E-commerce Management for Penny Juice: SWOT Analysis and Business Strategy

This document provides an analysis of e-commerce management for Penny Juice, including SWOT analysis, business strategy, revenue models, and target market. It also discusses the company's current business model and unique features of e-commerce technology.

Running Head: E-BUSINESS MANAGEMENT
0
PENNY JUICE
E-BUSINESS
MANGEMENT
System04121
7/28/2019

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Contents
Organisation and environmental analysis..................................................................................3
A company overview:............................................................................................................3
Current business model..........................................................................................................3
A SWOT analysis...................................................................................................................4
Strength:.............................................................................................................................4
Weakness:..........................................................................................................................4
Opportunities:.....................................................................................................................4
Threats:...............................................................................................................................5
The 8 unique feature of Ecommerce technology are:............................................................5
Ubiquity:............................................................................................................................5
Global reach:......................................................................................................................5
Universal standards:...........................................................................................................6
Richness:............................................................................................................................6
Interactivity:.......................................................................................................................6
Information denseness:.......................................................................................................6
Personalization:..................................................................................................................6
Social technology:..............................................................................................................7
Developing E-commerce strategy..............................................................................................7
Recommend a suitable business model(s) & revenue model(s) the business should adopt...7
The company can start with two types of revenue model......................................................7

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Segmentation of the company:...............................................................................................8
Target market:....................................................................................................................8
Primary market:..................................................................................................................9
Secondary market...............................................................................................................9
Indirect and direct competitors of Penny juice......................................................................9
Provide a competitor analysis using SWOT:.........................................................................9
SWOT analysis of Frooti Company:..................................................................................9
SWOT analysis of farm fresh juice company:.....................................................................10
Strengths:..........................................................................................................................10
Weakness:........................................................................................................................11
Opportunity:.....................................................................................................................11
Threats:.............................................................................................................................11
Develop an executive summary based on the revised e-business:.......................................12
E-commerce presence map..................................................................................................13
Action plan:..........................................................................................................................13
REFRENCES...........................................................................................................................14

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Organisation and environmental analysis
A company overview:
Penny juice is a company that provides 100% blended fruit juice for the children. It is
mostly used by childcare centres and preschools. They use high quality fruit juice products
that are available to fulfil with all the supplies and the nutrition set by FDA. It has distributors
all over the country, it also has various personalised services to all the customers and it is
available in 48 contiguous states. They have a very wide variety of flavours that created
especially for the kids taste and simply mean those kids love penny juice. This company have
variety of services, competitive pricing and some of the benefiting features which makes
Penny juice kids favourite. The Current business activities include product and services. They
product which is fresh juices for the children, it also provide the seasonal juices like mango
and oranges, apart from that they have some juices which are their speciality for children and
the fat level in these kind of juices were only 0.5% and extra vitamins and some sugar that is
best for diabetic people. It is 100% pure juice, pure sugar free, diet and mixed flavour. The
company focuses on various kinds of innovations as innovation helps in a specific focus on
developing the products which can help in adding value by the benefit of technologies and
advancements. This company focuses on the trends and themes of innovation and the new
products and the present them in a user friendly manner. This company focuses on the
product development and it also overviews the main themes that help the product to drive the
product worldwide(Casadesus-Masanell,., & Ricart, 2010).
Current business model
The company follows the following E-businessmodel; it follows the B2C ecommerce
model. This is when a sector or a company inthe sales of the products are done

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throughtraditional model and retail model where the business person sells the product online
to the customers directly and there is no physical store of the company. The source of
revenue generation includes selling the customers online with less and competitive prices and
hence these things attract the customers the most(Zott, Amit, & Massa,2011).
A SWOT analysis.
Strength:
 This departments have provisions and over 1100 locations
 It has great presentation revenues as it has durable and financial position
 It has various private labels
 It offers shipments to the customers which helps in increasing the customer
experience
 It has brand portfolio which is balanced
 They provide good quality of services
 The product quality is not something they compromise on
 It focuses on the customer retention in order to earn more profit from the business
Weakness:
 This company does not have much of presence in the global market
 It has very a smaller amount of market share and its competitors provides similar
services
 There is great turn down in the sales of the company
 The sales data monthly is not so good
 It does not establish its brand to the new and emerging markets
Opportunities:
 The removal income of the customers are pleasing to the eye

