E-Commerce Business Strategies and Risk Mitigation

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This report highlights a well-planned ecommerce strategy
for running current businesses along with its management
and risk mitigation techniques prior to the current
developments in ecommerce businesses.
E-COMMERCE STRATEGY
Author name
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Table of Contents
Introduction......................................................................................................................................3
LO1 E-Commerce Impact on Businesses........................................................................................3
P1.1 Critical Discussion of Internet Consumers’ Expectations...................................................7
P1.2 Critical Assessment: Impact of Common Business Applications on E-Commerce
Businesses..................................................................................................................................10
LO2 Planning an E-Commerce Strategy.......................................................................................18
P2.1-Implementation Strategy Constraints for an E-Commerce Business................................18
P2.2-Planning Implementation Strategy for an E-Commerce Business....................................19
LO3 Managing Established E-Commerce Strategy.......................................................................36
P3.1 Risks of Linking Businesses to E-Commerce....................................................................36
P3.2 Importance Evaluation: Intellectual Property Protection of Business Organizations........38
P3.3 Critical Assessment: Security Measures Protecting E-Commerce Business Solutions.....39
P3.4 Critical Evaluation: Up-to-Date E-Commerce Developments..........................................39
Conclusion.....................................................................................................................................41
References......................................................................................................................................42
List of Figures
Figure 1: Model of E-Commerce Business.....................................................................................3
Figure 2: E-commerce strategies to improve Digital market effectiveness.....................................4
Figure 3:comparison of E-commerce strategies vs various countries.............................................5
Figure 4:Shown the customer expectation level in business...........................................................6
Figure 5:Sunburst chart of Acceptable percentage of customer Expectation..................................6
Figure 6: Graphically shown the acceptable percentage of Business customer..............................8
Figure 7: Graphically shown the acceptable percentage of Entrepreneur customer expectation in
E-commerce Business......................................................................................................................9

Figure 8: Acceptable percentage of Trade customer expectation in E-commerce Business.........10
Figure 9: Common application Impact Matrix..............................................................................11
Figure 10: Schematic diagram of back end and front end system.................................................12
Figure 11: Graphically shown finance and accounting impact on E-commerce..........................12
Figure 12: Graphically shown the annual economic in E-Commerce business............................13
Figure 13: Production and operation management chart...............................................................14
Figure 14: Feature of marketing analysis......................................................................................14
Figure 15: Business organization parameter..................................................................................15
Figure 16: Evaluating Consumer’s Expectations: Levels of Expectations...................................16
Figure 17: Derived result after evaluation.....................................................................................17
Figure 18: evaluation of supply chain strategy.............................................................................24
Figure 19:online payment system..................................................................................................24
Figure 20: GST step for payment..................................................................................................25
Figure 21: Driving results of evaluation........................................................................................30
Figure 22:Evaluation of validity of derived results shown by chart.............................................31
Figure 23: Annual management of intellectual property commerce strategy................................36
Figure 24: Features cycle of intellectual property.........................................................................37
Figure 26: Risk Assessment Flow Chart.......................................................................................38
Figure 27: Evaluation of Up-to-Date E-Commerce Developments..............................................40
Figure 28: security risks’ business impact.....................................................................................40
List of Tables
Table 1:Customer expectation for Business customer categories...................................................7
Table 2:Customer expectation for entrepreneur customer categories.............................................8
Table 3:Customer expectation for Trade customer categories.......................................................9
Table 4: Supply chain of production and operation management.................................................13

Introduction
Internet businesses, now-a-days, growing at much faster rate than before. Some businesses are
aggressively competing against future developments and some are steady to catch only a
foretaste of what is going to happen in future. E-businesses are of many states including two
most common states, B2B (business_to_business) trading, businesses interact with each other to
grow their trading remarks over WWW (World_Wide_Web), B2C (business_to_customer),
businesses interact directly with clients over WWW (World_Wide_Web). From impacts to risks
mitigation, and planning e-strategy to managing an e-commerce business, this report research
and analyse complex problems and break them into modest ones.
LO1 E-Commerce Impact on Businesses
Basics of E-Commerce
E-Business licences businesses to be more active and resourceful in reaction to customers’
requirements and desires as well as in directing transactions with dealers and within the company
itself. It has also reformed the method of business that already exists.
Figure 1: Model of E-Commerce Business

