Summative Report:Ecommerce Industry

Summative Report:Ecommerce Industry

Gaesy posits that ecommerce provides a suitable platform to enable the purchase and sell of goods conveniently. Customers are able to access and buy a variety of goods from home at affordable prices. In case the goods are not of good quality they can return them back. fast thus the task for the management to keep themselves updated on what is current and most effective in this field to maintain good standing in the business using ecommerce. According to Akuzum, (2014), the slow and fast points to measure the business were the time that guides in manufacturing be reduced, reducing the duration that a product goes round, introduce the new automotive products more frequently, customize at a higher level, make changes on the capability of the deliveries made all over the world, the level of the services offered to customers to be improved, a reliable way of delivering to be upgraded, respond more to the needs that are changing in the market

Analytic applications from videos are in high demand and greatly increasing in cities, sites of work, clothing and retail as years go by. Communication using voice signals are greatly changing at a fast pace in that homes will be automated with hearing instructions to boost the ecommerce business. Interacting simply can be enabled by the voice in an unbelievable way. For Castellani, (2014), homes are now open to action enabled by voices by ordering for a work ride, asking for briefings of news daily and getting update on the state of traffic before leaving for your journey along your normal route. Outside a store business can still take place using computers, phones, iPod, iPad and other electronic devices (Dolak, 2013). The process of brick and store transaction in the business industry usually becomes obsolete very fast.

APPAREL INDUSTRY

Reebox deals with production and selling of apparel in a unique way from others similar to it. Rebox spend $400,000 to purchase production equipment and $600,000 on capital purchase. Current technology equipment has been purchased. The arrival and departure time of Reebox workers has been scheduled and each employee has been assigned his or her duties.

Reebox has a financial plan that determines the financial requirements of the venture adding up to $2,000,000. Reebox has set up financial objectives and assumption concerning profit and loss which total to $1,931,700 and cash flow of the business for operational and personal expenses. Proforma cash flow, profit and loss and balance sheet statement is usually done yearly to determine the growth of the business. (Meierhans, 2010). Variable cost, fixed cost and sales on each year is used to calculate the break-even point of the business.

COMPETITORS

Stacy says that despite many people running the same business for apparel in Ontario none of the business produces substitutes. The major competitors for Platinum Wears are Jaiden Suppliers, Lincoln Designers and Keirster Fashion Dealers. Platinum Wears has one branch and 20 workers while other dealers have more branches and workers. Platinum Wears branch is steady and its status is increasing due to more customers in the market. Prices are different which drive customers to Platinum Wears. (Hilton, 2015). Competing on the size of the market Platinum Wears tends to increase its products thereby increasing profitability. Platinum Wears profit is increasing because if the difference with competitors’ prices. Platinum Wears is able to acquire 55% profit and intends to increase profitability after addition of products sold in the market. Platinum Wears opens Sunday to Friday for 12 hours. Its premise is in a well conducive environment with no pollution available and good drainage. This drives customers to Platinum Wears as they are served by willing employees who are accountable in what they do.

CUSTOMERS

The key characteristic of clothing business is the capital required to suit the customers’ tastes and preferences. This means capital is to be acquired from serious sources like loans, personal savings, inheritance of properties and contributions from friends and relatives to enhance its continuous growth. Clothing is to bring a wave of excitement to the customers due to the best customer care given. The industry is growing intensively, for the industry to attract and invite more customers it has to be unique and produce high quality products by use of modern technology in the market. (Gubbi, 2013).

