E-commerce Business Strategies, Models, and Online Marketing Tools

Desklib provides past papers and solved assignments for students. This report analyzes e-commerce strategies, models, and marketing.

Contents
Executive summary.........................................................................................................................2
Introduction......................................................................................................................................2
Report Section 1 – E-commerce Business Strategy........................................................................3
Report Section 2 – E-commerce Business Models..........................................................................5
Report Section 3 –Online marketing and advertising tools.............................................................8
Conclusion.....................................................................................................................................10
Recommendation...........................................................................................................................10
Reference.......................................................................................................................................11

Executive summary
This report describes the various strategies used by the e-commerce solution in their
development and processing of business. It states the use of the four basic strategies and their
process of implementation in the e-commerce solution. The various business models used in the
e-commerce solution is also described in the report. It also describes the process of marketing
and advertising tools used in the e-commerce solution such as the use of traditional and other
means of marketing and advertising.
Introduction
E-commerce solution is the process of developing an online based business platform that helps
the organisation in conducting and processing business on the internet. The process of e-
commerce implementation requires various strategies so as to increase sales and enhance the
growth of the business. The e-commerce solution uses four general strategies that help in the
growth and development of the business in the online community. It uses the two most used
business models i.e. the B2B and B2C model. These models include various sub-models that
help the e-commerce solution in enhancing its business growth and increased sales. The methods
of advertising and marketing described in this report are implemented in h tee-commerce
solution so as to increase brand awareness and recognition. These methods also help the e-
commerce solution by increasing sales and also increasing the online fan community of h tee-
commerce solution.

Report Section 1 – E-commerce Business Strategy
Business strategy of e-commerce can be described as the plans that are prepared so as to be
benefitted from the invested capital in the firm. The e-commerce business solution uses various
strategies for the development and growth of their business structure among their competitions
(Karagozoglu & Lindell 2004, pp. 290-30). The main business strategies used in the
development of the e-commerce solution includes the strategy of cost management, strategy of
differentiation, focus of business, and scope of business strategy. The e-commerce business
solution also uses strategies to manage and maintain intimacy of the customers. This business
strategy also includes the use of mobile platforms available and also the smart use of the internet
(Huang & Chuang 2013, pp. 732-753).
Strategy of cost management- In the e-commerce solution, this strategy is applied when the
processes of the business use a unique approach or ideas in their business services which is not
known or used by other organisations. This strategy is used in managing the investments of
revenue that is required in the process of implementation of the new ideas or approaches. This
strategy also manages the competitions that arise in the determination of costs among the other
competing organizations (Long & Shi 2017, pp.302-311).
Strategy of differentiation- In the e-commerce solution, this strategy defines the methodology
that overlooks the processes of producing different and unique services or products from their
competing businesses. Using this strategy, the e-commerce solution basically exhibits actions
within various stages of the product designing and development phases to output a
distinguishable and unique service or product of the e-commerce solution (Sun & Pan 2011, pp.
3068-3079).
Focus of business strategy- This strategy describes the use of plans that help in the management
of product and services sales in a limited market space. This strategy helps the e-commerce
business to achieve their goals of becoming an important service provider in the limited market.
This strategy assists the e-commerce solution in focusing on various key objectives that help in
the development and growth in the e-commerce business solution (Micheal, Rochford, &
Wotruba 2003, pp. 270-283).

Scope of business strategy- In the e-commerce solution, this strategy describes the methods
used for competing in the market with the other organisations across the globe instead of
presenting the methods of competitions used in the local and regional market. It is a type of
special strategy with a distinct goal to helps the e-commerce solution in representing itself as a
competition among the other organisations in the market all around the world (Pehrsson 2006).
Customer intimacy management strategy- In the e-commerce solution, this strategy describes
the process and methods used in the management of customer relationship within the
organisation. It is a type of generic strategy that helps the e-commerce solution in creating strong
bonding and relationships with their customers. This strategy provides a competitive advantage
to the e-commerce solution by providing an increase in cost when there is switching of one
service or product to another service or product with a higher cost margin de Waal & van der
Heijden 2016, pp. 492-510).

