Analysis of E-Business Strategies for Proposed Star Effects Website

This report provides a comprehensive overview of the proposed e-business website, Star Effects, an online clothing retailer. It details the strategies, benefits, and infrastructure required for its successful implementation. The report covers key aspects such as e-business models (B2C and potential B2B), marketing strategies (PPC, SEM), website infrastructure, payment systems, and legal/security considerations. Various e-business strategies like marketplace hosting, turnkey business, advertisement-supported content, freemium model, warehouse sales, and social media integration are discussed. The analysis also highlights the potential benefits of implementing the e-business, including improved customer communication, enhanced marketing capabilities, and cost minimization. The report concludes with recommendations for the entrepreneurs behind Star Effects to ensure its competitiveness and success in the online market.

Running head: E-BUSINESS
Course Name
E-Business: Star Effects
Name of the Student
Name of the University
Due Date
Author’s Note:

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Executive Summary
The main aim of this report is to know about a proposed e-business website, called Star
Effects. The electronic commerce or e commerce mainly focuses on the overall utilization of
information and communications technology or ICT for the purpose of enabling the various
external activities as well as relationships of businesses with the respective individuals, other
businesses or groups. This e-business hence solely refers to that business that is being
completed with the help of Internet connection. The electronic business is the proper
utilization of the Internet, web, extranet, intranet and some of the combination of these above
mentioned factors for conducting their business. It is quite similar to the electronic
commerce; however it is more than the simplified buying or selling of the services or
products online. This electronic business involves a wide range of several business processes
like the customer relationship management or CRM, electronic order processing or EOP as
well as supply chain management or SCM. The several procedures of this electronic business
hence could be extremely helpful for the organizations to operate with better efficiency and
effectiveness. In today’s world, most of the popular organizations have taken the concept of
electronic tailing and electronic commerce. The report has provided the various strategies,
benefits and infrastructure details of Star Effects. Moreover, relevant recommendations are
also provided here.

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Table of Contents
Introduction................................................................................................................................3
Background................................................................................................................................3
Discussion..................................................................................................................................4
E-business..............................................................................................................................4
Strategies of Star Effects........................................................................................................5
E-business Models of Star Effects.........................................................................................7
Marketing of Star Effects.......................................................................................................7
Website Infrastructure of Star Effects....................................................................................9
Payment Systems of Star Effects.........................................................................................10
Legal, Security, Privacy and Other Issues of Star Effects...................................................11
E-business Benefits from Implementation of Proposed E-business Website......................12
Conclusion and Recommendations..........................................................................................13
References................................................................................................................................14

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Introduction
The electronic business or e-business is the specific type of business or a commercial
transaction, which majorly involves proper sharing of information over the connection of
Internet (Barnes & Hunt, 2013). Commerce could be stated as the significant exchange of
services and products within individuals, groups and other businesses and hence is seen as
one of the major activities within a specific business. It is the proper conduction of various
business procedures over the Internet connection (Wang & Zhang, 2013). All of these
processes of electronic business majorly involve buying as well as selling of the products,
servicing the customers, suppliers or services, managing the overall control of the production,
processing the final payments, running automatic services of the employees, collaborating
with the various business partners, recruiting other members and many more. A series of
services and functionalities are present for an electronic business (Soto-Acosta, Popa &
Palacios-Marqués, 2016). It is extremely popular and significant for the users and hence is
utilized in the entire Australia.
The following report will be outlining a brief discussion on the entire concept of e-
business. A new e commerce website for clothes, Star Effects is being proposed to launch by
a group of entrepreneurs. They have decided to launch this website for all types of customers
and to provide cloths in all sizes cost in a cost effective manner. The aim of this report is to
discuss the various factors related to the proposed website for Star Effects. The scope of this
report is that proper identification of the benefits and loopholes would be extremely easier.
Background
Star Effects is an electronic business proposal for all types of customers. This
particular e-business will be providing cloths through online services to its customers. Star

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Effects is suggested by a group of entrepreneurs, who have decided to provide cloths to the
clients in a cost effective manner. The range of cloths will vary from kids to adults sections.
Moreover, the payment system would be having both online payment as well as cash on
delivery after following few terms and conditions. The infrastructure of this website of Star
Effects will be having proper security system and this security would be built into the
browsers as well as with the digitalized certificates. Hence, it would be ensured that there is
absolutely no chance of data loss or data theft while making all kinds of transactions. The
major and the most significant strategies of the Star Effects are market place hosting, turn key
business, advertisement supported contents, freemium model, social media, warehouse sales
and many others. It is expected to become a popular and significant electronic commerce
website for cloths gradually.
Discussion
E-business
E-business or electronic business can be defined as the administration to conduct
businesses with the help of Internet connection (Laudon & Traver, 2013). This type of
business would be including the buying as well as selling of several goods or services only
after providing major customer support or technical supports via the connection of Internet.
This particular business type is often joined with the electronic commerce; however it
involves various services after adding the sale of those services and goods. The e-business
allows e tailing or electronic retailing eventually for the customers and even web site
marketing (Gangeshwer, 2013). The proper utilization of the Internet, intranet and extranet is
mandatory for conducting as well as managing all types of business activities. These
activities are quite easier with the proper implementation of electronic business. Moreover,

