E-Commerce and SWOT Application, Essay Example

Kalakota and Robinson define e-Business as “integrated operations to support changing customer requirements”. (2) Combe’s definition of e-business emphasizes networking, e-commerce, and empowerment. One of the biggest challenges facing all e-Businesses is the struggle to keep pace with technologies and changing customer expectations. SWOT, as a succinct, useful tool for the examination of inner and outer factors, saves time, resources, and frustration; balancing factors creates business success.

Kalakota and Robinson define e-Business as “integrated operations to support changing customer requirements”. (2) From this customer-centered perspective, success in e-Business has less to do with the goods and services themselves and more to do with knowledge of the purchaser. Combe’s definition of e-business emphasizes networking, e-commerce, and empowerment.(1) The ideas which govern an on-site, or “brick and mortar”, business differ from those of an e-Business, although the text indicates that the principles of analyzing business decisions remains largely the same, following the same eight major parts of a business plan which only vary in strengths and weaknesses according to the goods or services of the business. Even within weaknesses, observant businesses discover new opportunities and threats (Simoneaux and Stroud, p. 77). Similarly, despite the methods of production and delivery, businesses worldwide increasingly rely upon the cost-cutting benefits of e-Commerce, the electronic purchase or sale of goods or services. E-business eliminates the initial costs of renting a physical space but still requires careful planning, advertising, quality assurance, and the other challenges which are seen with on-site businesses.

During initial planning, entrepreneurs often either remain ignorant of the details in favor the idea or abandon the idea to the details that they cannot master. The SWOT framework eliminates these errors when thoroughly examined. However, it can be used to rejuvenate existing business models. After receiving a random advertisement, I selected to analyze IdentityDirect’s My Adventure Books products. This product customizes the details of books of a popular theme to include the name, birthday, friends, etc. of an individual, primarily targeted to children. For example, the recipient may find his or her name and those of their friends printed in a 30-page adventure template at Monster University. Customers order either regular or larger books for $14.99 and $19.99, respectively. The advertisement mentions payment options, Christmas delivery, and free shipping. The website’s easily-accessed pages includes related suggestions, a prominent “Add to Cart” button on each and every page, and a full listing of all credit cards accepted for e-Commerce.

As the chart shows, the My Adventure Books products present many benefits and challenges to the IdentityDirect product family, which also includes other goods which are visually coordinated with the storybook, providing the option of a simple theme in the story room. Another aspect not mentioned in the SWOT analysis above, the company was established in 1992- during the early years of internet marketing. Little can be done about the threats against the e-Business venture, but the opportunities for globalization and social media marketing represent a promising untapped resource- provided that marketing and research personnel can accomplish their work quickly and effectively.

Conclusion

As Kalakota and Robinson remark: “New economy, new tools, new rules.” (1) One of the biggest challenges facing all e-Businesses is the struggle to keep pace with technologies and changing customer expectations. SWOT, as a succinct, useful tool for the examination of inner and outer factors, saves time, resources, and frustration. Simoneaux and Stroud aptly suggest the table’s use in an ‘annual check-up’. (75) As Holden reminds the reader, knowing the customer means knowing the business that is needed- not the one that is merely wanted. Combe elaborates on the factors of the economy, the business, and the consumer. (4) These factors together create balance and success in business.

References

Combe, C. (2012). Introduction to E-Business. Elsevier, LTD. Print.

Holden, H., S. Belew, J. Elad, & J.R. Rich. (2009). E-Business. John Wiley & Sons, Inc.: Wiley Pathways. Print.

Kalakota, R. & M. Robinson. (2001). E-business 2.0: Roadmap for Success. Pearson Education Inc.: Upper Saddle River, NJ. Print.

Simoneaux, S.L. & C.L. Stroud. (2011). SWOT Analysis: The Annual Check-Up for a Business. Journal of Pension Benefits: 74-79. Business Best Practices. Print.