E-Commerce Strategy and Architecture - Assignment Example

E-Commerce Strategy and Architecture Introduction In the modern day and age, business approach has changed in an amazing way to include innovativeness and a touch of creativity in the way the customer is reached. Earlier on, competition was determined by the level of marketing and promotional input added into the various industry segments. Contrary to the old promotional channels that restricted innovation and automation of the actual marketing strategy that a company could adopt, the trend is increasingly changing to unlimited options than witnessed before. In light of the need for companies to move keep up with the new lifestyle that the global community is getting acquainted to in a massive rate of change, business and commerce is finding a niche that is centrally positioned within this culture. Thanks to the information age that has caught up with the corporate world like any other sector of the society, business has gone hi-tech to capture infinite opportunities at the global platform. Every industry is at the helm of its realignment within the spirit of these new trends of embracing the internet as a flexible promotional platform that captures every corner of the world. It is on such a window of opportunity that e-commerce has established in the world of business transactions to materially change commerce from order placement, delivery, tracking and bill clearance. One of such an industry is the apparels industry which contrary to earlier opportunities can now make such presence as the automobile industry or any other industry. Contained in this discourse is the e-commerce situation at the Khanga Apparel Corporation. The elements of e-commerce have been highlighted in the case study to disclose the said opportunity presented by the information communication and technology platform at the highest global level. Case Study Khanga Apparels: Industry Summary Clothing and textile business presents one of the most customer demand and preference driven markets which rely on the physical shopping than any other arrangement. The nature of customer preferences attached to the physical needs makes the industry to be seemingly rigid and inflexible on the promotional front. According to TIA (n.d., p1), there are a number of attributes that distinctively characterize the apparel industry particularly on the influence they possess over the consumer decision making regarding purchasing. According to the report, findings on the consumer research conducted by the NPD Group in 2010, consumer behaviour is highly sensitive in this industry. As an arising observation, it is expected that the choice of approaches for conducting business in the sensitive industry is also a sensitive decision. In terms of preferences, consumers are expected to behave differently on the actual sampling, purchase process and delivery of clothing and other related products. Rising concerns on whether an online arrangement of order placement, order processing, bill clearance and delivery can serve the needs of end users in this line of operation are answered in the proposed case study on e-commerce for Khanga Apparel Corporation. Company Profile Khanga Apparel Corporation is a clothing and fashion company operating in England and has surpassed its target for covering the entire UK market. Based on the prospects of a better market positioning in the ever vibrant industry across Europe, plans are underway to stretch operation across the European Union. In the event that the EU success story matches that of the UK, it nothing will stand in the way of making Khanga Apparel Corporation a global outfit in the industry. The trend observed lately regarding the capacity of globalization to turn around operations and profitability in a number of European textile companies acts as a challenge for Khanga to go global. Khanga will continue to operate under the operation targets set and defined in the development agenda that the rest of the world electronic innovations have in the commercial front. Reduction of operation cost and increase in customer base are among the benefits of the innovations presented by the online transaction platform facilitated by the e-commerce business segment. Being in the market for only 6 years to reach the turnover and popularity that Khanga has amassed is a success story that can propel any country to global glory. One of the internal strengths in the company’s product establishment is the blending of a rich African and Western designs in one package, a feature that has been elusive to many designers. Perhaps, the recognition at Khanga of the blending brand name and maximizing on it has made the market across the globe to grow with the witnessed vigour. African taste as associated with the natural and artistic African safari related products is a major brand image that has attracted a huge market following. In fact, the name Khanga is purely African matching the brand content with the range of product expectations that the market has. To reach the global market, the company will formulate an appealing range of feature on its e-commerce site to match with this opportunity as outlined below. Site’s Functionality Product Detail and Presentation E-commerce presents the products on offer in the market within the consumer’s reach without physical aspects of the market by involving online solutions. Such online solutions can be enhanced to make the process reminiscent of the natural open air market where consumers sample and negotiate for the products on offer. It therefore follows that the various features of the e-commerce site are targeted at the customization of the product detail to be close to a natural market setting as much as possible. Designing the page for an online market for Khanga is particularly sensitive due to the nature of business conducted in the apparel market. The market issues briefly highlighted above regarding the clothing industry and offer solutions beyond the consumer expectation, an e-commerce site at Khanga will be designed capturing the relevant consumer preferences. A description of the industry’s specifications regarding consumer behaviour as outlined in TIA (n.d., p2) will be integrated in the site’s presentation attributes. Clothes have different characteristics that every consumer specifies to the supplier during purchase or ordering which make the