E Business Factors

Introduction

In this report I will be evaluating the different E business models that Star Computers could adopt and the possible implications of each. As well as this I will be discussing the opportunities and benefits that E business could have on Star Computers. Furthermore, the barriers to an effective E business solution will be evaluated in relation to Star Computers. I will also use other businesses as examples of the different models that can be used to create a successful E business. Moving on from this I will also be recommending the appropriate models that I think would benefit Star Computers and their E business venture.

E business models

By comparing and contrasting the different E business models we can see that each offers different things to Star computers, some more appealing than others. Below I will be covering the applicable models that could be adopted by Star Computers for use in their E business.

The Merchant E business model, is a model based around selling goods directly to the consumers, this would be suitable for use by star computers as their type of business fits into this model and would benefit the business as it would be able to bring in more customers, by reaching a larger customer base. This model is one of the more popular as it is straight forward selling to customers; however the profits that could be generated via this model would be dependent on the businesses' ability to sell the products. Ah well as this you have to consider the cost of buying the stock, and with Star computers being a small business they wouldn't be able to benefit from economies of scale like some of the larger Businesses out there.

However, another model that could be considered for use by star computers would be the Advertising model, as this would allow them to advertise other company's products on their site and gain revenue through the advertisements. However some of the problems with this method are that the revenue generated is directly proportional to the traffic on their website, which at the moment isn't that large. Mainly because they're a small local business that doesn't have the customer base required for this model.

In contrast to the advertising E business model, Star computers could adopt the Manufacturer E business model. The manufacturer model is reaching the consumers directly without use of a 3rd party. E.g. Apple selling via their apple stores rather than through Amazon. The way in which Star computers could use this model is by selling their computer repair and upgrade services directly to their customers. By adopting this model they could cut out and 'middle man', therefore increasing the profit gained from each sale. Another point to mention about the Manufacture Model is that in the case of Star Computers, the only thing that they sell that is produced in house is their repair, upgrade and training services, because of this, this model alone wouldn't be enough to sustain Star computers whilst still maintaining profits.

The affiliate E business model could be adopted by Star Computers; the affiliate model is marketing products and services produced by a 3rd party outside the business. This could be used by star computers to generate secondary income, alongside the Merchant side of the Business. By using an affiliate model they would be gaining income for every person that clicked on the advertisement on their website, furthermore this could be used in conjunction with the Advertising E Business model to generate income. However if we compare this to the Merchant E business model, the income generated via the Affiliate model would be substantially less than that generated through the Merchant model.

By comparing and contrasting the different E business models we can see that each offers different things to Star computers, some more appealing than others. Below I will be covering the applicable models that could be adopted by Star Computers for use in their E business.

Opportunities and Benefits of E Business

E business can offer a huge range of benefits and opportunities for Star computers, as at the moment they're only a 'bricks and mortar' business. Meaning that they have no online presence and no E business side to the business, because of this they are limited to the customers in their local area.

One of the first benefits E business has is that it eliminates the geographical restrictions of who you can sell to, an example of this being that with E business star computers could sell to anyone with an internet connection and a computer, as well as this they would be able to carry out transactions with people who're on mobile devices such as an IPhone or other wireless device. In contrast, not using E business would mean that Star Computers would be restricted to selling to the customers in their local area. Star computers would benefit from this because they would be able to increase their customer base and be able to sell to customer further away, which would increase their sales and their brand. As well as this it would increase their market share, as they would be accessing more customers that would otherwise not have known about Star Computers if they hadn't adopted E Business.

Building on the previous point, E business would also reduce the fixed costs of Star Computers, As they would be able to move the transactions and other business functions online. A good example of this is Star Computers would be able to lay off A member of staff, as the remaining staff would be able to do sufficient work using E Business. Furthermore it would also lower overall costs of Star Computers, Sending an invoice to 100 customers is free using E mail, rather than sending them via post. The costs of Advertising would also be reduced, as Star Computers would be able to advertise on other websites, rather than having to advertise with posters and other media in their local area.

Adopting E business would also save Star Computers a considerable amount of time, as they would be able to advertise and transact with customers online, rather than having to have the customer in the shop to make a sale. An Example of this would be A customer using the online checkout feature on Star Computers website to purchase a product would be a lot faster than the same transaction carried out in the shop. Building on this point, the customer service side of the business would also be improved, as customer are increasingly wanting a fast response to any queries that they have, using E business would speed up the process of communication to customers and within the business. As well as being able to operate 24/7. Operating 24/7 is one of the main benefits to E business, as it allows