstep.
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3.5 Value of the e-business system
3.5.1 Tangible Benefits and alignment with company vision/mission/strategy/objective
Doorstep gained tangible benefits such as time and cost efficiency. Shopping online reduces
the need to print catalogues and excessive packaging, thus reducing cost. Furthermore, the
Go Green concept Doorstep practices reduces the need to provide plastic bags as
groceries will be sent to customers doorstep in a huge basket- another cost saver. Effective
management by the company also reduces the need to hire excessive employees; Doorstep
has a medium number of staff and a management team, which has more than 34 years of
experience in retail and customer management locally and internationally. All these align
with the companys vision of being a cost-efficient company.
The e-business system further enables Doorstep to enhance its customer relationship through
viral marketing via social networks. For example, Doorstep posts special coupons and
announces latest sales on their Facebook page. It also manages a blog in their website,
where information on current product offerings, media news and also guest bloggers are
featured to write a review about Doorstep. These will concurrently increase interaction with
customers and instil brand awareness. Newsletters will also be sent to keep customers well-
informed. Furthermore, Doorstep runs a loyalty programme to award redemption points to
customers, in line with their visions to build an affirmative customer relationship base.
The e-commerce platform that Doorstep operates also reduces the amount of variable costs
such as rental and electrical fees and excessive amount of staff. Cost savings will be instead
allocated to hiring experienced staff. For example, Doorstep hired a former Tesco UK
personnel with experience in handling online services. This would help Doorstep learn the
best methods to reduce mistakes in e-business. A strong logistics team also entitles Doorstep
to greater control over delivery where in-house handling provides an added advantage of
efficiency when dealing with customers. Indirectly, these cost savings through better usage
helps Doorstep garner more profits. Apart from that, Doorstep also serves as a B2B website
delivering goods such as pantry supplies and office equipment to companies. The nature of
companies who buy in bulks also increases Doorsteps profits. Therefore aligning it with their
vision to maximize long time return to shareholders and employees whilst maintaining value
for customers (Doorstep, n.d)



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3.5.2 Intangible benefits and alignment with company
vision/mission/strategy/objective
One of the intangible benefits gained by Doorstep is high quality of work life which is
described as one that includes a challenging, interesting and responsible job.
Communication is the key for Doorsteps success where the company practices downward,
upward and horizontal communication (Simpson, 1959). Downward communication in
Doorstep provides a channel for directives, instructions and information to organization
members. On the other hand, upward communication allows Doorsteps staff to provide
feedback of information to the top management. Finally, horizontal communication allows
Doorstep to enhance coordination. Through effective communication, employees have
greater inclination towards their work and take initiatives to speak out and are heard.

Doorstep strives to improve customer service by providing a customer service hotline and
email account specifically for customer service and technical assistance. Doorstep also
provides a page on Frequently Asked Questions (FAQ) to assist customers. This aligns with the
companys mission to offer products with exceptional service. Besides that, Doorstep also
employs highly trained support and delivery staff to fulfil customers requested time slot for
delivery via use of trucks/vans. These vehicles will make one round trips to cover specified
routes. Indirectly, it also reduces environmental impact.

Furthermore, Doorstep would be able to improve their strategic position where it allows
people to shop 24hours a days, 7 days a week from their homes. Online shopping provides
Doorstep customers easier product navigation in a short span of time. This provides a
competitive advantage over offline grocery stores such as Carrefour and Giant. This would
be able to align with their mission of being indispensable to customers as their hassle-free
alternative (Doorstep, n.d.).
4. Possible e-business issues

