Internet and E-Business: Ocado.com Case Study and Strategic Analysis

This report provides a comprehensive analysis of e-business, focusing on the environment in which it operates, different business transaction types, benefits and barriers of online processes, security and legislative issues, and modes of communication. The report uses Ocado.com as a case study. It ex...Read More

INTERNET AND
E-BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 .........................................................................................................................................1
1.1 Describe the environment in which E-Business is conducted and business transaction
types........................................................................................................................................1
1.2 Explain the benefits and barriers to businesses considering an online process................2
1.3 Assess the security and legislative issues facing an online business organisation...........3
1.4 State the modes of communication available to an E-Business and their applications....4
TASK 2 ...........................................................................................................................................5
2.1 Explain the internet technologies and their importance in making an E-business successful
................................................................................................................................................5
2.2 Explain the main features of HTML ...............................................................................5
2.3 Analyse the functions of client servers and browsers, and the role of the search engine 6
2.4 Evaluate the use of intranets and extranets within business communication ..................7
TASK 3 .......................................................................................................................................7
3.1 Illustrate the different E-Business models that can be used to generate more revenue for
business...................................................................................................................................7
3.2 Analyse each model in terms of its capacity to generate revenue....................................8
3.3 Report on future developments in E- business model......................................................9
TASK 4 ........................................................................................................................................9
4.1. Use the key elements of good web design structure........................................................9
4.2 Evaluate the impact of a well designed website to an E-business....................................9
4.3 Report on the issues concerning website usability.........................................................10
CONCLUSION .......................................................................................................................10
..............................................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
Today's technology is playing a very important for very business. Every firm wants to
live in high new technology. Internet is having mass power of communication which other media
do not have. Technology provide new platform for today's businesses. Every firm is going to sell
their products and services online because of its large reach. Because of this management wants
to understand it for depth manner (Andreu and et.al, 2010). By this transaction of business
become for easy. Customer can buy the products online without wasting their time to visit
physical stores.
The company which is taken into consideration for this report is Ocado.com. It is large
online grocery retail store. They considered themselves as online super market. The vision of
company is to provide new experience of online shopping to their customers. They are
expanding their market all over the UK area for that purpose they recently tied up with
Morrisons to delivery their grocery products.
In this report the different environment is discussed in which E-business can be operated.
Various barriers and benefits of online business has been given. The legal and legislative issues
which e-business are facing in online businesses. The importance of internet and their usage in e-
business has been describe in this assignment.
TASK 1
1.1 Describe the environment in which E-Business is conducted and business transaction types
The business environment is having many factors which affects its operations. These
factors have great influence on business success and failure. Such factors can be legal, political,
economical, social and others. Following are such factors.
 Political: Their are many rules and regulation which company implied on online
businesses. The participation of government is active so they prepare taxes, budget and
other expenditures policies. Which can impact on Ocado business.
 Economical: Economical factors refers to interest rate, exchange rates and inflation. If
inflation rates increases the sales of company decreases because people start saving more
money than saving (Bélanger and Crossler, 2011). This can have negative impact on
business operation.
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 Social factors: In this factors values, belief, norms are considered which is shared by the
common group of people. As people are changing their buying process to save their time
and cost. This brings new platform for Ocado to sell their products and services.
 Technology factors: Technology factors have great influence as business. As company
update its website in regular way so that they can store more data about their customers.
For company adopt EDI technology so that transfer of information get done in an
appropriate manner with suppliers and other important parties.
 Legal factor: There are different legal constraints which firm need to face. Company need
to apply all rules and regulations to their business which is quite difficult.
 Environment factor: Firm need to do their business activities while considering
environment factors. AS e-business is conducted online less energy consumption is used
in this process (Bordonaba-Juste, Lucia-Palacios and Polo-Redondo, 2012).
Business transaction Types: Following are different business transaction types.
 Business to business: In this one business sell products to another intermediate person
who sell the products to final customers.
 Business to customer: In this web sell products to its final customers.
 Consumer to consumers: In this systems allow the one customer to sell the products to
another customers.
 Business to government: In this business exchange their products and services to
government.
1.2 Explain the benefits and barriers to businesses considering an online process
The electronic business largely affected on retail sector. Their are many players who
loose their market share because of online presence in market. Following are the benefits of e-
commerce.
 Tangible Benefits: In opening physical store there are geographical constraints. This
problem is solved by online stores. It can also help firm to increase their presence in
international markets (Fitzgerald and et.al, 2011). By online company can reach to wide
range of customers and sell their products to them. By this market share and profit both
can be improved. As customers are able to buy products in more easy way they being
loyal with that firm.
