Detailed E-Commerce Analysis and Strategy for XYZ Florist Shop

This report provides a comprehensive analysis of e-commerce strategies for XYZ Florist Shop, transitioning from a brick-and-mortar to a click-and-mortar business model. It covers various aspects of online business planning, including objectives, price strategies, and website maintenance. The report conducts a detailed market analysis, identifying target customers and seasonal opportunities, and examines the online competition and potential for selling flowers online. Furthermore, it employs SWOT, PEST, and competitor analyses to formulate effective e-commerce strategies. The report also touches upon website development and e-marketing techniques. It highlights the competitive advantages XYZ Florist Shop can leverage, such as personalized customer relationships and efficient delivery services, to establish a strong online presence and achieve business success in the floral industry.

XYZ E-COMMERCE ANALYSIS 1
XYZ E-Commerce Analysis
Student Name
Course
Institutional Affiliation
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XYZ E-COMMERCE ANALYSIS 2
Table of Contents
1 Introduction..............................................................................................................................3
2 E-Commerce Strategies for XYZ Florist Shop........................................................................3
2.1 Planning............................................................................................................................3
2.2 Cost benefit analysis.........................................................................................................4
2.3 Market analysis.................................................................................................................5
2.4 Online competition............................................................................................................7
2.5 Potential for selling flowers online...................................................................................8
2.6 Competitive Advantage.....................................................................................................8
3 E-Commerce Strategy Formulation Tools...............................................................................9
3.1 SWOT ANALYSIS...........................................................................................................9
3.2 PEST Analysis................................................................................................................10
3.3 Competitor Analysis.......................................................................................................12
4 Website development.............................................................................................................12
5 E- Marketing...........................................................................................................................13
Conclusion.....................................................................................................................................14
Reference List................................................................................................................................14

XYZ E-COMMERCE ANALYSIS 3
1 Introduction
As define by Al-Hasan 2018, p70, e-commerce is not only buying and selling of goods and
services it refers servicing customers, deal with partners, conducting e learning and processing of
electronic transaction. E-Commerce is a part of e-business.
2 E-Commerce Strategies for XYZ Florist Shop
2.1 Planning
Objectives of going online
In this case, owner of this XYZ florist shop has moved from brick and mortar to click and
mortar business system for further business development. Before going online business, you set
the reasons - why to go online and calculate and supervise the development of the business
because Of Online Presence.
 Most important target to going online is attracting new customers to your business make
more profits for.
 The other important aim is beat other competitors that threat your business.
 Because of the modern technology lot of customers do not like to spend their time to
physically visit any shop like the before. Most companies enter the online shopping as a
solution for this issue no matter how big or small that business.
After going online, the business efficiency also goes up. They can respond to customers’
request very easily and quickly compared to manual system of customer feedback. Customers
also do not want to spend much time to visit the shop because they can place their orders whilst
at home or at workplace via the internet (Rong, 2012, p. 63). This is a very good advantage of

XYZ E-COMMERCE ANALYSIS 4
online business in the present world because people are too busy and reluctant to visit the
physical flower stores.
Price Strategy: XYZ florists are planning to sale flowers at very low cost than other flower
shop in city. Because of this they can attract more customers and more business. During the
seasons such as new-year, valentines or some other special day they can give more discount or
gift voucher system to bring more customers in.
Planning: Before you start online business you have to plan well. What kind of web page you
use for your website attracts customer’s mind to your webpage more than other florist businesses
(Lin, 2012, p. 59). When you create your webpage it’s better to use professional web designer’s
help to create it because they know how to build a web page using new software to make it
flashy and attractive.
Maintaining: After starting your online webpage you have to maintain it properly. You have
to upgrade the software and security systems. Also you can find idea from other website to
develop your website.
Service: - You have to respond your online customers very quickly and softly. It’s better to
keep one employee to respond customers request very efficiently and make sure that order will
deliver on time and right place without delay and damage. This also include after sale service.
You can take customers feedback about your service; it will help you to identify the area that you
have to take care.
2.2 Cost benefit analysis
For an Established business, XYZ Flowers does not want to spend a lot of money for going
online. XYZ Flower has spent small amount of money to develop website and buy the software

