E-Commerce and Business Strategy

This assignment delves into the realm of e-commerce, examining various business models, marketing strategies employed by companies like Asos, and the legal framework governing online transactions in the UK. It analyzes the impact of e-marketing on small businesses and explores the environmental implications of B2C e-commerce from a logistics perspective.

INTERNET AND E-
BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Environment for e-business and business transaction types.................................................1
1.2 Advantages and disadvantages of having online business presence.....................................2
1.3 Security and legislative issues faced in Asos due to e-presence...........................................3
1.4 Modes of communication accessible to Asos and their application in its business..............3
TASK 2............................................................................................................................................4
2.1 Importance of internet technologies and their significance in E-Business...........................4
2.2 Key features of HTML..........................................................................................................4
2.3 Analysis of the role of search engine, browsers and client servers.......................................5
2.4 Application of intranet and extra-net in a business communication.....................................6
TASK 3............................................................................................................................................6
3.1 Models of E-Business for significant outcomes in business.................................................6
3.2 Analysis of E-business models for generating revenue........................................................7
3.3 Highlighting the scopes for further development of E-Business Models.............................7
TASK 4............................................................................................................................................8
4.1 Key components for designing an effective web page..........................................................8
4.2 Analysis of the role of a good website design on a business................................................9
4.3 Existence of different issues for usability of the website....................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
E-commerce or the electric commerce refers to the communication process undertaken by
a business organisation in which the data and financial resources are transferred through the
online measures. As per the common believe the future of an e-commerce depends on the
financial expense of the company in the e-commerce activities (Da Costa, 2016). This aspect of
e-commerce has been discussed in this study with the help of practical examples from Asos
which is an online fashion shopping site targeted for a specific age group. For this, the researcher
has assumed the role of online business manager for Asos and conducted this particular research.
TASK 1
1.1 Environment for e-business and business transaction types
Factors Influence
Political Based on the government policies the value added taxes increase reducing
profit margin and increasing price of Asos.
The recent government decision of scrapping the student maintenance grant
would reduce Purchasability of Asos, which is the target market of the
company.
Economic The increase in minimum working wage might increase expenses of Asos as it
employs 1475 full-time employees along with 66 part-time employees.
Socio-cultural Since 2015, the rate of online purchase has increased considerably generating
larger sales scope for Asos.
Consumers have become more ethically conscious concerning purchase of
goods requiring sales and marketing processes to be ethically sound (The
Guardian, 2017).
Technological Currently, online shopping has become preferable for the consumers to the
direct shopping, therefore, Asos are expected to acquire larger market in such
market environment.
The organisation might utilise technological advancement to generate a
physical existence in the market other than the virtual one (Asos.com, 2017).
Legal Adherence to Consumer rights acts 2015 while conducting its interaction and
transaction with the customers (Legislation.gov.uk, 2017).
Follow the Data Protection Act 1998 while managing the data regarding its
customers, suppliers, employees and other stakeholders
Environmental Asos for delivery of its productsdepends on the delivery services. Therefore,it
needs to be conscious about the carbon footprint of these delivery service
providers to maintain its positive image in market (Legislation.gov.uk, 2017).
It also needs to find a way of green packaging to replace plastic package.
Table 1: Environment analysis of Asos
(Source: Created by author)
Business transaction types:
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 Business-to-Consume-Here business organisation directly communicates with customers
and conducts the selling process with customer directly.Observing Asos’s online
transaction activities the researcher has deduced that the organisation’s operations can be
categorised under the B2C transaction.
 Business-to-business -The manufacturer sells the product to anintermediary company,
who further sells the product to the customers (San-Martín and Camarero, 2014). The
retailers that purchase the goods from the wholesaler and sell it to the customer can be
considered as such type of intermediary.
 Customer-to-customer-Here customer sells a product to another customer. Sometimes,
online sites avail some of their customers to sell the product on the same site such
transaction between the customers might be considered as the Customer-to-customer
transaction (Zhu, 2015).
 Customer-to-business-In certain cases, customers possess certain products or services
that the business organisations purchase from them (Mangiaracina et al. 2015). The
recruitment website’s activity of selling CVs to the recruiters might be considered as such
type of transaction.
