Challenges and Mistakes of E-business Approaches

This article discusses the common challenges and mistakes faced by organizations in their E-business approaches. It covers topics such as finding the right product to sell, attracting the perfect customer, capturing quality leads, retaining customers, and achieving profitable long-term growth. The article also highlights mistakes such as choosing the wrong platform, not optimizing for mobile, poor site navigation, inadequate search facility, and complicated checkout process.

Running head: INFORMATION SYSTEM PROJECT MANAGEMENT
INFORMATION SYSTEM PROJECT MANAGEMENT
Name of Student
Name of University
Author note

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TASK 1
Importance of Porter’s five forces analysis
Porter’s five forces model is a tool which can be used for analysis and understand the
market value and attractiveness of a company in market. It analyzes the competition a
company can face in the market. These five forces affect a company to analyze its growth and
serve its customers better. The model is implemented to investigate the company coca cola. A
simple framework is used here to ask five direct questions. These questions are very simple
tool to understand how a company performs in the market and what factors could make the
competition stiff(E. Dobbs, 2014). The analysis will help investors to get an idea about
sustainability of the company. The five questions asked in porter’s five forces helps us to
analyze the company like. The example taken here is of the company cocacola(Sutherland,
2014). The five forces which affect the brand cocacola are
1. Threats from new entrants of the beverage industry.
2. Industry rivalry.
3. Threats of substitutes
4. Bargaining power of Buyers
5. Bargaining power of suppliers
How porter’s five forces analysis help cocacola
The cocacola company has moderate threat from new entrants. The consumer
switching cost is low for the new companies coming in beverage industry and the price of
those products of the new companies are also same so the cocacola faces a medium level of
threat from the new entrants of the beverage industry(Mathooko & Ogutu, 2015). The

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porter’s five forces model analyzes the threats of the new entrants for the cocacola company.
The company though has huge market share but the threats from new entrants are there.
There are many substitute products of coke in market with similar taste and they also
offer competitive price for their product. There are various kinds of energy drink available in
market and soda, canned juice which can replace coke. The cocacola does not have a variety
of flavors so the choice of customers is less. Cocacola has almost similar taste as pepsi which
is their biggest rival.
The bargaining power of buyers is also a factor that affects the company cocacola.
There is no pressure of individual buyers for the company but the retailers who buy in large
scale have power of bargaining due to their large amount of orders(Baah & Bohaker, 2015).
The effect of it is less because of customer loyalty at end user stage.
The bargaining power of raw materials suppliers of cocacola is a force which has low
effect on the company because coca cola is one of the largest customers of the ingredient
suppliers like carbonated water, sweetner, caffeine and so on. The suppliers earn lion’s share
of profit from supplying cocacola. So the suppliers have low bargaining power.
Industry rivalry is a major threat which affects the cocacola company. Brands like
pepsi give a tough competition to cocacola with its large variety of products and competitive
price of the beverages. Both the stalwart brands Coca-Cola and Pepsi are two rivals of the
industry and prime carbonated beverages who are engaged closely to sponsoring outdoor
events and activities.
Importance of SWOT analysis
The SWOT analysis is an essential tool for analyzing a company’s business both
internally and externally. The internal and external both type of factors that affect a business

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is analyzed(Ling, 2017). The company chosen here is cocacola. The SWOT analysis gives us
the following results after analysis.
Strengths
Brand Equity –
Cocacola is one of the most famous brands worldwide. Interbrand in the year 2011
decided to award Coca cola owns the most remarkable brand value grant Coca cola with its
tremendous round the globe presence and one of the unique brand personality is certainly a
remarkable cash rich brands which has the highest brand value.
Company valuation
Cocacola is one of th highest profit making companies on the world, Coca cola has
brand value of approximately 79.2 billion dollars. This estimation brings the brand
appreciation, the several production factories and resources situated all over the world and the
total cost of operations and profit of Coca cola company.
Vast worldwide presence
Coca cola products are available in almost 200 countries around the world. coca cola
exhibits in those markets of the various countries from all the continents. This large
worldwide propinquity of the brand of coca cola has likewise contributed towards the
working of the immense brand name.
Fantastic marketing procedures
Coca cola is not similar to the company Pepsi which tries to get peoples’ heart
towards their brand. Where Pepsi's intention is persistently modifying, and is concentrated

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towards youth, the Coca cola company aims at individuals of any age. The focusing on is
likewise done by superstars who are all around preferred.
Customer Loyalty
With such huge number of items, it is common that Coca cola owns a considerable
measure of customer loyalty. The products mentioned above like “Coca cola” and “Fanta”
have a gigantic fan following(Renz & Vogel, 2016). Individuals will favor these soda pops
over others. As a result of the unique taste of Coca cola, inventing substitutes winds up
plainly difficult for the customers.
Weakness
Rivalry with Pepsi
Pepsi is the most famous and biggest rival of Coca cola. Coca cola would have led the
market reasonably had it not been for Pepsi. The rivalry of these two brands is massive and
Pepsi will not give up the battle of supremacy so effectively.
Item Diversification is low
Pepsi nowadays has influenced a crucial move and enhanced into the tidbits to come
up with items like Lays and Kurkure, Coca cola is absent from that fragment. The fragment is
likewise a decent source of income driver for Pepsi and had Coca cola been available in this
section, these items would have been an extra income driver for the organization.
Developing countries
Developed countries have huge number of substitutes of conventional coke of Coca
cola, these developing nations are slowly shifting towards sound drinks. However developing
and underdeveloped countries are as yet being familiar with the pleasure of carbonated

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beverages and sodas (Nwakoby et al., 2017). Countries like Bangladesh which have very hot
summer, discover the utilization drinks relatively multiplied in the middle of summers. In this
way the higher utilization in building up condition's can be a decent chance to guarantee for
Coca cola.
How porter’s five forces analysis and SWOT analysis help in information systems
planning
The SWOT and porter’s five forces analysis can give precise information about the
factors which is affecting the business of a company. It helps the company to decide the
information system planning by implementing automation in production or using Artificial
intelligence to improve the distribution and feedback system or developing new products of
various flavor and so on. It also paves way to implement new business strategy backed with
information system to compete with rivals and grow business. The alternative methods to
mitigate threats from external sources is also decided by these analysis.