Report Section 2 – E-commerce Business Models
E-commerce business models can be described as the process and methodologies that are used by
an organization for conducting business with the other parties. The parties include various
organizations, customers, and other entities that conduct business with the e-commerce solution.
The e-commerce business modes can be categorized into two major business models i.e. B2C
and B2B. Both models include various entities that help in the process of conducting businesses
in the models.
B2C (Business to Consumer) Model- It is the most commonly used type of business model in
an e-commerce solution. In this model of business processing, the interaction of sales of products
and services are conducted from the e-commerce solution to the individual customers and
consumers of the business’s services and products (Tian, Zhang & Guan 2013, pp. 205-215). It
includes various sub-models that help in the process of interactions among the business and
consumers. Some of the most frequently used models are-
 E-tailer- It is a type of online retailing merchant that helps in the process of conducting
business with their consumers. In this model, the consumers can conduct business at any time
at any place without the need of going out of their leisure zone. Some of the e-tailers provide
both online and offline methods of interaction to their consumers in which the consumers can
conduct business in their own choice of business interaction. But the majority of the e-tailers
use the online mode of business processing in which a medium such as computer systems,
mobile phones, and internet connectivity is required for the processing of business
conduction (Zhao & Cao 2004, pp. 207-219).
 Service provider- It is a type of online service providers that help the e-commerce solution
earn revenue by providing or selling services instead of products to their consumers. It
includes services such as video sharing, image sharing and other contents that are generated
by users in various online platforms including social media websites and blogs. The method
of revenue generation in these models includes using of advertisements, subscriptions plans,
and direct marketing strategy in which the service providers gather various personal
information of their customers in order to provide tailored contents of their services (Larsen,
Manning & Pedersen 2018, pp. 221-235).

 Content provider- It is a type of business provider that helps the e-commerce solution by
distributing content information to their consumers. Contents that are distributed in this
model include newspapers, television shows, e-books, movies, videos, music, images, etc. in
this model, the method of revenue generation process includes subscription plans and direct
payment methods for content downloads. Not all content providers charge their consumers
for content downloads. Such providers use the method of advertising, promoting particular
services and products as well (Punj 2015, pp. 175-186).
 Portals- It is a type of business model that provides contents and services to the consumers in
the form of search engines. Portals help consumers by letting them find the desired product in
their database. Portals do not process any sales of services and products, instead directs the
consumer to the desired destination of their choice.
 Market creator- It is a type of business model that processes by building a digital platform for
interaction of the consumers to the services and products of the e-commerce solution. In this
model, the business interaction process is achieved in a medium where consumers can search
their desired product of choice and process their financial transactions in the medium.
B2B (Business to Business) Model- In this model of business processing, the interaction of
sales of products and services are conducted from one business to other business. The working
process of the B2B business model includes the use of technology that is known as EDI
(Electronic Data Interchange). This technology was initially designed for the use in proprietary
network services but was quickly adopted on the internet for its use. This technology is used in
conducting relationship between a purchaser and a supplier for processing one-to-one
relationship. It includes various sub-models that help in the process of interactions among the
business and their interactions (Huang 2006 pp. 1308-1320). Some of the most frequently used
models are-
 E-distributors- It is a type of business model in which industry provides its services and
products directly to the other individual business. In this business model, the more amount of
services and products variety in the business, the more is the interaction of other business in
the e-commerce solution (Lightner & Holscher 2008, pp. 129-151).
 Exchanges- It is a type of an independent business model which includes a digital
marketplace for the interactions of business processing. In this method, various suppliers

interact with purchasers in the virtual marketplace to interact and conduct their process of
sales. This method mostly includes start-ups and independent businesses that are putting an
impact on the market. The method of revenue generation is performed by charging fee or
commission in their process of financial transaction (Ernkvist 2015, pp. 285-299).
 E-procurement- It is a type of business model in which an organizational firm creates its own
virtual marketplace and sells its marketplace access to various firms for their business
conduction. In this business model, various e-commerce solutions can create a chain of
supply in one virtual marketplace instead of creating an individual chain of supply. This
process also helps in minimizing the cost of creating an individual chain of supply Toktaş-
Palut, Baylav, Teoman & Altunbey 2014, pp.77-90).
 Network of Private Industries- It is a type of business model which consists of a designed
digital network system that controls and processes the communication flow of business
performed between organizations. In B2B model, this business model represents about 75%
of the total expenditures contributed by the large organizations.
 Industry Consortia- It is a type of vertical marketplace owned by a single industry designed
to serve particular industries such as aerospace, automobile, or any chemical industries. The
services or products in such industries are specifically designed for limited industries with
mutual interest (Chiang, Toh, & Zhang 2014, pp. 365-388).