1.2 Advantages and disadvantages of having online business presence
The online presence has become necessary for the retail organisations, which largely has
catered to the convenience of customers. The following table provides an understanding of the
merits and demerits of e-presence:
Table 1: Advantages and disadvantages of online business presence
Advantages Disadvantage
 Eliminates the geographical barrier and
expands the market
 Avails scope for 24/7 transaction and
business operation
 Organisational websites receive
advertisements from other businesses,
which add to the business revenue
 Multiple customers can be handled
simultaneously through automated
display process. This increases
efficiency level.
 Customers receive quality service as
per their convenience, which
 Issues of data security are still there,
data theft and online forgery might
hamper the business inconsiderable
manner
 This makes customers, to a certain
extent, reluctant towards online
product purchase
 Generally, such online sites avail
information only in one language which
limits business prospects due to
language barrier and Asos is no
exception to this
 It lacks the physical connection with
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contributes it their level of satisfaction
and loyalty for Asos.
 Scope for word of mouth marketing
 Easier and more efficient inventory
management as records are
automatically maintained
the products that largely contributes to
customer’s purchase experience.
Therefore, consumers sometimes visit
online sites very frequently yet
purchase from physically present stores.
1.3 Security and legislative issues faced in Asos due to e-presence
 Security issues-One of the major security issues concerning the e-transaction is the virus,
which might lead to data theft and forgery of financial resources. While the second can
generate financial loss for the company, the first might violate confidentiality issue
generating considerable distrust of customers regarding the company (Sicari et al. 2015).
Moreover, malware programmes have the potentiality of changing the format of a data,
which might lead to data loss (The Guardian, 2017). Application of the firewall might
reduce this issue as the software firewall avails the opportunity of verifying if the user
wants to run a software, permission for which has not been given previously (Turban et
al. 2015). This reduces the possibility of virus attack. Another major issue with the online
interaction and transaction is that generally, people cannot verify identity of the other
party. Use of the digital signature and digital certificate can address this issue as they
serve as evidence that the actual user has sent a request or received information.
 Legislative issues- for the protection of the data from the above-mentioned issue's data is
sometimes encrypted which encodes the data into a non-readable format which the
receiver further decodes and receives the message. While this measure reduces possibility
of data loss, it raises legal issues. The Electronic Communication Act 2000 questions the
authenticity of digital signature (Legislation.gov.uk, 2017). On the other hand, the
European Union prescribes standard digital signature among all the users across Europe
(Certifiedsignature.eu, 2017).
1.4 Modes of communication accessible to Asos and their application in its business
The modes of communication that Asos has access to are Online websites through which
the organisation avails its products to its clients, addresses the queries of its customers and
communicates organisation's aim, objective and image to the customers (Boone and Kurtz,
2013). While mobile app of the organisation directly targets the sales and customer’s purchase
decision. It comes with the feature of notification that used to attract customers towards its offers
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product lines (Omonedo and Bocij, 2014). Social media, on the other hand, is used for
relationship marketing as it avails scope for effective communication in an informal manner.
Finally, e-mails are another way of notification applied by Asos to inform the customers of its
activities, offers and trends, while e-mail is often considered as a back dated measure for
communication, its formal mode often proves to be successful in influencing customer
preference in a positive manner.
TASK 2
2.1 Importance of internet technologies and their significance in E-Business
Since the invention of internet in 1960, rapid change in global economy was noticed
through implementing the wide features of internet. Internet went online for the first time in 1969
with the help of ARPA (Advanced Research Project Academy) connecting major universities in
United States. However, the idea of using internet in E-commerce has given a new shape to the
business worldwide. As stated by Boone and Kurtz(2013), the deep-rooted significance of
internet in many industries has been improved widely but also creating big challenges in
competitive threats to each organization. Further, he added that the role of internet in today’s e-
commerce companies is widely proven to be improved than traditional business operation.
Nowadays, many companies are setting new milestone through implementing internet
technologies thus leading to enhance business operations, customer service, supply chain
management, consumer attraction and improved sales through online marketing. Therefore,
internet can be considered as one of the most significant attributes for an organization to deal
with developed business processes.
2.2 Key features of HTML
HTML (Hypertext Markup Language) is referred as predominant programming language
for designing efficient and effective web pages. As opined by Halavais (2013), HTML provides
unique interface for allowing objects and images to embed and used in creating interactive forms
(Chernyi, 2015). Moreover, HTML provides better interface for creating the structured
documents through denoting the structural semantics in the context of writing text such as
paragraphs, headings, links, lists and some other items. Moreover, HTML can embed the scripts
in different languages. For example, JavaScript that can affects the HTML webpage behavior.
