E-commerce Business Strategies For Cleaning Trade Services

Report section1: Ecommerce business strategy

In order to build profitable business and not just simple attractive ecommerce websites, different business organizations are currently adapting advanced ecommerce business strategies to improve the existing revenue margin. For this particular report the selected online business category is cleaning trade services. With the help of this online website the users will able to get fast cleaning services. Different E-commerce business strategies are available; those are used by medium to large business organizations. Among those a suitable E-commerce strategy is selected for this website, different Ecommerce business models such as value positioning, revenue model, competitive advantages, and organizational development models are also elaborated in this report. Based on the type of the business the business models are selected by the owner of the Ecommerce websites. It has been found that the rapid increment in the usage Ecommerce websites also increases the productive and quality and also enhances the overall efficiency of the online business.

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper

Apart from this, the overall behaviors of the website such as the entire communication from the very beginning till the end are also illustrated in this report.  With the help of E-commerce strategies, the online businesses will be able to get large scale business revenue and also the users will get efficient services from the service provider. Online businesses always use different communication tools and with the help of these tools, the users can efficiently communicate with the service providers. Ecommerce enhances the service efficiency with unique value and subsequently customized the service.

Depending on the type of business or based on the business category, different business organizations use different business strategies to achieve the pre-determined goal or set of objectives and to reach superior long-term returns on the capital that have been invested for E-commerce development (Laudon & Traver, 2016).  Most widely used business strategies are differentiation business strategy, cost competition business strategy, scope business strategy, focus or market niche business strategy and customer intimacy business strategy.

Business strategy

Description of the business strategy

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper

Name of the organization that use this strategy

Differentiation

In order to discriminate the product quality and services from other organizations to reduce the rate of competition in the marketplace, this business strategy is used.

Warby parker

Customer intimacy

It helps to develop strong bonding with the consumers

Amazon

Focus/ market niche

This business strategy is used by those organizations those compete within a narrow market.

Bonobos

Scope business strategy

Rather than local competition, it helps to make global competition with large set of competitors  

Apple devices

Cost competitive business strategy

This business strategy helps to serve the products and services with a lower cost and competition rate.

Walmart

Among all of these business strategies, for the selected business category cleaning trade service, should utilize customer intimacy business strategy. Customer intimacy is referred to as a key to market leadership. This is not possible only by serving high productivity with quality but in order to gain maximum market revenue from the competitive marketplace; the owner of the E-commerce business is needed to meet the requirement of the consumers.  If the company successfully reach the customer need then it will be able to grab large number of consumers from the market (Galliers & Leidner, 2014). Lots of other components are there, beyond productivity, those are needed to develop the Ecommerce website with high commercial profit. Apart from proper quality and productivity appropriate pricing is another important component that should be considered.

 For this business category the users are always willing to demand cleaners, regardless of time and their location. The official E-commerce website serves their services throughout Australia. However, till now they are not enabling to provide their services out of Australia. The users demand for trustworthy cleaners regardless of time (Laudon & Traver, 2016). Many other cleaning trade businesses are there in Australia, the customer intimacy business strategy helps the E-commerce website to comprise the services of other organizations, to understand whether the pricing and offers are effective than other organizations or not (Veit et al. 2014). The customer care number and the online platform provided by the E-commerce website will help to develop a strong bonding between the service provider and the consumers. The users will efficiently keep themselves connected to the service providers and also from the online service the users can search for their desired categories regardless of time and location.

Report section 2: Ecommerce business model

 

Figure 1: The focuses of Consumer Intimacy business strategy

(Source: Veit et al. 2014, pp-50)  

Consumer intimacy business strategy focuses on three basic factors such as better consumer retention, increasing consumer loyalty and addition of different referrals. In this strategy the business goal and business values are found to be complimentary to each other.  In other words, to achieve the pre determined business goals the information visibility are needed to be improved with the help of digitized information (Kim & Mauborgne, 2014). The automated service reduces the overall cost of the services. Therefore, this can be said that among these business strategies the cleaning trade service should adapt consumer intimacy business strategy.  

