Google AdWords: A Powerful Tool for Online Business

The assignment aims to analyze the operations of a company and its online business strategy. The organization has decided to use Google AdWords as their advertising strategy, which will help them track the success and growth rate of their business. Additionally, they do not want to use local search engine advertising due to its limitations in targeting a wider audience. The report highlights the importance of using different advertising strategies to promote the company's website and attract customers. Recommendations are made for the organization to consider alternative advertising methods apart from Google AdWords.

digital enterprise
[Document subtitle]

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Letter of Transmittal
December 16, 2016
Professor
University
Subject: Letter of Transmittal
Dear Sir,
With due respect, I, Mir Ahmed Sultan, the undersigned student of the batch have reported on
the “University’s website” under the given course.
The report has abetment me in achieving insight into the detailed and deep analysis of the
Websites. The complete course was amusing and arduous. I would like to thank you for your
kind help and support.
Kindly provide me with a prudent advice on the specific effort of mine.
Yours sincerely,
Mir Ahmed Sultan
Student ID
0061079945

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Executive Summary
The evolution of digitization provides various threats and opportunities for all the organizations.
According to the new era, the organizations completely relies on the technology in order to
improvise and innovate the productivity to achieve the sustainable competitive advantage.
Further, the purpose of the report is to gain the knowledge about how to change the
manufacturing business of electronic appliances to an online business in order to increase the
number of sales and engaging a great number of customers and using the strategy if
disintermediation. Moreover, it will be observed in the report that how well the company
Conesys Electronics is being prepared in order to start the business online and whether the
strategies are appropriate in order to expand the business or not.

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Contents
Introduction.................................................................................................................................................4
Section 1......................................................................................................................................................4
Disintermediation Impact Analysis......................................................................................................4
Section 2......................................................................................................................................................6
E-commerce Business Model................................................................................................................6
Section 3....................................................................................................................................................12
Search Engine advertising..................................................................................................................12
Recommendations to the Business...........................................................................................................13
Conclusion.................................................................................................................................................14
REFERENCES..............................................................................................................................................15
APPENDIX..................................................................................................................................................17

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Introduction
The report is being made in order to understand that how the manufacturing business of
electronics can start their online business in order to expand. The company Conesys Electronics
will start their online business of customized electronic appliances, and the products will be
linear rotary and the sensors of the tilt displacement, optical encoders, joysticks, switches of
rotary and transducer for the defence and the controllers of the motors i.e. controllers of the
electric vehicles. Further, the report will help in understanding the impact analysis of the
disintermediation, business model of the e-commerce and the search engine advertising strategy.
The scope of the report is to start the online business for the convenience of the customers and in
order to engage and retain them.
Section 1
Disintermediation Impact Analysis
According to the researchers, the system of distribution which is being called as online occurs
along with the creation of technology in the informatics and the communication. Further, the
transactions are being made by the electronic devices. Also, the factor which is required in order
to generate the procedure of transaction is the credit card in order to pay for the products which
will be delivered to the domicile of the customers, when is a service or tangible (Barnes, S. and
Hunt, B. eds., 2013). According to the new era, the internet is being considered as the new and
innovative channel in order to maximize the sales of the product along with the great potential
for expansion for the organizations which provides goods to the customers as per their
requirements and of the best quality. Furthermore, the individuals who navigate the in order to
connect to various other companies, maximizes in the disintermediation and the

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internationalization, firstly, the boundaries of the geography disappear, then, there is the
reduction in the intermediaries. Moreover, the new dynamics of the business by the virtual
market or industry has completely transformed the world and has reduced the distance and time
of the transactions among the customers and suppliers (Bicer, I. and Hagspiel, V., 2016). In spite
of such advantages of the online commercial transactions, the effect of the transformations has
not yet enabled the complete integration to the customers to the new and innovative
consumptions patterns of web because of the exposure of credit card payment and the desirability
of shopping in the markets of retailers where the goods can be felt, observed and touched and
this also demonstrates the recreation and the distraction of the customer.
Further, there will be a great impact of disintermediation on the market by our online business as
being producers we will be able to get various advantages like we will achieve greater margins of
the profit and access to the most important information of the customers as these are the most
significant aspects of the disintermediation (Akbari, S., 2016). We will be able to meet the
requirements of the customers directly and improvise the level of satisfaction of the customers.
On the other hand, the consumers will also get positively impacted by the disintermediation as
they will get the products delivered at their places and the payments will be made online. The
consumers will be able to make purchases with ease.
Moreover, after removing intermediaries and shifting our business to online, we will use the
strategy of re-intermediation like we will include Ebay, Amazon.com, etc. in order to deliver the
products to the consumers. Initially, we will deliver the electronic products to the customers
directly in order to retain the customers and will attempt to build a strong relationship with them.
This strategy will be beneficial to us as we will be able to engage more customers and further the
re-intermediation will help us expand our operations and we will be able to deliver our products