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 Intangible Benefits: The deliver quality can be improved by e-business. This may
improve customer services and bring customer retention. When the products are easily
available at the market place this generate customer satisfaction and they made positive
word of mouth. E-business make easy to forecast sales, maintaining stocks, efficiency
can be improved (Gloor, 2012).
Barriers to e-business
There are many issues which are face by e- business companies. The greatest issue which
still exists is security and privacy issues (6 Barriers to E-commerce from Layman’s Perspective,
2017). There is lack of trust and faith of many customers towards the online purchasing. They
have misconception that their data are not safe with the enterprise. Because of this many
customer check the security measures before they buy any product online. The another barrier
which took place is language. In different region various languages are used by which more
customers are not attracted. The last barrier is communication barrier because of poor
telecommunication infrastructure the development of online business are decreasing.
1.3 Assess the security and legislative issues facing an online business organisation
Security affects the business and their customers. There are three aspect which is given
below.
 Business and customers get difficulty to know each other when they do transaction
online. By this the lack of trust and privacy can be occurs.
 There is issue of data safety. Data can be interrupted and many people are their those who
hack the data and get information about the customers.
 There is low evidence in case of online transaction. The data and information can not be
properly tracked which may occur problem for customers.
These aspect affects business operation. When they are not properly handle it may have
negative impact on business. Company may take measure in context to security issues like data
encryption, digital signature, and certification of good quality. In UK there are several rules and
regulations are formed so that these activities can be properly maintained.
There is data protection Act 1998 which make ensure that data should be properly
manage (Ifinedo, 2011). They set the standard for company to control its data in particular
manner. Every country is having their own rules and legislation. One country cannot apply other
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country laws. By online business in UK are dealing with other countries and their trading
system.
The online business are confronting the issue of protected innovation rights in the
administrative viewpoints. It is occurring because of the operations that are completed is in the
universal market, consequently the information can be duplicated and spared by anybody. The
worry is additionally upon the legitimacy of the electronic exchanges legitimate.
Basically there are three very main issues related to carrying out online business, such as-
 Checking the identity of the individual with whom company is carrying out their
operations and function..
 Ensuring that information that has been send and get does not getchanged.
 Getting verification of the date, time and place where the agreements and deals has been
performed.
1.4 State the modes of communication available to an E-Business and their applications
The company can use different types of electronic communication methods by which
they can communicate with their customers and build relation with them. Business can use
emails to reach their customers. They can communicate with their customer and update them
about their new products and offers which company is offering. The invoice and customers
purchasing details also be send by emails. There is system called EFT( electronic funds transfer)
which is effective payment methods (Ifinedo, 2011). By this customer can pay for the products
by credit card, debit cards, via mobile wallet and others. Another media by which firm may
communicate with customers is social networking sites. It is very famous method by which
enterprise interact with customers in very easy manner. Face book allow customers to visit
official website of organisation and get knowledge about their events and other important
information.
The tools which is mostly used to exchange data between computer and system is
Electronic data interchange. This tools help to mange activities of suppliers like order handling,
procurement and others.
Online organizations utilize specific sorts of electronic techniques to keep up well-being
and healthy bonds with every one of its users whom organization is providing services. It utilize
messaging method as framework for reaching clients in more changed approach to manage each
and every move that is been made by company. Through electronic mailing method company is
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sending E-flyers. Without ambiguity, when clients make buys, they demand for various things
via electronic shopping wicker compartment. It draws in client to purchase a couple of things in
one request. As segmentation is done, an accreditation email will be sent to client's mail.
TASK 2
2.1 Explain the internet technologies and their importance in making an E-business successful
Internet technology is a concept by which company is using the system by which
customer gets information about various things. By using internet people can buy and sell
products and services. Internet is using by large number of people now a days. In internet the
networking is main resources which need to be mange effectively. Internet play a very important
role in e- business. By internet e- business can operate in smother manner. It gives more fast,
reliable and valuable services. Without internet e-business get limited opportunities. Online
business can be operate without internet (Li, Lai and Wang, 2010).
Technology is updating day by day with this different opportunities and challenges took
place. If there is no internet customer cannot buy companies products. By the use of internet firm
can introduce e-business. It is base of their business. The customer do not have to visit physical
store they can purchase products online in very quick time. This decrease the time and cost of
customers and firm. Enterprise do not need to merchandise their products at store. This can
decrease the cost of maintaining stock and employees expenditure.
