In today’s modern era, e-commerce is continuously accelerating and the money, which is spent on the purchases made via internet show that there is no sign of decrease. In this busy life, people do not want to go out for shopping and they prefer to receive their products at their home. So, it is very profitable to introduce an e-commerce website for online shopping. With the advancement in the technology, people are becoming more engaged to use different applications on their smart phones. For this essay, the business start-up, which is chosen, is introducing an online shopping application for selling the cloths and apparels (Ashraf, Thongpapanl, & Auh, 2014). The organization has named this shopping application as “E-Tailor”. This new start-up will operate its business in Australian online textile industry, where the people can purchase their cloths online. In the beginning, it will deliver the products in Australia only, then it will think to expand its operations in other nearby nations, like; Indonesia and New Zealand.
Under this start-up, the vision statement is to become the best online retailer that is encouraging the people to purchase and wear our cloths to enhance their class and lifestyles. The major objective of this start-up is to become largest supplier of fashionable clothes for the customers via this online shopping application. This business will use Business to Consumer business framework to provide the products via this shopping application. In order to attain customer loyalty and decrease the customer dropout, the company will implement effective strategies and make sure that each and every customer is having exceptional shopping experience. Before introducing this app, the management will conduct market research to know about the current fashion trends towards clothes and other related accessories (Casero-Ripollés & Izquierdo-Castillo, 2013). E-Tailor plans to attain strategic positioning by creating an integrated value chain, which is very difficult to copy. By launching this online shopping application, it can make quicker updates on new products and services. It will implement new business and marketing strategies, which will be better and faster than its competitors with lower financial effect.
E-Tailor will launch this new start-up as an e-commerce company that will comply with all the requirements and formalities to launch an online application. For managing it’s all the duties and operations, it will go ahead with a particular organizational structure. Organizational structure of an organization is an orderly structure, which includes different policies and defines that how the duties and responsibilities of the people are divided and communicated to them. For this new business app, there is no need to hire lot of employees. As this is an online application, so it is very important to manage its operations and maintenance (Chen & Perez, 2015). The best suitable organizational structure of this application will be functional structure, under which, it will divide all the departments as per their functions and duties, like; marketing, finance, production and application maintenance. The organizational structure for this start-up is plotted below;
When a start-up is introduced in any industry, it may confront different external and internal forces, which may impact the growth of business in prospective industry. There are some internal and external factors, which may affect the business of E-Tailor in the country. External factors are such as; economic, political, social and technological factors (Wild, Wild, & Han, 2014). In Australia, there are no sufficient laws to safeguard the intellectual property rights of online businesses, for whom it includes the data about new designs, current market details and new target market. There are so many domestic and international players with the foreign investments, which will not allow selling products online in the country. The positive aspect under this factor is that Australian government is supporting for enhancing internet penetration in the country. Moreover, economic factors will also impact this business, like; initial development of an online shopping application will include higher costs of software, hardware, maintenance, content developer, training and development program for staff etc. In Australia, unemployment rate and economic conditions may affect the business operations of E-Tailor (Fleisher & Bensoussan, 2015). In future, this application will have more opportunities to grow, but very slowly. Social factors are very beneficial for this business as the people are becoming more engaged to social media and online shopping. Now, they have better comfort level and trust in online shopping. Apart from this, people sometimes have the issue related to absence of touch and feel the products. In the case of clothes, they want to check different aspects, like; stuff, fabric, size etc. It may impact the growth of this online shopping application in Australia. With the advancement of technology, this shopping application can add new things and attract the people towards its products.
In addition to above-mentioned external factors, there are some internal factors that will have large impact on the growth of E-Tailor in the industry. These factors are such as; human resource management, application maintenance, internal pressure etc. When the company will introduce the new start-up, it will offer comparatively lower wages to its staff that can increase the chances of employee turnover. For effective human resource management, it will need to conduct training and development program for its employees. As this is an online business, so it is very important to hire technical expert, who can maintain the application and its content. Corporate management will help in managing all the activities and operations of the business (Kim, Kim, Choi & Trivedi, 2017). Effective management of operations and internal processes will increase the brand reputation of this business among people of country. The company will offer the clothes with quality stuff and fabric, so it can establish its image in both textile and e-commerce industry.
This business start-up may face some risks and challenges, introducing this online shopping application for clothes. One of the major risks is the security and privacy risk, which may impact this business. There may be chances of data breach that refers to an attack on online store or its credit card processing system (Lam, & Harker, 2015). This data damage and breach can leave the business with the enormous tech bills and a large number of unsatisfied customers. Furthermore, there may be the risk of competition from well-established physical and online stores. The risks associated with technology can affect the business because maintenance of application totally depends on technology arrangement.