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Reference
Baah, S., & Bohaker, L. (2015). The Coca-Cola Company. Culture, 16, 17.
E. Dobbs, M. (2014). Guidelines for applying Porter's five forces framework: a set of
industry analysis templates. Competitiveness Review, 24(1), 32-45.
Ling, X. (2017). Customer Relationship Management: Case study Coca-Cola Company.
Mathooko, F. M., & Ogutu, M. (2015). Porter’s five competitive forces framework and other
factors that influence the choice of response strategies adopted by public universities
in Kenya. International Journal of Educational Management, 29(3), 334-354.
Nwakoby, N. P., Ezejiofor, R. A., & Ajike, A. K. (2017). Effect of SWOT Analysis on
Performance of Manufacturing Firms in Nigeria.
Renz, F., & Vogel, J. (2016). Analysis of The Coca-Cola Company.
Sutherland, E. (2014). Lobbying and litigation in telecommunications markets–reapplying
Porter’s five forces. info, 16(5), 1-18.

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TASK 4
What are some of the common challenges and mistakes of organizations for their E-
business approaches?
The most common challenges faced by an organization for their e business
approaches are finding the right product to sell. It often happens that the e commerce sites fail
to choose the right product for their online platform and retailers of those products to sell on
their online platform(Spieth, Schneckenberg & Ricart, 2014). Attracting the perfect customer
is also a huge challenge for the companies on their E- business platforms. The shoppers now
check various online sites to check review of the product before buying so the conventional
buying process from brick and mortar stores. The retailers should get information about
where their audience is and how to attract them efficiently without exceeding their budget of
marketing and promotion. As the digital marketing is evolving to become an integral part of
marketing it is a challenge for the companies to generate targeted traffic. Retailers can not
depend on only one single channel to drive traffic to their shopping website. Capturing
quality leads is also an obstacle. Nurturing the ideal prospect is important to grow a business.
By engaging the potential customers through sending emails or text messages leads to turns
them to paying customers. Continuous optimization of marketing strategy is a key to grow
the business(Lilian, 2014). Retention of customers is more important than acquiring new
customers as customer satisfaction is necessary for any business to sustain. Companies
should implement tactics to get out most of their current customers by providing them various
facilities like discount or extended warranty to stick to the company for future shopping.
Achieving profitable long term growth is the ultimate goal of any company. Increasing sales
is a prime concern of every company opting for E- business(Schultz & Peltier, 2013). Online
retailers may face challenge to grow the company therefore choice of right technology and

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partner is necessary. Attracting and hiring good quality professionals with knowledge about e
commerce is a must. The challenges of providing various payment options like debit or credit
card or digital wallets is also a challenge for the companies as people now a days are more
interested in cashless transactions instead of paper money.
The most common mistakes that a company make in their E- business are firstly
choosing the wrong platform. Perhaps it is the most crucial step of starting the E-business.
Running an organization without proper strategy can be fatal and E-business will fail in such
cases(Babbie, 2013). Few of them are optimizing the platform for mobile devices, target
appropriate audience, Ensure smooth supply management, Develop strategies by taking
customer feedback. Not adding trust factor is a major fault for E business as the customers
rely on ssl certificates, terms of use for using the online sites for shopping, refund and
exchange policy and so on. The companies often do not optimize the sites for mobile which
does not help the customers to buy on the go which de-motivates them. Overusing pop ups
and advertisements on the website makes a buyer irritated and may not be interested in
buying further from the website. Making the website for desktop only is a fatal decision for
any company making its entry to E-business. Today we live in an era where mobile
computing is the future of business so it is necessary to optimize the website constantly in
order to provide the users optimum experience while shopping. Poor site navigation feature is
also a drawback of the most of the E-business sites that fail to make a mark in the industry as
it makes difficult for a buyer to search for a suitable product. People should be able to click
through images to the product page, see more information about a product and click on the
header at the top to take them back to the homepage(Huang & Benyoucef, 2013). A simple
and minimal design of the website makes the customer attracted and it is less consuming for
them to buy products. Lack of social media presence can affect a business significantly as
social media is the key of marketing and branding which enables the companies to reach out

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huge number of potential customers and attract them to buy products online. Inadequate
search facility is also a problem for the E-commerce sites. Insufficient product images and
description is another factor which fails to draw customer’s attention resulting in low sales
for the company. Complicated checkout process and absence of payment options is also a
common mistake done by companies for their business. Post sale service for a product is also
an challenge for any e commerce sites to retain its customers.

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Reference
Babbie, E. R. (2013). The basics of social research. Cengage Learning.
Huang, Z., & Benyoucef, M. (2013). From e-commerce to social commerce: A close look at
design features. Electronic Commerce Research and Applications, 12(4), 246-259.
Lilian, S. C. (2014). Virtual teams: Opportunities and challenges for e-leaders. Procedia-
Social and Behavioral Sciences, 110, 1251-1261.
Schultz, D. E., & Peltier, J. (2013). Social media's slippery slope: challenges, opportunities
and future research directions. Journal of research in interactive marketing, 7(2), 86-
99.
Spieth, P., Schneckenberg, D., & Ricart, J. E. (2014). Business model innovation–state of the
art and future challenges for the field. R&d Management, 44(3), 237-247.