Business Skills for E-commerce: Analysis and Solutions Report

This report provides a comprehensive analysis of business skills for e-commerce, focusing on ULKOM Bicycle Hire. It begins with an examination of the company's core business functions and a SWOT analysis, identifying strengths, weaknesses, opportunities, and threats. The report then explores how the company can achieve its business aims by leveraging its strengths, particularly the use of a database management system and e-commerce processes. The impact of introducing an e-commerce system is assessed, including associated risks and economic and social impacts. The report also considers the potential of the UK market for e-commerce solutions and compares e-commerce strategies used by competitors. Furthermore, it analyzes the financial impact of e-commerce on the company. The report concludes by proposing an e-commerce solution for ULKOM, outlining customer retention techniques using a CRM approach, and suggesting strategies to increase sales, including email engagement and automation. The report references relevant literature to support its findings.

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BUSINESS SKILLS FOR ECOMMERCE
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Task 1
1.1 Core Business Function and SWOT Analysis of “ULKOM BICYCLE HIRE”.
The core business function of this organization is to increase the sale of bicycles to
customers all over the available markets. In that connection, the company need to initiate a
program that will attract many customers as possible. As a profit making organization, the
company should continue using the new technology so as to facilitate the process of selling
these bicycles. The function of this organization also relates to the process of hiring bicycles.
In that connection, the company need to record accurate data on hired bicycles so as to
maintain a proper record on all transactions taking place within the company. Lastly, record
keeping involves management of data. Therefore, database management system must be
accurate. This process is very important to the company which remain as part of
organization’s core business function. This process is facilitated by SWOT analysis as
indicated below.
SWOT Analysis
Strengths
1. The company has skilled employees.
2. The company has managed to
achieve competitive advantage.
Weaknesses
1. There is more market that has not
been ventured.
2. The use of manual record limited
profits generated.
Opportunities
1. There is an opportunity to attract
more customers.
2. More sales can be made.
Threats
1. Competition may arise.
2. New stores may take time to adopt
database system.
1.2 How to Achieve Business Aim by Considering Business Strengths.
The company has managed to develop a database management system to facilitate the process of
hiring and selling bicycles from all the branches. This is the main strength because the company can
increase the profit margin. The main aim of this company is to make profits. Thus, use of database
system will increase market venture. Ecommerce process will attract customers all over the globe

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thus increasing wealth margin. The positive part of SWOT analysis can be used to explain this
concept.
Strength
1. Ability to use database system for
recoding sales and hired bicycles.
2. Ecommerce for selling increase
wealth margin.
Opportunity
1. There is an opportunity to attract
more customers.
2. More sales can be made.
Task 2
2.1 Impact of Introducing E-Commerce System to ULKOM and Risk Associated to System
Implementation
E-Commerce is a technology applied to conduct business transactions via the internet. In
this process, customers can place orders on products they wish to purchase and then make
payment via credit card transfer. For this company, there will be increase in sales made
through e-Commerce since customers will be attracted from all over the globe (Dann &
Dann, 2007). This will increase growth and development of the company and more profits
will be collected. However, this process is not applicable in marginalized areas without
internet connectivity. E-Commerce business is also affected by cyber-attacks thus becoming
difficult to implement.
2.2 Economic and Social Impacts of E-Commerce
Economic impacts
This business process increase market venture where transactions made are simple to
undertake within a very short period of time. In that connection, companies are able to
increase their profit margin at a significant rate. Again, apart from internet connectivity, there
are fewer transaction costs associated with this process. Customers are able to save money and
time.

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Social impacts
E-Commerce involves use of internet where buyers and sellers communicate so as to conduct
business transaction. There is no personal relationship when using e-Commerce. Thus, human
connectivity is limited (Dann & Dann, 2007). Again, interaction of people from different social
perspectives is also limited when using e-Commerce because all business transactions are
conducted via the internet.
The impact of privacy issue when using e-Commerce
ULKOM Company should realize that e-Commerce business system is administered from a
secure server. Therefore, privacy is guaranteed unless authorized access to personal data take
place. Before conducting business transactions, there must be authorization so as to enhance
privacy of data.
Task 3
3.1 Potential of UK for E-Commerce Solution of the Company
UK is one of the countries with high working population. Again, the use of technology in
business is very advanced in the UK. In that connection, e-Commerce in this business would be
appropriate because majority of the population is working. This implies that the company
would make more sales in UK that some parts of developing countries where working
population is below average of total population.
3.2 e-Commerce Used by Three Competitive Organizations
E-Commerce solution applied in three competitive organization has been neutralized. This is
because, customers are allowed to operate from any organization because the e-commerce
business system applied in this scenario is interconnected. This interconnect three organization
to perform all functions simultaneously regardless of the organization.
3.3 Financial Impact of E-Commerce to the Company

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The company is likely to undergo economic growth and development as a result of applying e-
Commerce in conducting business transaction (Dann & Dann, 2007). This is because, through
this system, customers are free to access the hiring of bicycles any time from any part of the
globe. Payment are made through credit card system. Thus, as long as a customer place an
order, the company gain financial growth. More market is a clear indicator for financial gain.
Task 4
4.1 E-commerce Solution for the Company
ULKOM Company should use e-Commerce model designed below.
First, customers will be required to register as a member of the company in the website. This
will be used as identification process.
Then customers are provided with individual credentials to log in into e-Commerce system.
After logging in, all the orders are placed in the dashboard on either to hire or buy the bicycles.
The customers pay through credit card transfer.
Finally, delivery is made to desired destinations.
4.2 Techniques to Retain Customers Using CRM Approach and to Increase Sales
The first technique involves track engagement with your emails in real-time. This system is used
to communicate business transactions with potential customers. It is easy to read emails
requesting sales.
Again, use of automate time-consuming tasks can be applied to update status, sending
proposals and automation of tedious tasks so as to focus on selling.
Lastly, the use of ProsperWorks assists businesses to sell more commodities through use of
three principles (Dann & Dann, 2004). That is, simplicity, proper decision making and accelerate
sales. The image below demonstrates CRM life cycle.

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Source: Data mining techniques for CRM.
References
Dann, S., & Dann, S. (2004) Strategic Internet marketing. Brisbane: John Wiley & Sons.

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Dann, S., & Dann, S. (2007) Competitive marketing strategy. French’s Forest, NSW: Pearson
Education.