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 It should create connections with small retail manacles
 They should invest more in the online services
 There are various great opportunity in order to launch stores in the countries
Threats:
 They have to focus on the pricing as it can be great threat
 The cost of operations cannot be bought under the control of finance
 They have a very week projection in finance
 They have increase labour cost in America which is one of the main and the
biggest threat for the company.
 Several of the companies have the same approach of business and this have high
amount of threat to the company as the competitors are increasing.
 They always look for new and sole ways to exhibit the brand names and in order
to satisfy the customers as well. This can cause great threat for the company
The 8 unique feature of Ecommerce technology are:
Ubiquity: this simply means something that is available everywhere. Nowadays internet is
something that is used everywhere and everyone can have access to it and at a very cheap
price as well and this tool is something that helps the company to trade globally ad it also
leads to the next feature of E-commerce global reach. The company y Penny juice is an
online company and thus has an advantage as people can access their website and online store
anywhere and anytime (Wiengarten, Humphreys, McKittrick, & Fynes, 2013).
Global reach:this refers to small market with millions of small thing available on the
website. And such websites also have every type of business available on the website.
Amazon is one such example. However Penny juice in the online business which does not

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have this as it sells only one thing on the website and that are juices (Bordonaba-Juste, Lucia-
Palacios, & Polo-Redondo, 2012).
Universal standards: this is very easy to understand the internet have their own rules and
regulations in order to accept the standards and it is important for every business to follow it
as without this the online businesses cannot be successful (Amit, , & Zott, 2012).
Richness: this includes innovation which focuses on new video ads and audio messages for
promotion in order to become accustomed to the new changes of the atmosphere. Penny juice
uses the in ovation by the way of product development and this helps it to reach more
customers (Zott, & Amit, 2010).
Interactivity: interactivity is another thing that is very important as it is important to value
customers and it is very important to have good interaction with the. Since ecommerce sites
are the online stores it is not easy to interact with the customers. Hence penny juice should
find out good customer services in order to interact with the customers and also to solve thr
issues and problems that the customer faces(Osterwalder, Pigneur, Oliveira, & Ferreira, P.
2011).
Information denseness:this is related to the pricing information. This focuses on how to
price the products in fair manner as pricing is one of the most important thing which helps in
attracting the customers. Penny juice prices its product at a less price in order to attract more
customers
Personalization: in Today’s world everyone wants the work to be done on their fingertip as
people like to personalise their things. Penny juice allows the customers to personalize their
ingredients in the juices and this attracts most of the customers towards the company as they
can decide for their own juice.

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Social technology: this is one of the main features because it helps in involvement of sites
like Facebook, twitter, LinkedIn, Pinterest, instagram and so on. These sites are not just for
entertainment but also for doing business and making people aware about the company.
These sites have helped in improving interaction with the customers. Penny juice has a
Facebook page by which it interacts with the customer as well as attracts the customer to
know more about the company(Shaltoni, & West, 2010).
Developing E-commerce strategy
Recommend a suitable business model(s) & revenue model(s) the business
should adopt.
 It should use B2C and B2B models in order to earn more profits, the company penny
juice already uses the B2C model which is when the products are soldby the
traditional model and retail model where the business person sells the product online
to the customers directly and there is no physical store of the company.
 However it needs to use B2B model as well as this will helps it to earn more profit. A
B2B model is something which is used by the company in order to sell products from
one business to other. If Penny juice will sell the juices to other online companies then
the customers will get to know more about the product and this way they will be able
to buy more of this product and the company would be able to earn
more(Gummesson, Mele, Polese, , Nenonen, & Storbacka, 2010).
The company can start with two types of revenue model
 Ad- based: this revenue model is for creating ads at various websites, app and other
places in order to gain high traffic on the website. The advantage of this revenue

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model is that it is one of the most simple and easy way to earn money(Al-Debei, &
Avison, 2010).
 Subscription based model:The subscription revenue model involves offering the
customers a product or service that the customers are allowed to pay over a longer
time period, it is usually a month to month offer , or some companies also provide
year to year paying offer. If the company needs to go far enough along in its
development and growth then this model can help in generating and recurring
revenue, and can even be an advantage from customers who are just too lethargic in
order to cancel their payment for the company offering this service (Bak, 2011).
Segmentation of the company:
 The target market that penny juice currently has is the children, and it mostly sells its
products to pre-schools. The children are between the age group of 4-12 years as there
is growing awareness about health awareness among the mother and are particular
about giving drinks to their kids(Baden-Fuller, & Morgan, 2010).
 Penny juice should expand its target market and it should also focus on making
juices for adults and people nowadays are very focused to fitness and it penny juice
starts creating fresh and healthy juice from the adults it would be able to attract more
customers to the brand.
Target market:
- Health
- Kids
- Lifestyle
- Fitness
- Sports

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- Recreational
Primary market:
- Elderly people
- Teens
- Kids
- Youth
- Women
- Working people
Secondary market
- Recreational centres
- Travel industry
Indirect and direct competitors of Penny juice
the indirect competitor of penny juice is frooti as it is of the same industry and it target the
same group of customers but it provides bottled juices and not the fresh one whereas the
direct competitor of penny juice is farm fresh juice company.
Provide a competitor analysis using SWOT:
SWOT analysis of Frooti Company:
Strength:
 It has a novel USP which is one of the “on the go drink” for the customers
 It has a very good brand image and customers are highly attracted to this company
 The packaging of the product is as its taste
 It has collaboration with parle which again is a very well-known company

