Unit 4 Business Studies
Unit 4: Investigating Electronic Businesses
In this unit I will be comparing two existing businesses which I will be choosing and in the comparison I evaluate whether they achieve their business aims and objectives of having an online presence. In the second part of my coursework I will be recommending some improvements which are to be made for one of the businesses, and I will also highlight some factors which influence a business to open themselves up to online trading. And finally I will be also designing a new website for a new business and planning the creation of the new website.
Electronic business is:
“Electronic Business, or "e-business", may be known as a business which relies on an automated information system; today this is done by web-based technology. The term "e-business" was put together by Lou Gerstner, CEO of IBM. The Electronic business methods allow the business to put together their external and internal data together more efficiently and flexibly which allows them to work more closely with their key stakeholders; and to reach the expectations of the stakeholders like customers. E-businesses usually include e-commerce; e-commerce is simple seeks to add revenue streams using the Internet. The internet helps them build and enhance relationships between the business and the key stakeholders being the customers and improve efficiency. E-commerce sometimes involves application of knowledge management systems. E-business is more than just e-commerce. It involves business processes spanning the entire value chain: electronic purchasing and supply chain management, processing orders electronically, handling customer service, and cooperating with business partners. Special technical standards for e-business facilitate the exchange of data between companies. E-business software solutions allow the integration of intra and inter firm business processes. E-business can be conducted using the Web, the Internet, intranets, extranets, or some combination of these.”
As part of the assessment criteria for this unit I intend to do:
- Compare the two websites that I have chosen to do compare and evaluate. I will also talk about how the use of the internet meets the aims and objectives which the business has set themselves.
- I will also produce an evaluation for one of the two businesses and a key improvement which I think the business should be taken on.
- I will also talk about the factors which influence the business to make use of a website.
- I will also be planning and designing a simple website.
Purpose of an online presence
The purpose of an online presence is that it allows the business to create awareness of the business with its target audience or even potential customers. Also an online presence also allows people to go onto the business website also it will improve communication between the business and its stakeholders being the customers and others like suppliers etc; customers can even get information of the business or the products that the business sells. And to inform the customer of any new product that have been taken on by the company; this could also help the business increase productivity and save money on advertisements as their internet website can be used as an advertisement medium. With the help of an international website the business will be able to target customer abroad which helps increase company awareness across the world. Business also intend to improving sales to a wider audience and maximising profits.
The website is very simple and is very clear as you know where to go for example you know how to look for cars by clicking on the buying button on the top where the navigation bar is. Also on every page the navigation bar stay in the same place and it doesn’t change which is good for allowing the user to get to know the websites layout. On the homepage you can also click on sub-links to read review from people who have given road tests on certain cars, also it is packed with loads of information to be read and they even give the option of selling a vehicle check before you go onto buy a car from their website this helps ease the stress of the customer when buying a high value car because they have to just pay £25 and their vehicle is checked if it has been stolen or not; and all the VIN and engine number are checked etc to certify that it is ok to buy. The purpose of Autotrader having a website is to appeal to a global market like Italy, Holland, Ireland and people within the UK. So if people don’t get a copy of the Autotrader magazine or they just don’t want to buy the magazine they can go onto the internet and view the cars which are for sale. The main feature of the website is the search box which searches the entire Autotrader database for the type of car a customer may want to look for, for example if a customer wants to look for a Vauxhall Astra then they just have to fill in the make box and the model box and after the price range boxes; the results will show the exact type of car a Vauxhall Astra.
The good thing about the website is that on the homepage there is text to explaining how to make purchases with Autotrader and how to make offers etc. Basically it gives instructions on how to purchase cars form Autotrader.
Autotrader is a national magazine which has 39% of the online classified marketing sector (Source http://www.tradermediagroup.com/companies/auto-trader.html) and is the market leader in classified ads of cars on magazines, their website allows you to search whatever people want to buy or sell their cars this makes the customer be able to narrow their searches more specifically; most people turn to Autotrader as a point of interest to sell cars through advertisements in the magazine at cheap prices. Autotrader don’t sell the cars they just offer the for sale pitches for people. The use of the Autotrader website is that it helps people search cars that they like and may be thinking of purchasing; also it gives clear descriptions of the cars and it even gives people pictures of the state in which the cars are in. The website shows all the latest cars that are for sale second hand or new it depends on the person if they want second hand or brand new cars. They can even put in the specifications which they want from the car like engine size or diesel or petrol, with the use of the website they can go through all the cars that are available to them in the selected price range in which they think they can afford and it even go through all models and makes of cars which they would like to choose; it even saves paper for the environment as Autotrader sell quite a lot of cars and they display adds of up to 350,000 in their magazines and it saves time for the customer from going through other categories of cars which don’t hold not use to the customer.