CLOTHING

Gresif produces quality clothes at an equally attractive price given that the locality and accessibility to resources is manageable and profitable to a range of between 35-50%. Cloth brands available are Italian, Ashleys and Bestline (exhibit 5). It’s on the rise and people are becoming increasingly aware of its intensive value. Gresif offers the best services given and is confident that the industry is well equipped for growth and expansion. Gresif creates new awareness feature that develops and maintains its policy

BRICK AND MORTAR

Greitrens thought of how to establish his business in a brick and mortar store. Jeisey is located in Ontario in Kentucky adjacent to Werkins Mall in Pricehouse building. There is water supply and electricity that require maintenance of $24,000 to Water and Sewerage Company and Power Company with a monthly estimate consumption of $5,000 and $5,400 respectively. Jeisey premise has enough parking spaces to accommodate all clients’ cars and business vehicles. For the brick and mortar store, rent has to be paid, remains constant for the subsequent years and has to be paid monthly. (Cherdantseva, 2016).

SOCIAL MEDIA MANAGER

Parkins postulate that a business must have clear communication channels which create good relationship between management and employees. Meetings between management and employees are held frequently to ensure good working environment. (Colquitt, 2011). This can be enabled by social media platforms like linkedin, skype, Facebook, videocall, among others. Information flows from top to bottom effectively. An annual general meeting is held after every 4 months to discuss the progress of the business and all employees participate on online platforms and raise any issues they have.

DECISION

Discussions are recorded by the secretary during such meetings for future reference and decision making. (Sheng, 2013). The management uses skype, videoconferencing, linkedin, email addresses and telephones to communicate and $4,000 is used in communication. Decisions are usually made for the business after such meetings. Utilization of services for production by staff in the respective years with 40% of initial expenses on facilities, assets and production on average 30,000 units for the demand by consumers is clearly seen.  Production should be based on current technologies from the beginning and purchases/bills of materials are to be done monthly. Miscellaneous is calculated based on 7% total expenditure and online sales receipts spread evenly throughout the year Renewal of utilities takes effect at the end of the year (December) and a grace period of 3 months is given after commencement of the apparel business Capital purchases for clothes for the following years are to be done at the start of the business

EXHIBIT 1

           INCOME STATEMENT FOR YEAR 2019

                                                 EXHIBIT 2

      EXPENDITURE PROJECTION FOR 2020(AMOUNT IN DOLLARS)

                                                EXHIBIT 3

                       PROJECTION AT THE START OF BUSINESS

                                               EXHIBIT 4

   GRAPH SHOWING GROWTH IN SALES FROM 2011-2019         

                                                        EXHIBIT 5

                      SOCIAL MEDIA CUSTOMER BASE IN THOUSANDS

                                  EXHIBIT 5

         GRAPH SHOWING PREFERENCE OF CLOTH BRANDS

                                            EXHIBIT 6

EXPENSES INCURRED BY THE COMPANY (AMOUNT IN DOLLARS)

References

Akuzum, C. (2014). The Effect of Ecommerce on Business Transactions, 5(1), p: 96-107.

Castellani, A & Zorzi, M. (2014). Architecture and protocols for the internet of things: A case study. In Pervasive Social Media Use in Business and Communications (PERCOM Workshops)

Cherdantseva Y. and Lenox P. 2016. The Brick and Mortar Storage.

Dolak, Kevin (November 21, 2013). Use of Technology in Business Today: ABC News Internet Ventures. Retrieved July 7, 2014.

Colquitt, J. A., & Rodell, J. B. (2011). Justice, trust, and trustworthiness for Customers: A longitudinal analysis integrating three theoretical perspectives, 54(6), 1183– 1206

Gubbi, J. Buyya & Palaniswami, M. (2013). A vision, Customer Tastes, and Preferences. Future Generation Transaction Systems, 29(7), 1645-1660.

Hilton J. and Mark S. 2015. Competition in Business, 22 (4), pp. 308-313.

Meierhans, D., Rietmann, B., & Jonas, K. (2010). Influence of Competition on Business. Swiss Journal of Commerce, 67, 131 –141.

Sheng, Z. & Leung, K. (2013). A survey on the ietf protocol suite for Decision Making: Standards, challenges, and opportunities. Wireless Communications, IEEE, 20(6), 91-98.