Developing an e shop linking business strategy and practice
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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 (pouloudi@aueb.gr - kokodini@aueb.gr ). Lecture plan.

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Developing an e shop linking business strategy and practice l.jpg

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

(pouloudi@aueb.gr - kokodini@aueb.gr)


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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


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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


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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


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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


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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


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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


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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


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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


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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


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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


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Example (wine)What the customer sees in the main page:

Dr Nancy Pouloudi


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Tree of Products

Dr Nancy Pouloudi


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Tree of Products

Dr Nancy Pouloudi




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Cross Selling

Dr Nancy Pouloudi


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Cross Selling Manager View

Dr Nancy Pouloudi


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UpSelling - Manager View

Dr Nancy Pouloudi


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Purchasing a product

Dr Nancy Pouloudi


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Purchasing a product

Dr Nancy Pouloudi


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Purchasing a product

Dr Nancy Pouloudi


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Purchasing a product

Dr Nancy Pouloudi


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Registering

Dr Nancy Pouloudi


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Shopping Basket

Dr Nancy Pouloudi



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Purchase Information

Dr Nancy Pouloudi


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Receipt

Dr Nancy Pouloudi


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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


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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


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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


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Next session:2/10: Lecture4 –

Introduction to e-business models

Prepare: - Read executive summary of e-factors report