Digital Enterprise and E-Commerce: Business Model Analysis Report

This report presents a comprehensive analysis of an e-commerce business model tailored for an online food chain store. It delves into the value proposition, revenue models, and competitive advantages, offering insights into market strategies and organizational development. The report also examin...Read More

Running head: DIGITAL ENTERPRISE AND E-COMMERCE
DIGITAL ENTERPRISE AND E-COMMERCE
Name of the Student
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Author Note:

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Table of Contents
Ecommerce Business Model................................................................................................2
Value Proposition............................................................................................................2
Revenue Model................................................................................................................2
Competitive Advantage...................................................................................................3
Market Strategy...............................................................................................................4
Organizational Development...........................................................................................4
Clickstream Behavior..........................................................................................................5
Conclusion...........................................................................................................................7
Recommendation to Online Food Chain Store....................................................................8
References............................................................................................................................9

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Ecommerce Business Model
Value Proposition
Online Food Store will satisfy the customer needs by following methods like
Low Cost: This particular online store is easy and free to sign up. It can be easily
managed by removing the cost of payroll.
Efficient customer: Online business for restaurant provides a platform which helps in
building a relationship by CRM system (Wang et al. 2016, pp. 225-236). The system comes up
with an order management system that streamlines the whole ordering process that is initial to
the final step.
Better Customer Data: There is a various question which can be answered by the help of
analytics and insight for online ordering system. The collected data is valuable as it can be used
for sending a promotion to the customer.
Providing More Information: Through online mode, customer can have many ideas with
respect to product and service (Wang et al. p.21). Customer can easily have some in-depth
content like comparison among product, availability of in-store inventory and lastly pricing.
Growing the bottom line: When a customer can easily browse the different products on
the online food chain store, then they can spend much more time to order the desired product
(Chen & Yao, 2016, pp.4345-4365). If the customer spends much more time over then they are
more likely to order.
Revenue Model

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This particular online food store makes money as they have the required item directly
from the manufacturer. It will delete the involvement of wholesaler who increases the price of
the different product at a food chain store (Brinton & Chiang, 2015, pp. 2299-2307). Technology
is the plus point of inventory management and delivery of goods on time has helped in gaining
the trust of the customer. It comes up with a different revenue model that is inventory-led,
hyperlocal delivery and just-in-time.
Rate of investment (ROI) is defined as the gain or loss for any given investment with
respect to money investment (Shi et al. 2015, pp. 159-166). ROI is provided in the form of
percentage and is used for financial decision. In addition, it is also used for comparing the profit
of the efficiency of made investment.
For having a positive rate of return, this particular food chain store needs to assure that
the website is on the top of the search list. As soon as the potential customer clicks up the search
link it the correct time of lead conversion (Giannakos, Chorianopoulos & Chrisochoides, 2015,
pp.260-283). The mere focus is all about changing the potential customer into an actual customer
which is not easy and the conversion rates are also low. SEO is one of the best tool for getting
the best ROI.
Competitive Advantage
When this online food chain store is surrounded by competitors then the competitive
advantage will help in standing out and giving a tough competition.
Listening to Customers: This particular online food chain store has expanded the
offering which is made to customers. The firm has grown this much by understanding their client
needs by the help of direct analytics (Goulden et al. 2019, pp.681-1). Using customer behavior,

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the store has created a straight line from a different cart. It has been done so that they can
complete a purchase with the help of checkout at just one click. The website has grown now and
provides a recommendation to customer based on shopping habits.
Creating a content that teaches: The online store makes use of helpful content so that
they can improve the overall customer life by the help of teaching. The website has useful
content which helps the customer in getting detail of product and services (Jiang, Chi & Gao
2017, pp.213-223). Proper content about the product can help the customer in experiencing the
product in different ways. The website produces great content for the customer which has
changed the website into the best resource.
Providing the Option of Digital Payment: With the passage of time B2B process have
become digital and trends to focus on mobile (Schellong, Kemper & Brettel 2016). The website
promotes the use of digital payment and invoicing among its customers.
Market Strategy
The online store makes use of a wide selection of products so that they can make the
customer purchase much easier. The store plans to implement an inventory management system
so that it can keep a track of products. This particular step will provide a competitive advantage
over the other as there will be no option like “unavailable products”. If the given products are
available at the lowest price at this online food chain store, then they will definitely from there
(Nishimura et al. 2018, pp.406-420). This store needs to have pricing information which is an
important aspect of the consumer industry. Consumer goes for complete research prior to making
any purchase. Online shoppers expect to have complete information and only product description
result in consumer dissatisfaction.

