Sample Business Case Study Paper on Business Online

Executive Summary

Cover Letter

Dear CEO,

Find enclosed that providing a comprehensive analysis of how businesses uses online services to enhance creativity and innovativeness. For instance, online business model for TARDIS Travel facilitates increased levels in its turnover as well as increased market share.

It also discusses the concept of marketing segmentation that identifies the different customers with different expectations on services offered by the travel company enabling the business to improve in all aspects of strategic marketing planning.

Inspite of all, online operations faces the various challenges resulting from insecurity by hackers and the invasion of the company’s information as well as the client information.

Finally, it will provide recommendations and conclusions on the benefits of online activities among the various businesses.

 

 

Yours sincerely,

Business Online

Introduction

Businesses have recently opted to undertake their activities also online, where through e-commerce, they have been able to create new products and services as well as reduce business costs (that could be used for other activities), to ensure that there is an improvement in efficiency and effectiveness of their operations. However, e-commerce has enabled businesses to increase on their market structures through globalization. Through this, they are able to acquire different clients from different parts of the world, with expectations of what they want the business should provide to the market. Therefore enabling businesses to come up with innovative ideas to better the quality of their goods and services.

Business Model for TARDIS

Considering therefore, the right kind of online business model for TARDIS Travel, we will be able to help the Travel Company to increase in its turnover as and increase its market share. A business model, is usually set processes in an organization, that are put together on improving on the main organizational goals and objectives, as well as increase profit for the organization. In picking a business model, one needs to pick two of the options: price, service and selection (Snell 18). In this case, of TARDIS Travel, I would pick a model in relation to price and service, which is an online retailing business model. Through this, the travel company would need to come up with a platform such as an online store, where it is able to show all kinds of services it offers and the prices of their services in order for customers visiting the online store are able to select from the variety of services the company offers. However, through this the travel organization would also be able to share their online stores to different social sites, especially those that are frequently visited by their target, in order to attract more clients for their services.

Advantages.

-More clients will be able to get to know about the services of the company.

-The business has new ideas for services to meet customer’s demands.

-Company will have a diverse customer demands.

Revenue Model

However, through this business model, the travel firm will be able to reduce expenses for marketing and advertising of their services, since through the internet platforms; the Travel Company could be able to advertise their services on most frequently visited sites in different areas with a large number of their current customers. Therefore, fee-for-transaction revenue model is a better way of generating revenue for the company (Schneider and Evans 525). This is because, the travel company will be able to communicate with clients who want different services, and will communicate with them on all information they require, such as where they will be accommodated and transportation plans.

 

Advantages

-Help the travel company to deal with the risk of spending on unsure payments.

-Spend less money and time.

However, cyber crime is a major challenge for the travel company, for the fear of losing payments made online by clients. It is therefore the company invests in ensuring that such crimes do not happen to them or to their clients.

Marketing and Promotion Strategy

For the TARDIS Travel company to ensure that it has a suitable marketing and promotion strategy, it need to understand its target market (which is from the ages of 18-45), and have good and interesting ideas to reach them. This target group for this company is majority youths, therefore creating a marketing and promotion strategy that will attract them would be a stepping-stone for the travel company to acquire more and new customers.

Market Segmentation Strategy

Market segmentation and targeting is a strategy that the Travel Company can use, in order to find the best customers for the business. However, this strategy will enable different customers to benefit from the different services the company offers, for different prices, thus enabling the travel company to have a large number of clients. However, identifying different customers with different expectations on services offered by the travel company would enable the business to improve in all aspects of strategic marketing planning including; product positioning plans, marketings offerings, and controlling the strategies of the business effectively (Sandhusen, 1999, p. 274). However, through this strategy, the company will be able to understand the level of demand of their services in different areas and the in different seasons and occasions. Through this, the business will avoid spending a lot on labor or other expenses during off-peak periods. Therefore, the travel company will be able to plan for the amounts to better their services and facilities that offer the services.