4.1 Security and privacy issue
The threats faced by Doorstep are not the same as those faced by storefront operations in
terms of method, scale and geographical area. Keeping up with risk is challenging due to
Internet technology moving at a rapid race. These can happen due to developments made
without careful consideration to security. Alan and William (2002) state that an important
security issue in e-business is buying, selling and transacting money via Internet. One of the
issues is primarily privacy and confidentiality. Since data travel over the Internet goes through
numerous intermediary sites and routed considerably before reaching the final destination,
information might land in the hands of wrong persons.
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Another issue Doorstep faces is theft and fraud. Many companies do not have adequate
control to prevent and detect potential breaches. This would pose threat to Doorsteps
customers as personal or credit card information and passwords could be obtained.
However, this can be mitigated by implementing security plans such as card verification
number (CVN). Here, fraud is detected by comparing the 3-digit verification number the
customer gives with the information from the cardholders issuing bank (Ratnasingam, 2003).
Besides that, safe harbor rules offer services such as feedback forum, insurance and ID
validation could be implemented into the system.
Doorstep could also face denial of service attacks which would bring down the service
offered to customers. This would eventually cause losses of revenue when a companys key
transaction server is brought down and customers cannot place orders, ultimately leading to
negative publicity. Another concern for Doorstep is repudiation where business or customers
deny that they made the transaction which in reality they did. This is hard for Doorstep to
make verification in this issue thus proper controls are needed to ensure integrity and non-
repudiation.

Doorstep mitigates these risks by assuring customers that they provide a safe and secure
purchasing environment through strict security and privacy policies with no hidden cost and
ensures confidentiality and security during purchase (see Figure 3). Besides that, Doorstep
would not store customers credit card information as all transactions are handled by trusted
merchants approved by banks. Customers also have the option of paying cash on delivery
with a minimum RM50 order.
Figure 3: Doorsteps security of information.
Source: http://www.doorstep.com.my/

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4.2 Marketing Issues
It is important for Doorstep to assure customer satisfaction of the quality and freshness of its
products to ensure repeat purchases (Zeithaml, 1993). Customers would only return to
Doorstep and repeat purchase again if they believe that the site is the best option in
purchasing goods and whether they feel a connection to Doorstep. This connection is a
function of web design, as customers see and interact with a company via the web
interface (Kaplan & Norton, 1996). Therefore, Doorstep has been adopting systematic Quality
Control System of product supplies to keep them fresh.
Doorstep also faces marketing issues such as consumer trust. Mukherjee and Nath (2007)
state that trust is the central tenets in building successful long-term relationships in e-
businesses. Companies need to convince the public that shopping online is a safe method
as they might face user resistance. This is due to some companies not fulfilling their promises
in delivering goods. Therefore, Doorstep requests some loyal customers to post testimonials to
reduce new customers doubt.

In tandem with the growing demand of shopping online, the number of retailers providing
online services has also increased. Doorstep faces competition as customers can easily
compare prices and find alternatives over the Internet. Besides that, traditional hypermarkets
such as Giant will remain one of the competitors as goods are perishable and would reduce
the risk of getting default goods. However, Doorstep mitigates this issue by using Quality
Control System, which reduces the level of default goods.
The other issue of Doorsteps delivery coverage is shown in Figure 4. Doorstep has not fully
penetrated the whole Malaysia, thus limiting their exposure to public. However, Doorstep will
try to widen their scope of delivery to create brand recognition.
Lastly, segmentation is another key issue for Doorstep. Since the older generation prefers
purchasing goods from traditional grocery stores, Doorstep should target the younger,
working adults and technology literate generation. Therefore, it is vital for Doorstep to
strengthen their marketing efforts to better reinforce their presence as an online grocery
leader by using strong advertisement and also better educate the public about the benefits
of online shopping (Fulgoni & Morn, 2009).

