
HI6006 Competitive Strategy Editing Service
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For the present context e-commerce business venture here deals with the electronic news established into business domain with help of ecommerce. This e-commerce venture would mainly focus upon the business news prevailing globally such as the economic situation in various business markets, currency positions, key raw materials & their demand supply, mergers & acquisition in global business domain and global stock markets etc. This business news e-commerce venture would mainly target some of the developed as well as developing countries such as BRIC countries in order to understand the economic situation prevailing worldwide.
Environmental analysis for the e-commerce business can be carried out keeping in mind several important aspects such as the political factors, economic factors, social factors, technological factors, environmental factors and legal factors (Berinato, 2000). Being an e-commerce venture there would not be much impact of the political factors on the website and its working as there would be multiple countries from which news would be operated. Further media policies of a country would be having significant impact on the business venture which would vary country to country but being into developed & developing countries political policies would not be much of concern for the ecommerce venture.
Economic factors would be of great importance for the business as main source of income for the business would be advertisements displayed through news portal and subscription availed by the readers for specific magazines and bulletins (Seybold, 2001). Depending upon the countries in which business startegyis operating there would be high impact of the local economic factors. Since business venture would be mainly for the developed and developing nations hence based on per capita income we can expect a high number of subscription and hence high income through business venture.
Social and cultural factors would be favorable for the business venture as human beings are social and they like to have global information. Also into business culture it is important to keep updated on business phenomenon happening worldwide which would help in growth of the business venture. Technology has enabled the ecommerce venture these days due to which current business model would be more popular as now a day people like to read news through their hand help device and want to remain on global events which would be the USP of the current business venture. Development of technology would be helpful further in order to develop business venture (Bessen, 2002).
Environment would not be of major concern for the current business concern but people like to have green environment hence physical newspapers are avoided by readers which would create place for the current business venture (Keats, 2003). Legal factors would be of much importance as media is a very sensitive business and due to operations in multiple country business owners need to know legal policies prevailing in various countries. Further dealing into these legal policies would not affect the business of the firm. Hence overall environmental factors have positive outlook for the ecommerce venture planned in the current report.
Value proposition created by the business news portal developed by the firm would consist of three factors which would be a part of the value proposition which are all benefits offered by our news portal, points of difference which differentiates our news portal from that of competitors and finally resonating factors which are most worthwhile offering given by news portal to its customers (Miller, 2002). For the current business value proposition would be created through below factors:
All Benefits | Points of difference | Resonating factors |
Extensive business research | Better research | Knowledge of researchers |
Updated news | Good business network | Best of industry experts giving their opinion on business issues |
Exclusive business interviews | Updated technology | Real time updates |
Premium news letter | Collaboration with other media | Free newsletter |
Customized business paper | Customized solution for business firms | Covering deep analysis |
Separate classification for stock markets | Better and affordable services |
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Table 1: Proving customer value proposition for the proposed ecommerce venture
Core competency for the news portal of the firm would be dual in nature as one side where in news portal would be focused towards the business domain in the news while at other side higher level of differentiation would be created among the market players through its extensive business research and business network. Figure 1 below provides the porter’s generic strategy map where in there are four competitive strategies used by market players which are cost leadership, differentiation, cost focus and differentiation focus. For the current news portal strategic competitive advantage which would be adopted as core competency of the firm would be differentiation focused.
Figure 1: Showing the porter’s generic strategy map
As a part of the core competency of the firm it would be mainly dealing into the business news domain where in specific news research would be done into financial aspects, mergers & acquisitions, stock markets and currency fluctuations (Berinato, 1999). Hence overall it would target audience who are keen to understand and explore business related news happening worldwide. Further differentiation would be created through good business network, updated technology to provide real time news, knowledgeable human resource and collaboration with other media players to develop a fast network.
In order to understand the marketing trend surrounding the news portal it is important to look into marketing mix and STP (segmentation, targeting and positioning) for the business proposition. Segmentation, targeting and position of the proposed ecommerce venture are as below based on which marketing mix elements for the proposed business venture would be developed:
Marketing mix for the proposed ecommerce venture can be given as below:
In order to analyze industry forces acting on the proposed business composition for the ebiznews.com porter’s five force analysis can be done as below:
Strategic goals and objectives which would be obtained through proposed ecommerce portal can be given as under:
Some of the key stakeholders involved in the proposed ecommerce news portal are industry experts, writers, viewers or readers, business organizations, marketers and promoters of the proposed ecommerce business. Management of the ecommerce venture has invested their money for setting up ecommerce business and their expectation would be to get return on their employed funds (Graham, 2008). As the goal of the organization is to maximize their income sources through subscription and other sources hence promoter expectations would be the key part of the entire business.
Readers or viewers of the news portal would be expecting news which are of their usage and can help them in their business. Further investors who are dealing into stock markets would expect key information through news portal so that they can grow their investments from expert opinion in stock domain. As company is committed to develop a business research domain with high level of expertise into business information hence expectations of readers and viewers would be a part of the business venture.
Industry experts and writers would be the key stakeholders in the entire business model as they would develop content of the news portal and their expectation would be that readers like their content and get benefited through advice given by them (Frieden & Roche, 2006). Marketers would be expecting that news portal has a large customer base so that their advertisements get highest visibility and hit through the proposed news portal. In order to meet expectation of marketers a large customer base would be developed with free subscription and fee based subscription as well.
As a part of business model it is important to identify several aspects of business such as the pricing model developed, marketing strategy and value proposition. Ecommerce model for the current business venture would be such as to involve viewers based on the content developed by the news portal which would focus on the business information required by the current age managers (Tkacz & Kapczynski, 2009). E-commerce model would be dual in nature as one side subscription based pricing would be done for the viewers while pay per click method of pricing would be developed for the markets giving their advertisements and classified with the news portal.
As a part of market penetration or customer acquisition strategy ebiznews.com would develop its customers through online advertisement sources and outdoor media as well. At initial stage company would start their setup in some of the developed countries such as Australia, UK and USA. While looking at the success of the news portal market expansion as well as service offering expansion would be done in order to enhance their business revenues. Value proposition for the customers would be value for money as viewers would get extensive material of their usage not available with the other news portals.
Some of the key risk confronted by the news portal proposed for the ebiznews.com can be given as under:
Current report has analyzed strategic aspects of the ecommerce business named ebiznews.com which is dealing mainly into delivery of news through electronic media into business domain. It has been found that environmental factors are quiet supportive for the setup of business venture and unique selling composition has been identified so as to attract the customers of the news portal. Business model of the venture would be multi fold where major focus would be on advertisements to generate revenues. Risk analysis shows that there would be low level of risk existing for the business and overall ecommerce venture seems practically successful.
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