Business Planning for E-commerce Company

Business Planning
Business Planning
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Business Planning
Contents
Introduction:..........................................................................................................................................3
Business Plan of the Company:..............................................................................................................3
Journal Entry........................................................................................................................................10
References:..........................................................................................................................................11
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Business Planning
Introduction:
Business planning is a framework which defines the business strategies like marketing
strategies, financial resources, historical background, customer support etc. When the person
is going to start a new business, he has plan or vision behind it. Every organization needs
detailed strategic plan for the success of the business. In this assignment, I have a business
idea of starting E-commerce business. E-commerce business will provide the single platform
to the vendors and customers, where customers will get the desired products or services
without moving to various vendors one to one. This company has a vision of earning revenue
by providing customer satisfaction.
Business Plan of the Company:
i) Summary:
The vision of the company is very specific in the sense of generating the revenue.
The company will connect the vendors of various products and services to the
customers at the single online platform. The company is entrusted to hassle free
services to the customers so that settlement can be done on real time basis.
ii) Market and Competitors:
For the successful business operations, the market analysis is very important.
Basically, the market of the company is based on internet because the payment or
delivery is settled over the internet. The study of the Boston Group has revealed
that the online revenue of the retailers goes quadruplicate i.e. 300% which is more
than the expectation. As we all know the fact that internet is used by the most of
us and number of users is regularly being increased over past few years. The most
of the retailers have registered themselves at online portal of e-commerce
companies because of increase in online marketing.
On the other hand, the manor threat to any business is the competitors. They can
majorly affect the business of same industries. In this business, the competitors are
Flipcart, Amazon etc. But, in this scenario, we are going to provide a better cost-
effective services like real-time complain solution, effective return policies,
reduce settlement time etc. So, we have a good plan to compete with the existing
competitors.
One more important benefit of investment in our company is the return. Every
investor is looking for better investment options in the sense of better return.
Generally, the average rate of return from the online marketing to the e-commerce
operators is about 9 percent. The return percentage can be considered as good. We
are trying to provide the return to the investors around 8.75 percent on their
investment in our company. So, it is a big opportunity to them.
iii) External Environment:
As we already know, E-Commerce business involves activities relating buying or
selling of products over the Internet. In E-Commerce business, exists external and
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Business Planning
internal environment’s factors which influence the entrepreneurship. These factors
may directly, indirectly or situational affects the business activities related to E-
Commerce. The factors i.e. Globalization, Development of New Technologies,
Price Sensitive Consumers, Internet, New Distribution and Communication
Channels, political factors, Social and cultural Macro Economics etc. influence
the E-Commerce externally are briefly described as under:-
a) Globalization:-E-Commerce facilitates business worldwide. Highly Global
firms are more likely to do business to business. There is direct relationship
b/w firm globalization and performance of firm .As highly globalised firm
improves their operations through knowledge and resources throughout their
global relations. Adoption of Internet and E-Commerce are the example of
globalization (Nate, no date). There are the constant acceleration in
International commerce and trans-frontiers investments which are the signs of
globalization. Globalizations create economic networks. It also makes
available fast travelling of money. The disciplines in globe markets are also
play a great role in E-Commerce.
b) Development of New Technologies:-If a firm must adopt new technologies to
reduce its transaction costs and to improve coordination among business
partners. Due to automation of transactions online, the E-Commerce
specifically (B2B) resulted in lower cost and improved communication among
partners. New technologies lead to increase productivity and efficiency gains.
Digital distribution and Digital payments are new examples of technology
developments which lead to fast transfer of money and sales.
c) Price Sensitive Consumers:-E-Commerce facilitates online buying and selling
of products which saves time and money of consumers. The Ultimate
consumers now feel free and satisfy to buy products online as they are
provided at their door at lesser price in comparison to local markets (offline).
d) New distribution and communication channels:-E-commerce is basically an
online activity. Thus, requires an effective and safe distribution and
communication channels, so that it can provide information regarding their
products and can increase their sales. A sound and strong communication
between buyer and seller is required.
e) Internet: - Good internet connection with high speed is must to increase the
marketing and productivity. The base for E-Commerce is Internet which
provides access to far flue international markets.
Likewise, Political issues, social factors cultural macroeconomics are other
external environment factors which provide a great impact on E-Commerce
business.
iv) Business Strategy:
To get success in the business, we have to develop the business strategies. In the
company, we have developed the following strategies:
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