Based on the viewpoint of Ristoski and Mika (2016).
Key feature of HTML
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 Article: It defines an article in a document. bdi: It is known as isolated part of text which may be formatted in different section from
the outside text. Details: It defines the additional information or details which user want to hide or show. Dialog: It defines the dialog box or window in HTML. Fig caption: It is caption of figure of an element. Figure: It define the content which are included in a document. Footer: It presents the footer for a document or section. Header: It shows the header for a document or in a section. Main: It include the main details or information which are recorded in a document. Mark: It present or shows the highlighted text in a document. Meter: By using the range it defines the measurement of scalar or a gauge. Nav: It shoes the navigation link in a document. Section: It present the details which are covered in a different section or part in a
document. Summary: It shows the visible heading for a particular element. Time: It record the date and time in which document will be prepared.
All are the main key element or feature of HTML by which person can decode the
information with the help to these elements.
Different aspects covered in the Hyper text markup language with the help of various
coding that helps an individual in order to create a website along with several aspects covered in
the same topic (Boone and Kurtz, 2013). Head tag is used to start the coding which helps in
creating topic of the website. Body tag covers the body of the website which are gong to be input
by a user. Break code such as <br/> to break all the lines to various paragraphs. Headings is to be
generate in the information provided to various users with the help of internet websites. Lists can
be different type such as bullet lists and numbering used in the coding.
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<head>
<title>HTML!</title>
</head>
<body background “Black tea”>
</br>
</body>
</html>
EXAMPLE: Send mail to <A "MAILTO:[e-mail]>"
[e-mail] </A>
2.3 Analysis of the role of search engine, browsers and client servers
The search engines provides interface for online searching against different keywords.
Some of the most famous search engines in the world are Google, Bing, Ask.com and Yahoo and
so on. On the other hand, browser provides interface for browsing the web page through internet.
The role of search engine is correlated with browsers in terms of browsing the different websites.
The concept of client server model reflects about one server who provides services to all the
clients associated with it (Ahn, Kim and Proctor, 2016). It is a centralized concept where server
acts as main member while other computers (client) behave based on the instruction sent from
the server.
Main role of client and server network is deliver all kinds of services to the end users
who type its query on the search engine such as Goggle. There is cob web system in which
server will search various database in order to provide the suitable information according to the
need of a client as the query will get resolved is the basic duty of a server which created the
client and server system. Client establishes a connection to server over a local area network or
wide area network, such as internet. If the server fulfill the client's request, the connection is
terminated. It help to host the resources and good administrator, because they only have one
place and can solve all the problem in a one place.
Search engine is created in order to help all the users in providing important information
to a client. It provides various web pages among which user will select the best suitable
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information according to its needs. Search engine plays an important role for optimizing on
keeping th user on sites. It also play an optimization rile in search marketing.
2.4 Application of intranet and extra-net in a business communication
As opined by Molenaar (2013), intranet works as a network where staffs/employees can
communicate, create content, develop and collaborate the company culture. However, extranet
also behaves as an intranet but provides the controlled access to vendors, consumers, partners,
and other outsiders of the company (Boone and Kurtz, 2013). However, it can create confusion
to some people but if integrated into the business model, it can result into more streamlined,
efficient, better connection and enough productivity for the business. The word “extra” refers to
the crucial thing of the business yet existed outside such as authorized vendors, suppliers and
clients. In other words, extra net is referred as private communication, document sharing,
collaboration, data transfer and knowledge sharing between companies.
TASK 3
3.1 Models of E-Business for significant outcomes in business
An e-business model is simply the approach a company takes to become a profitable
business on the Internet. There are many buzzwords that define aspects of electronic business,
and there are subgroups as well, such as content providers, auction sites and pure-play Internet
retailers in the business-to-consumer space. Selling a product online might be very profitable for
a business. After the development of e-commerce, different options have been merged together
to create online revenue. An e-business revenue model can be stated as the plan to generate
revenue online. While e-business revenue model shares wide similarities with mortar to brick
business, they also enable an marketer for reaching consumer worldwide and offers significant
diverse for generating values. The following models can be helpful in deciding the e-commerce
business structure. Web-catalog revenue model, Digital-content revenue model and Fees for
transaction model
Fees for transaction model is that kind of business model used in the business in which
commission will be charged by an entity for all the transaction's entity deals in such as merchant
banking in which payment made by an individual using debit and credit side on one end. After
payment made by a person will be processed through merchant bank who charges specific
commission on all the transactions and transfer the remaining amount to the bank of companies.