Business plan is referred to as a planning process that is adapted by different business organization to make commercial benefit from the marketplace. This online trade cleaning service uses Business to Business Ecommerce business model for developing their official website (Laudon & Traver, 2016). The B2B business model will help the website to make commercial benefit from the market place. This model will help the trade cleaning service providers to provide efficient services to its consumers.    

Value proposition

A value propositioning is referred to as a statement that helps to identify the benefits that the consumers will receive after using the service served by online trade cleaning service providers of Australia. This can measure the rate of profit margin. The value proposition model basically focuses two different components such as the product and the customer. This can be gained by the trade cleaning service after delivering effective values to the consumers (Fang et al. 2014). The ways through which the service will be able to meet the requirement of the consumers are as follows:

Improvement in the customer service to impress the consumers: The website must be designed with easy and attractive features so that the consumers feel free to use the website for their uses.

Building better consumer relationship management services: The official website must build effective CRM chain so that the consumers feel free while making interaction (Piller et al. 2014). Apart from, toll free number there must be a free platform, where the consumers and the executive of the service provider will be able to interact efficiently.

Optimization of the website profit margin: Considering the profit and service price of other business organizations, the trade cleaning company should focus more on the consumer need and not on the profit margin of the website.

 

Figure 2: Value proposition canvas

(Source: Fang et al. 2014, pp-420)

Revenue model

Growth revenue or business model is referred to a model that is widely used by different Ecommerce business organizations to understand whether the investment is utilized appropriately by the business or not. In order to measure this properly, in the project initiation phase the development team of the website is required to make a feasibility study by considering all the basic need of the website. Including staffs, software and hardware components are also needed, to develop the official website of the trade cleaning service providers. Therefore, before practical implementation of the project in the real world, a budget is required to be estimated. It will help the users to understand, that the overall gain is greater than the total investment (Nauwelaerts & Chakri, 2016). If the gain is found to be greater than the investment then the ROI will be referred to as high. In order to gain measurable profit from the competitive marketplace the basic components that are needed to be considered are as follows:

Value Proposition

Quality of the service: The quality of the service that is going to be served by the trade cleaning service providers are needed to possess higher quality (Cui & Pan, 2015). In addition to this, trustworthiness of the cleaners is another quality that must be served.

Affordable price margin: Before fixing the charge or rate for the cleaners it is necessary to visit the rate of other’s from the similar business category background. In order to gain effective business revenue, the service price is required to be lesser than others.   

All time services: The E-commerce website should serve all time services to the users so that they can get the affordable service regardless of their location and time.  

Competitive advantages 

In order to gain large competitive advantages over many Ecommerce service providers from the competitive marketplace, the trade cleaning service provider is needed to adapt different business strategies (Laudon & Traver, 2016). The consumers always rely on the service suppliers and the official website, aid them in the research and take competitive advantages of this situation by charging higher rate of price. In the internet market, a complete search of the services offerings is also possible but with no virtual cost is required. These requirements are as follows:

Strategy 1: Using social media: The official E-commerce website should use social media for promoting their services (Fielt, 2014).  In addition to this, they should also use blogs and status by creating an official fan page.  

Strategy 2: Using: Mobile application: Besides the Online official website, the trade cleaning service provider should also develop a mobile application so that, the users can access the application from anywhere.

Strategy 3: Offers: Apart from general service the company should also provide different offers time to time, it will help the business to build, large scale competitive advantages from the marketplace.

Organizational development

Based on the business type the organizational structure of the Ecommerce website is required to be selected and adapted by the business developers.  For developing the business plan all the phases are needed to be followed properly starting from the initiation phase up to the implementation phase. The business plan for the implementation is as follows:

Phase 1: Initiation phase

 Developing SMART business objectives and to increase the online service by 20 percent by the end of six months. In the initial phase the social media marketing strategies are also needed to be added to the system (Su & Chen, 2015). Proper resources are required to be selected by the developers so that it will be able to serve appropriate service to the users on time.