With the help of the budget and specifications tool they are able look at other cars which they thought wouldn’t be suited for them. And it also gives details of the person selling the car of if it’s a trade sale or private sale, private sales make up 80% of Autotrader’s sales and the rest of the 20% is of trade sale; if a company sells a car on Autotrader then it even gives details of the company selling the car. All the descriptions of the cars are very accurate and they are very specific in a simplistic way so it helps for anyone to understand. The Autotrader website also offers the customer the option for any financial help on purchasing their car; also they can even buy personalised number plates for their cars and even upgrade certain parts of their car. Also it helps Autotrader to advertise other companies’ products and gain revenue from them, sell other products like their own magazine and other services offered by Autotrader, their site also offers advice on when buying and what type of car would be best for what type of people for example they do this by doing road tests on certain cars and giving the advantage and disadvantages of the cars that they test drive. Autotrader’s website also offers cars insurance quotes and car loans etc.
Autotrader is owned by TMG Trade Media Group.
Our vision is simple - by staying at the forefront of specialist media publishing in all channels to market we will continue to achieve sustainable growth. The strategy behind this aim includes:
- Keeping all our titles and websites rich in content relevant to their target audiences, and providing access to this across multiple platforms
- Continuing to evolve, develop and acquire new titles and outlets to meet emerging market demand
- Developing new products and services to support and complement our existing product portfolio
With the help of their internet website they are able to increase their advertising to create more awareness with their customers and by allowing other companies to place ads on their website they are able to get more money from out of house people with the use of their site; also a good PR is being created when more companies pay Autotrader to place ads on the Autotrader website or magazine. They also have special keys like text size keys which allow you to change the size of the font which allows you to read the website more clearly. As a magazine they are able to reach all kinds of people without computers and they do not really have any competition as a magazine but trading as a website Autotrader is getting some form of competition setting up which could decrease their market share.
This helps them achieve their aims of providing a valuable service to the customers and it helps them, by constantly updating their products they are able to provide relevant contents for their customers to read and go onto buy.
Cars direct Ltd
The text is really easy to read and the navigation bar stays in the same place all the time like Autotrader’s website and is highlighted from the white background, there is a nice feel to the website it looks very professional and welcoming. Although Cars Direct fail to provide a search box to show correct type of cars as results.
This is a preview of the whole essay
Have a simple website, their website is specialised on only a single thing which is auctioning cars to members of the public and other traders at cheap trade prices; as opposed to Autotrader which offer other products as car loans and insurance for cars at fixed prices. Cars Direct Ltd do not advertise other companies products on their website, their website is specifically just for auctioning cars and this makes it specialised. The website is real time and you can see who has placed the latest bid for a car and how much has been placed, all you have to do is you have to log onto your account and look for a car of your choice and place your bid which you think is appropriate; this helps people to get a basic idea of how much extra to bid as they can see how much is need to out-bid their other competition. Also you are able to get three different choices of how to purchase a car and they are fixed price stock list, auction stock list and special monthly sales. This helps gives the customer a better choice of how to purchase their new car and wherever cheap they can choose from the three different types of sales. With an online presence they are able increase their profits by displaying even more cars on their website, and with a high class reputation with professional traders they are able to get loyal customers easily as they are being trusted by huge organisations and even private customers.
Cars direct company aims
Cars direct also aim to be committed to providing their customers with the most modern and up to date technology which goes onto help their customers in their everyday life and providing the highest quality service towards its customers from the first enquiry to the last transaction.
