E-Business Analysis: Boohoo's Online Presence and Business Models

This report provides an in-depth analysis of Boohoo's e-business operations, focusing on its online retail model and its use of internet technologies. The report explores the e-business environment, including B2C models, and examines the advantages and disadvantages of an online presence. It ...Read More

INTERNET AND E-BUSINESS

INTRODUCTION
In the present era, online business having a great significant for small, medium and large
business organisation. The revolution of innovation and information technology can overcome
distance between customer and the business but also increase the challenges in front of them.
The present report is based on the Boohoo which is online retail fashionable business and operate
their operation in UK (Christiansen, 2011). They provide a wide range product to their
customers. The purpose of this report is to understanding the internet environment, client server
architecture, e-business models and its use in the business.
TASK 1
1.1 E-business environment and its types
In the present era, e commerce having a great significance for every types of business
unit across the world (Corley, Jourdan and Ingram, 2013). It provides a platform to small and
medium enterprises to conduct their business operation without investing so much money. It can
help to overcome potential risk and increase the presence in the market. Boohoo can be use such
platform and increase their market share and sales in different part of the country. There are
various types of business transaction can be conducted through e-commerce as given below:
Business to Business: In this business model where the wholesaler can place an order
form Boohoo website. B2B covers large number of applications which can also help to build
relationship with distributors, suppliers, wholesaler and retailers (Fagerstrøm and Ghinea, 2010).
Illustration 1: Business to Business Model

Business to Consumer: This is another approach which can be used by the Boohoo in
order to increase its market presence and sales of the company. In this model a consumer can
order their product directly form company website. It is one of the emerging business concept
which is grow up day by day (Fawzy and Dworski, 2010). This is most expensive model which
required heavy investment in promotion and advertising tools in order to promote firm's website.
1.2 Advantage and disadvantages of online presence;
As Boohoo is one of the fastest growing international retailer in the B2C business model.
It provides large number of product in a variety of brands through their website. There are
various advantages of such model for the company future growth and development of the
company.
 Using B2C, Boohoo can expand their market in to other emerging economy such as
India, China Indonesia etc. with a minimum investment (Gangeshwer, 2011).
 It can also help to reducing the cost of operation and increase the efficiency of the
business unit.
 E-commerce also helps to increase the brand image of Boohoo at the global level.
 It can also help to provide good customer services to its customers and increase customer
loyalty.
Illustration 2: Business to Consumer Model

Apart from advantages there are various trade barriers which can create various challenges for
the company as given below:
 The major issues in the e-commerce is trade barriers in various emerging market such
India, Saudi Arabia which can not allow external business.
 The Initial cost of e-commerce is high which can not easy for Boohoo to offer low cost
product to its customers. Apart form that, it also requires large capital investment in
promotional campaign of the firm's website which can reducing its revenue and
profitability (Gautam, 2012).
1.3 The legal issues faced by Boohoo.com
There are various securities and legislative issues faced by the e-commerce business
units. They having threats from data security, physical security, electronic security protection. It
is essential for Boohoo to make policies in order to protect their data and security protection.
Threats to data security
Computer virus This is one of the major threat where an application can attempts to make
computer system unreliable. It can increase the potential risk of data
security of the Boohoo. Because, in these data involved customer
information, company sales details and other sensitive data.
Spyware This is another threat which having a major concern for the Boohoo. It is a
software which can steal personal information that can be used for
personal use.
Hacking Now a days, hacking is growing which can be serious threat for
Boohoo.com. The another company can hacked business unit website
which can damage their overall system (Heller, 2010).
Physical threats This threat is related with the internal environment. Where staff can be
theft computer hardware which is a financial lose for the company.
There are various legislative issues which can be faced by Boohoo as given below:
Health and work safety act: This act is all about the policies of health and safety at workplace
which must be provided by Boohoo. For example, business is having delivery man which must
be provided enough transportation facilities.

Firewalls It is a network security system which helps to protect external and
unauthorized threats to access any website. This is the responsibility
of cited firm is to use an appropriate firewall at their communication
system.
Digital signature It is digital code which is used by a customer at the time of online
shopping. This helps in transmitted unique identification which help
to protect payment from external threats.
Digital certification This is another tool which is used for conformation about the
payment and any other aspects. It sending the massage and verify the
user and its identity.
1.4 Different modes of communication in e business
Communication is played a significant role in the success of each and every business
unit. Specially in the e-commerce industry it is used at the large extent. Therefore, Boohoo
required that to use communication tools in order to attain their goals and objectives (Huang and
Tsang, 2010).
Live Chat: This is a common modes of communication which used in the e-commerce
sector. It is communication facility which can be provided by Boohoo at the time of searching of
products online. There are various queries which required that to sole immediately and enhance
customer service. It can help to increase the sales of the business unit.
Phone support: It is another method where a business unit provide product and order
information to their customer. there are various issue and queries which can be solved by
customer support department in an effective manner.
E-mail: This is another method for a business organization used for customer
identification and other relevant data and information about their product and order for the
customer service (Hung and et. al., 2012).
TASK 2
2.1 The internet technologies and its significance
Innovation and technology having a great significance in today's business environment. It
is the equal as the industrial revolution. Today everyone are using internet and information

