Developing an E-commerce Strategy for Blue Clothing Company (BM6005)

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BM6005 ENTERPRISE ASSIGNMENT

Executive Summary
Original Business Concept must include basic information such as selling proposition, target
demographics, services or products, etc that will help the existing business to gain advantage
over its competitors. The concept includes development of new product or novel approach
toward the marketing so that existing product can be delivered in profitable manner. The
developed business after implementing feedbacks must be implemented in the business plan so
that existing hurdles faced by the business in the market can be eliminated or minimised.
Original business concept of E commerce portal for Blue Clothing Company is effective for
business organization to gain competitive advantage in the retail and wholesale clothing market.
E commerce portal help the business to gain profitability and brand recognition in the
competitive market. The original business concept can be developed with the help of Business
Model Canvas

TABLE OF CONTENTS
Section 1..........................................................................................................................................1
Original Business Concept..........................................................................................................1
Section 2..........................................................................................................................................3
Discuss how you tested the original business concept................................................................3
Section 3..........................................................................................................................................7
Second iteration of the business concept.....................................................................................7
References......................................................................................................................................11

LIST OF FIGURE
Figure 1: Online sales of retail sector..............................................................................................1

LIST OF TABLES
Table 1: Business Model Canvas.....................................................................................................3
Table 2: Improved BMC Model......................................................................................................8

Section 1
Original Business Concept
Rationale behind the business concept
With the advancement of technology, there is greater need for business to adopt changes as per
the existing market trend. Consumers in the market prefer to do online shopping and this has
adversely influence the sales and profitability of business organization that does not sell its
products online. It has been identified that maximum number of clothing retailers like M&S,
Primark, etc sells their products online as per the changing trend of the market (Pappas
et.al.2016). From the statistical data below, it can be observed that online shopping is increasing
day by day and therefore it is important for clothing retailers to sell those products with the help
of E commerce portal.
Figure 1: Online sales of retail sector
(Nick Hodson, 2017)

The current business concept is based on developing E commerce portal for Blue Clothing
Company in UK which is a design and contemporary fashion organization. The business is
experiencing downfall in terms of sales and revenue because of increasing competition and
therefore the concept will focus on developing E commerce portal. The original business concept
related to development of E commerce portal can make use of Business Canvas Model that will
elaborate the concept with the help of various elements.

Section 2
Discuss how you tested the original business concept
Table 1: Business Model Canvas
Key Partners
Shopping
partners such as
DHL, FedEx for
facilitating
shipping and
delivery services
to customers
Retailers in the
market who will
buy the products
of Blue Clothing
Company in bulk
Key Activities
Fast delivery and
return process
R&D department
must focus on
streamlining the
process by adding
innovative features
such as customer
queries on the portal
Value Proposition
This will facilitate
customers to gain
the advantage of
designer clothes
anytime and
anywhere
E commerce Portal
will help the
business to gain
extensive
information about
customers which
can be utilized in
future.
Customer
Relationship
This can be enhanced
or maintained by
facilitating quick
delivery or fulfilment
process at least within
2 days.
Prompt customer
services
Easy communication
with the help of online
sources
Customer
Segments
Retailers who
sell clothing
products
Individual
consumers
who shop for
their own or
friends or
relatives.
Key Resources
Fulfillment centers
and warehouses
Shipping services
Cloud services
Channels
Global Distribution
channels with the help
of shipping partners as
well as advanced
fulfilment centres
Extensive advertising
platforms
Online marketing

