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Choose and propose e-business of your choice and prepare a report on it.

Introduction to E-business

The electronic business or e-business is the specific type of business or a commercial transaction, which majorly involves proper sharing of information over the connection of Internet (Barnes & Hunt, 2013). Commerce could be stated as the significant exchange of services and products within individuals, groups and other businesses and hence is seen as one of the major activities within a specific business. It is the proper conduction of various business procedures over the Internet connection (Wang & Zhang, 2013). All of these processes of electronic business majorly involve buying as well as selling of the products, servicing the customers, suppliers or services, managing the overall control of the production, processing the final payments, running automatic services of the employees, collaborating with the various business partners, recruiting other members and many more. A series of services and functionalities are present for an electronic business (Soto-Acosta, Popa & Palacios-Marqués, 2016). It is extremely popular and significant for the users and hence is utilized in the entire Australia.

The following report will be outlining a brief discussion on the entire concept of e-business. A new e commerce website for clothes, Star Effects is being proposed to launch by a group of entrepreneurs.  They have decided to launch this website for all types of customers and to provide cloths in all sizes cost in a cost effective manner. The aim of this report is to discuss the various factors related to the proposed website for Star Effects. The scope of this report is that proper identification of the benefits and loopholes would be extremely easier.

Star Effects is an electronic business proposal for all types of customers. This particular e-business will be providing cloths through online services to its customers. Star Effects is suggested by a group of entrepreneurs, who have decided to provide cloths to the clients in a cost effective manner. The range of cloths will vary from kids to adults sections. Moreover, the payment system would be having both online payment as well as cash on delivery after following few terms and conditions. The infrastructure of this website of Star Effects will be having proper security system and this security would be built into the browsers as well as with the digitalized certificates. Hence, it would be ensured that there is absolutely no chance of data loss or data theft while making all kinds of transactions. The major and the most significant strategies of the Star Effects are market place hosting, turn key business, advertisement supported contents, freemium model, social media, warehouse sales and many others. It is expected to become a popular and significant electronic commerce website for cloths gradually.

E-business or electronic business can be defined as the administration to conduct businesses with the help of Internet connection (Laudon & Traver, 2013). This type of business would be including the buying as well as selling of several goods or services only after providing major customer support or technical supports via the connection of Internet. This particular business type is often joined with the electronic commerce; however it involves various services after adding the sale of those services and goods. The e-business allows e tailing or electronic retailing eventually for the customers and even web site marketing (Gangeshwer, 2013). The proper utilization of the Internet, intranet and extranet is mandatory for conducting as well as managing all types of business activities. These activities are quite easier with the proper implementation of electronic business. Moreover, the customers could easily contact or pay for the goods and services without any type of complexity.

Proposed E-commerce Website for Star Effects

The first and the foremost advantage or benefit of the electronic business is that it allows extremely quicker as well as easier communications with the customers (Goldratt, 2017). Hence, the user does not face any issue regarding booking their items or selling their goods. The second significant advantage of this e-business is that it helps in strengthening the marketing capabilities and also provides customer support 24*7. This helps them to gain popularity and better competitive advantages. The next advantage of this particular type of business is that it helps in the significant minimization of costs and expenses by simply lowering the transaction costs. This helps all the users to use this business in a cost effective manner (Niranjanamurthy et al., 2015). The efficient methodologies are also increased for the payment system like utilizing the online banking and hence reducing the postage or stationary expenses. There is a stronger opportunity for adopting the newer business models as well as developing the tailored customer supports.

Star Effects is a proposed electronic business of cloths that is being proposed to be launched for its customers. The developers have decided to provide cloths for all age groups and for all types of customers (Maity & Dass, 2014). They have taken the major decision to undertake some of major and the most significant strategies for making their business successful and innovative. Moreover, they could even take proper decisions about the implementation of their business. The major strategies of this particular organization of Star Effects are as follows:

i) Market Place Hosting: The first and the foremost strategy of this particular e-business of Star Effects is that they would be hosting a specific site for the purpose of auctions as well as online stores over which the members could place their items for selling (Chiu et al., 2014). In this specific model of Star Effects, the respective website owner would take a flat fee or even a percentage of sales with the contract to promote their online market place as well as assisting to process the various transactions. Moreover, the developers of this website have even thought of the fact that the additional revenue for their business could come from the members paying extra fees for spotlighting the offerings over the main website.

ii) Turn Key Businesses: The second important and significant strategy for the website of Star Effects is to become a turnkey business. The turnkey business eventually functions with the previously existing template for the given industry (Bryman & Bell, 2015). The website might also offer all types of cloths for the customers in Australia at first and then gradually in the rest of the world. They want to gain several competitive advantages for their business by becoming the turnkey business.

iii) Advertisement Supported Contents: Star Effects will also develop effective e-business by not directly selling anything to the customers. For their popularity in the early stages, frequent updates, informative sites and blogs would be effective by selling the ad space (Huang & Benyoucef, 2013). When the customers would be getting these frequent updates in various other websites, it is evident that they would be enthusiastic in knowing about the products of Star Effects.