Phase 2: Developing inventory management and supply chain management system

In this phase the website must develop inventory management and proper supply chain management system by selecting proper vendor for resources and the suppliers to whom the service will be served (Pachidi, et al. 2014). Besides customer care toll free number the website must allow the consumers to contact with the company executives or top management team whenever required.

Revenue Model

Phase 3: Service and distribution:

 As per the needs of the consumers the, services of the online trade cleaning service is required to be planned. Depending on the demand the number of cleaners should be hired by the company.

Phase 4: Developing management team and employees:  

The entire system is required to monitored and controlled by the higher authority of the business. He must look into whether as per the booking entry the services are serving to the consumers or not. If it is found that the business to deliver so then, it should focus on other aspects to develop this system.

Phase 5: online payment and risk management: 

As in this system the payment is done through online payment thus, financial risks might occur by third party entrance. In order to mitigate these issues the business must include risk management checklist and proper authentication to prevent unauthorized user entrance.

Various business models are available and used by the business developers and based on the business type, different business organizations adapts different business models (Laudon & Traver, 2016). There are mainly eight different kinds of business models are utilized by the E-commerce business developers (Wang et al. 2016). However, all the models are needed to maintain the click stream behavior. Click stream behavior is referred to as the entire process flow of the E-commerce website.

For official E-commerce websites click stream analysis is referred to as the process of collecting analyzing and report aggregate on which pages the official consumers are visiting to check the service category. Starting from the home page up to the final payment process is collectively known as the process of click stream. Two different levels of click stream analysis are found in the field of Ecommerce business application such as traffic analysis and Ecommerce analytics. In order to understand the effectiveness of the developed website the slick stream analysis is done by the developers and some time by the management to mitigate its drawbacks (Lambert & Davidson, 2013). All the data of click stream behavior are very much useful from the from the marketers aspect. The process analysis is elaborated below:

Click path optimization: With the help of this data the marketer can the data regarding the number of orders and the details of the consumers from the registered consumers list. Not only this, even the number of booking and feedback from the consumers can also be monitored with the help of click stream data.  With the help of the E-commerce click stream data the marketers can easily quantify the behavior of the users of the trade cleaning website. Apart from this, the total number of booked services or even the cancelled booking can also be tracked by the marketers by utilizing click stream behavior (Veit et al. 2014). Collectively, it can be said that the marketers can optimize the click path by making required changes to the site by reducing the rate of bounce and enhancing the conversions.  

Market basket analysis: The consumer purchasing behavior can be easily understood by the marketers. In order to get more revenue, the marketers can even follow other way to reach the destination (Su & Chen, 2015). It also helps to understand the basic need of the consumers. The consumers can also get effective path to but their desired products.

Website resource allocation: It helps the marketers to understand the most suitable path of the website through which optimal revenue result can be gained. Even the unnecessary website paths can also be deleted from the site.

Market segmentation at granular level: In order to gain more market profit, the consumers are needed to be segmented. The website provides different set of services to the users such as subscription for cleaners for a week, for a month or for a single day. Based on the quality of demand the prices are also distributed (Cui & Pan, 2015). In order to personalize the user experiences the marketers can even gain actionable insights with the help of the click stream behavior. 

Conclusion and recommendations 

From the overall discussion it can be concluded that, the online official website of trade cleaning service will be able to get commercial benefit after meeting the desired demand of the consumers with additional service features, experiences at the same time. Among different E-commerce business strategies, this website follows the customer intimacy strategy, it means that the website is strictly focused to meet the consumer requirement with reasonable price and efficient service regardless of time and location of the consumers. This website uses B2B business model to gain market growth. Apart from this, for developing the security with the website a business plan is also developed. Lastly, use of click stream behavior for the business is also developed. However, certain negative impacts are also found and in order to mitigate those issues recommendations are also provided and those are as follows:

Authentication: The personnel and banking details of the users should be secured with proper authentication operation so that none of the unauthorized user could access those.

