Analyzing E-commerce Business Models

The assignment delves into the complexities of e-commerce business models. It requires students to analyze the competitive landscape using Porter's Five Forces model and explore effective strategies for increasing online sales. Students are expected to research various sources, including academic journals and online articles, to support their analysis and recommendations.

E-BUSINESS

Table of Contents
E-Business............................................................................................................................................1
Introduction..........................................................................................................................................3
Task 1...................................................................................................................................................3
Q. 1 Describing and comparing the offline and online retail environment for firm.......................3
Q. 2 Analysing how value is created in e-business..........................................................................6
Q. 3 Recommendations to increase consumer for online purchasing..............................................9
Conclusion..........................................................................................................................................11
References..........................................................................................................................................12

INTRODUCTION
E-business (electronic business) of organization manages its all type of operations through
Internet. It includes buying and selling of products, processing payments as well as servicing to
customers in the market. It is necessary for organization to increase its sales and revenues in the
industry (Weill and Vitale, 2013). Block and Quayle (B and Q) is retail company which provide
optimistic retail products to its consumers in the United Kingdom. The present report describes
supply chain process of online and offline retail store. It represents the comparison of offline and
online retail environment of organisation with help of some factors. Further, It describes Porter five
forces model for review of retail industry in the nation. In addition to this, it also suggests
improvements which help B and Q to enhance selling online of products in the retail sector of UK.
TASK 1
Q. 1 Describing and comparing the offline and online retail environment for firm
Generally supply chain management contribute effective role for B and Q to manage flow of
its goods and services in the market. It associates movement of raw material, work in progress and
finished products from origin point to consumers.
Offline supply chain management of B and Q
Purchase of raw material: Management of B and Q purchase raw material from its suppliers in the
nation. For example, organization purchase the wheat from reputed companies by analysing its
positive report in the retail market (Vlachos, 2014). Then after, firm fix rates of wheat from its
suppliers in the market. As per suitability, firm purchases material from its vendors in the nation.
Work in progress: In this process, management of B and Q takes delivery from suppliers as per
given time frame at warehouse (Sandberg, 2013). For example, organization also stores its various
products like Oil cans, wheat and other commodities at storage to manage safety of them.
Dispatch all material to store: Ware house of enterprise dispatch its material to its store at major
cities of nation. For example, store of B and Q takes supplies from its ware house as per consumer
demand of retail products in the market.
Customer purchasing: Consumers come to store for purchasing of retail products. In addition to
this, they purchase their commodities as per requirement in B and Q and pay the money instead of
purchased products in the store (Bertolini and et.al., 2012).
Online supply chain management of B and Q
Generally, purchase of raw material and work in progress are the same in online supply chain of B
and Q. Then after, it creates some differentiation between process of online and offline supply chain

which are described below the paragraph.
Demonstration of material to website: B and Q enterprise represents its various types of retail
products at the company website as per availability of products. For example, customers of
organization open its site with register id and password. Further, they select their products as per
their requirement by analysing rate products and discounts (Shankara and et.al., 2015). They order
the products of firm by paying the money with help of net banking, debit card or credit card.
Delivery of material through logistics companies: Management of B and Q make contact with
many logistics companies for managing delivery system in the nation. This process provides better
reliability to manage its online retail operations in the market (Chong, 2014).For example, B and Q
establish tie up with courier and distribution organizations to provide proper delivery for
consumers. This process also contribute effective role for organization to dispatch its materials to
customers in the United Kingdom.
Comparison of offline and online retail environment of B and Q
Technological practices and issues
There are many technological practices and issues in offline and offline process of supply
chain in the market. According to Hartono and et.al (2014), offline supply chain process requires
less technological assistance as comparison of online supply chain. In the offline supply chain, B
and Q need computers and supply chain management software to analyse flow of goods which does
not create more issues as compare to online supply chain (Hartono and et.al., 2014). Further, this
thing also provides reliability to manage retail and sales operations of organization in the retail
sector. As per Amit and Zott (2012), online supply chain process requires huge technological
resources such as proper connectivity of internet, website, proper communication facilities to
manage its online supply chain operations in the market (Amit and Zott, 2012). On the other side,
these things create so much complexities to manage all technological resources in B and Q. In
addition to this, it also increases the expenditure of maintenance and repair cost of corporation. It
needs many IT expert to manage online retail operations of enterprise as comparison of offline
supply chain process at work place (Vize and et.al., 2013).
Ethical and regulatory practices and issues
Management of B and Q corporation retail uses proper ethical and regulatory practices and
faces many issues. According to Pantano (2014), offline supply chain has to follow lot of legal rules
and regulations to perform its retail operations. In addition to this, organization is also responsible
to manage as well as implement health safety policies of employees, store and products which
requires many human resources to follow the regulations as comparison of online supply chain