Significant Strategies of Star Effects

iv) Freemium: Another significant strategy that they have thought for Star Effects is a freemium model. This particular model would include the offerings of some contents completely free of cost while the charging membership due or any other fee would be considered for special access and materials (Fang et al., 2014). This type of model would attract more customers since, the onsite and membership charges would be less for the devoted clients.

v) Warehouse Sales: For the purpose of liquidating the merchandise from the retail industry, Star Effects has also decided to functions as the sales point for the respective warehouse of inventories. This would help them in implementing the supply chain management within the-business (Sila, 2013).

vi) Social Media: The final strategy of this particular proposed website would be that they would allow the users for registering accounts and then contributing their own confidential content and information within the registered the social media account (Janita & Chong, 2013).

The e-business model of Star Effects is the respective approach that they would be taking for becoming the profitable-business over the Internet (Soto-Acosta, Popa & Palacios-Marqués, 2016). This e-business has selected the model of B2C or business to consumer model. The B2C model refers to the commerce within an individual consumer and a business. When it is being applied to the kind of direct to consumer selling, it has then come to be associated with the online selling called e commerce or e tailing. In this B2C model, the-business delivers the products to their customers easily and promptly. The products would be sold by the-business of Star Effects directly to their customers online (Hartono et al., 2014). The major advantage of this type of e-business model is that there are no online intermediaries in these websites. Hence, handling becomes quite easier.

In the future, they have also thought of implementing the B2B or business to business model. This particular model is the type of transaction between business like the involvement of manufacturer and a wholesaler or any wholesaler and a retailer (Chaffey, 2015). Star Effects has thought of involving this model as they want to do business with other electronic businesses as well and transactions will be conducted amongst each other.

Marketing is one of the major and the most significant factors that is being required within any specific business for gaining popularity and advantages. It is utilized for creating, keeping and finally satisfying the customers. Marketing of any business depends on three concepts, which are needs, wants and finally demands of the customers (Li, Wu & Lai, 2013). Star Effects has thought of marketing their website by involving some of the most significant marketing strategies. The main marketing strategies of Star Effects are as follows:

i) Pay per Click Advertising: The effective pay per click or PPC campaign majorly includes the strategic bidding on the keywords that are being used in the advertisements (Yoo, Sanders & Moon, 2013). The search engines would be earning revenue on the per click basis and the impressions are being determined by the respective user search queries.

Advantages of E-business

ii) Search Engine Marketing: The next marketing strategy of this particular e-business would be SEM or search engine marketing. It is a paid advertising campaign and is utilized for describing for all the paid as well as organic efforts.

iii) Search Engine Optimization: The specific traffic of SEO or search engine optimization generates the unpaid results within various search engines such as Google and Yahoo (Hannak et al., 2014). It would be extremely effective for the e-business of Star Effects.

iv) Display Advertising: This refers to the banners, sidebars and various other predominantly visual advertisements, which eventually appear on any other website.

v) Email Marketing: Another important marketing strategy of Star Effects is email marketing (Gangeshwer, 2013). It is utilized for targeting the current, potential as well as the previous customers with the help of newsletters, remarketing and the abandoned cart email notifications.

vi) Influencer Marketing: The other strategy for marketing is influencer marketing, which uses the reach as well as credibility of all influential people within a niche for gaining the exposure to the products. Celebrities are the major influencers for all customers, especially the youth generation (McElheran, 2015). With this marketing, Star Effects would be benefitted to a greater extent.

The infrastructure of the proposed website of Star Effects is the significant combination of hardware, software and networks (Wang & Zhang, 2013). The hardware of this website of Star Effects mainly involves server system as well as client system. The various networks are utilized for the purpose of linking the hardware with the software. These software applications are utilized for delivering the services to their users and employees within the e-business and even to the administrators (Rahayu & Day, 2015). The architecture of the hardware, software applications and the networks are also involved within the infrastructure of this website. They have also decided for including the methodologies to publish the data or documents that are accessed by the applications of electronic business. The elements are situated in the organization and these are managed as the third party applications, networks and data servers (Maity & Dass, 2014). Star Effects has also decided to implement Web 2.0 and IPTV as the new technologies within their website.