Stratagems to Promote E-Commerce
The Internet permits direct contact from businesses to consumers and impressively decreases the
costs related with distribution. This could principal to great attentiveness of contractors. There
are the following parameters include marketing strategies of e-commerce.
 Categorize goals and purposes
 Examine a situational investigation
 Develop a valuing and arranging strategy
 Improve distribution and contentment strategy
 Develop a cross-channel elevation plan
 List current marketing resources
In below diagram impact of following parameter of marketing strategy shown by bar chart,
which shows which parameter has more effect on marketing strategy and how we can improve it.
Figure 2: E-commerce strategies to improve Digital market effectiveness
Combination of a Line graph and bar graph has been used for analysis to check effectiveness of
E-commerce marketing strategy between various countries

Figure 3:comparison of E-commerce strategies vs various countries
Internet Consumers’ Expectation
 Safety
 Confidentiality
 Harmless Virtual Errands
 Accessing accurate information
 Utilizing efficient service
 Timely response and quick service
 Effortless Accessibility of Service
Numbers of expectation of customers are present that is demanded to fulfil. But the level of
expectation is selected that is mandatory to fulfil it. Various levels of expectation of
stakeholders/customers are shown in below diagram.

Figure 4:Shown the customer expectation level in business
Acceptance percentage of customer expectations shown in below diagram which
expectations/demands are in high percentage level it quickly accomplished but some expectation
we can neglect or delay which have low acceptance percentage.
Figure 5:Sunburst chart of Acceptable percentage of customer Expectation

P1.1 Critical Discussion of Internet Consumers’ Expectations
1. Online Business Consumers
 Manufacturer: They purchase product and service to production and retail their product and
service to stakeholders.
 Resell Business: They buy finished products and service with the intention to resell them to
business and customers.
 Government organization: Effective selling government agency requires thorough knowledge
of their unique procurement producers and rules.
 International Foundation: Another important customer group consist of a public and private
institution such as churches, hospitals, school and colleges. Categories of customer, their
level of expectation and acceptance percentage of them are shown in given below table 1.
Table 1:Customer expectation for Business customer categories
Business customers categories
Customers Customer
Expectation
levels
Acceptable
percentage of
customer
expectation
Manufacturers 6 75%
OEM Clients 4 56%
End managers 2 87%
Resell business 1 63%
Government organization 5 44%
International Foundation 7 18%

Figure 6: Graphically shown the acceptable percentage of Business customer
2. Entrepreneur Regulars
 Investigator
 Dedicated Customers
 Sale/Concession Driven
 Impulsive Stakeholders
 Loyal Stakeholders
Categories of entrepreneur customers, their level of expectation and acceptance percentage of
them are shown in given below in table 2. It also explains by using column graph.
Table 2:Customer expectation for entrepreneur customer categories
Entrepreneur customers
categories
Customers Customer
Expectation
levels
Acceptable
percentage of
customer
expectation
Surfer clients 2 45%
Investigators 4 56%
Dedicated customers 3 87%
Sale/concession driven 1 35%

Impulsive Stakeholders 6 34%
Loyal Stakeholders 5 18%
Figure 7: Graphically shown the acceptable percentage of Entrepreneur customer expectation in E-commerce Business
2. Trade Patrons
 Customers Observing for The Best Price and product
 Customers Watch for The Latest/Newest Brand
 Considering to Buy Now
 Regarding for an Experience
Categories of trade customer, their level of expectation and acceptance percentage of them are
shown in given below table 3. It also elaborates by column chart.
Table 3:Customer expectation for Trade customer categories
Trade customers
categories
Customers Customer
Expectation
levels
Acceptable
percentage of
customer
expectation
Customers observing for
the best price
1 65%
Customers searching for 3 26%

the best product
Customers search for the
latest/newly brand
2 37%
Considering to buy now 1 75%
Regarding for an
experience
4 54%
Figure 8: Acceptable percentage of Trade customer expectation in E-commerce Business
P1.2 Critical Assessment: Impact of Common Business Applications on E-
Commerce Businesses
Common Business Applications
Current e-businesses may ingest WWW for smaller (1%) of their life cycle while they also
utilize other technologies in a much extensive way as e-mail. Data security are demanding
problems for electronic commerce. These are following common applications impacting E-
commerce Business.
 Online shopping
 Payment system
 “Newsgroups”
 “Social networking
 “Shopping cart software

 “Digital wallet
 “Teleconferencing”
 “Automated online associate
 “Online banking
Figure 9: Common application Impact Matrix
E-commerce’s influence on E-businesses doesn’t only includes the .com or www interface. It is
a completely new business trend merging all older business management tools and economical
sensitivities in E-commerce environment.
1. Managing Information Systems
MIS is the only field which incorporates both business processes and IT in it. In below figure,
production information management system integrates front and backend channels to present an
investigation strategy.