technology from farmers to scientists. The rise of innovation can be traced to the human race
getting smarter and faster. There are the following significance of internet and information
technology for Boohoo:
 It can increase the online shopping and create a new IT culture in the country.
 Digital marketing is more cost effective and efficient and greater reach and compare to
traditional marketing such as newspaper, radio, television etc. (Jobber and Ellis-
Chadwick, 2012).
 Due to internet social media can be used more effectively by the Boohoo in order to
promote their products and services.
 VoIP communication is more effective than legacy telephone.
 Cloud computing also more efficient rather than computer network.
 It can also help in the expand small and medium business unit in order to expand their
business without investing high capital investment.
 It can also provide faster growth and development for the business unit.
2.2 The key characteristics of HTML
HTML is known as Hyper Text Mark-up Language which is used in the web
development and web designing. It was created by the Berbers-Lee in the 1991's and today there
are a upgraded version of HTML 4.01 introduced in 2012. The www. Was created to open the
HTML files. The HTML is consist of four main part such as HTML Title, HTPL Body, HTML
Head and codes which can be used to make a website (Michaelidou, Siamagka and
Christodoulides, 2011).

Features and characteristics of HTML as given below:
 Context menu can be created in document of HTML.
 With the help of appropriate programming a user can put image, drawings and graphs on
the HTML document.
 Apart from that audio and video also can used in a web page.
 User also can search keywords by the other function on the home page of HTML
document.
 The URL can provide the basic function of HTML document.
 The HTML user also connect and link to another URL according to their requirements.
 Meta functions also can be used for the small description and information about the
HTPL document (Nezamabad, 2011).
2.3 The functions of client servers and role of search engine
Server is one of the most powerful computer which are connected with small computer
and PCs through internet and other hardware devices such as printers, hard drives, network
elements interlinked with the servers or master computer. On the other hand, client server is the
small computer like a workstation which can connected with the server. It can provide a facility
where users are easily can share file, data and information. Client server is a system which is
known as CSC and connect two or more client network system and act as a server. This type of
system can be used implement various function in a effective manner.
Illustration 3: HTML Structure

A web browser is a software is a software program which can help to access the internet and
view the web page (Roberts and Zahay, 2012). There are various internet browsers are available
such as internet explorer, Google, Mozilla etc. there are different functions of web browsers as
given below:
 All data, information and files are presented on the internet easily find with the help of
browser.
 Internet browser provide facility to open a URL document.
 There is function available which can be used as forward, back and store the file.
 Important wed pages can be saved and used according to the requirement.
2.4 The use of intranets and extranets business communication
Internet and computer provide a new form of communication for the business
organisation. It can be reducing the time and cost and increase the effectiveness and efficiency of
the business. Internet is system which include server and firewall (Shaw and et. al., 2012).
Whereas, extranet is the network which link of organisational network and using internet as a
communication purpose within and outside the business unit.
There are various advantages of internet and extranet as given below:
Advantage of Internet Advantage of Extranet
 Internet provide a communication tool
such as email, live chat, conferencing
etc.
 With the help of internet business unit
can directly communicate with their
stakeholders.
 A business organisation can also
sharing different types of information
in the cost effectively and faster.
 Real time sharing information and data
(Shih, Chen and Chen, 2013).
It provide a digital infrastructure for the staff
member of the company.
They can share files and data with each other
more faster.
Paperwork and hard copy can be removed and
business efficiency increased.
Direct contact with all staff members around
the globe by27/7.

TASK 3
3.1 E-business models that can be used to generate revenue
There are various ways which can be used by the companies in order to generate profit by
supporting sale of a goods and services. These methods help to Boohoo to consistent in the
market and enlarge their business in to other countries. These internets based approaches as
given below:
Advertising: This approach is service-information is provided free of any charges to their
audience and generate revenue is to support through operation. For example, Google portal is
providing various information and data free of cost but earns revenue via advertising on its portal
from other business units.
Affiliate marketing: This is another internet-business approach which can be used for
profit creation. This approach commission based approach where a person can display a product
Illustration 4: Advertising E-Business Model

from his/her personal blog and get fee of the cover price of the product (Sin Tan, Chong and Lin,
2013). Such kind of business model as known as CPA (Cost Per Acquisition).
Subscription model: In the e-business approach subscription based services allows person
to access an information, join a community and receive an ongoing service for a pre decided fee.
There are various sites which can provide such facilities specially dating site.
Licensing: This is another approach which can be used by the cited firm where they can sale
different product and services such as journals, articles, e-book and other electronic resources
and make money in an effective manner.
Sponsorship: This is one of the most common approach where a government authority or nay
other corporate houses collect all major funds. For example, there are various educational and
health programs which funded and sponsored by the government.
3.2 Analyse each model in terms of its capacity to generate revenue
B2C business models and revenue models as given below:
Google.com It is a search engine technique which can also
use as a promotional platform. Apart from that
there are various other services for
communication and the main source of revenue
generation for Google is the advertising
(Taylor and Strutton, 2010).
Illustration 5: Affiliate marketing E-Business Model