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This online store is coming up with a plan of selling product online that will provide them
with faster shipping, auto-shipping and local in-store pickup. In addition, the website provides
the option of saving the shipping details so that they can make the ordering process much easier
(Meier, Aigner & Elsweiler 2017). Most of the online food chain store comes up with customer
service. But most of them fail to understand the customer need. This particular online store aims
to provide great service which is achieved by understanding the customer need. It is completely
dependent on age, occupation and how the product is being used.
Organizational Development
Hierarchical Organizational Structure is important for this online food chain business so
that it can carry out the business plan effectively. It is the prime method of organizing employees
and their overall responsibilities (Bunce, 2015, pp.12-29). This particular structure will help in
understanding the level of control employee for their work along with relative rank. This
particular structure focus on features that are multiple layers of management. So, it is prone to
bureaucracy resulting in silos which will prevent cross-team collaboration.
Department loyalty: Employees need to fill out a particular role in the whole
organisation, they aim to form a bond with the things that contribute to the same thing. The
employee in each of the department will relate to each other when they face similar challenges.
This aim to reflect on shared experiences (Schellong, Kemper & Brettel 2017). There are many
firms without hierarchical structure where an employee can form a bond with each as they aim to
fill up a common goal for the organization.
Clear Pathway for Promotion: Employees have an idea about where to go when it comes
up to promotion. In the hierarchical structure, employees exactly have an idea with respect to

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path and its ending (Majumder et al. 2018). This particular structure will motivate the
employees to move to the next position which can be either managerial or departmental.
Clickstream Behavior
Clickstream can be defined record which comprises of data about this online food chain
store. User needs to click on system display by the help of a mouse. This particular kind of
information aims to provide a visual idea of user activity along with detail feedback. This kind of
data and related analysis facilitate market research and other scenes with respect to the real-time
activity (Sisodia 2016). In other words, data of clickstream is the digital footprint of user action
on internet platform. It provides a clear path where the user goes and what they do, which kind of
website is visited by them. Clickstream is a valuable data but getting it without user permission
is considered as the violation of privacy. The only legal method of getting the clickstream data is
from the organization that collects the data from different volunteers.
By the help of clickstream data, volunteers completely agree to have the behaviour to be
tracked online which is needed for the purpose of market research. Volunteers are one that
includes a large panel which provides the marketers with in-depth data. There is some additional
kind of benefits of data collection like no cookies for delete or block, minimum turnover rates
(O'Halloran 2019). Clickstream data is used by marketers for various purpose. The main notion
is all about having a better understanding of the target customer and online activities.
Clickstream data can provide a list of information about the customers. Clickstream information
aims to provide the required terms where the individual can easily plugged into the search engine
so that they can reach a particular webpage. It comprises of details of other website which user
might have visited prior to reaching the business website.

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Identifying Customer Trends: By the help of clickstream information, an organization
can easily view path customer which is taken into consideration for getting into the site. Proper
collection and analysis of clickstream data of the various customer, this food chain store can
understand similarities and trends (Shi et al. 2015, pp. 159-166). It will ultimately bring various
kind of advantages for the organization. If most of the user make use of the same search term on
the website, then it ultimately results in the brand website. In this way, the organization can
remove the middle man and makes sure of the fact that the website is completely optimized for a
search term.
Different paths ultimately lead to similar destination: Clickstream data can be leveraged
so that they view various routes of the customer. It is needed for reaching the page of the
product. As drivers take up the different road for arriving the same destination similarly
customer taking up a different path on online platform end up buying the same product
(Giannakos, Chorianopoulos & Chrisochoides, 2015, pp.260-283). Technique like basket
analysis help the different marketers to discover the interest of their customer that is the common
thing. It merely specifies the common path which they took to arrive at specific purchase.
Preventing abandonment: Apart from “cart abandonment”, complete analysis of the
positive interaction with website can provide where visitor leave the website. Clickstream data
can provide the top pages of the website. If there are large number of user which exit the website
on a webpage, then it would be telling about the details of the page (Goulden et al. 2019,
pp.681-1). It can be either particular feature of the page which is not working. It can be any
particular information about the user which has been already provided. Clickstream can easily
highlight which particular page of the website need extra attention and improvement.