2.2 Explain the main features of HTML
HTML is a language which is used to design and make the web pages. In HTML there
are two main section in web pages that is called head and body. In head section the web page
information is given while in body there is data about publishing. Following are feature of
HTML.
 Web workers: Web workers are using separate program of processing by which web
pages are not negatively affected.
 Video: The person can post video without third party proprietary. It is very easy to post
video as image (Liu, Cao and He, 2011).
 Canvas: In this there are features that allow web developer to use graphics. By this in
video there is no need to plug in.
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 Application caches: It can work like cookies as it is searching more and more information
on visitor's computers.
HTML is using tags by which different kind of content can be created like paragraphs,
text, table and others. There are different kind of software which are available to develop the
HTML.
2.3 Analyse the functions of client servers and browsers, and the role of the search engine
Servers are creating the information and maintain database, services which are required
in central location in the internet. By this web serves can exchange their details and information
with other clients. At a time they can share data with multiple of people. Web servers use the
software name web browser. The example of web browser google chrome, internet explorer and
others. Web browser accept the web pages from user. By this client can search the data or person
to connect with web server. HTTP software received the request of client by which web server
process it and give reply to client request. After the data exchange the connection closed
automatically (Lu and et.al, 2014).
Role of search engine
WWW is containing large number of web pages and servers. To find the particular page
and server web search engine is there which allow user to enter required key words by which
web page can be found according to requirement. The websites are always registered with
particular search engine. If customer is finding any product they can type the product name or
category by this search engine give many websites which sell those products. Search engine is
using different kind of techniques such as spider, algorithm by which they extract the
information by better location user (Oliveira and Martins, 2010).
Hardware
The client server show authorisation of the private act to form computer programming
that a broad variety of instrument i.e, is the hardware can get to. When the entire part is been
joined together, related to application and data it will comply with the servers, this will help in
keeping a proper care of memory on the personal computers. This sessions is very helpful in
offering skilled programming that can be supportable for company to carry out there online
trading system.
Operating Systems
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Precisely when thing limits its work between an assembled server and individual
programming customers, one can offer thing for Windows, OS X and even Linux by performing
a bit modifications.
2.4 Evaluate the use of intranets and extranets within business communication
Intranet refers to the network with is used inside the organisation. The employees only
can use this network no other outsider can allow and have access of this network. By intranet
their is more effective communication take place within organisation. By this staff of an
enterprise can communicate so that operation can be in smoother run. While extranet refers to the
network which is used to communicate with stake holders of firm such as stake holders,
suppliers, customers, employees and government. This both the network is accessed by the
internet. Internet is open for every person. So internet is accessible to everyone company do not
post every information and data on it. It can be risky for an organisation.
There are lot of threats which can damage the business data like virus and hackers. For
this business should use extranet and intranet for their business processing. Only other person are
allowed to use this electronic media those who are authorised by firm.
Internet Intranet
 This is an overall system.
 It is financially savvy technique.
 The web is having lesser security.
 Web is less dependable system.
 This system depends on the nearby
system or local network.
 This is costly technique as contrast with
other.
 The security in intranet is more when
contrasted with other.
 Intranet gives higher relatability.
TASK 3
3.1 Illustrate the different E-Business models that can be used to generate more revenue for
business
There are different kind of models that can be used to generate revenues for business.
Following are the models.
 Revenue from subscription access to content: The access of documents can be for
particular time like monthly and for year.
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 Revenue from pay per view access to document: It is not compulsory to protected it by a
any password (Oliveira and Martins, 2010). By this payment occurs by clicking the site
for each time.
 Revenue from CPM display advertising on site: In this the owner charge for the
advertisement. This payment is based on the numbers of ads which need to shown to site
visitors.
 Revenues from sponsorship of site sections: A company may sponsor the different site.
By this this also revenues can be generate. In this the fixed amount can be get.
 Access to customers for online research: By this company generate the revenues by the
survey. In this owner select the best alternatives and adopt techniques by which profits
can be minimized.
Company is using business to consumer model in which products are directly sale to retail
consumer online. Ocado.com company is using this model for generating more and more
revenue for business. They can generate more revenue by using direct sales or processing fees.
This model is helpful as for the present technological world.
3.2 Analyse each model in terms of its capacity to generate revenue
By revenues models the company can generate the revenues and returns. E- distributor is
one model by which order can be taken online. Customer need on to visit the physical store. The
another model is e-procurement by which customer buy the products in bulk and take heavy
discounts (Oliveira and Martins, 2011). Auction model gives the platform to seller and buyer to
offer different prices to purchase particular product. The last model is exchange model in which
large range of transaction took place.