Retailers This is another business model in B2B where
retail stores selling their goods and services
directly to the consumer. For example, Boohoo
having their own website where consumer can
buy product and pay directly to the company.
Community provider There are various social media platforms such
as Facebook, Instagram, Twitter etc. where
Boohoo can promote their brand and product
and paid a fixed amount to them.
B2B business models and revenue models as given below:
E-distributor model In this business model all products and services can be sale
through online. It involves online audio, video etc.
E-Procurement model This approach is very useful for a retail business who order its
goods in bulk. For example, Alibaba and Amezon.com.
Auction model This is one of the newest model where a consumer buys actionable
products and services.
3.3 Future developments in e-business models
 E-business is one of the growing sector because the number of internet user also increase.
Today in the United Kingdom there are more than 90 percent internet user avail which
increase market opportunity for Boohoo. According to the higher authorities the internet
user in the country is approx. 60 million in last year and grew by 1% every year. It can
provide a golden opportunity for the company to develop their business (Tsai and Cheng,
2012).
 Apart from that there are various countries which having large number of internet users
are too large specially in the Asian continent such as India, China, Malaysia. These
countries are emerging market for the company and they can be looking these nations in
order to expand their business.

 On the other hand, there are various customers who willing to buy product personal
buying. Therefore, it is required that Boohoo can provide customer support via the web
by using attractive discount offers and increase their sales and revenue of the business
unit (Christiansen, 2011).
TASK 4
4.1 Key elements of good web design structure in E-business
It is important for Boohoo that to make their website attractive which can influence other
people. There are various guidelines which can be used by the business organisation in order to
design a web structure for their company.
Precedence: It is essential for the company that to more focused on the information and content
rather than design. Therefore, Boohoo is more concentrate on the relevant information and can
used following tools:
 Position is one of the important aspects where something is on a page clearly in a
attractive order.
 Use bold and subtle colour in a simple way but looks attractive.
 Big takes precedence over little.
 Line spacing between the text layout must be reflectable.
Navigation: It is one of the significant element of a ideal web design which can figure out where
to go. Therefore, boohoo can also focused on these elements in order to make a good web design
(Corley, Jourdan and Ingram,2013).
Typography: Text is a most common element in a web design element which as given below:
 Marketer make sure that different types of font choices say different thing.
 Font size are also be modern which can suit their font choices.
 Spacing between lines and contents are also be appropriate.
User friendly: The marketer also focused on that, it website must be user friendly and for this
they can also take suggestions form web designers.

4.2 Evaluate theimpact of a well designed website
A website is the representative of the company on the internet. It is the first impression and
interaction with potential customer. Therefore, Boohoo is more concentrate on the website
design and content. It having a great impact on the business performance and future growth. A
website is designed by professionals in order to attract large number of customer and visitors. It
can help to established a good presence to the visitors and allow a sense of trust and positivity
which can create sound relationship with them (Fagerstrøm and Ghinea, 2010). There are
following impact of a good website for the business as given below:
 Make a presence on the web and attract large number of customers.
 It can also represent the company and its product and services.
 An great websites help to build relationship, trust and make confidence among potential
customers.
 A good website support customer and provide actual and relevant information which can
helps to enhance customer loyalty.
Illustration 6: Boohoo Website Man section

4.3 Issue and concern of concerns related to Web site usability
There are various issues which faced by each and every business organisation. The major
issues are the size of browser at the time of usability of web page. Try to make firm's website
attractive but it more convenient for their potential customers. The website name can be simple
which can be remember by the visitors (Jobber and Ellis-Chadwick, 2012). There are various
sites which having overload information which is not useful for the visitor. Therefore, company
make sure they put relevant information which are useful for the customers. The firm website
also equally comparable other key browsers like Google Chrome, Mozilla, Firefox etc.
CONCLUSION
The above report state about the role played by the E-commerce website in the current
business situation it also discusses the various forms of business environment, benefits and
drawback of E-business. Security and legislative issues, mode of communication in the E-
business organisation. Internet technologies, characteristic of HTML, Client-Server is also
discussed in above report. This report also discussed about the various internet business
approaches which help in generating revenue for business organization and provide a consistent
future growth. It also explained about the impact of web design and importance in the business
and its usability.

March 2017]