Venturing in E-coin Market by Goldman Sachs - Essay Example

Research proposal: Venturing in E-coin Market by Goldman Sachs Why proposing Dear Goldman Sachs Chief Executive Officer, I am writing to propose that Goldman Sachs should implement the E-coin technology. The reason is that E-coin is a new technology. Just six years old. E-coin has gained many users worldwide. There are many people who use E-coin transaction than other online transaction daily. There are about twenty million users who use the transaction method. There are also many transactions done every day using E-coin hence there is a need for Goldman to introduce it. E-coin is internet based technology. Internet usage has grown tremendously over past few years. The transaction with E-coin is most secure online transaction method as compared to other techniques. Online transactions are fast. E-coin being an online transaction technology, is, therefore, fast (Raszl, para.1). What I am proposing I am suggesting that Goldman should consider investing in E-coin technology. The reason is that Goldman’s may experience the threat of competition from its competitors who may use this technology and take way Goldman, existing customers. Goldman should do the implementation of the technology for the customers so that it may deter the loss of customers to its competitors (Thomas, p.9). End benefits of E-coin to Goldman Sachs The first benefit is that; many of the currencies worldwide lose value with time. With E-coin, it is slowly growing. There are only about twenty million E-coins globally. E-coin is not at the risk of losing the value like the currencies. A significant number of the user across the globe has adopted the E-coin technology. In fact, there are more than twenty million users of E-Coin worldwide. On top of that, there are many transactions done via E-Coin (About 120,000 operations per day) as by March, 2015 by those numerous users of E-Coin investment. Due to that reason, Goldman Sachs should introduce the technology to fly over its competitors by getting customers who are using E-coin. E-coin is also fast to use. Transacting with E-coin is faster since any customer can make payment of goods and services with no need of to visit the Goldman. An individual just need to make payment for the comfort of his/ her place. The speed of this online transaction makes E-coin more convenient. Due to a high rate growth of E-Coin various components, any business ought to react towards it (Thomas, pp.9-12). Many investment company executives are studying the E-Coin technology in order to see whether it is economically feasible to be in their company. It is, therefore, crucial for Goldman Sachs to take action before its competitors and get more customers just local. Since E-coin is not taxable by the government, it is not easy for it to collapse. Currencies will tend to fail occasionally. Currencies are controlled by the government. E-coin cannot collapse quickly like the currencies. Therefore, E-Coin will get the lid off inflationary risks. It is hence reliable for a company to use E-coin for doing its transactions (Cryptonator, para. 1). With E-coin, once the transaction has been made, it cannot be reversed. The benefit is to the company alone but not to the customers. Such advantages may not be in other internet based transactions like PayPal. With E-coin, when the sale is made, customers can not reclaim the money back (Raszl, para.1). E-coins are easy to carry and more efficient than currency. You can give lots of million dollars in your pocket. With money, you can only take fewer amounts of dollars. Therefore, E-coin is better than currency. The characteristic also make the method more secure. The reason is; it is almost impossible to steal cashless. Only the users have accessibility to their E-coin (Cryptonator, para. 1). E-coin is untraceable. The quality is an advantage and at same times a limitation. It is an advantage to the company in that, even if the company makes whatever amount of money, nobody will trace the source (Raszl, para.1). E-coin has no chargeback, once the E-coin has been sent; it cannot be without the owners’ knowledge. For that reason, E-coin prevents credit card fraud and improves the security of credit card. The public image of the Goldman Sachs will be improved by the secure transaction. It is crucial since it will attract many investors to the company. E-coin will also increase the base for customers. Due to the growth of E-coin, Goldman Sachs will be superior in the market share (Thomas, pp.9-12). Threats posed by E-coin investment to Goldman Sachs Threats that a company may face by not implementing the E-coin transaction technology are numerous. E-coin is a fresh technology. It was introduced six year ago. The technology, therefore, has not yet gain many users worldwide. About twenty million transactions are done by E-coin every day (Raszl, para.2). A significant proportion of people has not heard about the technology. Although there are many people who have not heard about the technology, E-coin technology have grown very fast. E-coin is just six years, and it has millions of users worldwide. Unlike other online technology, which has been in the field in a good number of years, E-coin has gain popularity. On top of the technology being young, internet technology is still growing fast. Goldman competitors may take advantage of evolving internet technology and implement the E-coin. The action may lead customers of Goldman to divert to the company’s competitors and in return Goldman loses its customers. Goldman should not hesitate to implement the E-coin (Raszl, para.2). The action of implanting the E-coin technology will cost Goldman Sachs a lot of money (Raszl, para.2). The E-coin will earn the company a significant profit. The profit that will be raised will cater for recovering the capital that was used in the implantation of the technology. Therefore, E-coin has no loss. Solutions to the above threats The Company should deploy E-coin transaction technology together with recent purchase means used by the company. The action will help the company to secure the customers who are ignorant of the technology. The action will also help the customers who are no idea about the technology to learn about it. It will also enable the customers who have the E-coin to familiarize with the technology. Therefore, the company will be able to retain both customers to the company. The method of parallel implementation will give the company a good time to test the new online technology. Through using the parallel method of deploying the E-coin technology, the company will save much of its time. Idle time may lead to lots of loses, which is impossible with parallel implementation (Thomas, pp.11-20). Is the proposal feasible? The proposal is reasonable because there is enough capital to cater for its introduction. The company may fear losses that the company will incur while deploying the technology. You should not worry about the deployment capital since the technology will lead to a lot of profits. The project is also feasible since there are many experts base on the field of E-coin. The company can get qualified experts of the field by advertising job vacancies. These who will apply will be. From the interview, the company will get the best expert. The project is desirable because the equipment required can be since there is enough money. There is also sufficient time for implementation of the technology since it does not require much time. Also, if the company choose to implement the technology parallel with other techniques, time of implementation will not be idle (Thomas, pp.13-29). Conclusion It will be my pleasure if Goldman will implement E-coin technology and enjoy the benefit of the technology. Work Cited Cryptonator: What are the Advantages and Disadvantages of Bitcoin? 01.01.2014. Web: 05.06.2015. Raszl I. Bitcoin: Benefits and Risks.ND. Web. 28.04.2015. Thomas, Howard. "An analysis of the environment and competitive dynamics of management education." Journal of Management Development 26.1 (2007): 9-21. Read More