purchase process a very complicated and authentication oriented. Consumer preference and behaviour in this industry will be captured in the product’s quality and features specification with the clearest presentation possible. Cloth colour specification is one of the preference issues that customers are specific about and this will be handled with an online display of the various products. High quality images of the various products offered will be made on a flexible adjustable platform from the site. For the first time, the products will be presented in images that can be moved about from the consumer’s computer to reveal various details such as colour and other design qualities. In what Moradi (2011) refers to product navigation, the Khanga e-commerce site will ensure that the physical detail which is foregone by shopping online is not compromised by allowing as much detail to be revealed on the product as possible. According to the author, the information available for the product must match the consumers’ needs during their shopping and it must also ensure that every important detail that could contribute to consumer purchasing decision making should be made available. Other qualities such as sizes will be included for the consumer specification, using various customized measurements for the various global regions. The number of products available within the consumer specification will also be made available against every product across the spectrum of apparel products on offer. Daniel, Gaur and Okunbor (2007) recommend that the compression of the images which makes it easier for the number of images viewed to be increased must be explored. As a result, the authors highlight the importance of Kohonen’s Self Organizing Map (SOM) which enables use of algorithm solutions to offer several images at an increased bandwidth. Alternatively, SOM enables feature extraction that facilitates production of less clumsy pages. By enhancing the e-commerce site in terms of image quality, Khanga will facilitate easy searching even for relatively slower network speeds. The size specification will be facilitated since there are variations in measurement units and types across the globe. To enhance this image functionality aspect of the site, a gallery will be created with the preference features being improved for customers to isolate, specify and search without any complication. Due to the increased uptake of internet services on the mobile platform, a mobile application of a similar content will be produced to increase the consumer reach as well as accessibility. The product navigation feature will be designed to enable the consumers to access the various product sizes as well as sample their other preferences such as colour and material. Product information such as the nature of the main material, origin of the material and composition of the constituent materials for the various designs will also be provided for every product. Customer Service In dealing with the various consumers’ queries and order requests that an ordinary shop has, the e-commerce site for Khanga will be enhanced to meet some of the desirable features. One of the most important aspects of this functionality requirement will be addressed by ensuring that the consumers are served at all times that they would want. Due to an increased global demand for the products while still operating inside the UK, Khanga has realized that a lot of consumers would be served wherever they are at their most convenient time. In such a global setting, e-commerce will ensure that the various regions are served within their time zones which calls for a 24-hour system of customer assistance responding. The specific nature of the products in this line presents a number of questions which consumers would want to be answered with an immediate response or at a later date. For immediate response questions such as on whether an order would be delivered within a certain time specification for an event such a wedding will necessitate a standby customer service. On the e-commerce site, a link will be made available for consumers who want an immediate response on their queries. A text or video chat link will therefore be made available for the consumers at the customer service section of the site or at the direct contacts section. A connection arrangement for audio customer service will be assessed through internet service providers and products such as Skype and Gtalk applications will be assessed. Making video conversations using such arrangements will build on the consumer satisfaction element attached to this market. Connecting to the more reliable social networks such as Facebook and Twitter not only for promotion but also for customer care chats will highly increase efficiency on this service (Perez, 2008). By using social media in business through a link on the e-commerce site, the Khanga will save on some element of site administration that is related on chat and related direct responses management. Telephone lines for similar communication will be made available for the e-commerce site to diversify it coverage and efficiency. Other customer service elements will require a later response which can be facilitated by an appropriate response mechanism. E-mails are perhaps the most appropriate channel for dropping communication that does not require a direct and immediate response. Using an email address that links the consumers with the relevant assistance officer of the company will make it easy to handle communication of this nature regarding consumer queries. Despite the general acceptability that emails have among internet users, it could be not as effective as the short messaging service that mobile phone users may prefer. The SMS platform is more reliable to many consumers who would also use it as a confirmatory method of reception of their concerns at the company. It is therefore important that Khanga e-commerce site offers a mobile connectivity specifically for the SMS conversations with the consumers. Despite the service charge hindrance to this platform that would make it less preferable when compared to the email, it is one of the most efficient services in such communication. Transactions The functionality issues of the e-commerce arrangement will also take care of certain elements of transaction that consumers making an interaction must meet. Many transactions on the e-commerce