To mitigate these risks, E-Tailor will implement effective business practices that will promote its performance. Under its organization structure, human resources play a vital role as they manage all the operations and processes for developing this online application. It is essential to motivate them, so it will practice employee engagement. Employee engagement is the business practice that will motivate and encourage the people of organization to perform their duties better. It will assist the organization in receiving better customer satisfaction, enhanced productivity and performance of this business app. It will involve middle level people in the process of decision making, which will motivate them towards their work (Berg, 2010).
For this business start-up, it is very important to conduct training and development program for the engineers and technical experts. It will enable them to develop the content of shopping application for their products. This training program will improve the skills and abilities of the employees in their area of business, which will eventually enhance the productivity and performance of the organization (Lee, Hallak, & Sardeshmukh, 2016). Conducting a market research will help E-Tailor in displaying the products, which are needed and expected by the customers. Implementing these business practices will allow the company in enhancing its position in Australian e-commerce industry. Employee engagement will be proven as an effective business practice in developing positive attitude in employees.
To execute the above-mentioned business practices, organizations need to divide its human resources as per their functions, like; human resources, finance, operations and marketing. For E-Tailor, the most significant functions are shown in above-given organizational chart, such as; finance, marketing and production (Papadas, & Avlonitis, 2014). Under the operations, the online company will include different divisions, like; production process, purchase, order process and supply and distribution of ordered products. In the online business, it is very important to deliver the products on predetermined time. The people under this function will emphasis on internal process and activities. As it is a new business start-up, so marketing and promotion plays a significant role for promoting the application and its services. After evaluating the needs and demands from the market, the company will segment its target audiences and offer the products accordingly. This is the most important function for this new start-up business, because it is essential to make the people aware about this new online shopping application. Under this function, it will use different modes of advertising and promotion, like print media, online media, promotional campaigns and events (Savrul, Incekara & Sener, 2014). In addition to above functions, finance is also an important function for the company as it will enable it in managing and allocating the funds as per the requirement of processes, like; content development, development of app, salaries to employees, production processes etc. The organization will create a budget, so that it can divide its finances for processes. All the functions of organization are very important for enhancing the performance and growth of this online shopping application. Effective management of these functions will enable the company in delivering the products on given time with effective packaging (Totonchi & Kakamanshadi, 2011). It will assist the organization in increasing its customer base and eventually its performance.
Thus, the above essay concludes that a business start-up should make focus on the management of its business practices and functions, so it can handle and mitigate the adverse impact of internal forces, external forces and associated risks.
References
Ashraf, A. R., Thongpapanl, N., & Auh, S. (2014). The application of the technology acceptance model under different cultural contexts: The case of online shopping adoption. Journal of International Marketing, 22(3), 68-93.
Berg, H.P. (2010). Risk Management: Procedures, methods and experiences, Risk: Analysis & Theory, Vol. 1, No. 2 [17], pp. 79 – 95.
Casero-Ripollés, A., & Izquierdo-Castillo, J. (2013). Between decline and a new online business model: The case of the Spanish newspaper industry. Journal of Media Business Studies, 10(1), 63-78.
Chen, Y. and Perez, Y. (2015). Business model design: lessons learned from Tesla Motors. In GERPISA International Conference.
Fleisher, C. S., & Bensoussan, B. E. (2015). Business and competitive analysis: effective application of new and classic methods. FT Press.
Kim, M., Kim, J., Choi, J., & Trivedi, M. (2017). Mobile Shopping Through Applications: Understanding Application Possession and Mobile Purchase. Journal of Interactive Marketing, 39, 55-68.
Lam, W. and Harker, M.J. (2015). Marketing and entrepreneurship: An integrated view from the entrepreneur’s perspective. International Small Business Journal, 33(3), pp.321-348.
Lee, C., Hallak, R. and Sardeshmukh, S.R. (2016). Innovation, entrepreneurship, and restaurant performance: a higher-order structural model. Tourism Management, 53, pp.215-228.
Papadas, K. K., & Avlonitis, G. J. (2014). The 4 Cs of environmental business: Introducing a new conceptual framework. Social Business, 4(4), 345-360.
Savrul, M., Incekara, A. & Sener, S. (2014). The Potential of E-commerce for SMEs in a Globalizing Business Environment, Journal of Social and Behavioral Sciences.
Totonchi, J. & Kakamanshadi, G. (2011). Globalization and E-Commerce, International Conference on Networking and Information Technology.
Wild, J.J., Wild, K.L. and Han, J.C. (2014). International business. Pearson Education Limited.
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