process (Pantano, 2014). As per Veit and et.al (2014), it creates so much problems to manage offline
supply chain operations of B and Q as compare to online retail activities in the market (Veit and
et.al., 2014). Wiengarten and et.al (2013), to follow proper regulatory and ethical practices,
organization has to consider all rule and regulation like installation of security protocol as well as
firewall at server for safety of information of B and Q. This process contribute effective role for
organization to its manage online supply chain activities in the retail market of United Kingdom
(Wiengarten and et.al., 2013). According to Weill and Vitale (2013), it creates more expenses as
comparison of offline supply chain process. On the other side, it produces less issues which
provides effective flexibility to manage online retail operations in the electronic market (Weill and
Vitale, 2013). In addition to this, it also helps in increasing sales of B and Q in the retail sector of
UK.
Traditional and digital marketing practices and issues
According to Sila (2013) B and Q organization uses traditional marketing like news papers,
magazines, posters as well as templates for effective promotion of its offline supply chain process.
Further, conventional marketing helps to manage retail supply chain operations in the major cities
of United Kingdom. It contribute effective for B and Q to increase sales of its retail products in the
market (Sila, 2013). On the other side, it creates more complexities to handle supply chain
operations of B and Q as compare to digital marketing. In addition to this, it requires lot of human
resources to manage traditional marketing practices as comparison of electronic marketing in the
nation. As per Fernie (2014), B and Q utilizes many digital marketing practices like social media
(Face book, You tube and Twitter) as well as mail advertisement to promotes its supply chain
operations in retail industry of United Kingdom (Fernie, 2014). Barnes and Hunt (2013), electronic
marketing practices provides huge flexibility to manage online retail operations of B and Q in the
market. It contribute effectively in increasing revenues and profit of organisation in electronic retail
sector (Barnes and Hunt, 2013). On the other side, it creates less issues as comparison of traditional
marketing. It does not require more human resources to manage online supply chain operations of B
and Q firm in the market (Martins, Rindova and Greenbaum, 2015). However, digital marketing of
organisation is so expensive as comparison of conventional marketing which creates complexities to
manage its monetary fund for investment.
Q. 2 Analysing how value is created in e-business
There are many methods to create better value for the electronic business for retail
organization. It represented below the paragraph.
What
According to Rogers and et.al (2015), Porter five forces model is used to analyse the level of

competition for any type of industry in the nation (Rogers and et.al., 2015).
Why
As per De Marco and et.al (2012), Management of B and Q can use porter five forces model
to analyse industry review for analysing competition in the retail market of United Kingdom (De
Marco and et.al., 2012). According to AlGhamdi and et.al (2012), this model is appropriate for
organisation to create effective value in electronic business by developing better strategies. Porter
five forces model can help the B and Q to earn profit and manage online retail operations in the
market. It helps in knowing rival strategies in the online retail market (AlGhamdi and et.al., 2012).
In addition to this, it also helps to improve optimistic brand awareness by designing better strategies
which can attract the consumer to purchase online products in market of United Kingdom.
Where
According to Sila and Dobni (2012), Management of B and Q can implement porter five
forces model in their online retail industry. In addition, this thing can also help the firm to handle its
sales and other operations in a appropriate manner (Sila and Dobni, 2012).
When
As per Ramdani, Chevers and Williams (2013), B and Q can execute this method when
company want to make new strategic plans for analysing level of competition in order to increase
its online selling by beating its competitors in the online retail market (Ramdani, Chevers and
Williams, 2013). Griffis and et.al (2012), Further, marketing managers, directors, research analyst
as well as sales executives can implement porter five forces model in the market (Griffis and et.al.,
2012).
How
According to McElheran (2015), To execute this process, marketing experts of B and Q
have to find out preference, needs as well as requirements of consumers in the nation. This
information of market contribute effective role for strategic directors, marketing mangers and its
employees of B and Q to enhance sales of online retail products in the nation (McElheran, 2015).
Porter five forces model