Report Section 3 –Online marketing and advertising tools
Online marketing and advertising tools of the e-commerce solution can be described as the
method by which the business system attracts new customers and enhances brand strength
growth by making the online solution of the business visible and trustworthy. It helps h tee-
commerce solution in building trust and also in spreading the brand awareness of the e-
commerce solution. In the e-commerce solution, online marketing and advertising of their
business are performed using the traditional method of online marketing and advertising and
the use of social, local, and mobile online marketing and advertising tools.
Traditional method of online marketing and advertising-
This method of online advertising and marketing includes tools that are used in the e-commerce
solution to attract new customers to their business such as display ad marketing, search engine
marketing, viral marketing, and various other tools. Search engines marketing is one of the
largest marketing tools used in the traditional method. This tool uses search engines to enhance
sales and process direct selling in the business. This method, though advantageous, also poses
threats to the e-commerce business. The issues arise in the displaying of their search engine ads
and links as search engines do not contain any specific guidelines for displaying specific ads in
their search lists and this can put certain ads in the last of their search lists which can result in
loss of sales (Dou, Lim, Su, Zhou, & Cui 2010, pp. 261-279). The other most used tool is the
display ad marketing. In this tool, the marketing and advertising process are done using various
websites. The methods used in this include advertisements in banners, video graphic
advertisements, flash videos, and various other methods. The main advantage of this online
advertising and marketing tool is its ability to track and identify users that conduct business
using such advertisements (Auschaitrakul & Mukherjee 2017, pp. 463-480). Other tools include
the use of viral marketing and advertising tool. This method is a different version of social
marketing in which a customer passes the business information among their groups. In this
process, mouth-to-mouth advertisement is performed in the digital platform. This process also
uses various websites for advertising and marketing of the services and products of the e-
commerce solution (Ho & Dempsey 2010, pp. 1000-1006).
Social, local, and mobile online marketing and advertising-

In this method of online advertising and marketing, the tools used are the social networking
platforms available on the internet. This method helps the e-commerce solution in building a
brand in the social networking websites such as Facebook, Twitter, and other various websites
and blogs for demonstrating their services and products (Key & Czaplewski 2017, pp. 325-333).
The advantage of this tool of online advertising and marketing is that most of the current
population is present in the social platforms and thus helps in communicating with their
consumers. This also enhances the business management process of the e-commerce solution.
The main disadvantage of this method of online advertising and marketing is the risks and threats
that it includes in their platforms such as fake identities, and identity theft issues. These issues
can cause a loss in sales and consumer loss in the e-commerce solution (Wood 2012, pp. 94-102).
The result of this method can also be directly measured by the e-commerce solution. Advertising
in blogs and other platforms such as gaming platforms etc. also benefits the e-commerce solution
at present time, a number of internet users indulge themselves in such platforms in their daily life
routines (Hudson & Thal 2013, pp. 156-160).

Conclusion
This report describes the various strategies used in the development and management of the e-
commerce solution that enhances the process of development and growth of the e-commerce
solution. It presents the business models of the e-commerce solution that is implemented in the
development of the e-commerce business system. It clarifies the processes used in the models
and their methods of working. The use of various tools of online marketing and advertising used
in the e-commerce solution is also described in this report. It depicts the advantages and issues in
the methods of online advertising and marketing and also states the tools used for the
development of the e-commerce solution.
Recommendation
After the evaluation of all the strategies, business models, and the tools used of marketing and
advertising, it can be recommended that the development of the e-commerce solution can be
processed in many founding processes of the business system. The strategies implemented in the
e-commerce solution will enhance a structured development by reducing various flaws and
manage the flow of costs in the process of e-commerce solution implementation. The business
models used in the e-commerce solution will manage the process of business conducted to the
consumers. The marketing and advertising tools and processes implemented in the e-commerce
solution will provide various customers and increase the sales and revenue growth in the e-
commerce solution.