arrangement are aligned to the new online platform where payments are made using various payment methods. Due to the nature of the e-commerce platform that this business will heavily rely on for a huge chunk of its operations, an efficient transaction application will be made available on the site. Online transaction processing applications determine the general image that consumers have on the site which is subsequently translated as the actual service delivery status of the organization. Consumers are likely to abandon slow and problematic sites without the necessary search solutions. In light of these issues, the Khanga ecommerce site will be customised to ensure easy access and easy product searching. Improvement of navigation effects will be customised to capture the market that does not want to wait for slow performances. As mentioned above in quality image navigation, transaction processing will also require enhancement. A few steps to initiate the transaction will be followed while maintaining highest security levels for customer’s satisfaction and protection. Ordering and Order Tracking Online transactions involving placement of orders require a simplified system where customers can quickly order fro their specified quantity, quality and other preferences in real time. The e-commerce site will include a section where consumers can place orders with ease using quick platforms such as emails. Just as observed in customer care attendance, it is expected that immediate concerns will be handled with other methods of communication with an immediate response. Order follow-up and tracking will entail similar urgent response that applies either telephone communication or other chat platform such as those on the social networks. Payment Various payment methods will be applied in completing the bill clearance which will be done before delivery. Credit card transactions are among the commonest methods of online transaction and the market segment represented by this class of transactions will be covered. Other recent transactions such as mobile payments have become common in certain regions such as in East Africa and necessary arrangements will be made to ensure that this market is also captured. One example of mobile application for bill payments available in both East Africa and England is the MPesa application which has a huge following in the region. Delivery Delivery arrangements will be detailed on the e-commerce site to inform various consumers of the delivery status of their products. While outsourcing services may be the only available solution for overseas deliveries, consumer preferences on delivery will also be included through communication. Examples Similar Functionality The above functionalities are not necessarily applied in a single business entity within the apparel industry but their applicability in similar online platform of business makes them appropriate for consideration. Some areas of recommended applications and functionality aspects have been recommended due to their success on e-commerce elsewhere. The nature of business samples taken were not purely in the fabric line of operation but the elements of e-commerce likely to suit the logistics and other trade transactions were considered. As outlined below, the Adam’s Apparel, Via Snella and Dell Computers are highlighted to include some of the features that the Khanga Apparel will maximise on in the structure and design of the e-commerce site. In line with the above mentioned functionality features that Khanga will include in its site, successful models of such applications are important for mention in the discourse. The examples are included to demonstrate that the apparel market can use some features of the e-commerce platform to reach out to more customers particularly in the overseas market using a myriad of consumer friendly methods techniques. Adam’s Apparel, India1 Through a customised e-commerce experience, Adam’s Apparel has been able to expand its market to the rest of the world in a very simplified way. Just as in the product display element highlighted below in the Snella example, a good display attempt is made by the e-commerce site for this company. A footwear section is separated from the garments section on the gallery to make navigation easy. The international market is highlighted in the presentation due to the extra detail involved in processing such orders. The site has taken care of the international market consumer base that is reportedly increasing due to the e-commerce fragment of its operations. One feature that is strikingly well developed in the payment and bill clearance process is the kind of payment accepted at the company. Specification is made that the orders entertained by the company from any section of the market on the e-commerce platform must be on the letter of credit arrangement. Besides this, delivery against payment is also allowed at the company to reduce unnecessary returns inward. In order for the processing of the delivery of the products, a down payment of 25 per cent is required at the company. Details of the clearance accounts are also provided with the address of the bank, swift number as well as the account number. This is to make it easier for customers to make their payments using the accurate payment detail and avoid wrong transactions. For the international transaction segment, extra detail is also provided regarding the dispatch registration number in order to enable follow-up of the order once cleared. A simplified query segment is provided for consumers willing to make enquiries about any subject of the e-commerce process. It is a highly simplified procedure of ordering in which the consumer only makes a few clicks and the order is easily dropped. Perhaps one missing element of this payment process is the massive customer base that would want a separate payment method such as by use of credit cards. An example of the mobile money payment arrangement is captured in the Africa Nature Trails and Safari (2006) which accepts mobile payments in the East Africa and in UK across many Western Union and other outlets making a total of over 20 pay centres in the UK. This is however captured well in the Khanga Apparel e-commerce site. Via Snella, Sweden2 Perhaps the most outstanding element of the Via Snella e-commerce presence on the internet is the presentation and display of the clothing graphics in