IT assignment essay on: E-commerce
Introduction
E-commerce has profound impact on people, particularly those consumers who are initiating to use internet as the platform for purchase of goods and services. In the early times, e-commerce or buying online of goods and services was considered to be an erudite activity. But today, there are rapid developments in information and communication technology, and it has substantially changed the scene of organizational networking and computing (Wu & Hisa, 2004).
Services that are based on web involve a set of newly arising standards. In the environment that is based on internet, if a website that is well designed is connected to the customers of the company in an effective way, then it can play a crucial role in decision making process of the company such as, recognizing the need of the customer, evaluation of needs and information that is searched over Internet, making purchasing and post purchasing decisions. In highly competitive business markets, effective e-commerce strategies and its management can lead to capturing of large market share by companies (Bushry, 2005).
Overview of carsales.com.au
Carsales.com is an online automotive company having its headquarters in Australia and is a publicly owned company. The goal of the company is to bring to the online customers best automotive classifieds. It is in direct and stiff competition with the newspapers i.e. the print media. It is the largest online classified business website in Australia dealing in automotive, marine and motorcycle classifieds. The company attracts all those online customers who want to buy or sell their cars, motorcycles, boats and trucks. The number of customers it attracts is more than any other classified groups of websites in Australia (About carsales.com.au, 2012).
The websites network of carsales.com also includes bikesales.com.au, Carpoint.com.au, RedBook.com.au and various other automotive classifieds websites
Fundamentals of e-commerce and e-business
The fundamental features of e-commerce and e-business are: making more and more use of electronic devices in the processing and communication of data related to goods services that the organization offer; allowing increased integration of devices of hardware and databases, and making the users engage at a greater level to the online business of the company (Wu & Hisa, 2004).
The carsales.com.au has its business online only. All the transactions, promotions and offers to the users are done in online mode. In regards to the integration of hardware devices and database of the organization, carsales.com effectively integrates its information and its devices. It has link with Pentana Solutions which is the leading provider of computer hardware, systems and solutions to car dealers in Australia. It is the leader in Dealer Management Software. In order to attract more and more customers and a lively interaction with the virtual community of carsales.com.au, the company has developed an interface with Pentana Solutions which is the clear indication of the live and real updates of cars from their owners.
Infrastructure
It includes backbone providers for Internet, ISP (Internet Service Providers), manufacturers of server and PCs, networking software and hardware, security vendors, selective applications on the website, and so on. Infrastructure is very important for any e-business organization to thrive in the e-commerce market. Good infrastructure ensures smooth functioning of online viewing and transactions.
In regards to the infrastructure, carsales.com has a sound electronic infrastructure. Link with Pentana Solutions itself shows how sound the infrastructure is. Extremely accurate information is provided by the company due to its link with the leading player of the industry of dealership management software. Provision of specific applications on website, such as setting up of auto alert for customers who can get automatic alerts on any new listing on the website adds on to the infrastructure of the company.
E-environment
E-commerce environment is related to the solid details of products and services, optimizing the website, ensuring security, building performance and making the environment suitable for customers to buy and sell over the website. Carsales.com.au has massive database of cars available for buying and selling by customers. Over 2000 models are listed on the website. Regarding the performance, as soon as any customer shows interest in buying the car listed on the website, the software of the company directs the customer to enquiry service application the use of which enables the customer to see the nearest dealer member for further enquiries o a test drive. Strong and wide online presence of the company makes its electronic environment good as well as conducive for conducting business and is comfortable for the users as well.
E-business strategy
E-business strategy includes framing of appropriate strategy for conducting of business online. The e-business strategy of carsales.com.au is building network and extending the portfolio of the company by adding on more and more products at competitive prices (Carsales.com expands online reach, 2010). The company is involved in continuous evolution of its strategy of building on the core competency of the company i.e. the network effect. The company has core competencies in both the markets of automotives and non-automotives. It continuously focuses on development and expansion of its offerings of products and services (Davidson, 2012).
As network effect is the core business strategy of the company, the management continuously keeps looking for acquisition opportunities so that they large number of customers online, thus attracting more focus on business and showing huge potential. Acquisition of other online retail websites enables the company to extend as well as reinforce its core competencies and capabilities (Annual sales report 2012, 2012).
E-supply chain management
Electronic supply chain management refers to the optimization of all the business processes of the company by using web technology. It includes all the channel partners along-with giving real-time market information to all these channel partners. In regards to the e-supply chain management, dealers are an important partner in company’s supply chain. In order to give them real-time information, the company uses a tool named LiveMarket which is a analytics tool for pricing and stocking so that dealers can buy as well as price their stock suiting the current market (Annual Report 2012, 2012).