The main aim of their business is to provide a good service of the sale of cars and a good after sales service to their customers after they have purchased their car, this is done by the help of an instant email system which Cars Direct have set up to help their customers if they have any concerns. They also offer good friendly customer service which assure customer of their concerns and even helps them with any of their enquires from the cars-direct team; they do this by thoroughly checking the cars from inside and outside and inspecting the cars engine and servicing it for the customers and giving correct details of the mileage and first date of registration. The better the condition of the car the better the grade which they give to the customers so they can understand what state the care is actually; the worse the condition of the car the lower the grade. This helps them maintain a good relationship with the customers. They also provide a high quality service towards their customers at every level possible, from the start of an enquiry to the end of a transaction. They do this by employing new talented staff, and train them constantly to a level they think is appropriate; they find this by doing constant research into their customer service and improving any defects found in their service. A standard is also set for themselves on what level of customer service is to be provided. They do this by providing appropriate information of the details of cars to the customers; and they try not to mislead their customers by providing customers with wrong information of their business or cars that they are selling.
With the help of their website they are able to reach all kinds of customers with no advertisements on TV or any other sources they rely on promoting their business by depending on people to recommend them through word of mouth, which is why they try to keep a high standard of cars being sold under their brand name; but with constant loyal customers they are able retain current customers and obtain new customer as they have low prices on their auctions and their products have been serviced and tested to a high standard by not advertising on the TV they are not delivering their message across to their customers. As more and more people are recommending them to other this is a form of advertising so this goes onto help them achieve their aim of a service which goes on to help the customer in their everyday life as they are offering quality products; but Cars Direct do hold the advantage of being the first on the list when you Google “Direct Car Auction”. It is easy for them to get new customers as when previous auctions take place the prices of which cars got sold at stay on until the next auction; which help show new and existing customers how much they could save if they get their car with cars-direct. Cars direct also promote other services which they offer through the use of their website which is vehicle re-marketing, innovative solutions to problems which occur everyday with cars, vehicle movement and storage service which allows customers to put their cars into storage until they are able to pick up their cars which they have purchased and pool fleet management. These are promoted before the sale of a car but heavily after a sale of a car. The only disadvantage to the Cars direct website is that it doesn’t have a search engine facility which allows the customer to type up a make of a car or model and then get associated results, but although the cars are listed in the auction the customer is able to navigate themselves to the car and read its details an even bid when they are logged onto the website.
Comparison of my two businesses whether they have effectively achieved their business aims through an online presence.
In this part of my coursework I aim going to compare the two of my chosen businesses; my businesses which I have chosen is and . Autotrader are able to survive by offering their customers more and more products from different fields of business, for example Autotrader offer plant and truck magazine which shows what trucks are for sale, Bike trader which offers new and second hand bikes for sales and boat and yachts for sales. All these and more are all linked to Autotrader and the Trade Media Group the content was rich and relevant to the target audience. By offering different sorts of products, Autotrader are able to achieve their aim of reinforcing other people perspective of the Autotrader brand and developing new products and services to support existing product portfolio; this is done every time a person picks up a magazine with the Autotrader brand on it or even the TGM brand on it this also creates awareness of Autotrader every time. Also by having an online presence they are able to reach the younger professionals who are busy at work enabling them to increasing the platforms required for reaching certain hard to reach target markets, but are able to get onto the website and see all the cars for sale; this helps them get across to the younger generation, by having an online presence the content of their website can be edited daily so this helps them achieve their overall aim of keeping all their titles and websites rich in content which is relevant for their target audiences.
Whereas Cars Direct Ltd, they aim to provide good quality technology which should go onto help the customer in their everyday life from the start of the purchase up until the point where the customer has to go onto sell the car. This helps the business by the good products giving an example of how well Cars Direct appreciate their customers and how they enable the factor of the customer being happy with their purchase. Cars Direct also do a 57 point safety check on all cars; this helps them achieve their aim of giving good customer service.
The Cars Direct website is quite easy to navigate, and all the controls stay in the same place and they do not confuse the customer; as I experienced their website and it didn’t really confuse me as all the buttons where in the same place and the buttons where pretty clear. The Autotrader website is quite easy to use but you do get some pop-ups which get annoying. This helps Cars Direct provide effective customer service, because customer service is another factor which helps a business progress so in terms of Cars Direct if they didn’t have good customer service and no one recommended them to other who they know then Cars Direct wouldn’t be able to survive, to have a good customer service Cars Direct needs to focus on the main scheme of the website which is to auction cars and not invest in pop-up systems which covers the customers screen with unwanted information.