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Figure 4: Coverage regions by doorstep.com
Source: http://www.doorstep.com.my/

5. Conclusion

As the dust from the boom and bust has settled, we realize that e-business didn't bring the
hyped overnight revolution, nor did it die with a whimper. Instead it brought about a
fundamental evolution in the way Doorstep operates and conducts business with their
customers. Online shopping is one of the best remedies for time and cash management,
especially during festivals. The convenience of online shopping is not easily beaten. Not only
can customers easily check the pantry to see if they have forgotten anything important, they
can modify the virtual cart easily right up until they go to the checkout page. Most
importantly, it has been found that there has been a positive change in customers
perceived trust and satisfaction with Doorstep. However, it is crucial to provide value to the
customers through service and goods provided, improved customer service, build customers
trust, avoid the misuse of technologies, protect customers privacy and maintain the
companies reputation. In conclusion, in order to create an effective infrastructure for
securing e-business, Doorstep also had comprehensive development of several elements
including laws, policies, industry self-regulation, technical standards and law enforcement
which are the key elements of their success.
(2310 words)
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6.0 Reference List

Alan, D. S. & William, T. R., (2002), E-Lending: Foundations of financial and consumer
marketing in an information intensive society, Journal of e-Business and Information
Technology, 3(1), 5-19.

Augustine, S. (2012, February 10). Foot in the door. Malaysia SME, p 22-23.

Baltzan, P., Phillips, A. & Haag, S. (2009). Business Driven Technology (3
rd
Ed.). United States of
America: McGraw-Hill Irwan.

Bernard, R. (1997). Corporate Intranet (2
nd
ed.). USA: John Wiley & Sons Inc.

Fulgoni, G., & Mrn, M. (2009). Whither the click? how online advertising works. Journal of
Advertising Research, 49(2), 134-142.

Graham, M. (2008). Warped geographies of development: The Internet and theory of
economic development. Geography Compass, 2(3), 771-789.

Kaplan, R., & Norton, D. (1996). The balanced scorecard translating strategy into action.
Boston: Harvard Business School Press

Mukherjee, A. and Nath, P., (2007), Role of electronic trust in online retailing: A re-
examination of the commitment-trust theory, European Journal of Marketing,
41(9/10), 1173-1202.

Ratnasingam, P. (2003). Trust and Business-To-Business E-Commerce Communications and
Performance. Advances in Business Marketing and Purchasing, 12, 359434.

Ricker, F. & Kalakota, R. (1999). Order Fulfillment: The hidden key to e-commerce success.
Supply Chain Management Review, 8(11), 60-72.

Simpson, R. L. (1959). Vertical and Horizontal Communication in Formal Organizations.
Administrative Science Quarterly, 4(2), 188-196.

Singh, K. (2012, May 25). Doorstep puts e-commerce in bold. Digital News Asia, 8.

Timmers, P. (1998). Business Models for Electronic Markets. Electronic Markets, 8(2), 3-8.

Turban, E., King, D., Lee, J., Liang, T.P. & Turban, D. (2012). Electronic Commerce 2012 (7
th

ed.). USA: Pearson.
Zeithaml, V., Berry, L., & Parasuraman, A. (1993). The nature and determinants of customer
expectations of service. Journal of the Academy of Marketing Science 21 (winter): 1-
12.


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7.0 Appendix


Appendix 1: Sales and marketing function of Doorstep; advertising on Facebook and Twitter.




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Appendix 2: URL marketing used by doorstep in search engine


Appendix 3: Radio Advertisements and TV commercial.


Appendix 4: Advertisements on tax

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Appendix 5: Viral marketing used by Doorstep (Facebook, Twitter, Blogger)


Appendix 6: Mass media marketing advertisements












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Appendix 7: Oder fulfilment process in Doorstep.



Customer logs into
Doorstep account.


Customer selects and
adds desied product into
shopping cart.

Online inventory system
checks for availability of
stock.
Customer proceeds to
checkout. Delivery
address is verified and
delivery time slot is
selected.
Customer confirms order.
Email with order details
and confirmation number
is sent to customer
Customer selects
payment mode: COD,
credit/debit card, bank
transfer.
Doorstep's warehouse is
notified of new order.
Items are packed and
sent to delivery dock for
collection.
Doorstep's delivery van
collects the parcel and
sends to the customer.