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the customers could easily contact or pay for the goods and services without any type of
complexity.
The first and the foremost advantage or benefit of the electronic business is that it
allows extremely quicker as well as easier communications with the customers (Goldratt,
2017). Hence, the user does not face any issue regarding booking their items or selling their
goods. The second significant advantage of this e-business is that it helps in strengthening the
marketing capabilities and also provides customer support 24*7. This helps them to gain
popularity and better competitive advantages. The next advantage of this particular type of
business is that it helps in the significant minimization of costs and expenses by simply
lowering the transaction costs. This helps all the users to use this business in a cost effective
manner (Niranjanamurthy et al., 2015). The efficient methodologies are also increased for the
payment system like utilizing the online banking and hence reducing the postage or stationary
expenses. There is a stronger opportunity for adopting the newer business models as well as
developing the tailored customer supports.
Strategies of Star Effects
Star Effects is a proposed electronic business of cloths that is being proposed to be
launched for its customers. The developers have decided to provide cloths for all age groups
and for all types of customers (Maity & Dass, 2014). They have taken the major decision to
undertake some of major and the most significant strategies for making their business
successful and innovative. Moreover, they could even take proper decisions about the
implementation of their business. The major strategies of this particular organization of Star
Effects are as follows:
i) Market Place Hosting: The first and the foremost strategy of this particular e-
business of Star Effects is that they would be hosting a specific site for the purpose of

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auctions as well as online stores over which the members could place their items for selling
(Chiu et al., 2014). In this specific model of Star Effects, the respective website owner would
take a flat fee or even a percentage of sales with the contract to promote their online market
place as well as assisting to process the various transactions. Moreover, the developers of this
website have even thought of the fact that the additional revenue for their business could
come from the members paying extra fees for spotlighting the offerings over the main
website.
ii) Turn Key Businesses: The second important and significant strategy for the
website of Star Effects is to become a turnkey business. The turnkey business eventually
functions with the previously existing template for the given industry (Bryman & Bell, 2015).
The website might also offer all types of cloths for the customers in Australia at first and then
gradually in the rest of the world. They want to gain several competitive advantages for their
business by becoming the turnkey business.
iii) Advertisement Supported Contents: Star Effects will also develop effective e-
business by not directly selling anything to the customers. For their popularity in the early
stages, frequent updates, informative sites and blogs would be effective by selling the ad
space (Huang & Benyoucef, 2013). When the customers would be getting these frequent
updates in various other websites, it is evident that they would be enthusiastic in knowing
about the products of Star Effects.
iv) Freemium: Another significant strategy that they have thought for Star Effects is a
freemium model. This particular model would include the offerings of some contents
completely free of cost while the charging membership due or any other fee would be
considered for special access and materials (Fang et al., 2014). This type of model would

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attract more customers since, the onsite and membership charges would be less for the
devoted clients.
v) Warehouse Sales: For the purpose of liquidating the merchandise from the retail
industry, Star Effects has also decided to functions as the sales point for the respective
warehouse of inventories. This would help them in implementing the supply chain
management within the-business (Sila, 2013).
vi) Social Media: The final strategy of this particular proposed website would be that
they would allow the users for registering accounts and then contributing their own
confidential content and information within the registered the social media account (Janita &
Chong, 2013).
E-business Models of Star Effects
The e-business model of Star Effects is the respective approach that they would be
taking for becoming the profitable-business over the Internet (Soto-Acosta, Popa & Palacios-
Marqués, 2016). This e-business has selected the model of B2C or business to consumer
model. The B2C model refers to the commerce within an individual consumer and a business.
When it is being applied to the kind of direct to consumer selling, it has then come to be
associated with the online selling called e commerce or e tailing. In this B2C model, the-
business delivers the products to their customers easily and promptly. The products would be
sold by the-business of Star Effects directly to their customers online (Hartono et al., 2014).
The major advantage of this type of e-business model is that there are no online
intermediaries in these websites. Hence, handling becomes quite easier.
In the future, they have also thought of implementing the B2B or business to business
model. This particular model is the type of transaction between business like the involvement
of manufacturer and a wholesaler or any wholesaler and a retailer (Chaffey, 2015). Star