Benefits of Market Segmentation

Apart from those benefits, market segmentation for a company using e-commerce, will also help the company (in this case the TRADIS), to identify new opportunities, come up with new products and services to meet the expectations of certain target group, enables the company’s management to focus on customers needs therefore maintaining a competitive advantage, as well as satisfying diverse demands to meet the marketplace demands (Lao 121).

Challenges of market segmentation

However, market segmentation also has challenges that could impact the TARDIS Travel Company. For instance, the development and marketing of different model are expensive could cost the company large amounts of capital. Cannibalisation could also be a result of market segmentation and targeting, due to the differentiation of the business services that could lead to proliferation of models and variations (Cant 106).

 

 

 

 

Wire-Frame

 

 

Mobile

 

 

 

 

Legal and Ethical Issues

Conducting business online could lead to legal business issues and ethical business issues. Through online transacting, there is a threat of customer information as well as the company being stolen. This happens when computer hackers use their skills to get the information online. However, since many clients would be filling an online form that could include, their names, date of birth and their bank details, it could be risky since hackers could easily use their information to fraud their bank accounts. Therefore, for the travel company to avoid exposing their customers into fraud risks, they should ensure that they update their security softwares often (Krizan et. al., 59).

E-commerce also has a number of legal issues, which involve privacy, fraud prevention, controlling internet indecency and protecting intellectual property. Therefore, the travel company should ensure that clients are assured of their privacy and security of their information, to avoid being taken to court by clients in case of such incidences. It is however necessary the travel company to work closely with relevant institutions to fight cyber crimes that could perhaps cost them (Bhusry 205).

Technology Infrastructure and Hardware requirements

Technology infrastructure is a major requirement for engaging in online business. This helps a business to undertake its activities easily, overcoming upcoming challenges that affect business operations. The lack of a good technological infrastructure, it could lead to much expense of the organization and perhaps losing some of its customers. However, due to the fact that new technologies are being brought up, business that want to remain competitive and have the largest market share, will ensure that they invest in the new technologies, to ensure that they provide quality services and products to their customers, and also ease the channel of communication with their customers and perhaps potential investors. The TARDIS Travel Company should ensure that it focuses on embracing upcoming technologies to make their services be of high quality. Therefore, for the company to avoid failing in many of its operations, it need to ensure that it manages all changes (cultural and human changes) to better business operations and communication (Cassidy 23).

The technological infrastructure through updating the existing hardwares and softwares is usually due to the changes happening such as the technological progress in telecommunication and the social communications channel (Khosrow-Pour 245). Ease of communication of businesses and their clients, is a vital aspect of the travel company to be successful in its online venture.

Purpose and Function of selected Software 

It would take a lot of coding for the travel company to have a software that secures the business information and also eases the use of the software for business operation, both internally and externally. Considering coming up with a software that has a simple interface to use, a backup system, and a system that helps approve that the owners of the information given to undertake transactions is right. The travel company has to ensure that it invests in a platform that would attract many curious internet users, who will see its site and anxiously want to know more about the sites. Through this, where many internet users access our site, it will be much easier to have customers and clients as well as advertising our services. The type of software therefore, should be a software with log in details of customers who have to register with the company, to ensure that they are the only ones able to access their accounts, unless they share it with other people. As the customers do this, the travel management should ensure that it has beefed up internet security, where it is able to prevent and fraud attempts for customers and also the company. Therefore, by increasing confidence to clients, the more new clients would want to receive the company’s services. The company will, however, be able to deal with different business interactions either those that happen naturally, deliberately or accidentally (James 299).

Advantages and Challenges of Trading Online

Taking the business operations online has advantages, aspects as well as aspects that are challenging. Some of the advantages of taking the business online are, through the internet, it services will be easily viewed at any time and anywhere it the world, since it is accessible 24/7. This is also another way the business will be able to market itself, from the large views it gets globally. Client services are also another advantage of taking the business online, and this makes more flexible and reliable for clients to enquire for any clarities. By taking the business online, the company will be able to cut costs, such as marketing costs. However, from different costs that are made for paper work and facilities, through online business the cost will not be required. Moreover, taking the business online will benefit the business management, since it will be able to manage the business anywhere in the world (Napier 52).