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Weakness:
 The focus mainly just on the flavour of the drink
 It has failed to follow the rules and regulations
 It launched variants but it failed to make it popular
Opportunity:
 People have growing health concerns and this offer a enormous impending for drinks
in the fruit juice group.
 Hygiene issues: people nowadays are high concerned about the water prone decease’s
and this gives opportunity to the juices which are based on nectar like frooti
 Habitual behaviour: With the growth in amount of retail outlets attaining of fruit
juices is no longer burdensome. Therefore consumption of fruit juices has develop a
common interest in people today and various people have a habit of using it
alongside with between meals snacks as well as with breakfast.
Threat:
 Competition: The industry of juice is one of the mainly viable industries in today’s
market. Right from healthy juice options to aerated drinks Frooti has no shortage of
rivalry. Some of the major competitors of frooti are Tropicana Real and Slice.
SWOT analysis of farm fresh juice company:
Strengths:
 It is one of the most well-known brand in America
 It is spread wide all over the world
 It provides very healthy beverages which contain a lot of protein
 The brand provides good menu for the kids

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 It has a huge market share
 The juices are made up of freshly grown local ingredients
 Local people are highly attracted to this company
Weakness:
 It entered the market a little late
 It is not liked by the people in the winter season
 The raw material cost is unchanged
Opportunity:
 It can provide the juices for health conscious people
 It has the ability to establish stores at an international level
 It has an ability to promote the products at a national level and through various
distribution channels
 They can expand the range of products
 In order to make more brand awareness it should use for social media platforms and
new ways to advertise
 They should develop their own website in order to allow the customers to view the
services provided by the brand.
Threats:
 Any changes in the economy of America
 Convenient way in order to enter the market
 Increase in the cost of transportation in which the labour and fuel are included
 Change in the preference of the customers
 Juice is something that can be made at home and this is one of the major threat to the
industry and the company

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 The monopoly for bottled juices are very high and it gives major and tough
competition to the industry
The Swot analysis of the two competitive firms show that Penny Juice needs to fix its
website and make it more attractive in order to attract customers more, it should aim on
increasing its market share and expand its target market as its competitors have a wide
market share and target market. Penny juice should also focus on entering the global and
emerging market in order to get noticed by people. It should also use a number of social
media platforms in order to create brand awareness and it should highly promote itself to the
customers (Weske, 2012).
Develop an executive summary based on the revised e-business:
This report is about a company named Penny juice, it is a company that provides
100% blended fruit juice for the children. It is mostly used by childcare centres and
preschools. They use high quality fruit juice products that are available to comply with all the
requirements and the nutrition set by FDA(Baden-Fuller, & Haefliger, 2013).This company is
known to have a very bad website and thus this report shows ways in which the company can
improve its website and earn high profit. The company should follow the following business
and revenue model. The business model currently used by the company is B2C, whereas the
recommended model should include B2C and B2B both as B2B model is something which is
used by the company in order to sell products from one business to other. If Penny juice will
sell the juices to other online companies then the customers will get to know more about the
product and this way they will be able to buy more of this product and the company would be
able to earn more. Further the report states that it should use ad- based and subscription based
model for the revenue model. Penny juice should also expand its target market and
segmentation as it should focus on the health conscious adults along with making juice for

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the children. The revised E- business model lastly discusses the indirect competitor of penny
juice is frooti whereas the direct competitor of penny juice is farm fresh juice company the
report shown an detailed SWOT analysis of the two competitive firms of Penny juice(Teece,
2010).
E-commerce presence mapdetailing the platforms and activities associated with each
type of presence map.
Websites - Traditional
- Tablet
- Mobile
Search display affiliate
sponsorship
Email - Purchase list
- Internal lists
Newsletters updates sales
Social media - Blogs
- Facebook
- Twitter
Conversion engagement,
sharing advice
Offline media - TV and Radio
- Print
Education, exposure and
branding
Action plan:
Activities Key message Date of
delivery
Target
audience
Owner Frequency
Online
marketing
To make
customers
aware about the
brand. And to
interact with
the customers.
2nd august
2019
Kids and
adults
All
Directors
Once
Social
ecommerce
To make
customers
aware about the
brand and to
improve the
brand image of
the company
5th august
2019
Kids and
adults
All
Directors
Once
Email
marketing
To attract more
attention from
the customers
10th august
2019
Kids and
adults
All
Directors
Once

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REFRENCES
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innovation. Long range planning, 46(6), 419-426.
Baden-Fuller, C., & Morgan, M. S. (2010). Business models as models. Long range
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Bak, O. (2011). The role of qualitative research in a mixed methods study-assessing the e-
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journal of business management, 5(7), 22-30.

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