Some information on the Autotrader website is not related to the actual selling of cars unlike Cars Direct they focus mainly on car sales and their website has no pop-ups coming onto the site. Cars direct offer their phone number and email service to customers if they want to contact them, the cars direct number is a landline phone number and it won’t hold any of the customers back as they can use their contract minutes or landline to landline minutes to call Cars direct so in other words they might get to phone Cars Direct for free. Also the email service is also good as Cars Direct reply to any of your concerns within in 10 minutes. This helps them achieve their aim of being committed to providing a good customer service to customers, as they are paying someone money to sit at a computer and answer all the queries of the customers.
The Autotrader contact service is different; they offer a customer service phone line but it is a 0845 number which costs the customer of up to 10-12p per minute which might turn people away as they may not be able to afford the 10-12p per minute or they think it might be too expensive for them to call just for a small amount of information, whereas Cars Direct have a phone which starts with 01536 which is charged at a national rat of 5p/min and customer are able to use free contract minutes to phone up Cars Direct. This restricts the amount of people being able to contact Autotrader and only a small amount of people may contact Autotrader when in need. This may limit Autotrader in order to achieve their aim of evolving because previous customers may hold back on doing business through Autotrader as they think that the communication barrier is too expensive to meet; this may make the customer feel devalued as Autotrader may have not taken into account of a 5 minute call to their company. You can email them but the response can take up to 24 hours. Both of the websites are online 24 hours a day, and everyone from around the world can view the website from their own homes. Both websites are laid out simply and not too frustrating on the eyes. Both website are running 24 hours a day seven day a week, this helps them come across to the target audience at the audiences own time so whenever they are free they can access the website at their own will.
Therefore Cars Direct achieves nearly all of their aims of providing high standard customer service from the start of an enquiry to the end of a transaction. Also Autotrader achieve all their aims of having relevant items for their target audience and a source which is accessible at any time of the day.
Also both websites do not sneak viruses or scam on you which helps them be user friendly, also you are able to locate yourself efficiently though the website effectively with the navigation bar which stays in the same place, this helps the user get to know the website and understand how it works. Both website respond very well to the users needs, if a user sends an enquiry through the email service both companies respond back to the enquires at different rates of times. But Autotrader are the main business who achieve their aim more effectively by having such a large industry, this helps them gain and retain more and more customers as they can offer huge benefits for their customer which will not drive them to go into liquidation. Autotrader are constantly evolving there are focused into providing effective and useful information which their target audience will need when buying a new car.
Cars Direct SWOT analysis
Strengths- the strength of their website is that they have a good reputation with traders, and to a new customer this would hold an advantage because customers would instantly think if Cars Direct are doing business with the big traders then they must be reliable and trustworthy. Also by providing efficient information on their website which is entirely relevant to the sale of the car it helps Cars Direct achieve their aim and it will also help persuade the customer to purchase a car from Cars Direct. With the help pf an online presence they are able to communicate effectively with the potential customers and their website can be used as a media based advertising source to display any offers Cars Direct have for their customers, this should save them money and time whereas getting out of house advertising which would increase costs for the business and set time boundaries. As their website is mainly focused on selling cars that are new or nearly new, they are able to help the customers by only displaying relevant results whereas on the Autotrader website you get results of car rentals, cars from trader and private sellers and pay as you go scheme car sales; from the customers point of view this dissatisfies the customers as they cannot get the correct results. With the help of the Cars Direct website they get down to business and only show correct information in the correct categories for example for you wanted to see second hand car sales only second hand car sales would be shown.
Weaknesses- the only major weakness which I have highlighted before is that Cars Direct do not advertise their business more to other customers or increase their business awareness to new customers. This doesn’t really help them obtain new customers as they wouldn’t be able to market their business to them because a customer needs to hear or see about a business before the customer could actually do business with them. This is the major flaw for Cars Direct as they could appeal to new markets rather then promoting their business to the same old customer who might one day leave them. Also a downside to the Cars Direct business is that they are only able to enter the UK market as they only have car to sell which are able to be run in the UK.