Challenges of online trading

Introducing the business online, is also a major challenge due to insecurity by hackers, invading the company’s information as well as the client information. This could lead to a legal matter that could force the company to compensate all stakeholders affected by the insecurity activities in case they happen. Through e-commerce, there are no copyrights provided for individuals or companies and therefore some people may misuse use the businesses ideas that would prevent the business to reach its target. However, the internet network may be unreliable at times due to the congestion of many people accessing the internet. This could be a major challenge to the company, especially when it is dealing with an emergency request by clients. This could lead to some clients losing hope to the services of the business and would opt to acquire similar services elsewhere (Caryforth and Mike 356). Therefore, it remains the company’s major challenge to handle to ensure that they have a high number of reliable customers. Moreover, some of these challenges the company can avoid. For instance, in the case of slow internet connection or loss of data feed online, could be avoided by ensuring that they have a backup system that will ensure that the operations of the business remain swift and reliable at all times. The introducing the travel company to e-commerce would also not be a major challenge if all the potential risks were well managed. Most of the online business users, shun from the activity due to insecurity, where their information is stolen. The business can therefore ensure that it focuses on updating on its security softwares, as well as engaging with institutions that are meant to fight cyber crimes.

The major thing in online trading by the travel company, should be winning the confidence of their clients, which will require a lot of support and teamwork. With a high confidence of their clients, the management of the company will be able to attract new customers easily, since a number of the current customers would have shared information about the company’s services to others around them.

Conclusion

The undertaking the business online, could also guarantee the company of competing and remaining relevant in different markets in the end. This is an encouraging factor that should enlighten the business to better its services and service delivery facilities to ensure it does have the largest share of the market. The company should also understand its competitor’s weakness and make them opportunities for them, to have new clients from their competitors and focus on maintaining the new clients.

 

Recommendations for the Online Initiative

The company should also consider its competitors objectives and always remain updated to new trends and new expectations of what the customers want. The business should also consider understanding different wants of clients in different areas, to increase its market share in large areas of the world. Having a business that is highly trusted by many people in the world, would enable the company to face less barriers when trying to enter new markets.

 

 

 

 

 

 

 

 

Works Cited

Bhusry, Mamta. E-commerce. New Delhi: Firewall Media, 2005. Print.

Cant, M C. Marketing Management. Cape Town, South Africa: Juta, 2006. Print.

Carysforth, Carol, and Mike Neild. Business. Oxford: Heinemann, 2004. Print.

Cassidy, Anita. A Practical Guide to Planning for E-Business Success: How to E-enable your Enterprise. Boca Raton: CRC Press, 2001. Print.

James, K., L. Software Engineering. Delhi: PHI Learning Pvt. Ltd, 2008. Print.

Khosrow-Pour, Mehdi. Emerging Trends and Challenges in Information Technology Management. Hershey, Penn: Idea Group, 2006. Internet resource.

Krizan, A C. Business Communication. Mason, OH: Thomson South-Western, 2006. Print.

Lao, Felix. Marketing Management: Concepts and Applications for Strategic Marketing Planning. Florentino: Rex Printing, 2001. Print.

Napier, H A. Creating a Winning E-Business. Boston, Mass: Thomson Course Technology, 2006. Print.

Sandhusen, Richard. Marketing. Hauppauge. NY: Barron’s, 1999. Print.

Schneider, Gay & Evans, Jessica. Perspectives on the Internet: Comprehensive. Stamford, C.T: Cengage Learning, 2008. Print.

Snell, Rob. Starting a Yahoo! Business for Dummies. Hoboken, N.J: Wiley Pub, 2006. Internet resource.