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in such areas where we cannot directly deliver in order to satisfy the consumers. Therefore, we
will be able to attain sustainable competitive advantage and maximize the profitability to a great
extent.
Section 2
E-commerce Business Model
Initially, in our online business, we will directly sell our customized products to the customers in
order to satisfy them and further, retain them (Ibisworld.com.au, 2016). So, the business model
which we will be using is-
 Business - to – Consumer (B2C)
Our website will be using the business-to-consumer as the model of business. Under this model,
we will be directly selling our customized products to the consumers. Further, the consumer will
be able to see our products demonstrated on our website of the company. The consumer can
easily be able to select the product and can further place the order for the same. Then, our
website will further send the notification to us through e-mail and we will then dispatch the
customized products according to the needs of the customers and will attempt to satisfy them.

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Figure 1
As we can see in the above-given figure than the customer will place the order on the website
and the processing of the order will be done through the business organization and then finally
our organization will send the product to the customer directly without any intermediaries. We
will attempt to deliver the products on time so that we can engage more and more customers in
order to attain sustainability. Further, we will be able to maximize the profitability.
 Business - to - Business (B2B)
Our website will be using the business-to-business as the business model. Under this, we will sell
our customized products by using the strategy of re-intermediation so that we can deliver the
products to those place where we cannot deliver products without their support. Further, the
wholesaler will place the order from the website of the company, and after getting the
consignment, the wholesaler will deliver the desired product to the consumer.

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Figure 2
As we can see in figure 2 that the wholesaler will pace the order on the website of our company
according to the needs of the customers, then the order will be processed via notification to our
company. Then we will supply our customized products to the wholesalers as per their demands
and then they will further sell the products to the final consumers. Therefore, this will help in
engaging and retaining more customers as before. The main motive behind these business
models is to achieve sustainable competitive advantage in the new era of digitalization.
Value Propositions
Online business will completely satisfy the needs of the customers according to their
expectations. We will be using an appropriate business model in order to make sure that the
customized products will be delivered to the customers on time and without causing any damage
to the product. We will be using adequate packaging materials in order to safeguard the
customized electronic appliances. We will also make sure that the products are being delivered

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on time and at those places only which will be given by the customers while placing the order on
the website. Moreover, we will be delivering products directly to the customers initially, then we
will use the strategy of re-intermediation.
Competitive advantage
The special advantages of our online business as compared to the competitors are as follows:
 Offer free shipping
We will be using the technique of free shipping in order to deliver the products to the customers
directly. We will mention this policy in our products as well so that the customers can see this
while placing the order. Therefore, we will be able to engage more customers by using the free
shipping of the customized electronic appliances. Also, this will help us maximizing profitability
and achieve the sustainable competitive advantage.
 Have a 365-day policy of return
A 365-day policy of return will help our business to engage more and more customers. If we
keep the prices of the electronic products high then also we will be able to attract more
customers as compared to our competitors because the competitors do not have a policy of return
for 365 days. They have the policy for 15 days or maximum one month. Further, this policy will
help us in increasing the number of customers as they will at least try our product by getting
attracted towards our website because of this policy of return.
 Price strategy
We will be using the low price strategy for our customized electronic appliances in order to sell
them online. By doing this, we will be able to attract more customers because when they make