(Source: Weill and Vitale, 2013)
Threat of entry: Threat of entry is also high in online retail industry because there are many retail
organisations which are come in electronic business in order to earn better profit and expand its
online activities in the United Kingdom. So this thing is increased many issues for B and Q like
high competition and more expenditure on market research as comparison of past years in the
online retail market (Weill and Vitale, 2013). For example, there are many retail organisations like
TESCO, ASDA as well as Mark and Spencer who have entered in online business. In addition to
this, many small and medium tries to enter in this business to increase its profit in the market.
Further, they also affect business of B and Q in the online market. So threat of entry also contribute
effective for organization to know about new competitors which help to develop better strategies in
the online retail market of United Kingdom.
Industry rivalry: It is very high in the online retail industry of UK. Management of B and Q
company face many problems to manage their sales operations in the market. Generally, there are
many rival organisations like Mark and Spencer and Next which are increased the competition in
online retail market (Porter's five forces model, 2016). For example, competitors of B and Q
develops different type of strategies to increase its online sales like discount, club card schemes,
special offers as well as seasonal discount strategies in order to attract consumers in the market. In
addition to this, these strategies are increased competition as compare to previous years in the
online retail sector of United Kingdom. Further, they also reduces profit of B and Q which are
created more complexities to manage its online retail business activities in the online retail market
of United Kingdom (Pantano, 2014).
Threat of substitutes: It is low in online retail market for B and Q because this organisation holds
top ten ranks as per its revenue in the online retail industry of United Kingdom. In addition to this,
Illustration 1: Porter five forces model

firm also maintain proper quality in their retail products as compare to its rivals which reduce
reduces threat of substitution in the online retail market (Vize and et.al., 2013). For example,
management of B and Q provide effective online marketing services and products to their
consumers which help to enhance its sales operations in a appropriate manner in the industry.
Further, B and Q also uses proper quality tool like total quality management and continuous
improvements in its products which help to increase its brand image in the market. However, B and
Q is unable to provide better services to its consumers as comparison of its competitors like
TESCO, ASDA as well as Sainsburry in online retain sector (Hartono and et.al., 2014).
Bargaining power of suppliers: It is low in the online retail market due to frequency lot of
suppliers who can provide better quality of raw material in a affordable price within retail market.
These situations also reduce bargaining power of suppliers in the market of United Kingdom. In
addition to this, they provides huge reliability for B and Q enterprise to purchase effective quality of
raw material in cheap price. This process also contribute effective role for organisation to make
better marketing strategies which can help to save its expenditure in the retail sector (Vlachos,
2014). For example, organisation select its vendors by finding out appropriate report in retail
market of UK. Then after, B and Q bargain with its suppliers in order to fix cost of raw material. In
the next step, management of firm purchase commodities from their vendors in United Kingdom. In
addition to this, suppliers of B and Q are farmers as well as reputed companies such as HP, Nivea as
well as Samsung in the nation.
Bargaining power of consumers: Generally, Bargaining power of consumer is high in online retail
market due to frequency of many organisations in the United Kingdom. This thing increase more
rivalry and many issues like management of human resources to meet demand of consumers in the
market. Further, it creates problems in increasing sales of B and Q firm in the market. In addition to
this, it reduces sales and profit of organisation in the market (Amit and Zott, 2012). For example,
management of corporation also use penetration pricing, special offers and seasonal discounts to
increase its sales which contribute effectively in enhancing its revenues in the online retail market
of nation. On the other side, organization also decreases profit on per unit cost of product in United
Kingdom. However, management of B and Q provides effective online services which attract many
consumers to purchase online products again from its website in the United Kingdom. Further, this
aspect can also help the firm to make better strategies to sell the online retail products which can
contribute effectively to get positive response from consumers in the market.
Q. 3 Recommendations to increase consumer for online purchasing.
There are many recommendations to increase customers for online purchasing in the market.