CarFacts is a history information service that is used for providing information on the vehicle. Video Intelligent is another tool provided by the company which produces automated video so that the dealers of the company can get their inventory specified and stand out.
E-procurement
Purchasing or acquiring services at the optimum possible overall cost along-with maintenance of quality is important for e-business and its expansion. In regards to electronic procurement, carsales.com.au has acquired strategically important 15% stake in Torpedo 7 Ltd. which is the largest online retailer in the Australian territory for deals of adventure sport, bikes, motocross, fishing gear and other daily products. Strategic stake in 1-Day is also important for procuring customers on a large level. This is because websites of Torpedo 7 generates 350000 browsers approximately every month, and i-Day.co.nz generates almost 3.3 million unique browsers every month (Carsales.com ltd acquires 15% stake in Torpedo7 ltd., 2012). Acquisition of strategic intake in both the organizations ensures the virtual business extension of carsales.com.au and is a significant addition to the portfolio of the company.
The strong revenue growth of Torpedo 7 and 1-Day will help the company to not only reach large customer base, but also make huge profit in the business. Procuring customers is easy through large and strong online presence. It will help the company to get connected to widely dispersed buyers and sellers to come together at one platform.
E-marketing
E-marketing increases the sale of the products and services of the company if properly planned and well executed. Online marketing increases the number of customers and leads to an ultimate increase in the revenues of the company (Webb, 2011).The company allows all its dealers to market their products and place advertisements all through the network through MediaMotive. It is responsible for displaying the advertising of products all over the network of the company including its 23 websites. Carsales.com.au has set up a link with Media Motive that brings buyers and sellers together. Carsales network has 23 websites all of which offer online opportunities over internet to reach more than 4 million unique browsers monthly (Mediamotive, 2012).
It helps in delivering the advertising message created by the dealer on the website to reach the right audience at the right time. The reason for using Media Motive for e-marketing is to provide sellers the wide reach over internet, and help in targeting and engagement activities so that the business can be grown effectively.
E-customer relationship management
Customer relationship management is based on improving loyalty of customers of the company by proper handling of all kinds of interactions with customers. Providing online solutions to customers’ problems and enquiries enhances their relationship with the company. Carsales.com.au has high customer loyalty due to providing high-end solutions to its customers including both buyers and sellers of products. Just as LiveMarket is a tool that can be used by dealers, PriceAssist is the version launched by the company for consumers (Annual Report 2012, 2012).
The company has dedicated customer service team which is friendly and helpful to customers in answering their queries. For both the dealer car and the private car, the customer can directly call the owner or can use the enquiry service provided by the company. In order to furnish latest additions of list of cars on the website to the buyers, customers can use AutoAlert service provided by the company on its website that will email them when the cars that match their requirements are listed on the service of the company.
Location issues and change management
Carsales.com.au is an online classified service and all the transactions and business of the company is conducted online. There are no apparent location issues for the company. Physical location does not matter much. However, in order to accommodate continuous robust growth and development of the company of the company, the company recently moved into a bigger office so as to support the increased staff and continuous growth (Annual report 2012, 2012). Location in regards to online presence is wide. The company has already covered whole of Australia and by acquiring a strategic intake in Torpedo7; it can register a very strong presence in New Zealand as well.
Regarding the change management, the company has effectively managed it by continuously adding on the products and providing new tools for its customers, such as LiveMarket, PriceAssist, and so on for enriching its portfolio and customer base. Launch of DataMotive brand and MediaMotive brand for the betterment of services priovided by the company in 2008 is an example of managing change (Carsales.com.au Ltd. Annual report 2007, 2007).
Conclusion
E-commerce is receiving significance ion corporate world as more and more people are getting connected to internet for shopping. Carsales.com.au has developed with leaps and bounds since its establishment way back in 1997. It is the largest automotive website in Australia and covers 50% of the market in terms of market share in industry. Effective management of e-commerce and building of wide network over internet has seen chains of people becoming customers of the company. It always focuses on meeting the desired needs of customers, offering them best prices in the market, and tying both sellers and buyers on one single platform with use of advanced technology and grabbing acquisition opportunities. In future, the company can develop separate domain for developing markets in the world and the industry can see more entry of players for online business along-with advanced technology and are user-friendly interface.
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