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These are the salient features of clickstream data, which makes it popular among
marketers. The details can provide much more information that belongs to the registered user
where demographic information is completely made available (Jiang, Chi & Gao 2017, pp.213-
223). Clickstream help in creating a target advertisement and other kinds of personalized offers.
Clickstream data can be considered to be powerful for this online food chain store. It is possible
only when the store has certain number of resource and skill for capturing, collecting and
information analysis.
Conclusion
From the above pages, the point can be concluded that the report is all about development
of e-commerce business strategy for a New Zealand based online food chain store. A prototype
of the website has been built by making use of Joomla considered the domain as an online food
chain store. The website of online food chain store will be developed by making use of Joomla
that is content management system in the cloud platform. In the above pages, an analysis has
been done with respect to disintermediation impact with respect to industry basis. In the
ecommerce model section, a list of aspect has been discussed in details like value proposition,
revenue model, competitive advantage, marketing strategy and organization development. All
the possible ways have discussed in details by which this online food chain store fulfil the need
of the customer. An idea has been provided about how online business gain revenue and have a
positive ROI. Some of the special advantages of this online food chain store has been discussed
in brief. Certain number of plans are discussed so that they can promote their product and
services for attracting customer. The kind of organizational structure needed for online food
chain store for carrying out the business plan has been discussed in details.

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Recommendation to Online Food Chain Store
There are a certain number of recommendation to this online food chain store like
 This online food chain store needs to include information much more information about
their organization on the website. The website needs to add a shopping element on the
website which will allow the customer to directly buy from online mode that is 24 hours.
 The food chain store needs to create and post required articles on the website which will
cover different service and products. The article can be about anything like installation
details. This new article will help in search engine traffic that will give more visitor
which might bring a customer.
 This online food chain store needs to establish communication with the customer by the
help of newsletter or even blog. There is need of placing blog on the website on regular
basis which will comprise of information that the website wants to convey to its
customer.

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References
Brinton, C.G. & Chiang, M., 2015, April. MOOC performance prediction via clickstream data &
social learning networks. In 2015 IEEE conference on computer communications
(INFOCOM) (pp. 2299-2307). IEEE.
Bunce, M., 2015. Africa in the click stream: Audience metrics & foreign correspondents in
Africa. African Journalism Studies, 36(4), pp.12-29.
Chen, Y. & Yao, S., 2016. Sequential search with refinement: Model & application with click-
stream data. Management Science, 63(12), pp.4345-4365.
Giannakos, M.N., Chorianopoulos, K. & Chrisochoides, N., 2015. Making sense of video
analytics: Lessons learned from clickstream interactions, attitudes, & learning outcome in a
video-assisted course. International Review of Research in Open & Distributed Learning, 16(1),
pp.260-283.
Goulden, M.C., Gronda, E., Yang, Y., Zhang, Z., Tao, J., Wang, C., Duan, X., Ambrose, G.A.,
Abbott, K. & Miller, P., 2019. CCVis: Visual analytics of student online learning behaviors
using course clickstream data. Electronic Imaging, 2019(1), pp.681-1.
Jiang, T., Chi, Y. & Gao, H., 2017. A clickstream data analysis of Chinese academic library
OPAC users' information behavior. Library & Information Science Research, 39(3), pp.213-223.
Majumder, B.P., Subramanian, A., Krishnan, A., G&hi, S. & More, A., 2018. Deep Recurrent
Neural Networks for Product Attribute Extraction in eCommerce. arXiv preprint
arXiv:1803.11284.

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Meier, F., Aigner, J. & Elsweiler, D., 2017. Using sessions from clickstream data analysis to
uncover different types of twitter behaviour.
Nishimura, N., Sukegawa, N., Takano, Y. & Iwanaga, J., 2018. A latent-class model for
estimating product-choice probabilities from clickstream data. Information Sciences, 429,
pp.406-420.
O'Halloran, J., 2019. An Automated Negotiation System for eCommerce Store Owners to Enable
Flexible Product Pricing.
Schellong, D., Kemper, J. & Brettel, M., 2016. Clickstream Data as a Source to Uncover con-
Sumer Shopping Types in a Large-Scale Online Setting.
Schellong, D., Kemper, J. & Brettel, M., 2017. Generating Consumer Insights from Big Data
Clickstream Information & the Link with Transaction-related Shopping Behavior.
Shi, C., Fu, S., Chen, Q. & Qu, H., 2015, April. VisMOOC: Visualizing video clickstream data
from massive open online courses. In 2015 IEEE Pacific visualization symposium
(PacificVis) (pp. 159-166). IEEE.
Sisodia, S., 2016. Identification of growth driving factors for ecommerce 2.0 at Tata unistore ltd.
NIFT.
Wang, G., Zhang, X., Tang, S., Wilson, C., Zheng, H. & Zhao, B.Y., 2017. Clickstream user
behavior models. ACM Transactions on the Web (TWEB), 11(4), p.21.
Wang, G., Zhang, X., Tang, S., Zheng, H. & Zhao, B.Y., 2016, May. Unsupervised clickstream
clustering for user behavior analysis. In Proceedings of the 2016 CHI Conference on Human
Factors in Computing Systems (pp. 225-236). ACM.

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