Some of them are stated below the paragraph.
Better promotion activities
Management of B and Q organisation should use effective promotional strategies like social
media, templates, radio and magazines and television to increase sales of its retail products in the
nation. These practices can help to increase awareness for consumers regarding the retail products.
They can attract the consumers to take online commodities of B and Q in the market. In addition to
this, they can contribute effective role for organization to increase its sales in the electronic business
sector. Further, corporation can easily get better profit and revenues from online consumers in the
nation (Sandberg, 2013). Better promotion activities help the organisation to increase its brand
equity as comparison of previous years in the nation. It can oblige the consumers to open website of
company for purchasing of retail products which can create positive impact on its image in the
market. It can aid the management of B and Q to enhance its revenues in the market. Organisation
can develop effective effective relationship with exiting and new consumers in the online retail
industry. In addition to this, better promotional activities can help to add new customers which
contribute effectively in increasing sales of retail products in the nation (Pimsleur, 2013). For
example, TESCO uses promotion activities like new papers, magazines, posters, radios, social
media (Twitter, Face Book and You tube), mail advertisement and pop ups to promote its retail
products in the market. Advertisement strategies are increased sales of TESCO products by creating
more understanding about products. So management of B and Q should use promotional strategies
to increase sales of its retail commodities in the country.
Better promotional activities can attract the customers to purchase retail products from website of B
and Q in the nation. In addition to this, management of organisation should show its new products
on home page of site. This thing contribute effective role for corporation to know about new
commodities (Shankara and et.al., 2015). For example, many online retail organization like ASDA
and Mark and Spencer show its newly launched products in its websites which contribute
effectively in increasing sales of online retail products in the nation. This way, B and Q can earn
more profit and enhance its revenues by using these promotional activities front of consumers in the
market.
Discount strategies
Management of B and Q firm should use various type of discount offers to increase their
sales of online retail products in the market. These methods can help the firm to increase frequency
of consumers at the website portal. Generally, there are many discount offers like seasonal, points as
well as heavy online shopping wise which can be used by organizations. They also aid the firm to
attract the consumers for purchase of more online products from the websites of B and Q in the

market. In addition to this, discount strategies can contribute effective role for organisation to
increase its revenues and income in the market (Chong, 2014). For example, ASDA retail online
organisation uses price reduction strategies in order to increase its sales in the market. Discount
strategies also help this organisation to increase its profit from consumers. In addition to this, ASDA
also provides higher discount for online shopping in order to encourage consumers in United
Kingdom. Hence, management of B and Q should use these type of price reduction plan to increase
sales of its retail products in the market. Further, B and Q firm can get huge help to enhance the
frequency of customers. So appropriate discount strategy can contribute effective role for
organisation to increase online market share in the United Kingdom. This way, corporation can
increase its profit in the country. In addition to this, discount strategies can help in becoming
leading firm in the online retail market of United Kingdom (Hartono and et.al., 2014). Management
of B and Q can lure more consumers to purchase more products again.
Quality services
B and Q should utilize proper quality services to enhance of sales of its retail commodities
in the electronic market of UK. These practices can aid the firm to provide better products to create
optimistic trust on the mind of consumers in the market. In addition to this, management of B and Q
should only sell reputed company products to give better quality services for customers in the
market (Gehl, 2015). For example, TESCO only sales effective products to its consumers. In
addition to this, it also provides warranty and guaranty services to make better relationship with its
customers in the market. In addition to this, it uses various quality tools like continuous
improvement and total quality management to provide better services for its consumers. Quality
services contribute effectively in increasing sales of online products of TESCO in the market. So
management of B and Q can utilize these techniques in order to increase their sales in online retail
market. Quality services can help the firm to improve its brand image and market share in the
online retail industry of United Kingdom. Organisation can effectively attract its consumers in
appropriate manner.
In addition to this, corporation can develop better features for development and updation of
website portal in order to attract the consumers which can help to increase sales of its online
products in the market. Management of B and Q should provide flexibility to access site for users.
Further, organisation should give easy features in order to reduce complexities of consumers. This
process can contribute effective role for customers to understand specification of commodities
which can help to increase sale of B and Q in the market (Schiff, 2015). For example, NEXT online
retail organisation uses this type of features for its website. This process helps in enhancing sales of
online retail products in the nation. In addition to this, firm also gets positive response from

consumers regarding accessibility of website. So management of B and Q should adopt these
features in order to provide better quality services for customers which can aid to increase its
revenues by enhancing sales of its products in the online market.
CONCLUSION
From the report, it is found that effective online and offline supply chain process provide
huge reliability to manage retail operations of B and Q in United Kingdom. Technological, Ethical
and regulatory practices as well as traditional and digital marketing practices and issues contribute
effective role for B and Q to improve its efficiency and performance in retail supply chain
operations. Further, industry rivalry and threat of the new entry also help in developing and
designing better competitive strategies which aid in beating rival sales in online retail market of
United Kingdom. In addition to this, it helps in getting better success by increasing its profit of
organisation in the retail market. It can be concluded that better promotional strategies like social
media, discount offers as well as quality services aids increasing frequency of online consumers to
increase sales of retail products. It also helps in enhancing market share of B and Q in the United
Kingdom.

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