Magneto E-commerce Business Analysis and Recommendations Report

This report provides a comprehensive analysis of Magneto, an e-commerce business operating in Riyadh, Saudi Arabia, under the brand name DigiFlip. The report begins with an introduction to Magneto, its objectives, and its vision to become the Amazon of Saudi Arabia. It then delves into the business processes, including order management, allocation, fulfillment, and shipping. A SWOT analysis is conducted to evaluate Magneto's strengths, weaknesses, opportunities, and threats. The report also examines the design and functionality of the e-commerce website, including the product menu, contact information, and website design. It further explores the CRM model, identifying potential threats such as cross-site scripting, SQL injection, phishing attacks, and distributed denial-of-service attacks. Finally, the report provides recommendations for securing the website and suggests marketing and advertising strategies, including demographic analysis, marketing methods, and social media integration.

Running head: ECOMMERCE
ECOMMERCE
Name of the Student
Name of the University
Authors Note:

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Table of Contents
Introduction..........................................................................................................................3
Discussion............................................................................................................................4
Processes..........................................................................................................................4
SWOT analysis................................................................................................................5
Design and format............................................................................................................7
E-commerce functionality...............................................................................................8
Design of system..............................................................................................................8
CRM (Customer Relationship Model).............................................................................9
Identification of potential threats...................................................................................10
Recommendation.......................................................................................................11
Marketing and advertising strategy method..................................................................11
Demographic..............................................................................................................11
Marketing Method.....................................................................................................12
Social media...............................................................................................................12
Local marketing.........................................................................................................12
Multichannel marketing.............................................................................................12
Ethics and law for E-commerce website.......................................................................12
Conclusion.........................................................................................................................13
References..........................................................................................................................15

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Introduction
Magneto is a well-known electronic organization, which is based in Riyadh, Saudi
Arabia. It has launched a certain number of products under the name “DigiFlip”, which is
inclusive of certain number of products like USB flash drive and laptop bags (Niranjanamurthy
et al. 2013). Magneto is expected to have a business value of 11.6 billion in the near future.
Magneto started its business by selling books and focused on the idea or logic of buying various
books online. Magneto has a vision to become amazon of Saudi Arabia. It has the vision of
becoming the earth’s most customer centric organization (Daoud, Naqvi and Ahmad, 2014). It
mainly focusses to create a platform where people can easily come to find and discover anything
which customer wants to buy online. Magneto has a vision of providing a delightful customer
experience to online buyers. Magneto provides a variety of products and services like books,
movies, music, gaming, accessories, camera, computers, network computer, home, software
peripherals.
Objective of Magneto
 To provide complete hassle free shopping with best price in Saudi Arabia.
 The ultimate objective is not those people who shop online domain. They
generally focus on the fact of convenience of e-commerce in comparison to
offline traders which will help them in growth of market.
 Their ultimate goal is stronger kind of supply chain management.
In the coming pages of the report various business process has been provided in
discussion portion. After that a SWOT analysis has been done on the various business process of
Magneto. A suitable design of E-commerce business has bene provided. The functionality of the

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ecommerce website has been discussed in details. A contact menu has been provided which
consist of various things like contact details, social media links, Facebook and Instagram.
Discussion
Processes
In Magneto order is placed by the customer from the front end (Web store) after that it is
downloaded to an order management system (OMS). The OMS is considered to a part of web
store which has a backend enterprise where customers order can be downloaded easily
(Ghandour, 2015). In the allocation portion the order flows into the OMS. After that the
inventory from the warehouse which gets allocated to the order quantity. So the free quantity of
SKU (products) is generally decreased by the quantity of order. The fulfilment team generally
focus on processing of order in the warehouse. In the beginning a picklist is generated against the
various kinds of orders. After that it is handed over to a picker which is generally present in
warehouse so that they can easily pick SKU from bin rack (Yang et al. 2014). The picker picks
the SKU from the location which is mentioned in the picklist and after that it is brought back to
picking station. After the packing of order, it needs to be properly shipped to the customer. The
particular order is assigned to the shipping location and a proper kind of manifest is generated.
After that shipment is handed over to delivery or courier guy which generally comes to the
storehouse or warehouse for picking up of shipment. As soon the shipment is out of the
warehouse the inventory gets reduce in the system (Wong, Bartels and Chrobot, 2014). The
shipment is delivered to respected to proper customer and the courier company updates the
details of delivery details back to the organization in which it is shipping. There are also some
kinds of cases of customer return or return due to origin may take place.