Reference
1) Huang, L & Chuang, CM 2013, ‘The development of an optimal multiple channel strategy
model for travel agencies' tourism business excellence’, Journal of Travel & Tourism
Marketing, vol. 30, no. 7, pp. 732-753.
2) Karagozoglu, N & Lindell, M 2004, ‘Electronic commerce strategy, operations, and
performance in small and medium-sized enterprises’, Journal of Small Business and
Enterprise Development, vol. 11, no. 3, pp. 290-301.
3) Long, Y & Shi, P 2017, ‘Pricing strategies of tour operator and online travel agency based on
cooperation to achieve O2O model’, Tourism Management, vol. 62, pp.302-311.
4) Sun, LY & Pan, W 2011, ‘Differentiation strategy, high-performance human resource
practices, and firm performance: Moderation by employee commitment’, The International
Journal of Human Resource Management, vol. 22, no. 15, pp. 3068-3079.
5) Micheal, K, Rochford, L & Wotruba, TR 2003, ‘How new product introductions affect sales
management strategy: the impact of type of “newness” of the new product’, Journal of
Product Innovation Management, vol. 20, no. 4, pp. 270-283.
6) Pehrsson, A 2006, ‘Business scope and competitive differentiation: a study of strategy
consistency’, Strategic Change, vol. 15, no. 7-8.
7) de Waal, A & van der Heijden, B 2016, ‘Increasing customer loyalty and customer intimacy
by improving the behavior of employees’, Journal of Strategy and Management, vol. 9, no.
4, pp. 492-510.
8) Tian, Z, Zhang Z & Guan, X 2013, ‘A new evolution model for B2C e-commerce market’,
Information Technology and Management, vol. 14, no. 3, pp. 205-215.
9) Zhao, H & Cao, Y 2004, ‘The role of e-tailer inventory policy on e-tailer pricing and
profitability’, Journal of Retailing, vol. 80, no. 3, pp.207-219.
10) Larsen, MM, Manning, S & Pedersen, T, 2018, ‘The ambivalent effect of complexity on firm
performance: A study of the global service provider industry’, Long Range Planning, vol. 52,
no. 2, pp. 221-235.
11) Punj, G 2015, ‘The relationship between consumer characteristics and willingness to pay for
general online content: Implications for content providers considering subscription-based
business models’, Marketing letters, vol. 26, no. 2, pp. 175-186.

12) Chiang, CC, Toh, AK & Zhang, Q 2014, ‘Survey of SOA and cloud-based B2B e-commerce
and supply chain applications’, International Journal of Society Systems Science, vol. 6, no.
4, pp. 365-388.
13) Huang, L 2006, ‘Building up a B2B e-commerce strategic alliance model under an uncertain
environment for Taiwan's travel agencies’, Tourism Management, vol. 27, no. 6, pp. 1308-
1320.
14) Bassano, C, Gaeta, M, Piciocchi, P & Spohrer, JC 2017, ‘Learning the models of customer
behavior: from television advertising to online marketing’, International Journal of
Electronic Commerce, vol. 21, no. 4, pp. 572-604.
15) Lightner, S & Holscher, KC 2008, ‘A Snap Shot of E-Commerce by General Line Industrial
Distributors’, Journal of Marketing Channels, vol. 14, no. 1-2, pp.129-151.
16) Ernkvist, M 2015, ‘The double knot of technology and business-model innovation in the era
of ferment of digital exchanges: The case of OM, a pioneer in electronic options
exchanges’, Technological Forecasting and Social Change, vol. 99, pp. 285-299.
17) Toktaş-Palut, P, Baylav, E, Teoman, S & Altunbey, M 2014, ‘The impact of barriers and
benefits of e-procurement on its adoption decision: An empirical analysis’, International
Journal of Production Economics, vol. 158, pp.77-90.
18) Dou, W, Lim, K, Su, C, Zhou, N, & Cui, N 2010, ‘Brand Positioning Strategy Using Search
Engine Marketing’, MIS Quarterly, vol. 34, no. 2, pp. 261-279.
19) Auschaitrakul, S, & Mukherjee, A 2017, ‘Online display advertising: The influence of web
site type on advertising effectiveness’, Psychology & Marketing, vol. 34, no.4, pp. 463-480.
20) Ho, JY & Dempsey, M 2010, ‘Viral marketing: Motivations to forward online
content’, Journal of Business research, vol. 63, no. 9-10, pp. 1000-1006.
21) Key, TM & Czaplewski, AJ 2017, ‘Upstream social marketing strategy: An integrated
marketing communications approach’, Business Horizons, vol. 60, no. 3, pp. 325-333.
22) Wood, M 2012, ‘Marketing social marketing’, Journal of Social Marketing, vol. 2, no. 2,
pp.94-102.
23) Hudson, S & Thal, K 2013, ‘The impact of social media on the consumer decision process:
Implications for tourism marketing’, Journal of Travel & Tourism Marketing, vol. 30, no. 1-
2, pp. 156-160.