E-Commerce Analysis for Bin Hen DI Company - Essay Example

E commerce Project for Bin Hen Di Company Market Analysis BinHendi is considered to be the oldest and most respectable business in the UAE. Its main objective in the region is to increase its strategies in expanding within the region and in the process improve their customer experience in the product the different brands that they produce. They are known for the transparency existing within the organization thus has succeeded in winning customer loyalty in the region. Moreover, the business enterprise has succeeded in restoring and creating new streamlined and automatic key processes for the various products and services they offer into the market for consumers ("BinHendi Enterprises "). SWOT analysis on BinHendi Company SWOT is grouping of the company’s information into internal and external factors. It entails looking into the strengths, weaknesses, opportunities and threats that has an impact on the company’s operation and productivity. Strengths The main force that affects the business positively lies with their ability to offered unmatched quality, luxury, elegance and their strong and professional business acumen. Many companies and business have always failed in their judgment of the market and the result of this is always a low turn over in the sales as there is lack of demand for the goods and services offered by the targeted audiences(Gulf Business 85).. However, Binhendi Company has been accurate in most of its judgment about the market and the targeted audiences and this has played a crucial role in sustaining them in the highly competitive market. The company has also worked to provide a diverse portfolio of the world prestigious brands of fashion, watches, jewelry, accessories, furniture, and fine dining among others that are rarely provided by other companies. In addition, it has established good strategic associations with their suppliers and their customers and this has greatly contributed to their reputable brand image in both the local and the international market. Weaknesses The expansion of the company has majorly relied on the direct control of its operation. It has based all its operation within one country and this has denied the opportunity to fully exploit the international market. Using Dubai as its center of operation, the company has thus concentrated in the local market as would be the case when they are having major branches in other countries. Thus the international market has been neglected allowing it to be controlled by other rival companies. The company has also concentrated a lot in price elasticity affecting loyal customers who are price oriented (Gulf Business 79). Opportunities The fashion industry is largely populated as different companies and producers are flocking the market with new products and services daily. However, the company has successes in the industry because of its opportunity of employing a highly efficient staff who work round the clock to provide customers purchasing from the company exclusive products that are different from those being provided by other companies. They have also established their operations in the area as they have overwhelming divisions in the area helping in the sales and marketing of their products to the large population in the region and to retailers who make purchases and sells them to other neighboring regions. In addition, their incorporation of various brands in the market like Baituti brand has significantly helped in the expansion of their market in the region especially in Dubai as the new brands and strategies has been enthusiastically been received by their audiences in the market. Lastly, the business enterprise with their dream of creating new dream avenues of marketing their products in shopping malls as these areas are always renowned for the high number people paying visits with different objectives like shopping or conducting businesses in mind (Gulf Business 79). Threats The threat facing the company is the high competition present in the region. This has affected their prices to the customers as they are forced to sell their products to their customers at a lower price than what they should receive. Their business has also been threatened by the high competition existing in the region forcing them to conduct an immense research into their marketing and production field to discover new strategies to use in the market and to produce their products. This has negatively impacted on their profits as they are forced to spend heavily in discovering new market and product strategies. The company has approximately 192 competitors with Bottega Veneta in Italy, Chanel in France and Hermes in France being their core competitors for the products they produce. In addition, most brand owners are opening their own stores and his pose a threat to the enterprise as the developing trends leads to a shift in their customers into the stores opened by different brand owners (Gulf Business 79). E-Commerce Rationale E-commerce is also known as electronic commerce and it involves purchasing and selling products by the help of the internet (Sharma & Rajiv 70). Conquering Environmental Limitations: Bin HenDi enterprises should increase its e-commerce activities to allow them to overcome the geographical limitations they are encountering with the sales and marketing of their products. It will also increase their ability to easily obtain raw materials use in the manufacturing of their products. This is because the company has numerous physical stores in the region used for selling their different brands. The physical store limits their geographical area that they can access with their products and services. Incorporating and increasing ecommerce activities within the company will allow them to reach areas and audiences had earlier proved difficult to access. They will be able to reach all the corners of their world thus improving on their profits proceeds both locally and internationally as audiences will be able to make purchases online. Increasing New clientele with Search Engine Visibility: The marketing environment for Bin HenDi enterprises may not allow them to increase the number of customers visiting their stores to purchases their products. This is because the drivers for physical retail dependent on the branding and relationships of the company and its customers. The company will largely benefit from the use of e-commerce because it will allow them to attract new customers through the use of the numerous search engines available in the market. Online retails are majorly influenced by search engines and this will be possible through such online media sources like face book and twitter among others. The company can place links of their products and services on the search engines to allow customers to follow and find the types of products they are offering. Lower expenses: Bin HenDi enterprises will also immensely in using e-commerce because of lower cost involved when using e-commerce. This is because the production and transportation cost of products is reduced since such cost like expenses for renting malls is reduced. The advertising channels that will be used by the company are also lowered as the channels are cost effective. The end result of this to the company is that new customers will be able to purchase the products produced by the company as the company will be able to sell goods to them at discounted prices without incurring losses. E-commerce will also enhance the efficiency of the personnel that will be employed by the company. This is because various office and production task will be simplified through such ways like automation of checkouts, billing, payments and inventory management. In addition, the number of employees employed by the company will also be reduced as most of production