Opportunities- it would be unnecessary to say that Cars Direct have an opportunity to enter the world of e-trading as they are already trading electronically. But as a business they have an opportunity to open up Cars Direct business outlets in other countries like Japan to increase their awareness over the world; also they could think of opening up an import export car business which allows customer to send car from one country to another because I have noticed that cars Direct have all the facilities to do this. And currently there is a boom in the import export cars market. They can also promote their cooperate image of their business by opening it up in other countries to show customers how big of a business they really are, also with the help of their website they have a chance to improve the communication with key stakeholders like the customers and suppliers.
Threats- the only major threat which Cars Direct have is of one of their major competitions Autotrader out competing Cars Direct, because they have an advantage of winning over new customer at a faster rate then Cars Direct as Autotrader is a more well known business.
Evaluation of a website
I have been investigating how effectively two websites achieve there aims and objectives through its online presence. When doing this I identified that Cars Direct do not achieved their aims and objectives very effectively.
The aims of Cars Direct are: To be committed to providing their customers with the most modern and up to date technology which should go onto help their customers in their everyday life.
There are a number of strengths of Cars Directs online presence and these are:
- Increase the size of the target market/ Attract the business to a global audience
They are able to appeal to a global market by setting up site in other countries in that use right hand drive spec cars or even open themselves up to new markets by offering left hand drive cars too. Also they could open themselves to the import export business of cars as Cars Direct currently has the facilities to do this. This could improve their cooperate image towards potential customers and even increase the profitability for the business and increase the rate of sales which Cars Direct have.
They are well known in the Trade industry and they have got a good reputation with people like car dealers and some private traders. With this reputation they are sure to get more business from new potential customers.
- Improve effective communication
Also they have good customer interference for example they offer a dedicated landline phone number for customers to phone up about any of the queries the customer has, this allows a good communication between the customer and the business which helps Cars Direct deliver a good customer service by listening to the customer carefully. This helps them retain customers by allowing people the opportunity to have their say in the business and if they don’t like anything that goes on in the business then they could mention it to the customer service office and the Business could change part of the running’s which go on to help the customers. By having an online presence they are able to improve customer service as their website can be used as a 24 hour open customer service which will have all the answers to certain FAQ’s the customer has.
- Cutting cost
Their website will also have the advantage of saving costs; and there is also a economic factor which is more people maybe recruited to be online as support as the Cars Direct website is running to keep it running continuously and prevent anything from taking it down.
However there are also a number of opportunities for Cars Direct website these are;
- Maximise profits
Cars Direct are able to enter the world of E-trading, which in other words means making financial transactions through the use of Direct Debit. This helps Cars Direct deliver a faster and more efficient service by making transactions more swiftly at a faster pace, this helps them move onto the next stage of the transaction for example making the payments from the customers account and to their business, this helps them send the final invoices to the customer more faster so the customer has an idea of what is going on with their current winning bid; also this helps them provide more product to put on auctions for customer to buy. This allows the business to achieve their aim of providing customers with up-to-date products. Also they have an opportunity of opening their site and products to others from around the world so appealing to a global market. They also have the opportunity to specialise in certain fields like fleet sales and truck and plant sales which allows them to increase the size of the target audience.
I will now analyse and evaluate the Cars Direct website from the customers’ perspective for example: the navigation, speed and content of the website.
The navigation of the website is fairly easy, you can understand what to click next to get to the point of the website where you want to be, for example if a new customer wants to get to the auction list they can get to the auction list by clicking on the auction icon on the homepage and the login button always stays in the same place on the top. The navigation bar stays in the same place throughout the browsing of the website. The font that is used is very basic, and you are able to read the text easily and not get too confused. The style is very simple, with the help of the blue on the top where the navigation bar is and the white background you can take to the site very easily as the site isn’t very frustrating to look at.
The content is very relevant to the business, as there is a online auction taking place Cars Direct have included a phone number for customer to phone on so they can get across to the Cars Direct staff quickly so they do not loose out on bidding on a purchase, with the help of a number the customer are able to get further details of the cars they wish to purchase so if they don’t understand something that is displayed they can phone up and ask the sales staff about the car. They also offer relevant email addresses which help customers contact the sales team through email, this enables a faster communication between the sales staff and the customers. Cars Direct also offer a car auction list for people wishing to bid on cars through the auction, this helps the customer get to understand the products on offer and helps them decide whether to purchase the car or not if they think the car is right for them.