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Fig 1: Flow Chart of ordering of Book from Magneto
(Source: Kaur and Malhotra, 2016, pp-61)
SWOT analysis
SWOT stands for Strengths, Weakness, Opportunities and threat analysis is nothing a but
a framework which is used for identifying and analyzing the internal and external factors. It can

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easily have impact on the viability of a project or a business (Wong, Bartels and Chrobot, 2014).
SWOT analysis is generally used for by various kinds of business entities and is mainly used by
various kinds of nonprofit organization.
Strengths: Strength in SWOT analysis can be defined as certain number of attributes
within an organization like Magneto (lo Storto, 2013). It is generally considered to be necessary
for proper success of a project or an organization.
Weakness: The factor within proper kind of SWOT analysis can easily formulated the
idea which can easily result in weakness of project (Leeraphong and Mardjo, 2013). Weakness is
generally inclusive of certain number of factors like weak internal communication system.
Opportunities: It is generally classified as external elements which can be easily
considered to helpful for achieving of certain number of objectives (Akanbi, 2014). This factors
generally focus on vendors who wish to work with various organization for achievement of
objectives.
Threats: This is an external factor which is considered to be an important factor for
success of a project or business ventures. The possible threat to SWOT analysis which is
inclusive of negative public image and lack of vendor who can easily track supply raw materials
for a project and organization.
SWOT HELPFUL HARMFUL
INTERNAL FACTORS Strengths:
Brand value
Proper management of supply
chain
Weakness:
Proper delivery of products
Penetrations of Internet

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Promotion and Advertisement
Portfolio of huge number of
products
Reach of Network
Various gateways of payment
Higher cost value
Much Bigger value of
competition.
EXTERNAL FACTORS Opportunities:
Rural value of market
Growth in E-Book culture
Penetration of broadband
services
Various kinds of mobile
based
Threats:
New players in the field
Loyalty of customers
New players like E-bay,
homeshop18 and many
others.
Design and format

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Fig 2: Design and format of Magneto Website
(Source: W3layouts.com, 2017)
E-commerce functionality
The product menu of Magneto will show the variety of goods which are available in their
warehouse (Hamdare, Nagpurkar and Mittal, 2014). The product menu consists of variety of
things like Men wear, Women wear, Short codes, about, home and contact. The website consists
of various aspects in the middle like any kind of offers related to electronic, clothing and
household appliances (Azad, Islam and Hoque, 2014). Magneto website will have a contact
button on the top which consist of link to large number of social websites like Facebook,
Instagram, Twitter and many other social networking websites. The electronic website will
consist of variety of products like mobiles phones, tablets, laptops and notebooks from variety of
manufacturing organization like apple, Motorola, Samsung, Nokia and MI (Sharma, 2015). It
will ultimately benefit the citizen and buyers of Saudi Arabia. The book section will consist of
books from various domains like Entrance Exam, Academic, Literature and fiction, Biographies
and comics. It also sells a variety of stationary objects like Pens, Dairies, Desk Organizers and
calculators (Lo Storto, 2014). In the men’s it consists of variety of items like Footwear, Men’s
Grooming, Top wear, Bottom Wear. In the footwear section it consists of variety of footwear’s
like formal, casual and sports, Sandal and floaters, Loafers and boots, running shoes and
sneakers. In the section of Men’s grooming a variety of products have been offered like
Deodorants, Perfumes, Shaving and after shaving (Hasan and Huda, 2013). In the top wear
variety of products has been provided like T-shirt, Shirts, Jackets, Sweatshirts. In the bottom
wear a variety of products has been provided like Jeans, Cargo, Track pants, Shorts and ¾ ths.

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Design of system
Fig 3: Logical Design for Website (Magneto)
(Source: Tanjung and Dhewanto, 2013)

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Fig 4: Physical Design of Website (Magneto)
(Source : Setyaningsih and Rahmad, 2015, pp-56)

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CRM (Customer Relationship Model)
Customer Relationship Model can be defined as a phrase which mainly focus on the way
in which a business interacts with various customers (Khan and Sagar, 2015). Various people
round the globe also considers CRM as methods to capture information about customers. CRM
makes use of technology which is used for intelligence way or method for providing improved
services for customers (Xu, 2013). In other words, CRM can be easily defined as a method
which can be used for better usage of information to meet the needs of present customers and
proper identification of customers which ultimately results in tracking of proper kinds of profits.
The building blocks of CRM models are
 A database which can be used for collection of information of various customers.
 A method which can be used for analyzation of information which is present in
the database.
 A proper kind of strategy which can be easily applied to meet the needs in a better
way and proper identification of customers.
 Collection of data which is mainly used for ensuring that the needs are meet in
most effective ways.
The ultimate purpose of CRM model is to make use of organization initiative so increase
various profits (Kaur and Malhotra, 2016). CRM is mainly achieved by providing better kind of
service to customers than the competitors. CRM not only improvises services to customers but
also reduces cost, wastage and complaint.