and office task will be performed and accomplished via automated machines. Moreover, the company will not require set physical locations for the sales and marketing of their products since e-commerce activities do not require a well-known physical location as most of their marketing and purchasing activities is done online. Finding the Product Faster: E-commerce will also enable customers and prospective customers of Bin HenDi to locate the different brands they produce without passing through much stress. Customers will not have to visit the company’s store and waste time by looking for products in the correct aisle. They will use the provided search boxes in the links provided by the company to narrow down their search and locate their products in an easier and faster way. E-commerce will assist both the company and its shoppers as it allows the website to remember things which are commonly shopped by the customer. This will increase the company’s profits as many buyers will be buying their products due to the speed and efficiency of searching fro products online. Eradicate Travel Instance and Cost: E-commerce will also allow the company to eliminate travel time and cost for their customers and them. E-commerce eliminates the barriers associated with travel to specific locations to find or locate products. The results are that the cost that would have been incurred by the customer in traveling to purchase the products in convenient stores or other towns is shifted back to the purchase of more products. This increases the company profits as demand for the products they produce is increased. On their side, their transportation and travel expenses are also reduced thus saving more of their profit proceeds (Ratnasingam 45). Provide Judgmental Shopping: E-commerce also provides the company with shopping comparison of similar products being produced by other companies. It will be able to browse through other websites of companies offering similar products as them and make a comparison of the sales and demand of their products. This will allow them create strategies which will be used in competing favorably with these competitors and find better ways of creating demand and increasing their sales in the market. Enable Agreement, good buy, Coupons, and Group Buying: E-commerce will also allow Bin HenDi enterprises to initiate deals, bargains, coupons and bulk buying of their products. An example is that products produced by different companies are sold at different prices in retail stores. However, a customer to do impulse buying might find it difficult to walk through all the retail shops available and make comparison of prices and offers presented at these stores. Through e-commerce, customers are able to accomplish these by clicking at the mouse and thus saving time that would have wasted in comparing the prices of these commodities physically. The end result of this is that the company will be able to capture for more customers who prefer to do their purchases via the internet. Provide Abundant in sequence: Lastly, e-commerce will be able to provide the company with more information regarding market trends, consumer behavior, preferences and prices of substitute products in the market. Physical stores may not able to provide the company with the needed information regarding such information. In addition, employees will not be able to provide additional information for customers as they will be limited in physical stores. However, the use of e-commerce will make additional information regarding the products being offered to the customers readily available thus preventing them from passing through much hassles (Boermeester & Lisa 178). E-Commerce Critique and Recommendations In creating a good e-commerce website for the company, I will recommend the company to take the following steps. The company will have to look into their business structure to ensure that all major sectors are considered. This will involve having a good knowledge of the market and competitors present in the market. The company will also have to identify its customers, their buying behaviors and their needs. In addition, they will also have to conduct a research on their competitors and conduct a SWOT analysis of their activities. They will also look into their operations to determine their SWOT. Secondly, I will recommend for the company to search for an appropriate website name for their e-commerce activities. This is because customers always experience difficulty in finding complicated website names. They should use a website name that will explain to the customers what they should expect to find when they open their page. This will encourage and attract more customers into having a look at the page. Thirdly, I will recommend for the company to find the right website for hosting their website. Many companies are always not reliable as they are not convenient and effective in hosting website for use by different individuals. When the company hosting the website is not reliable, the customers lose their trust in online shopping as they are not sure whether the company’s page will satisfy their needs. Fourthly, I will recommend for the company to include a payment processing link in their website page to allow for ease of shopping for their customers. This will help in saving time for both the company and the customers. This will involve adding their bank accounts, merchant accounts and online payment gateways. Fifthly, I will recommend for the company to secure their website as there are many cyber crimes in the century. This will also assist in earning the trust of customers as they will be guaranteed that their payment of a product is received. It will also improve the company’s image as customers will praise and like their online shopping experience with the company thus attracting more customers to also purchase the products being offered by the company online. Lastly, after securing their website and attracting customers to purchase their products via the internet, I will encourage the company to start selling their products without any fear. Although, it will be challenging as the company will not make much sales, I wills encourage to persevere as it will take long for customers to customize themselves with the website and start doing purchases. The current website used by the company is not so much appealing because they did make use of it as news letter and more. They have gone straight to the point to place common features and have used other different pages as their news letter. The website should serve all the activities like acting as the news letter to appeal to the client as they will find it easy in obtaining all the information they want less than one page. The website also has no welcoming notes for visitors. Most individuals are attracted to a member centric website as they feel at ease when browsing through the different features. The company also does not constantly remind customers of the existence of the website. For the website to appeal to majority of its customers, it should have constantly reminded individuals of its existence through such avenues like social media. An example is that the company have face book and twitter account and remind customers of their existence by providing links at the pages for customers in the social networks to view. Works Cited "BinHendi Enterprises." BinHendi Enterprises. N.p., n.d. Web. 8 Dec. 2013. . Sharma, Vivek, and Rajiv Sharma. Developing e-commerce sites: an integrated approach. Reading, Mass.: Addison-Wesley, 2000. Print. Ratnasingam, Pauline. Inter-organizational trust for business to business e-commerce. Hershey, Pa.: IRM Press, 2003. Print. Boermeester, Sven, and Lisa Durante. Best of Dubai: Inited Arab Emirates ; Vol. 1. Dubai, 2000. Print. Gulf Business. Dubai: Motivate Pub, 1990. Print. Read More