XYZ E-COMMERCE ANALYSIS 5
that helps to develop and upgrade the website (Beynon-Davies, 2018, p. 103). The other major
spending is on advertising; XYZ has to do some advertising to tell customers about their
presence on line. XYZ flowers can print small Handbills and to spread through the people and
They Can show their web address on all the document and receipts they print. Also they can use
paper, radio and television to advertise about their online presence.
2.3 Market analysis
When you are doing a market analysis you have concern about your market, who are the
buyers, in what kind of festival you can make more business, how do you change your flowers
and other items from occasion to occasion (Chen, 2010, p 16). In market analysis you have to
find out about the following:
 Who is your flower buyers and also who will buy your other products such as soft toys,
balloons, gift-wrapping and ribbon?
 What are the special occasion you can target like valentine’s day, Christmas season, new
year season, mother’s day and other special days.
 What are the reasons people buy flowers
 How and why people buys flowers
 What kind of market has for other product relating to floral industry like balloons,
ribbons and chocolates?
In New Zealand people always buy flowers for birthdays, funerals, visiting friends, parties
they buy flowers. Bunchflower is a kind of tradition in their culture. Therefore XYZ Flowers has
huge opportunity to build a very good market and the other important factor is the location of the
market (Demmers, et al. 2018, p. 33). This area is always busy and crowded, also lot of

XYZ E-COMMERCE ANALYSIS 6
commercial buildings are located in this area. Because of this XYZ Flowers has very good
market opportunity to build a huge customer base. On the other hand after going online they can
serve their customers better than before using their door to door delivery service.
Not only those, holidays are make very good opportunities to sale more flowers and make
more profit (Lin, 2013). Apart from that birthdays and anniversaries are ideal dates for men to
select it as part of a frequent flower gift programme.
Flowers percentage in holidays
Valentine's Day 47%
Mother's Day 38%
Christmas & New Year season 25%
Easter 19%
Thanksgiving Day 14%
Other 17%
Suitability
There is no problem about suitability of going online because XYZ Flowers can provide
very good idea about the shop and about flowers online. Also they can arrange online help and
advice system to help their online customers (Liu, & Zheng, 2015). After going online, it is
possible to receive order 24 hours, customers don’t want to wait until shop open they can make
their order anytime, from anywhere to login XYZ Flowers website. Also when you create XYZ

XYZ E-COMMERCE ANALYSIS 7
Flower website you can use high quality, colourful and beautiful and various kind pictures of
flowers on the website.
Also they can describe their product very well on website. XYZ Flowers emphasize the
outstanding quality of their product and describe which are very famous and fast selling flowers
and what are the benefits of those particular flowers etc.
2.4 Online competition
Fast and changing technology makes it difficult to handle XYZ Flowers website. Because
lot of flower shops start to going online and offer remarkable offers to attract customers to their
website (Kuang, et al. 2014). Therefore XYZ Flowers has to renew their website time to time.
Other important factor they can’t control is other competitive flower shops copy their details and
offers. To overcome these challengers you have to use modern technology, fast and easy order
system, very good customer service, quality flowers for less value, free delivery service within
the town (Chen, & Qiu, 2013, p 19).
The other competitors are off line flower shops. The problem when you do online business
is customers can’t touch, smell or feel the product. Specially product like flowers customers
really like to touch, smell or feel the freshness of that (Li, et al. 2016, p. 27). You can show
hundreds of pictures to confirm about your product but still lot of customers do not believe
online website. They are not sure about the pictures you show. Because people think modern
technology can change any kind of picture to make it look more beautiful.
The other important competition XYZ Flower has to face is the advertising used by off line
florist against online website such as they try to show the significance of off line shopping. For

XYZ E-COMMERCE ANALYSIS 8
example they use weaknesses of online selling such as product can’t be touched or can’t be seen
in the real look on Internet (Li & Lei, 2016. P. 65).
2.5 Potential for selling flowers online
Because of modern technology selling flowers online is much easier than before and more
potential (Niu, 2016, p. 1113). We can build a potential market for our product. If we give very
good and reliable customer service we can become a very profitable and potential flower shop in
the floral industry.
2.6 Competitive Advantage
XYZ flower became different flower shops after going online, they can create customer
satisfaction based on personalized relationship that will be helpful to save specially male
customers valuable time and reduce the time they have to suffer of waiting with his wife or girl-
friend selecting flowers that what she wants (Mlitwa, & Raqa, 2012, p. 352). Also maintaining a
good and fast delivery service they can win customers choice.
 The other services that we can offer for customers better than other flower shops are,
 Offer fascinate and artistic flower arrangement
 Make new fresh flower arrangement buying experience for customers
 Offering additional product such as balloon, ribbons and chocolate
 Using the Internet to make the flower buying experience fast and easy for customers
and enable the shop to identify and track its customer base
 Create a customer database that identifies contact information as well as their preference
this database we can include birthday, anniversary, preferred color, vases, family details,
etc.