Customer services
with the help of phone
or online
Cost Structure
Less investment along with fixed costs for expanding business
in international market
Free shipping strategies
Cost optimization strategy
Revenue Program
Lower margin revenue at the initial
level of the business concept
Value proposition will explain benefits to both customers and business with the help of online
platform for selling of clothing products. Customers will gain products within 1 or 2 days
dependent on location. The portal will only display designer clothing product. In addition to this,
Blue Clothing Company with this online portal concept can gain extensive information about its
customers which can be used in future for targeting strategies. The portal is user friendly that is
valuable for both business and customers (Dijkman et.al.2015). Key partners are majorly
shipping providers and other retailers available in the market. Shipping providers chosen provide
fast delivery services and is crucial for increasing customer satisfaction. Further it is important to
partner with retailers so that sales of the products can be increased.
Online platforms are developed for providing improved customer services and satisfaction and
therefore Key activities must include fast delivery services to get in pace with trending market.
Blue Clothing Company also streamline research and development department so that innovative
features can be added on the portal that will make customers to buy the product in an easier
manner. Fulfilment centres and warehouse form the crucial part as key resources. It is important
for business organization to manage the inventory and stock so that customer needs can be
fulfilled and product can be delivered on time. Shipping partners as well as cloud service
providers are also important for overall success of the business model. Customer segments
include retailers and individual customers. Customer relationship can be maintained by

providing prompt customer services and this can be attained by including online or telephonic
communication as well as quick delivery services (Joyce et.al.2016). In the competitive
environment, consumers prefer to buy products from the business organization that provides fast
delivery services along with enhanced product quality.
Channel is the element that support business entity to increase the number of customers or
customer base and therefore as per the business model canvas, the business concept of E
Commerce portal includes global distribution channels such as marketing platforms, global
distribution channels, as well as robust network that supports easier communication with
customers. Marketing or online advertising platforms are important for attracting customers
towards new business concept. In addition to this, global distribution channels will help the
business to expand in international market easily (Schaltegger et.al.2016). Cost structure defines
estimated budget for the successful functioning of the portal and therefore it will majorly include
strategies that will support business to grow at the initial level.
Operating expenses will include:
 Performance advertising : $4.0b
 Sales and marketing $0.55b
 Depreciation and amortization $0.4b
 General and administrative $0.66b
 Information technology $0.25b
 Brand advertising $0.40b
Capital Expenses includes:
 Intangible assets: $4.3b
 Property and equipment: $4.4b
 Goodwill: $6b
E commerce business portal is divided into various sections and therefore it is important for
business to gain revenue. In this context business model states that keeping lower revenue
generation at the initial stage would beneficial for the business.

For testing the original business concept developed, primary research was conducted to capture
and analyse the meaningful feedback. The research was conducted by asking them for feedback
about flaws in the concept so that improvement can be implemented. Primary research was
conducted by asking relevant questions about the model and its implementation. Based on the
feedback it is important for business to make various improvement such that business model can
contribute effectively towards competitive advantage of the business in this competitive market.

Section 3
Second iteration of the business concept
Based on the feedback, business concept must be modified for further improvement. The final
idea reflects improvement in terms of viability, feasibility and desirability. Below are the
improvements illustrated based on the feedback:
Value proposition element must fulfil the needs of both customers and business and in this
context it is important for business to provide clothing products at cheaper prices at the initial
level of the business. In this context it must partner with distribution and shipping provider at
negotiable prices such that business can provide products at reasonable prices while maintaining
profitability. In addition to this, for enhancing the value proposition it is important to add more
filter options so that customers can find out appropriate product as per their expectation (Remane
et.al.2017). In context to key partners, the business must partner with technology providers that
will help the portal to get equipped with advanced features for positive customer experience. Key
activities must include updating of pictures and content with the help of creative team members
and Research and development department must focus on enhancing the website by adding the
section of customer reviews. This will help the business to collect the ideas and experience of
customers related to the product, website features, etc which can be further utilised to improve
the business profitability. Related to customer segment, Products on the portal must be displayed
on the basis of demographics of customers that include age, gender, income bracket, lifestyle,
etc.
Key Resources support smooth functioning of the portal and will increase the satisfaction of
customers. Along with the existing resources the business concept must include skilled staff
member for serving the customers in an effective manner. Along with online customer services,
separate physical existence of customer service must exist at various locations so that customers
can visit and resolve their queries related to products and other relevant issues. Customer
relationship can be improved by providing discount offers as well as other benefits on their
regular purchase. This will boost and attract customers towards the portal and will put positive
impact over sales of the business and also depicts positive customer satisfaction. In addition to