The good hardware and software selection for the business allows the content to be displayed fast. With the help of an instant email service the business is able to contact the customers on a faster basis which helps to deliver a faster service which helps the customer when the bidding time is coming to an end on the cars. Also by Cars Direct not having too many images and content which may not be relevant for their business this helps them allows their customer to view their pages more quickly than others, if Cars Direct did have loads of images and content which was of no use for potential customers then the customer may find that they have to wait longer for the website to load fully to its full capacity to view certain information. The only pictures are used are the ones to illustrate the cars in how well they have been kept or to show any damages which the customer should know about before purchasing the car. There is not only just one picture but up to 5 or 6 pictures for every car. The colour of the website as said before is just blue on the top and a white background, this helps the customer view nearly all of the content of the site and not just some of it, and also it doesn’t hurt the viewer’s eyes when they keep looking at pages.
Cars Direct are doing everything they can to make the customer purchasing life easier, but they could use pay pal for their transaction which saves time for the user and the business to make transactions. And they only certify account details over the phone which helps the customer conscience as no security breaches can take place over the phone and the customer will sure to be happy to talk to a member of the Cars Direct team to check there account details are correct. And the safety issues of their website is sure to be affected as the security of the details will be at a high level. and when a transaction is made a email is sent to the account holder and they have to reply by clicking on the link sent, if the user doesn’t click on the link in a set period then the transaction would become terminated.
I will now analyse how Cars Direct achieve their aims through their online presence and more importantly suggest 3 reasons why the website is not achieving its business aims through its online presence.
Cars Direct have got a good website but they still could add more to it and to improve its efficiency. Cars Direct could implement a search box on their website on the home page, so when a potential customer comes onto the website they can search for a car if cars direct have the car then the customer could look at the specifications of the car and decide whether it’s right for you. With the help of a search box this should help the customers view relevant pages more quickly and if they put in MPV or saloon car then Cars Direct search could bring up relevant items for the person to view this should help the customer when purchasing and this gives cars direct the opportunity to offer another product from another manufacturer which the customer never thought of purchasing. This should help Cars Direct achieve their aim of helping the customer in their purchasing life. As the customer views the cars they can then go onto register with the company to create an account which allows them to bid on cars. The search box will also help the customers to view the latest cars for sale and it will help create business for Cars Direct. This could help Cars Direct if they do add a search box on their website achieve their aims of providing the highest quality customer service at a high level from the first enquiry which will help the customer to the end of the transaction. If they do not do this then they would fail to achieve their aims.
Instead of having a long list of all the cars which are available maybe Cars Direct can include a search box which shows the result of the search the customer done like Autotrader’s below.
This should help save time for the customer and make their purchasing life more easier.
The second recommendation which I think Cars Direct should take on is offering their service to other people from around the world. To compete against their main target Autotrader they should also try to offer this service to people from around the world this should help them gain more customers as there are over 5800 car retailers in Europe, and currently there is only a small amount of online car auctions like Cars Direct in Europe. This should help them achieve their aim of delivering up to date information to their customers, they could also gain a lot of income coming from these new customers.
In some ways Cars Direct are achieving their aims, because they are dedicated to providing a good customer service from the first enquiry of the customer, Cars Direct even have a dedicated phone line just for customers if they are in any frustration. Also they have an email service which allows people to email the customer service department at the Cars Direct team; this helps them achieve their aims of helping the customers from the first enquiry. Cars Direct are constantly changing their products so once an auction has finished they update their website and place new cars on the stock list so this allows them to achieve their aim of providing up to date information; this helps their customer service as they are constantly offering their customers something which the customer is able to buy. During the time when the auction is not on Cars Direct can Also by doing checks before the car actually goes onto sale this helps the customer when using the car because its saves them the time on re-checking if the car is road legal to drive and by doing checks before it goes onto sales it helps reduce the risk of the car breaking down unknowingly.