XYZ E-COMMERCE ANALYSIS 9
 If we have any special offer or discount we can inform to customers by using e mail,
telephone or by text message, and for commercial buyers we can give a call after finish
every delivery to make sure it arrived on time or not.
3 E-Commerce Strategy Formulation Tools
3.1 SWOT ANALYSIS
SWOT analysis will helps you to develop a strong business strategy by making sure you have
studied all your business Strength and weaknesses, also the opportunities and threats XYZ
Flowers has to face when they are doing business in online (Liang, & Turban, 2011, p. 11).
Strength and weaknesses are internal things to the XYZ Flowers and opportunities and Threats
are external. These two factors XYZ flowers can’t control. It will happen whether you like it or
not.
Strength
Strengths are under your control. You can describe a positive attribute internally to XYZ
Flowers. In this case XYZ flowers has very good and strong well established business brand
image (Lin, 2017). XYZ Flowers is already an established business couple. They have well-
established customer base also. The other important factor is the management of the XYZ
Flowers has basic knowledge about computer and internet because he has followed a computer
course recently.
Weaknesses
These are the negative factors that pull back tour business. You need to enhance those areas to
beat your closest competitors (Klatt, 2013, p. 207). For XYZ Flowers their biggest weakness is

XYZ E-COMMERCE ANALYSIS 10
lack of online presence. As a new establish online website you have to face this problem. Answer
for this problem is time, with time this matter will automatically solve and the advertising you
use will help you to increase your online customer base.
Opportunities
Opportunities are external factors that help XYZ flowers to make more profit. Here, with time
and advertisement, new customers will build relationship with you online and buy flowers using
XYZ Flowers online website. Not only that they can deal with their flower suppliers much easier
than before. It will save your time, money and also space of your physical shop.
Threats
These are the negative factors that externally influence XYZ Flowers. This is a big risk for your
company. If you have very good plan to face this kind of problems you can easily overcome and
you can convert it to some kind of opportunity to raise your company (Liang &Turban, 2011).
XYZ flowers biggest threat is existing florist shop with website.
3.2 PEST Analysis
PEST analysis is an acronym for Political, Economic, Social and Technological influence on
your business. These factors are highly influencing all kind of businesses no matter what
business you are engaged in (Lim, 2012, p. 409). These are very important and useful tools for
understanding your country’s economy that will help you to find market growth or decline. It
will help you to take your business decision, and let you know how to escape from economic
down worth.
Political

XYZ E-COMMERCE ANALYSIS 11
Under political factor we have to concern about laws, rules, laws on privacy and data storage,
after sale policies, labor act, consumer guarantee act and all other rules and laws belonging to
conduct a business (Zwass, 2018, p. 159). Under this factor we can mention environment issues,
government policies, trading policies, government term and change, current and future
legislation, situation of the country such as wars and peoples behaviors.
Economic
All the economic issues highly influence your businesses. If economy faces some problems such
as high inflation or high unemployment rate it will directly influence our business. Apart from
that, Economic trends, whether issues, taxation on flower shops, distribution trends, world
economic situation, and exchange rates also affect the XYZ Flowers online shop (Pan, et al.
2017, p. 180). If people don’t have enough money, they can’t buy flowers. They will control
their buying pattern. There are so many economic indicators to find out about country’s
economy. If you follow those indicators you can control our business from unwanted business
risk. If retail spending is low another indicator to postpone is investing in assets. Because
preventing a problem is better than finding a solution.
Social
Social factor refer mainly to demographic factors, population growth rate, cultural aspects, age
distribution and health consciousness (Xu-Priour, et al.2017). Social factor is highly influence in
Flower business because some socials are highly relay on flowers and some are not. Country like
New Zealand all the reasons they are using flowers no matter
Technology

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It is now common to have Internet in any house or office. It is Very difficult to find a place
without Internet facility. Because of internet all our telecommunication needs, we can do very
easily and faster than ever before (Tolstoy, Jonsson, & Sharma, 2016, p. 316). In New Zealand
there are too many Internet providers who are providing the facility with various prices and
various types of speed.
3.3 Competitor Analysis
After doing a competitor analysis you can find too many things about your shop and also about
your competitors that will help you to develop your own way of doing business and how to
become a successful flower seller among other flower shops (Shi, Xia, & Huang, 2015, p. 181).
A competitive analysis will provide you with following information that will be important to
conduct your business as a profitable and successful flower shop
 A very good understanding of our competitor’s strength and weaknesses.
 You can understand our existing and potential customer rates in the competition.
 A mechanism to develop effective competitive strategies in our target market
4 Website development
In our website home page we can provide various components that will help us and customers in
doing business such as about our flower shop, contact details, catalogue, shipping details and
policies, return policies, security policy, e mail newsletters etc. There is huge number of website
developing companies that provide website developing facility in Auckland. We can find out
very good and reliable company to develop and test our online website.
We like to choose Vodafone Company as our Internet provider. They have modern and reliable
internet service with modern technology. They charge reasonable monthly fee.