Report: E-Commerce as Market Entry for Sol Sana Footwear in Georgia

This report evaluates the e-commerce strategies of Sol Sana, a women's footwear company, focusing on its market entry into Georgia. It examines the differences between e-marketing and e-commerce, the rationales behind online selling, and the importance of an online delivery system. The report also delves into costs associated with e-commerce, overseas business strategies, channel conflicts, and online price structures. It highlights the need for coordination between domestic media and online platforms and discusses the required characteristics for successful e-commerce products. The conclusion emphasizes the importance of effective e-commerce plans for Sol Sana's expansion and the significance of online business in attracting new-generation customers. The report uses information from the assignment brief to analyze the e-commerce strategies and market entry of the company.

Running head: IMPORTANCE OF E-COMMERCE
Importance of E-Commerce
Name of the Student
Name of the University
Author Note

2IMPORTANCE OF E-COMMERCE
Abstract
This research work aims to evaluate the commercial performance of a footwear company,
namely, Sol Sana on the account of its emerging involvement in the online business activities. In
respect of the company’s business venture in Georgia, the effective implementation of the e-
commerce strategy is likely to accrue market share in the women’s footwear industry.

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Table of Contents
Introduction......................................................................................................................................4
Discussion........................................................................................................................................4
Difference between e-marketing and e-commerce......................................................................4
Rationales behind the company’s online selling products...........................................................5
Online delivery system................................................................................................................5
Cost related to the e-commerce activities....................................................................................5
Overseas business strategy and channel conflict.........................................................................5
Online price structure..................................................................................................................6
Coordination programs between domestic media and online platforms.....................................6
Required feasible characteristics for the e-commerce products or business...............................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

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Introduction
E-commerce conducts all kinds of commercial transactions across different online
platforms. The participants of the e-commerce business do their business activities including
selling and buying of products on the internet. Meanwhile, the transfer of funds as well as money
is also counted as a part of this business activity. The company is a specialized brand in the
women’s footwear. Instead of the company’s own website, Sol Sana operates its commercial
activities via various international e-commerce retail platforms like Amazon, Zalando and Asos.
This Australian based footwear enterprise has recently planned to expand the business in another
country, namely, Georgia. On the account of this business expansion, the research paper aims to
analyze some probable concerns the company may face related to the online business
undertakings.
Discussion
Difference between e-marketing and e-commerce
In the case of e-commerce, all sorts of commercial activities related to the selling and
purchasing of the commodities conduct on online platforms. Meanwhile, e-marketing plays a
significant role in the enhancement of the company’s sales on the online platforms (Hudák,
Kianičková and Madleňák 2017). E-marketing is considered as a key advertisement tool owing
to enhance the company’s presence in the retail market.
Sol Sana’s involvement in the online business
In the context of enhancing the footwear market in Georgia, Sol Sana’s engagement with
the social platform like Facebook is expected to augment the company’s business. The company
opts the online business strategy owing to contribute immediate impression regarding its

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products and services among the customers. Apart from that, this process helps the company to
overcome other constraints related to the location of the countries.
Rationales behind the company’s online selling products
The online selling leverages the customer base. The profit of the sellers does not depend
on the limited number of the purchasers. The customers can be informed about the commodity
without visiting the shops or the shoppers. The e-commerce retail structure offers the purchasers
a real time data analysis about their products (Baubonienė and Gulevičiūtė 2015). The new
generation buyers prefer to do advanced study before buying a product and therefore, online
selling of the product is the best option for Sol Sana across the several nations.
Online delivery system
Online delivery system seems the most convenient way for the consumers as they receive
the products without visiting the shops. The delivery persons generally deliver the products at the
doorsteps of the consumers. Further, the online delivery system assists the customers to keep a
track on their orders from warehouse to final delivery spot.
Cost related to the e-commerce activities
According to the marketing experts, the company incurs negligible cost while employing
digital marketing system to sell its products and services (Czinkota, Kaufmann and Basile 2014).
The company, irrespective of small and large size, is reported to spend only about ten percent of
the gross revenue on the digital marketing.
Overseas business strategy and channel conflict
Owing to enhancing the business capacity at the international market the company
requires to collaborate with different business partners, sales agents and commercial platforms.

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This is likely to result in the occurrence of the channel conflict during the course of doing
planning strategy for the product (Savrul, Incekara and Sener 2014). Lack of managerial
capability and inadequate market information lead to the company into the channel conflict
situation which needs to be averted with the help of immediate and effective business actions.
Online price structure
The online sellers are stated to offer cheaper price rate of the products with respect to the
retail price. The difference in the price structure occurs due to establishment cost related to the
retail stores. The online shoppers do not need to bear such type of establishment costs like the
retail shoppers (Gerrikagoitia 2015). Nonetheless, the online shoppers are able to get orders from
the customers at any point of time and this, in turn, augments the sales volume of the online
sellers.
Coordination programs between domestic media and online platforms
The perfect amalgamation of the online marketing with the domestic media can
strengthen the company’s market share. The company should incorporate local media in order to
augment the business development program on the online platforms (Pogorelova et al. 2016).
The local customers feel informed and interested in the case of purchasing the online products
instead of touching or viewing the products at the physical stores.
Required feasible characteristics for the e-commerce products or business
The online shoppers are apparently technologically advanced in nature. They are well
aware of the global competitive market structure. They do product analysis on the basis of
product description given on the company’s website. Therefore, the company should maintain

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the quality of the e-commerce website, such as, keeping the appropriate information related to
the products and purpose of the goods.
Conclusion
The research paper concludes that the Sol Sana requires to apply effective e-commerce
business plans in order to expand the commercial venture in Georgia. Referring to the Sol Sana’s
products, online business strategy is surely a significant business tool to allure the customers of
the new generation.

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References
Baubonienė, Ž. and Gulevičiūtė, G., 2015. E-Commerce factors influencing consumers ‘online
shopping decision.
Czinkota, M., Kaufmann, H.R. and Basile, G., 2014. The relationship between legitimacy,
reputation, sustainability and branding for companies and their supply chains. Industrial
Marketing Management, 43(1), pp.91-101.
Dahnil, M.I., Marzuki, K.M., Langgat, J. and Fabeil, N.F., 2014. Factors influencing SMEs
adoption of social media marketing. Procedia-social and behavioral sciences, 148, pp.119-126.
Gerrikagoitia, J.K., Castander, I., Rebón, F. and Alzua-Sorzabal, A., 2015. New trends of
Intelligent E-Marketing based on Web Mining for e-shops. Procedia-Social and Behavioral
Sciences, 175, pp.75-83.
Hudák, M., Kianičková, E. and Madleňák, R., 2017. The importance of e-mail marketing in e-
commerce. Procedia engineering, 192, pp.342-347.
Pogorelova, E., Yakhneeva, I., Agafonova, A. and Prokubovskaya, A., 2016. Marketing Mix for
E-commerce. International journal of environmental & science education, 11(14), pp.6744-
6759.
Savrul, M., Incekara, A. and Sener, S., 2014. The potential of e-commerce for SMEs in a
globalizing business environment. Procedia-Social and Behavioral Sciences, 150, pp.35-45.