such a way that the consumer can grasp some reality of the shop. Real photos of human models in the various products offered at the shop make the presentation unique and easy to access. The images are enhanced to make them small and high quality in a horizontal format that makes the viewing and sampling easy and fancy. Taking some unique positions on the photos presents a unique view of the actual cloth material and the fitting features on clothing to make the preference closer home. One instance of the presentation that particularly captures this search feature is an image of a pullover worn by a model but represents only the neck region and is enlarged to give a view of the actual quality of the fabric. The models are captured on different positions that are simplified and do not look like the old modelling postures used in expensive designer clothing. This sight captures an element of the wide variety of simple casual clothing that can be readily available on the market for offer. Perhaps, the element of availing all relevant detail on the various products worn by the models should have been included in the site. Khanga Apparels e-commerce site captures this in a clear way to avoid a lot of queries that slow down transactions. The issue of product navigation is likewise maximised on the fact that a separate menu appears on the top of the sight to include all varieties, knit wears, outwears, trousers and other sale properties that might capture the attention of the consumers. To enhance online ordering process, there is a simplified online cart on the site that enables consumers to include their preferred products to enable batch processing of orders. This feature is particularly important since it makes it easier for the company to handle orders as units as consumer preferences specify. Customer service channels are also made available using an email and postal address. Due to the limitation that these two have, Khanga has gone an extra mile to modernize communication through social networking, SMS and mobile phone calls which are consumer friendly and with a wide following and offer immediate response. Dell Computers3 According to Perez (2008), Twitter and other social networks have been adopted by many companies for their customer service to increase service delivery to the customers in a less formal and acceptable platform. The author mentions a number of companies that employ Twitter in their customer service including Comcast, Twihirl, Adobe Air and Southwest Airlines. One other company mentioned that fits in this discourse is the Dell Computer Company whose e-commerce platform for computers and accessories nearly resembles the proposed Khanga Apparel Corporation site. In this site, nearly all of USA customer queries can be handled with urgency. Description and justification of the technologies suggested for the e-commerce site Customer Care Customer care at Khanga will be enhanced in such a way that the grievances and queries raised by the customers are responded to in good time. In the site, the realization that the customer is the answer to returns and profitability will act as the driving force to an efficient response system to customers needs. Khanga Apparels will involve an efficient customer replies system. Various mechanisms to assist the consumers in their shopping decisions will be facilitated both as urgent systems and separate approach for other responses that do not need an immediate response. The customer service proposed in the e-commerce site for Khanga Apparel is such that it responds to the changing nature of consumer preferences in this age and time. Communication is largely skewed towards the more customer friendly arrangements such as the social networking sites. By adopting other modern platforms such as direct chat sessions with customers to handle their concerns is reminiscent of the market changes that have been witnessed in the last few technology years. By keeping up with the latest trends in customer behaviour, it will be necessary to incorporate every aspect of consumer satisfaction including communication (Ivanova, 2008, p1). Besides keeping in touch with the market trends, some element of cost used in complex and costly communication platforms on the company’s site may be avoided. Such complex communication elements may actually remove certain aspects of site slowing complications. By ensuring that the site is fast and efficient, e-commerce will go on with little disturbances while consumer service is outsourced from cheaper alternatives such twitter and Facebook. Alternatively, maintaining a company site with a direct and immediate response based website may prove to be an expensive approach for many companies. In order to ensure that customer service is brought nearer to social settings is perhaps one of the biggest strides that e-commerce has made towards promotion of commercial activities to an all time high level. Product Navigation Graphics will be high quality at the Khanga e-commerce website to ensure nearly real images for the market. Viewing the products online will be enhanced to make it closer to actual market visitation and assist customers to make decisions. Since consumer behaviour is guided by preferences, it is important that the product images are of highest detail and quality and the Khanga e-commerce will incorporate all these qualities. By ensuring that the display of products on the online shop is facilitated to give the clearest possible images is one of the best attempts to make the online market as real as possible. When product display meets the features of a good market exhibition, various products get better exposure to the market better that a natural market would. An online platform is better in terms of coverage at one particular moment of shopping and effectively increases promotional capacity that an organization has. The relative savings on space achieved following the elimination of a physical exhibition are more than the benefits achieved by the physical market. To achieve this exhibition element for the e-commerce platform, it is important that e-commerce site involves high quality images and a presentation that will enable navigation and sampling according to various customers’ preferences. Electronic Money Transfer Khanga e-commerce site will incorporate an electronic bill clearance that will make the payment processing as compatible as