Influences involved with opening a new online business
For a new business there maybe many different purposes for opening a website along side the business. If a new business opened then they would also create a new website, the website will allow a new business to raise awareness with people who are always stuck at the computer. Also by having a website you are able to advertise your products and service before the business actually goes into business, this would help raise awareness and you can place banners on roadsides or the place of business to give customers an example of what to expect of them. To advertise on their own website saves costs so in terms of money having a website as a internal advertising source would take up an advantage for the business itself, with the help of the website the business is able to increase the number of customer for a new business and it helps improve communication with the business and the customer. Successful planning of a business leads to a success in business for example if you don’t plan how much money you’re going to spend when opening your business you may end up spending too much money and then find out that you are making a loss because you aren’t making enough money to cover for all the spending you have taken.
Identifying the target market.
By identifying the target market helps a new business offer the correct products, for example if a new business hope to sell fast sports cars then they need to understand the type of audience which they intend to target and promote their products to. For example if the cars they intend to sell are priced at 6 figures and they target a working family, there is a high chance that they will not make any sales from their so called target audience because they are not are not in the economic range which allows them to buy a products of such expense. Targeting new customers in terms of an online presence is very important as so it is with marketing and the promotion of a new product. For a new business operating through their website they need to understand the needs of their target market, because as soon as the customer logs onto their website they are communicating with the customer and this has to be effective enough which makes the customer go onto purchase products from their business. Different target audiences have different effects on the design of the website for example if the business was targeting kids then the website would have a bright and cartoon design to it and all parts of the website would be simple; whereas if a business was targeting young professionals then the design of the website would be something with a lot of flash and subtle colours like grey and in some place complex.
When staring up a new business and making a website to help communication of the business with the customers; the main constraint involved would be budget. If you want a successful website a lot of money may have to be spent on it so you can deliver an effective website experience. For example Autotrader have a lot of flash on their website which costs a lot to pay someone to create and the effect of it is very effective and it helps deliver their message, and it makes out the website as interesting as you have a enjoying experience; but in comparison with the Cars Direct website there isn’t not such flash its just a simple plain white background with a blue tool bar on the top. So people are more likely to enjoy surfing around the Autotrader website more then the Cars Direct website.
Managing the website also costs a lot of money as you to need to pay someone to sit at a computer and update the website and protect it from being hijacked or even virus being set up on it. If hackers do set up virus’s on a new website which has been set up then this could result of a bad image of the business and the customers would be less likely to return to the website as they don’t want to risk their computers; and the word of a virus being attached to a newly setup website would spread so more less and less customers will come to the website reducing the amount of awareness being created.
Interface with customers
For a new business being setup and a new website to go with it a good public image needs to be created. They can also brand their company on their website through the use of font used and logos, for example different colours used on a new business can represent different colours for example:
Also not only is it a good idea to keep the website up to date you should also present it as a fashionable item in terms of well designed. So when creating my website for a new business I should try to design a website which is interesting to look at and simple, the appearance of the website should also be nice and not too complicated to look at and the design should be consistent all the way through the webpage’s; I will also try to keep the website updated so it helps deliver an effective customer service. For my website to help the number of customers returning to my website which should increase the awareness of my business I need to increase the interactivity of my website and implement a number of images onto my website which should allow the to understand the type of products that I am offering them and the standard in which my food products are made at. As I want to show the customer my products and my target audience would be families and young professionals basically anyone who wants to eat, I would try to include a high number of graphic slide shows showing images of foods which I am making.
Source as level applied business john Evans-Pritchard et al
Confirming security and legislation
The internet allows people to surf around without leaving their room or even leaving their house. While searching around the internet there comes threats like viruses. There are much security software to prevent viruses being set up and legislations.
Software protection, to protect myself from viruses I need to have the most updated anti-virus software which should help protect me and my systems from being destroyed by hackers; and to protect confidential information of my own business and my customers information.
Virus protection, as said before I need to make sure constantly that my website isn’t responsible for spreading viruses; if this does happen then this could give me a bad reputation with key stakeholder like suppliers and customers.
Legislation, as a business I need to make sure I protect my customers information and abide to any confidentiality Acts. This is a legal requirement for me to undergo by the Data Protection Act. If customers do not have confidence in me protecting their personal information then my business could lead to be in jeopardy.