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Effects has thought of involving this model as they want to do business with other electronic
businesses as well and transactions will be conducted amongst each other.
Marketing of Star Effects
Marketing is one of the major and the most significant factors that is being required
within any specific business for gaining popularity and advantages. It is utilized for creating,
keeping and finally satisfying the customers. Marketing of any business depends on three
concepts, which are needs, wants and finally demands of the customers (Li, Wu & Lai, 2013).
Star Effects has thought of marketing their website by involving some of the most significant
marketing strategies. The main marketing strategies of Star Effects are as follows:
i) Pay per Click Advertising: The effective pay per click or PPC campaign majorly
includes the strategic bidding on the keywords that are being used in the advertisements
(Yoo, Sanders & Moon, 2013). The search engines would be earning revenue on the per click
basis and the impressions are being determined by the respective user search queries.
ii) Search Engine Marketing: The next marketing strategy of this particular e-
business would be SEM or search engine marketing. It is a paid advertising campaign and is
utilized for describing for all the paid as well as organic efforts.
iii) Search Engine Optimization: The specific traffic of SEO or search engine
optimization generates the unpaid results within various search engines such as Google and
Yahoo (Hannak et al., 2014). It would be extremely effective for the e-business of Star
Effects.
iv) Display Advertising: This refers to the banners, sidebars and various other
predominantly visual advertisements, which eventually appear on any other website.

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v) Email Marketing: Another important marketing strategy of Star Effects is email
marketing (Gangeshwer, 2013). It is utilized for targeting the current, potential as well as the
previous customers with the help of newsletters, remarketing and the abandoned cart email
notifications.
vi) Influencer Marketing: The other strategy for marketing is influencer marketing,
which uses the reach as well as credibility of all influential people within a niche for gaining
the exposure to the products. Celebrities are the major influencers for all customers,
especially the youth generation (McElheran, 2015). With this marketing, Star Effects would
be benefitted to a greater extent.
Website Infrastructure of Star Effects
The infrastructure of the proposed website of Star Effects is the significant
combination of hardware, software and networks (Wang & Zhang, 2013). The hardware of
this website of Star Effects mainly involves server system as well as client system. The
various networks are utilized for the purpose of linking the hardware with the software. These
software applications are utilized for delivering the services to their users and employees
within the e-business and even to the administrators (Rahayu & Day, 2015). The architecture
of the hardware, software applications and the networks are also involved within the
infrastructure of this website. They have also decided for including the methodologies to
publish the data or documents that are accessed by the applications of electronic business.
The elements are situated in the organization and these are managed as the third party
applications, networks and data servers (Maity & Dass, 2014). Star Effects has also decided
to implement Web 2.0 and IPTV as the new technologies within their website.
There will be five layers in the infrastructure of Star Effects website. The first layer
will be the e-business service application layer, where the customer relationship management,

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supply chain management, data mining and content management system are retained (Li, Wu
& Lai, 2013). The second layer is the systems software layer, where the web browser or
server software and standards, networking software as well as the database management
systems are involved. The third layer is the transport or network layer, where the physical
network and the transport standard are properly involved. The fourth layer is the storage or
physical layer, where the permanent magnetic storage on the web servers or the optical
backup or temporary storage in the memory are involved (Wiengarten et al., 2013). The final
layer is the content and data layer, where the web contents for the intranet, extranet and
Internet websites, transaction, customer and click stream data are being involved.
Payment Systems of Star Effects
The developers of Star Effects have taken the major decision to implement various
types of payment systems within their business. The major payment systems of this website
would be as follows:
i) Credit or Debit Card: This two are the basic modes of online payments. The user
can either use his credit card or his debit card for making the transactions easily and promptly
(Gomez-Herrera, Martens & Turlea, 2014). Moreover, instalments are also allowed with
these cards and hence the user might not face any issue with huge online transactions.
ii) Net banking: The next important and significant payment system allowed here is
net banking that allows direct transactions from bank account of the users safely and
securely.
iii) Cash on Delivery: Star Effects is also keeping the option of cash on delivery for
the customers (Grant et al., 2014). However, there are some conditions with this system, such
as a minimum amount of transaction is required here.

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iv) Square: It is a credit card processing company, which provides the method for the
smaller businesses in accepting the credit cards without even carrying the burden of the fees,
which are added by the processors of the credit cards. It is highly secured.
v) Stripe: Another significant system is Stripe that is the standard payment platform
with the features such as integrated mobile payment for Android and iOS for adding coupons
as well as recurring billing (Laudon & Traver, 2013).
Legal, Security, Privacy and Other Issues of Star Effects
The legal issues of Star Effects are as follows:
i) Business Structure: They should focus on the-business structure that is suitable for
them. They should keep in mind that any type of problem could lead to bankruptcy as well.
ii) Brand Identity: The marketing and PR of this e-business should stand out from the
rest of the e-businesses for maintaining their brand identities (McElheran, 2015).
The security issues of Star Effects are as follows:
i) Virus and Other Malware: The e-business might get affected with various types of
malware like computer viruses and Trojan horses. Hence, security should be maintained with
antivirus software and firewalls.
ii) Software Bugs: It is a computer program or website coding, which makes the
authenticated website behave in an unintended method (Janita & Chong, 2013).
The privacy issues of Star Effects are as follows:
i) Data Theft: The confidential data should be maintained properly so that the
transaction data are not hacked easily.