Skilled and trustworthy cleaners: The cleaners are need e to be trustworthy enough so that the users feel free to make their entry in their houses.

Customer care service: The online customer care service is needed to be very much efficient so that while required the users can easily interact with the authority to demand for their instant need.

Payment security: As the business serves online payment process through debit and credit card, thus the banking details are needed to be secured enough from the external attackers.

References 

Cui, M. &Pan, S.L., 2015. Developing focal capabilities for e-commerce adoption: A resource orchestration perspective. Information & Management, 52(2), pp.200-209.

Fang, Y., Qureshi, I., Sun, H., McCole, P., Ramsey, E. &Lim, K.H., 2014. Trust, Satisfaction, and Online Repurchase Intention: The Moderating Role of Perceived Effectiveness of E-Commerce Institutional Mechanisms. Mis Quarterly, 38(2), pp.407-427.

Fielt, E., 2014. Conceptualising business models: Definitions, frameworks and classifications. Journal of Business Models, 1(1), pp.85-105.

Galliers, R.D. &Leidner, D.E., 2014. Strategic information management: challenges and strategies in managing information systems. Routledge.

Huang, Z. &Benyoucef, M., 2013. From e-commerce to social commerce: A close look at design features. Electronic Commerce Research and Applications, 12(4), pp.246-259.

Kim, W.C. &e Mauborgne, R., 2014. Blue ocean strategy, expanded edition: How to create uncontested market space and make the competition irrelevant. Harvard business review Press.

Lambert, S.C. &Davidson, R.A., 2013. Applications of the business model in studies of enterprise success, innovation and classification: An analysis of empirical research from 1996 to 2010. European Management Journal, 31(6), pp.668-681.

Laudon, K. & Traver, C.  2016, E-Commerce Global Edition (12e), Pearson Higher Ed USA, ISBN: 9781292109961

Nauwelaerts, Y. &Chakri, S., 2016. The Role of E-Commerce and M-Commerce in the International Strategy of Fashion Companies: A Qualitative Research in the Belgian Fashion Industry. Innovation, 2.

Pachidi, S., Spruit, M. &Van De Weerd, I., 2014. Understanding users’ behavior with software operation data mining. Computers in Human Behavior, 30, pp.583-594.

Piller, F., Harzer, T., Ihl, C. &Salvador, F., 2014, January. Strategic capabilities of mass customization based e-commerce: Construct development and empirical test. In System Sciences (HICSS), 2014 47th Hawaii International Conference on (pp. 3255-3264). IEEE.

Shi, C., Fu, S., Chen, Q. &Qu, H., 2015, April. VisMOOC: Visualizing video clickstream data from massive open online courses. In Visualization Symposium (PacificVis), 2015 IEEE Pacific (pp. 159-166). IEEE.

Su, Q. &Chen, L., 2015. A method for discovering clusters of e-commerce interest patterns using click-stream data. Electronic Commerce Research and Applications, 14(1), pp.1-13.

Veit, D., Clemons, E., Benlian, A., Buxmann, P., Hess, T., Kundisch, D., Leimeister, J.M., Loos, P. &Spann, M., 2014. Business models. Business & Information Systems Engineering, 6(1), pp.45-53.

Veit, D., Clemons, E., Benlian, A., Buxmann, P., Hess, T., Kundisch, D., Leimeister, J.M., Loos, P. &Spann, M., 2014. Business models. Business & Information Systems Engineering, 6(1), pp.45-53.

Wang, G., Konolige, T., Wilson, C., Wang, X., Zheng, H. &Zhao, B.Y., 2013, August. You Are How You Click: Clickstream Analysis for Sybil Detection. In Usenix Security (Vol. 14).