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purchases online then they differentiate the products of various websites on the basis of the price
and the quality. So, we will initially keep the prices of the products low as this will help us in
retaining the customers and maximizing the profitability.
Market strategy
There are various plans in order to promote our website so that we can engage customers and are
as follows (Ryan, D., 2014):
 Optimize on-site SEO
We will try to structure the internal connection on the content of the web page in order to match
the terms which are commonly used. This will help the searchers to see our web-page whenever
they type the keyword. Further, they will get the option of our website in order to purchase our
product. Moreover, we will keep a check on the optimization so that the website is being
regularly updated with the great features so that the customers get fascinated towards it, and they
will be forced to give at least a try in order to make a purchase from our website.
 Articles for individual sites
This is one of the interesting methods in order to market the business online. Further, the strategy
will include individually approaching the site and providing them with an innovative article
about the operations of the business. Also, we will attempt to make the content interesting so that
the readers get attracted towards it. Therefore, the strategy will be a win-win situation as the
customers will get the benefit because they will purchase our product online with low prices
along with the great policy of return and moreover, our organization will also get benefit by
maximizing profitability and engaging more customers.

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 Integrate across channels
We will develop the offerings of multi-channel in order to promote our website and engaging
more customers. Further, the integration will help the customers in order to experience the
consistency in our delivery of products and the operations of our business. We will use this
strategy after gaining a sustainable position in the market, and this strategy will help us in
expanding our operations.
Organizational Development
The necessary structure of our online business in order to carry out the plan are (Siemens.co.in,
2016):
 Rapid organization responsition
We will be using the contemporary enterprise in order to make the complete utilization of the
resources of a network. Further, we will be eradicating the traditional links of the enterprise by
using the new and innovative network of the technology. Therefore, this will help us improving
the capability of responsiveness.
 Accurate communication of information
We will be developing the effective internal and the external networks of the communication
which will further allow our operations in order to access freely, timely and accurately. Also, this
will help us in improving our process of decision-making, and we will be able to provide the best
quality products to the customers as per their needs.
 Conducive to the internal resources integration

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By using this, we will be able to integrate the internal resources of the organization and we will
be able to deliver the customized electronic appliances to the customers as per their demands and
even on time. Further, we will be able to focus on the innovation, services of customization, etc.
Therefore, the structure of the organization will be flexible enough in order to change the
processes according to the demands of the customers.
Section 3
Search Engine advertising
According to the researchers, there are various methods of search engine advertising, but the type
of advertising which we will be using in order to promote our online business is the Google
AdWords. Further, we will be using this method because every aspect of the campaign of
marketing is measurable, it is easy to calculate the return on investment (Brin, S. and Page, L.,
2012). Furthermore, the most important factor of this strategy is that it is cost effective and the
payment is made when the searcher clicks on the ad. The strategy is very relevant as it helps in
maximizing the number of visitors who visit the websites. Further, this advertising strategy will
help us in engaging more and more customers. Moreover, this marketing strategy will help in
targeting a large number of audience as there will be no barriers to the location and the
customers will be able to see our website through their mobile phones as well (Nabout, N.A.,
Lilienthal, M. and Skiera, B., 2014). There is no such investment in this type of advertising
strategy as the strategy can be implemented with the small investment because the AdWord
account can be created with an ease and with minimum investment. Also, this advertising
strategy will help in bringing sudden gratification to the website of our organization. This
advertising strategy will help our company in order to track the success and see that at what pace
we are actually growing our business and whether were expanding slowly or at a faster pace.

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Further, this will help us in maximizing the profitability and achieving the sustainable
competitive advantage.
Moreover, there is a type of search engine advertising which our business do not want to use i.e.
local search engine advertising. Further, this advertising strategy only helps in targeting the
target audience of local areas only and this strategy is not beneficial to a great extent. As it limits
the audience in order to make the purchases even, it makes difficult for the business organization
in order to expand their operations, and they have to various other methods in order to attract
more customers to make purchases of the products and the services (Dinner et al., 2014).
Furthermore, this advertising strategy is not reliable at all, and if the business organization wants
to expand their operations in other locations, then they cannot rely on this strategy completely
because it relies on the geographic boundaries while targeting the customers for the particular
product or service. It is very important for every type of business organization to use different
types of strategies in order to promote their website so that the customers become aware of the
operations of the organization and the products and the services which they are offering because
every consumer look for various options while purchasing a product online (Chaffey, D. and
Ellis-Chadwick, F., 2012).
Recommendations to the Business
While making the report, the information was being researched on the market of Australia, and it
is being observed that most of the companies in the country are involved in the online business
even the companies who deals with the electronic appliances. Further, the business organization
has to be very careful from the competitors while taking a move ahead because it will be difficult
for them to achieve a sustainable competitive edge to a great extent. The organization should try
to understand that how the operations and the activities are being done through online so that