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Electronic CRM (E-CRM): It is considered to be an electronic method of delivering or
management of subset of CRM (Setyaningsih and Rahmad, 2015). It generally arises from
traditional value of CRM and e-business application markets.
Mobile CRM: Mobile CRM is nothing but a management tool which is designed in such
a way that it can allow various kinds of mobile devices which is inclusive of smartphones and
tablets (Li, 2016).
The data containing personal information of customers will store in the hardware as well
on the cloud (Ma, 2017). The data can be retrieved from the hardware and for emergency
purpose a backup of data is stored on the cloud.
Identification of potential threats
There are large number of potential threats which can damage an E-commerce website
like Magneto.
Cross Site Scripting: In this type of attack, an attacker will generally insert a JavaScript
snippet on the vulnerable web page which generally looks like normal script and after that it is
executed (Tanjung and Dhewanto, 2013). This particular gives the attackers the accesses to other
information which is present on the user’s computer and also leave vulnerable to various kinds of
phishing attempts or installation of malware.
SQL Injection: It can easily affect any website or web related application by making use
of SQL database which generally is inclusive of ecommerce platform like Magneto.
Phishing Attacks: It is a form of email which generally looks like legitimate or generally
comes up through phone calls (Ahmed, 2016). This kind of scam generally inclusive of a link or

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direction of a page. It is generally email account or malware which is installed on the system for
stealing personal information, accessing microphone and camera.
Distributed Denial of Services: This kind of attack generally aims to take down of site
by overwhelming of servers with large number of request (JIANG, 2017). In distributed form
attacks generally comes from thousand or hundreds of IP addresses. This kind of attack generally
overheads the servers, slowing of value.
Recommendation
The above represented threats can easily damage the business of Magneto. The website of
Magneto can be easily secured by
 Proper choosing of secure ecommerce platform.
 Use of secure connection for various kinds of online checkouts
 By implementation of Address and Card Verification system.
 Need of strong kind of password.
 Set up of system for various kinds of suspicious activity.
 Providing security training to large number of employees.
 To have a DDoS protection and proper mitigation services.
Marketing and advertising strategy method
Demographic
Various business owners focus on information which is included in various business
plans which is used for raising various kinds of startup funds and providing launching methods
of business (Udawant and Shivankar, 2016). Demographic business is generally inclusive of
geographic areas, age, income, race and level of education.

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Marketing Method
Demographics can easily help someone to avoid certain number of mistakes in the
marketing plan. They can easily provide important information regarding fliers on cars
windshields is not considered for business which generally needs targets based on small and
single owner business.
Social media
Social media sites like Facebook and twitter is generally considered to be best for various
kinds of business. Social media marketing is still now considered to be infancy rather it is still
growing its business (Udawant and Shivankar, 2016). Various organization have department
which consist of over 30 people who are mainly engaged with customers on social media.
Local marketing
Local marketing also known as local based marketing is nothing but a process for
optimization of website and online advertisement. It also helps in driving foot traffic and creating
awareness in local areas.
Multichannel marketing
Multichannel marketing generally provides customers with more than one method for
completing sales transaction like retail store, web page on internet or even on various
smartphones. It generally recognizes various customers from favor channels which for various
purchasing process.
Ethics and law for E-commerce website
Various kinds of ethical issues which can be encountered in this ecommerce website that
is Magneto are Web Tracking, Privacy, Legal issues like fraud on internet, copyright and

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Domain names (Imtiaz, 2016). There is a continuous battle between computers and end users for
the various ongoing range of application programs.
Most of the Electronic payment systems generally claim to have proper idea regarding
the identity of buyers. So it is an important factor for buyers to make use of electronic payment
system. E-commerce fraud increased a lot due to rapid increased in popularity of various
websites (Imtiaz, 2016). It is generally considered to be a hot issue for various cyber and click
merchants.
Conclusion
From the above discussion it can be easily concluded that this report is all about Magneto
which is new e-commerce website in Saudi Arabia. In the discussion portion of the report
various objective of the business has been discussed. Various products and services offered by
Magneto has been discussed in details. The business statement of Magneto has been provided in
the details. After that the vision of this ecommerce organization has been discussed in details.
Various kinds of ecommerce business have been discussed in details in the above pages of the
report. A SWOT analysis has been done on the ecommerce website. A suitable design and
format of the ecommerce website has been provided. The system functionality of Magneto
website has been discussed in details in the above pages of the report. Various kinds of system
functionality like CRM has been discussed. Various kinds of security threats related to this
ecommerce website that is Magneto has been provided. Different kinds of Marketing and
Advertising methods like demographic, marketing, social media, local marketing, multichannel
marketing has been discussed in detail. Various kinds of ethics and laws for e-commerce
website has been discussed in details. A list of recommendation has been provided for the
potential threats which are encountered for this ecommerce website.

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