The portal gives the facility to user to search the relevant data and content, services
package that they are needed from one place. Customer can get information from this portal
such as news, weather, sports and others. Search engine give the services to user to find more
specialised services such as Gmail and Dropbox. The main revenues generated by google is
through advertisement.
E-tailing is another tool which provide the same services to traditional e-tailing. The
provider provide the data and information in form of graphs, chart to make website more
attractive. The revenues is generated by this this model is through commission. The broker bring
the buyer and seller together for exchanging goods and services.
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Services provider also provide internet facilities. Provider allow user people to gather at
one webpage to share their interest. By this business can find their target easily. Industry
consortia help customers to buy products and services through limited number of selling
members (Safeena and Date, 2015). Usually there are four types of model are measure which
are: B2C, B2B, C2C and C2B. All these are helpful for generating more and more revenue by the
company so that they can give tough competition to all rivalries. Each model have a capacity to
generate more revenue for business.
Company is using the business to consumer model through which they can charge
processing fees and become able to generate huge amount of revenue through that. It is also
consider as the e tail model because in this business get done from an organisation to retailers.
3.3 Report on future developments in E- business model
E-business is having large demand in future. The growth oh e-business is increasing in
retail sector. The security and advance services can created in near future. E-business is coming
in portable devices also like tablets, mobiles, laptops and others. Many companies are coming up
with their own apps so that customers can easily buy the products. But there are many customer
those who still want the person assistant while doing the shopping. So enterprise need to provide
best support to their customer when they are selling product through web. They can use many
different ways to interact with customers for example through live chat and by uploading video
of that particular product and their usage (Trusov, Bodapati and Bucklin, 2010). Social media
brings the another new platform for organisation to promote their products. Social media can
earn more revenues by posting advertising of big companies.
TASK 4
4.1. Use the key elements of good web design structure
It is very important to design web structure in proper manner. This web sites can attract
the visitor attention. If the site is not attractive and easy to use customer not buy the product by
using that website. The web site should be well organised, easy to use and download. The colour
combination should good their should be right balance of dark and light colours. If the volume of
data is large it is better to keep light colours so that app can be easily download. It is essential to
to put same pattern in very page of website. If the patterns are different in each page it can be
difficult for the user to understand and use site.
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Business can link the site with social media to attract more customers. In website it is
important to mention about the security and originality standard are followed in particular
website. For a good website designing, there are several number of key elements have to be used
through which company can attract their number of users:
 Good visual design
 Content
 Navigation
 Call to action
 Creditability
 Mobile site
These are the six major steps which have to follow by Ocado.com which facilitate many users
from buy to them. A good visual design leads to provide a platform in which logo, template,
content should be attractive. Provide relevant content as per the nature of company so that
customer do not get confused about nature of operation. Hence, by complying all these things,
company can generate more revenue by attracting more and more users.
4.2 Evaluate the impact of a well designed website to an E-business
The good key words, effective architecture and attractive graphics can attract more new
visitors to use company's website. The picture and graphs should be properly used. This can also
make website more attractive (Wirtz, Schilke and Ullrich, 2010). The website should be easily
download and use so that more customer use company website rather than other website. The
architecture of site should be prepared strong. For this customer encourage to visit site again and
again. It gives good impression on suppliers and other business clients and firm can get investors
very easily. In e-business designing website is very important because many people use it and it
create negative and positive impact on customers. For any electronic business, there key factor is
their web design which is essential factor for any business. If a website is attractive, then it leads
to made a good impact on all of their users. This is helpful as per the context of more profit
generation. Hence, a good web design always leads to attract and made a positive impact on
business.
4.3 Report on the issues concerning website usability
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The management
Ocado Company
Dated: 12th August 2017
Usability can be define the easiness of using the website for the visitors. To satisfy the
customers needs it is important to design the website in proper way. So developer need to
understand the requirements while designing the sites. The data and information should be more
clear and precise. If company give more information to the user it can make visitor more
confused they cannot focus important points. In many sites the registration process is very long
because of this many customers loose their interest and attention. Website should support
different kind of language so that customer can easily use the website and understand the
information.
CONCLUSION
Internet make e-business more easy to use their activities and the cost also decreases. The
report is all above the basic components of internet and e-business. The concept and feature of
HTML is discussed. The intranet and extranet is having different usage. It gives benefits to its
users. Through internet tools company can advertise and promote their products. Firm can reach
to wider customers. The website design is also very important. If the website is properly design it
help to attract more and more customers. There are different challenges which enterprise face
while doing e-business such as hackers and virus. So company need to take safety measure to
over come from these problems.
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