There will be five layers in the infrastructure of Star Effects website. The first layer will be the e-business service application layer, where the customer relationship management, supply chain management, data mining and content management system are retained (Li, Wu & Lai, 2013). The second layer is the systems software layer, where the web browser or server software and standards, networking software as well as the database management systems are involved. The third layer is the transport or network layer, where the physical network and the transport standard are properly involved. The fourth layer is the storage or physical layer, where the permanent magnetic storage on the web servers or the optical backup or temporary storage in the memory are involved (Wiengarten et al., 2013). The final layer is the content and data layer, where the web contents for the intranet, extranet and Internet websites, transaction, customer and click stream data are being involved.

The developers of Star Effects have taken the major decision to implement various types of payment systems within their business. The major payment systems of this website would be as follows:

i) Credit or Debit Card: This two are the basic modes of online payments. The user can either use his credit card or his debit card for making the transactions easily and promptly (Gomez-Herrera, Martens & Turlea, 2014). Moreover, instalments are also allowed with these cards and hence the user might not face any issue with huge online transactions.

ii) Net banking: The next important and significant payment system allowed here is net banking that allows direct transactions from bank account of the users safely and securely.

iii) Cash on Delivery: Star Effects is also keeping the option of cash on delivery for the customers (Grant et al., 2014). However, there are some conditions with this system, such as a minimum amount of transaction is required here.

iv) Square: It is a credit card processing company, which provides the method for the smaller businesses in accepting the credit cards without even carrying the burden of the fees, which are added by the processors of the credit cards. It is highly secured.

v) Stripe: Another significant system is Stripe that is the standard payment platform with the features such as integrated mobile payment for Android and iOS for adding coupons as well as recurring billing (Laudon & Traver, 2013).

The legal issues of Star Effects are as follows:

i) Business Structure: They should focus on the-business structure that is suitable for them. They should keep in mind that any type of problem could lead to bankruptcy as well.

ii) Brand Identity: The marketing and PR of this e-business should stand out from the rest of the e-businesses for maintaining their brand identities (McElheran, 2015).

The security issues of Star Effects are as follows:

i) Virus and Other Malware: The e-business might get affected with various types of malware like computer viruses and Trojan horses. Hence, security should be maintained with antivirus software and firewalls.

ii) Software Bugs: It is a computer program or website coding, which makes the authenticated website behave in an unintended method (Janita & Chong, 2013). 

The privacy issues of Star Effects are as follows:

i) Data Theft: The confidential data should be maintained properly so that the transaction data are not hacked easily.

ii) Fraud Cases: Often the customers might not get their products and could be trapped in various fraud cases.

The ethical issues of Star Effects are as follows:

i) Web Tracking: The website could be tracked by the employees for wrong intentions and hence is an unethical act.

ii) Disintermediation and Reintermediation: The intermediation is the major ethical issue in any electronic commerce site.

E-business Benefits from Implementation of Proposed E-business Website

Star Effects would be providing various benefits to the customers after they will be starting this particular electronic business. These benefits from Star Effects are as follows:

i) Cost Effectiveness: The first and the foremost advantage of the implementation of this new proposed Star Effects is that buying cloths will be must cheaper and hence each and every user would be able to afford the products and services (Barnes & Hunt, 2013). The building maintenance, utilities, storefront are eradicated and the management of the products is much easier here.

ii) Better Communication: The second important and significant advantage of the implementation of this new proposed Star Effects would be that it would provide better communication to the users. A proper communication is facilitated with this business and the customer support is present 24*7 for the customers.

iii) Cheap Marketing: Star Effects would be relying on the advertising agencies for promoting their brand and then educating the people regarding this marketing (Gangeshwer, 2013). They could easily allow the owners for embracing the power in certain methods that were not undertaken previously.

iv) Time Saving: The customers will not have to visit to shops and stores for buying cloths. They would be getting these online and hence their valuable time would be saved. Moreover, Star Effects would be providing free delivery and shipping charges after following certain terms and conditions.

Conclusion and Recommendations

Therefore, from the above discussion, it can be concluded that the major functionalities of the electronic business include ranging from the proper development of the intranets as well as extranets to the electronic services, significant provision of the services or tasks on this Internet connection by the several providers of application service. This is helping them in gaining more popularity and competitive advantages in respect to all other companies. Security or privacy is yet another important factor for the growing popularity of an electronic business. The above report has properly outlined the significant case of a proposed website for an electronic business, namely, Star Effects. This particular electronics business is proposed by a group of entrepreneurs, who want to create a cost effective and proper electronic commerce website of cloths. This report has properly described the e-business model, infrastructure as well as the payment system. Moreover, the various benefits are also provided here when specific this proposed website will be implemented successfully.

The best recommendation for this e-business of Star Effects is that they should spread their business in other parts of the world as well for gaining more popularity and competitive advantages. Moreover, they should also start their own logistics segment for saving the money of shipping and delivering products to the customers.


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