possible. In light of the need to make the payment as efficient as other purchase aspects such as online ordering, it will be important that the payment is made as electronic and simplified as possible. This is why the various payment methods employed at Khanga e-commerce site which involves online mobile money transfer, credit card and bank money transfer. Customers will have a range of products to choose for their preferred mode of payment. Simplified payment procedures that represent online solutions to remote transactions are better in terms of cost reduction. Whereas authentication of payments is an important element of many online transactions, the high security procedures already available on certain payment applications will be considered. The mobile money transactions are a major success against cyber crime in the East African region and the applications have not disappointed so far despite earlier worries of an online security crisis. It is important for the platform adopted in other credit card payments to meet such levels as achieved by major brands such as MasterCard among others. One of the most important elements of the e-commerce market is its remote operation until the clearance of the transaction. In such a market, the comfort of making payments must be availed since any other arrangement would be too expensive for clothing products. In all instances of the online market, customers must feel at peace and comfortable to make transactions due to the accessibility of their preferred choice of payment and the associated security features. In the Khanga Apparel site, it will be important to include more than one payment techniques to meet the needs of all the customers across the world. The continued movement to the mobile platform is perhaps going to be a driving factor for the adoption of the Eastern Africa mode of mobile money transfer. Accessibility and comfort of making payment will continue to be a feature of future online transactions which implies that setting the pace at this juncture is an important stage in e-commerce for those areas with such technologies. Making a reservation for a part of the payment as down payment will assist in the detection of serious customers placing orders at the online platform. There are various ways of ensuring that the payment processing is up to the required standards and the Khanga Apparel e-commerce site will be customised to ensure that the application meets high security standards. In the event that there are chances of insecurity in one aspect of the payment systems, the use of several methods is very useful in that changing to another method is easier. Making a sudden shift to an already existing mode of payment might present enough time to the organization to adjust to the new combination of opportunities. International payment must be harmonized to a few payment methods that can meet several security demands of the online business. It is imperative that the methods of transacting payments at the international market at the overseas level are harmonized to a few service providers for security reasons. Regional safety concerns such as cyber crime will also be factored in the applicable mode of payment that the organization will recommend to the consumers. Summary E-commerce is a growing business wing with a number of challenges that must be addressed by new entrants to avoid making some mistakes that have cost organizations some lucrative opportunities. The best approach to make e-commerce to realize an ideal market situation is perhaps by simulating a natural market setting on the internet using general and simplified market conditions. In the above Khanga e-commerce website features proposal, it is expected that a simplified market processes such as; exhibition, order placement, invoicing, delivery and payment are considered for the various market requirements. By ensuring that the market needs are captured within the ideal market needs, the e-commerce service facilitates the consumers’ provision of with an ideal market within the virtual environment. An online shopping experience with an apparel market is expected to be more challenging since the consumer behaviour is expected to be more dependent on the actual physical sampling of products. It is the case with Khanga Apparel Corporation which deals in fashion and textile products in the UK and with an ambitious expansion program across the EU and all over the globe. In the larger context of consumer behaviour in the textile industry, consumer preferences carry the day in determination of demand and the nature of market. There are a number of elements of the online market that need to be particularly captured well in the website, to make the online transaction easier and legally binding. From the basic exhibition to the final bill clearance and delivery of bough goods, the proposed e-commerce site for the Khanga Apparel Corporation will be enhanced to meet every detail needed to complete the transaction. As outlined in the detail above, the most distinguishing features are expressed through the site’s functionality. The simplified applications of the various transaction aiding features are targeted at the online complexities regarding to the apparel market. It is important to factor in the necessary elements of e-commerce as would a natural market to generate a clear image of a market which is the main target that Khanga aims at. While it is an important aspect to ensure that the online transactions are secure at all levels of engagement, it might be necessary to involve outsourcing of services in order to accomplish some complex features. For instance, payment may need a transfer middleman in order to ensure that the distant transaction is handled with a clear follow-up. Delivery of products may also be purely on outsourced basis to increase efficiency while reducing the cost of infrastructure and logistics. References E-commerce Website Features” [online] Available from: [accessed 5 August 2011] Dana, S. & Ricks, J. (2006) Development of an Electronic Data Interchange Model for Channel Management (Statistical Table). Journal of Strategic E-Commerce, January 1, 2006 [online] Available from: [accessed 6 August 2011] Danial, C., Jenny, F., Jo, W. & Pierre, G. (2007) The Impact of Domain-Specific Stop-Word Lists on Ecommerce Website Search Performance. 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