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Developing an e-shop Linking business strategy and practice. Dr Nancy Pouloudi & Vassilis Kokodinis Department of Management Science and Technology Athens University of Economics and Business ([email protected] - [email protected] ). Lecture plan.

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developing an e shop linking business strategy and practice

Developing an e-shopLinking business strategy and practice

Dr Nancy Pouloudi & Vassilis Kokodinis

Department of Management Science and Technology

Athens University of Economics and Business

([email protected] - [email protected])

lecture plan
Lecture plan
  • Building on the issues identified in the B2C lecture
  • Showing how the business concerns can be supported (or not) in practice
    • Using a specific software package
    • Drawing from examples of well developed assignments
  • Discussing the implications of using specific technology

Dr Nancy Pouloudi

introduction from b2c lecture
Introduction from B2C lecture…

Areas of concern in developing an e-shop:

  • The shop-front: interface and ease of navigation
  • Organization of products and product categories
  • Pricing: a single price? offers?
  • Language? Currency? Other customization/localization?
  • Advertising (of others? by others?)
  • Security?
  • Does the e-shop reflect company culture/policies?
  • Logistics support: inventory; production; distribution

Dr Nancy Pouloudi

1 setting the scene
1. Setting the scene
  • What products to sell? To which customers?
  • Example
    • An e-shop for technologically advanced electronics/gadgets of low value
    • Target group:
      • young male (18-35 yrs old)
      • middle upper socioeconomic group
      • high educational level

Dr Nancy Pouloudi

supporting background research
Supporting background research

Market research:

  • Internet penetration in Greece [low but growing fast]
  • Profile of Internet users [primarily male – 12.7%, aged 18-34 yrs old – 32.6%, living in urban areas 13.3%]
  • On-line purchases of these products among the favourable
  • Research on competitors (Germanos & Kotsovolos: limited product line, higher prices)

Dr Nancy Pouloudi

2 implementation
2. Implementation

A. Business vs. Customer view

  • Product management
  • Pricing policies
  • Payment management

B. Business analysis

  • Order management (link to logistics)
  • Sales analysis (link to strategic decisions)

Dr Nancy Pouloudi

using microsoft site server
using Microsoft Site Server

Implications of reference to specific software

  • Provides a development environment – does not require technical knowledge
  • Supports two ‘views’ of the B2C context:
    • Business (guided to map business choices/decisions onto the e-shop)
    • Consumer (guided to use the e-shop)
  • Manager and customer see this as a ‘black box’
  • The software’s characteristics may enhance or limit which business decisions can be implemented

Dr Nancy Pouloudi

site map example

Home Page

Company

Profile

Categories

Search

Simple

Search

Special

Offers

Advanced

Search

Results Page

Detail

Results

Add to Basket

E-Mail Confirmation

Final Order

site map - Example

Dr Nancy Pouloudi

e shop implementation step by step
E-shop implementation step-by-step

1. Product management

  • Organize products in categories
    • Consider ‘packaging’ products together (e.g., selection of wines)
  • Enhance appearance – entice the customer:
    • Use images
    • Allow customization such as alternative product views (e.g., color/ size)

Dr Nancy Pouloudi

implementation continued
Implementation continued

2. Promotions & pricing policies

  • Web discount: cheaper than off-line (e.g., Easyjet)
  • up-selling: special discounts
  • cross-selling: “site recommendations”

[advantage: the whole product range is projected]

  • Dynamic site recommendations (e.g., Amazon)
  • Offers to loyal customers
  • Customization premiums?

Dr Nancy Pouloudi

implementation continued11
Implementation continued

3. Payment management

  • Confirmation of order & shipment method
  • Payment method
    • Multiple methods of payment
    • Agreements with trusted third parties
  • Information on security provisions
    • The privacy principles apply

[Notice/ Choice/ Security/ Review and correction]

Dr Nancy Pouloudi

tree of products
Tree of Products

Dr Nancy Pouloudi

tree of products14
Tree of Products

Dr Nancy Pouloudi

cross selling
Cross Selling

Dr Nancy Pouloudi

upselling manager view
UpSelling - Manager View

Dr Nancy Pouloudi

purchasing a product
Purchasing a product

Dr Nancy Pouloudi

purchasing a product21
Purchasing a product

Dr Nancy Pouloudi

purchasing a product22
Purchasing a product

Dr Nancy Pouloudi

purchasing a product23
Purchasing a product

Dr Nancy Pouloudi

registering
Registering

Dr Nancy Pouloudi

shopping basket
Shopping Basket

Dr Nancy Pouloudi

purchase information
Purchase Information

Dr Nancy Pouloudi

receipt
Receipt

Dr Nancy Pouloudi

business analysis
Business analysis
  • Order management and sales analysis
    • Internal processes set in motion, for example:
      • Is the item in stock?
      • Shipment of order to customer
      • Updated information to sales, marketing, production
      • Management information (orders per month, by customer, by product)
    • Reporting on sales activities
      • Statistical analysis
      • Feedback on previous business decisions – improvement strategies

Dr Nancy Pouloudi

business views vs technology architecture
Business views vs. technology architecture
  • Microsoft Site Server is based on a 3-tier architecture:
    • Business Logic Tier (cf. manager view – reflects the business decisions)
    • Presentation Tier (cf. customer view)
    • Data Tier (supporting the other two – holds both product and transaction information)

Dr Nancy Pouloudi

software limitations why s w selection is important
Software limitations[why s/w selection is important]
  • Inability to support multiple product catalogues or comparisons of similar products
  • Inflexibility in payment methods supported
  • Lack of integration with internal processes (e.g., additional overhead for linking to ERP systems)
  • Cannot handle dynamic content or personalized interface
  • Few promotion mechanisms
  • No customer management support
  • Inadequate statistical analysis
  • Limitations in localization(language/currency)
  • Cannot support additional value-adding business models (e.g., auctions; virtual communities)

Dr Nancy Pouloudi

slide32

Next session:2/10: Lecture4 –

Introduction to e-business models

Prepare: - Read executive summary of e-factors report

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