Warnings, the system which I use to store customer information on must be protected at the highest level, if any attacks do take place on this system and I believe the hackers have had a success of obtaining some information then I need to make sure that I warn my customers instantly before any further financial theft or identity theft take place.
Payments, any payments which are made with my business need to be protected from viruses as some viruses can copy information and use it to their own advantage. Security like PayPal needs to be used by me to help my customer from being victims of fraud.
Source as level applied business john Evans-Pritchard et al
Logistics is a major part of a successful business, so when a person orders some goods from me I need to make sure that I have efficient software which controls the amount of stock I have on my business premises and how much is needed to be ordered; so the customers is able to know if we have any of the products they wish to order in stock. I also need to make sure that I have a good delivery service which is offered to the customers.
Source as level applied business john Evans-Pritchard et al
Review and Evaluation
All different parts of my business has to be reviewed and evaluated individually so my business as a whole can be successful; so my website also has to be reviewed as same as if it was a department. I have to set targets and aims before I am able to evaluate my businesses success. I will see how up to date my website is and how relevant it is to the business and whether I am increasing my businesses awareness through the help of my online presence. All information on the website has to updated, which should help any frustration for the customer when purchasing a product, because if a customer purchases a product at a price which was older and then gets charged more then the customer would be bitter about the issue. This is why it is a good idea to update the website constantly so it gives the customers the idea that the business is constantly helping their customers in their purchasing life and customer service.
I am thinking of opening a new website online presence for a new business who have re-invented themselves to increase their profitability and public image. The business has asked me to create a new website for them which is better then their competitions and it has all the relevant information which should go onto help them improve their business as a whole. I will now identify the opportunities for the online presence. With the help of an online presence I have the opportunity to allow the business to open themselves into the online world
1) Raise awareness of their business to constant online users, so more and more customer can establish the website and come back to the website which increases the loyalty of the customers to the business; once a business has established itself to the customers the business should keep on coming into the business.
2) New profile of customers can be introduced to the business which I am making the website for. Also an online presence can also be used as an online media promoter to improve their cooperate image and their brand can also be advertised. Although my business trading online as well as a in store wouldn’t make that much of a difference because the business being a pizza delivery service but it could make a bit of a difference buy opening my business up to new type of customers like people who are during the day and in during the night.
3) Save costs for the business like when advertising new jobs to people, so rather then going to other people they could advertise their jobs or other type of promotions on their own website once the customer have got to know the business beforehand.
4) Also communication between the customer and the business can be increased, therefore improving customer service and the businesses communication levels with the customers.
The constraints which are on my new business is mainly:
- The budget which is set for me to use to create the new website, because for it to be successful as an online presence I have to have a high budget figure which allows me to create flash animations creating a website which is more interesting then it really would be; because the flash animations would take a lot of time and needs a lot of skills so out of house service needs to be paid for.
2) Also the expertise and skills of staff is a constraint as if I have skilled staff already then it would save money and time when employing and looking for people to update and edit the website. For example if my business have people employed who have experienced and skills when it comes to protecting the companies website and updating the businesses security then it would help reduce the costs; and with the help my staff I can help develop the website further and offer the employee a bonus which motivates them to help my business progress further.
3) Viruses and impact of hackers is one of the potential hazardous constraints for a business which could bring the businesses reputation down as vital customer information like bank details could be taken from the main computer of the business. This is why I need to make sure that my security levels are set to a high standard to prevent viruses being setup on my main computer. And for hackers I need to make sure that I constantly update my operating system.
The reason why it is a good idea for a business which makes food at a high level is so that they can show the quality of food which they create the food at and the types of food they sell. It also helps promote any new products which they have invented, and helps sell it to customers by displaying big images of the new food products. And by having an online presence it helps the business increase their communication between the business and customers, so if the customer wanted to see what type of products the business is selling and the menus which they offer they can just log onto the website which I am creating and place an order by phone saving time for the staff at the store; and it also helps the customer deicide better as they can choose what they want to eat at their own pace rather then being pushed on the phone as the staff are busy in-store.
Here's what a teacher thought of this essay
**** Many good points are made but it is hard work at times finding them and working out what they mean. The essay is much longer than necessary. With a proper structure, it could be made easier to understand and avoid the repetition.