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they can perform their operations with ease as they cannot afford to make a wrong move because
as a result, they will lose the customers to a great extent. The organization should try to use other
methods of advertising apart from Google AdWords in order to make the customer aware of the
operations of the business in a short period of time.
Conclusion
It is being observed from the report that the organization is well-prepared in order to start their
online business. Further, the organization is aware that what type of business models they will
use in the initial days and even after attaining the sustainable position in the market. The
organization is ready to give the tough competition to the competitors as they know exactly
about their competitive advantage, value propositions, etc. Also, the organization is prepared in
order to promote their business through the search engine advertising strategy, and they know
how to engage the customers and retain them which will further lead to maximizing the
profitability.

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REFERENCES
Akbari, S., 2016, April. The analysis of the complexities of the e-commerce industry. In e-
Commerce in Developing Countries: with the focus on e-Tourism (ECDC), 2016 10th
International Conference on (pp. 1-6). IEEE.
Barnes, S. and Hunt, B. eds., 2013. E-commerce and v-business. Routledge.
Bicer, I. and Hagspiel, V., 2016. Valuing quantity flexibility under supply chain
disintermediation risk. International Journal of Production Economics, 180, pp.1-15.
Brin, S. and Page, L., 2012. Reprint of: The anatomy of a large-scale hyper-textual web search
engine. Computer networks, 56(18), pp.3825-3833.
Chaffey, D. and Ellis-Chadwick, F., 2012. Digital marketing. Pearson Higher Ed.
Dinner, I.M., Van Heerde, H.J. and Neslin, S.A., 2014. Driving online and offline sales: The
cross-channel effects of traditional, online display, and paid search advertising. Journal of
Marketing Research, 51(5), pp.527-545.
Ibisworld.com.au. (2016). Market Research Reports & Analysis | IBISWorld AU. [online]
Available at: http://www.ibisworld.com.au/ [Accessed 17 Dec. 2016].
Nabout, N.A., Lilienthal, M. and Skiera, B., 2014. Empirical generalizations in search engine
advertising. Journal of Retailing, 90(2), pp.206-216.
Ryan, D., 2014. Understanding digital marketing: marketing strategies for engaging the digital
generation. Kogan Page Publishers.

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Siemens.co.in. (2016). Home - Home - Australia. [online] Available at:
http://www.siemens.co.in/ [Accessed 17 Dec. 2016].

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APPENDIX
Date of
Research
Project Activity Full Description
of Activity
Time
duration of
the activity
The Web sites and other
references
introduction About the
operations of the
company and
online business
1 day
5.12.2016 Disintermediatio
n of project
activity
Research related
to
disintermediation
and the impact of
it on our
business along
the strategy
2 days 1. (Barnes, S. and
Hunt, B. eds.,
2013)
2. (Bicer, I. and
Hagspiel, V.,
2016)
3. (Akbari, S., 2016)
7.12.2016 e-commerce
business model
Business models
along with value
propositions,
competitive
advantage,
market strategy
and the
organizational
structure
5 days 1. (Ibisworld.com.au,
2016)
2. (Ryan, D., 2014)
3. (Siemens.co.in,
2016)
12.12.2016 Search engine
advertising
The most
suitable strategy
2 days 1. (Chaffey, D. and
Ellis-Chadwick,

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for the company
and the one
which the
company doesn’t
want to use
F., 2012).
2. (Brin, S. and Page,
L., 2012)
3. (Nabout, N.A.,
Lilienthal, M. and
Skiera, B., 2014)
14.12.2016 recommendations The suggestions
which the
organization
should take into
consideration
1 day
15.12.2016 conclusion Overall findings
of the complete
report
1 day