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Uses of e-Business model
Business to business: This kind of model deals with relationship between and among
business. It use by the business to apply effective marketing, sales, development and
manufacturing support. It can be use in transportation, warehousing and distribution by one
business to another business.
Business to consumer: It deals with business to customers. iT include collecting the
customer's information, purchasing physical goods and receiving products etc. It help to reduces
transaction costs by increasing consumers. It also help to reduce the market entry barriers.
Business to government: It defines commerce between companies to government. It help
to increase the transparency in production process. Government make full control in the business
so that ethical work will be done by a firm.
3.2 Analysis of E-business models for generating revenue
There are hundreds of ways to earn online money. Experts have highlighted some major
e-business revenue models such as: Web-catalog revenue model- As stated by Jackson (2016), though the aim/goal of any e-
business company can help in reducing the cost and improving the consumer service,
however, the main aim of much e-commerce business is for generating revenue and
earning profit (Chernyi, 2015). This model would mainly entertain with shopping cart
providence and electronic catalogue. E-commerce business with implicating this type of
revenue model can include online selling of electronic items, computers, books, videos,
music and gift and so on. After the development of e-commerce, different options have
been merged together to create online revenue. Digital-content revenue model- Web server has been found very efficient in distributing
process of content. This type of revenue model deals with various types of information
service distribution such as corporate information, legal information, news and resources,
government information and so on. Normally, a consumer needs to pay certain amount of
fees as subscription fees. For example, through paying monthly subscription fees, a
customer can get access to the online articles, journals and so on.
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 Fees for transaction model- This type of revenue model illustrates that anyone who is
transacting online over internet so all they need to do is to give certain amount of fees
based on the size and type of transaction. For example, if a customer wants to book a
hotel for residing over internet through the site of a particular site. Then the customer
need to pay for the operating fees.
3.3 Highlighting the scopes for further development of E-Business Models
However, e-commerce model discusses about the efficient development of business
revenue models, but it also discusses about the growth required in them (Da Costa, 2016). Some
experts have found some of the most significant models or changes in the model that would be
requiring them. Some important changes can reshape the face of e-commerce in certain business
sectors. Targeting the affiliate marketing enables the marketer through offerings and marketing
other product on own webpage. On the other hand, online advertising has been very popular
nowadays in increasing the customer attention regarding any particular product or service.
Through this implementation, an organization can purchase some advertising space in their
website and thus owning good benefit. After the development of e-commerce, different options
have been merged together to create online revenue.
Therefore, it can be said that points underlined in this section is very considerable in context of
generation sufficient revenue through marking the key areas. However, only concentrating over
generation of revenue might not be fruitful since organizational strategies and business operation
is indulged in it. Thus, it can be interpreted that with relevant steps that can be taken into account
while minimizing potential barriers is significant.
TASK 4
4.1 Key components for designing an effective web page
Designing an effective website has never been an easy task without considering the most
important elements that could take a base or stand for that website. Based on the viewpoint of
Eid and El-Gohary (2013), a good website is what is preferred by everyone and has lack of
sources to be less informational and attractive. Therefore, some very important elements must
have in a webpage for widely affecting the consumers.
Space: space is important in a page that denotes everything from readability to the flow. Space is
one of the most important design tools because it dictates everything—from flow, to readability.
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It is also important to note that space is not always white. It refers to the lack of elements, and
could equally be a background color or a texture.
Simple navigation: navigation to a web page must be easier and navigational menus should be
inserted in a page so that consumers might not get irritation through poor navigation method. It
includes tools that help users navigate through sites.
About us: company information with relevant stories must be given in a page that gives relevant
and sufficient information to end users. It is important for a small business by which they will
tell the customers of their presence. It include the photos and biography of a company which
they ant to tell the customers about itself.
Contact information: putting contact information in a page can help a customer or interested
individual to contact with company directly through given medium. By having contact
information such as phone number, address etc. are added by the owner in the business sites. It
help to work well which is depending on the site design.
Search: Most of the sites are now putting search block and button so that customer can find any
information related to their query (Jackson, 2016). It reduces the time limit to look for a
particular content in the website.
Informational footer: informational footer refers to the information put together added in last of
the scrolling page. It has become trend to add informational footer in a page. It has been seen that
most of the pages repeats the information on the above as well as in the footer so that visitor can
eye to that information what company wants to show them.
Good images: adding good images that is relevant and attractive to customers must be added to
the page. It reflects the website quality and attracting those who are not very interested in reading
each words of the site. By creating great photographs, business can attract the customers in a
large level. It include photos of products, people which are related to the business.
Web fonts: as opined by Strauss (2016), web font is very important while designing a webpage
because it has been found that irrelevant use of web fonts can results into lack of customer
attraction towards the site and leads to lack of page visitor.
Meta tags: Meta data is data about data. The <meta> tag provides meta data about the HTML
document. Meta data will not be displayed on the page, but will be machine parable. Meta
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elements are typically used to specify page description, keywords, author of the document, last
modified, and other meta data.
Thus, using all the components before designing a webpage clearly leads to high amount of page
visitor and leading to successful adoption of the designed webpage. There are various factors
which needs to be considered by an entity while designing its websites as this is regarded as one
of the important source of attracting variety of people towards the business. Keywords is
regarded as the important factor as good keywords used by a person will be able to produce true
information. Description of each ad every items on net will be helpful for a client who can save
its time by getting complete information through one or two pages.
4.2 Analysis of the role of a good website design on a business
A good website has been the key to improved consumer attainment and creating positive
perception among customers and partners to deal with increased sales and brand loyalty ().
However, it has been found that the number of customer or page visitor depends upon effective
web page development (Guo, Wei, Sharma and Rong, 2017). For example, if a company is
excellent in delivering quality product and services then since the age of globalization and rapid
growth in e-commerce business, it affects significantly to choose as the first option. Based on the
viewpoint of (), 35% users were unsuccessful in completing simple tasks on average websites.
Lack of sources and information supplied through web page decides the attraction of customers.
However, designing such web page can be very difficult in terms of attracting consumers to go
with online shopping or usability of internet to communicate with company.
Pros
 It attracts wide number of people towards the website created by an entity for its users
 It depicts the performance of the business in front of its users
 Use of graphic designs in order to enhance the value of the business.
 It help the business to establishes credibility and build trust in front of the customers.
 It also help to engage the visitors in a large number.
 It also prove all the information which is related to the business through websites.
Cons
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 Wrong coding of website lead to wrong display of the information
 Too images in a website confuse a user.
 Customers are too confused to choose best alternative which are best for them.
 There will be difference in price of product.
4.3 Existence of different issues for usability of the website
Since the age of website development, the loopholes or the issues existing with website
significantly affects the usability of a web page. Some common issues arise with website
developments are such as complex fonts (difficult for user or visitor to scan), duplicate page title,
wrong purpose for using pagination, tiny clickable areas, no option for contacting company
support, not added search button, extra functionality requires registration. Is has been observed
that longer registration form most of the time distracts customer and thus reduces web page
visitors. Company found that manager uses tiny clickable areas while designing the websites.
They also consider the use of pagination for the wrong purpose. Firm also adopt the duplicate
page titles and content which are by them is difficult to scan properly. Customers and business
have no way to get and search in touch with each other. Too much functionality need to get
registered by the organization.
Current website of an organization will be improved by emphasizes on the business
information to be displayed with the help of websites that can be updated every week to provide
the latest information to all the users of firm (Foster, 2015). Network crashes can be improved by
applying appropriate measure of troubleshoots that strengthen the overall networks. Company try
to keep content as concise as possible by cutting down unnecessary information and avoiding
paragraphs. They use headings to break up long articles by using keywords. By using inverted
pyramid writing style, it will help the readers to scan the webpages quickly. By making sufficient
spacing text blocks will be managed by the business.
CONCLUSION
This study is significant in understanding the scope of e-business in context of
developing good web page. Researcher has mentioned the communication modes in e-business
as well as illustrating the legislative issues with online business companies. On the other hand,
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researcher has underlined the importance in internet technologies in today’s world for enhancing
e-commerce business.
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