CIS1101 Assignment 2
For CIS1101 assignment 2 for GOGAL Clothing,
Letter of transmittal
Executive summary
Development of online business for
TARDIS Travel is important so that online presence of their business can help
to boost revenue and customer satisfaction. TARDIS has adopted agency and
merchant business model in order to manage high bargaining power, high revenue
and higher number of transactions through their portal. Marketing strategy
adopted by TARDIS is such to develop competitive advantage by getting into
eco-friendly tourism. Promotional strategy for TARDIS integrates various media
such as mass media, online advertisement, social media and outdoor media etc.
Major ethical and legal implications in the proposed online business of TARDIS
include manipulative advertisement, trust & anonymity, data theft, access
to information and ownership of information etc. Technology, software and
hardware requirement would be taken care so as to develop an efficient online
business portal for TARDIS travel.
Table
of Contents
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1.0 Introduction
TARDIS travel is into offering
services to the consumers for making their travel arrangement and launching its
online services so that consumers can make booking for their travel arrangement
through online resources. Selection of online business model is the key to
success so that online portal of the organization get desired success and
organization can achieve its aim for enhancing business revenues. Present paper
would also evaluate the suitable marketing and promotional strategy which would
be helpful for TARDIS in order to implement for their consumers. Further legal
& ethical considerations, technology infrastructure, software requirements,
challenges for online business and recommendations for online business model
would be developed.
2.0 Online business for TARDIS travel
2.1 Investigate online business models to identify a suitable model for
TARDIS Travel
Business model for an organization
define how it create, deliver and capture value for various stakeholders
involved in the business. There are several business models which can be
explored by TARDIS travel in order to select a particular business model. Some
of the major online business models can be presented as below along with their
advantage and limitations:
§ Pay per use: Pay per use business
model would require users to make payment for the particular product or for
lifetime in case of a service. Example of pay per use business model would
include Iphone premium apps and Microsoft office etc.
§ Ecommerce model: In Ecommerce model a
site is developed which facilitate buying and selling process for the
consumers. The revenue of organization comes from the products and services
sold at the site. This model is also known as the merchant model. Some of the
businesses in this category include Amazon, LegalZoom.com and Louis Vuitton
etc.
§ Advertising model: In the
advertisement model of online businesses revenue is generated by the business
organization through paid advertisement given by the advertisers. Some of the
major examples of such online businesses would include Twitter and Google etc.
§ Subscription model: Subscription
model for online businesses would take monthly charge from the consumers for
availing particular service from the business portal. Example of businesses
based on subscription model would include Adobe, Amazon Prime and Netflix etc.
§ Freemium model: In this online
business model initial services offered at portal would be given at free of
cost but any upgrade or additional features would have to be availed by paying
charges to the online business. Examples for the business organizations
adopting this business model would include Pandora, Dropbox and Skype etc.
§ Brokerage model: Brokerage online
business model would facilitate the buying and selling process for the goods
between two or more entities through its portal. This business model is also
known as agency model. Such business portals can be of B2B, C2C and B2C nature.
Examples of business organizations running on this model include Orbitz and
Ebay etc (Panday, 2012).
§ Infomediary: An infomediary is the
information portal developed on behalf of producer for goods or services and
potential consumers. Some of the business models adopting this business model
include Nielsen and Commission Junction etc.
For the present context of TARDIS
travel it is recommended to adopt dual business model i.e. merchant model or
Ecommerce model and agency model or brokerage model. Under the merchant model
or ecommerce model TARDIS should make booking for the hotel, airline and other
travel services through its suppliers. TARDIS would act as the merchant of
records by booking the travel services offered by its suppliers. Under the
agency model TARDIS would act as an agent in the transaction and passes the
reservation made by customer to the airline or hotel company. A combined
business model for agency and merchant has been recommended so that TARDIS can
boost its revenue and develop competitive advantage through the business model
adopted by the organization. This business model would be appropriate as it
would build volume at one side while at the same time this business model would
be helpful in gaining higher consumers and offering wider choices for consumers
at less investment.
Some of the major benefits which
would be gained through merchant business model for TARDIS travel would include
high bargaining power due to bulk purchase, higher revenue and good net profit.
Benefits of agency model for TARDIS travel would include no heavy investments
in development of infrastructure, wider choice for consumers and preferences
from the suppliers due to higher control on pricing.
Some of the major limitations for
merchant model would include requirement for bulk investment in order to
develop infrastructure, difficulties in business expansion with hotels and
would not be preferred by hotel owners due to lesser control on cost.
Limitations of agency model for TARDIS travel would include lesser bargaining
power in hands of TARDIS, can’t be mixed with other packages and lower profit
margins.
2.2 Identify and discuss a suitable marketing and promotion strategy and
discuss the benefits and challenges of your recommended strategy for TARDIS
Travel.
Marketing strategy
Promotional strategy
2.4 Describe and discuss the implications of the legal and ethics issues
that might arise in conducting this business online.
2.5 Explain the technology infrastructure, including the hardware
requirements, which would be required.
2.6 Identify and explain the purpose and function of the type of software
that would be suitable for TARDIS Travel.
2.7 Identify the advantages and challenges of taking this organization
online.
Advantages of taking TARDIS online can be given as under
2.8 Based upon the outcomes of the above investigation make clear
recommendations for this online initiative.
Conclusion
References
Mangat, H. (2012). Legal and ethical issues in e-commerce
[online]. Available at: http://www.unext.in/assets/Pu18MS3015/Ecom/ecom_session14.pdf [Accessed on 10th October 2014]
Jim W.A. (2013). Marketing – Promotion strategy [online]. Available at: http://www.smallbusiness.wa.gov.au/marketing-promotion-strategy/ [Accessed on 10th
October, 2014]
Alsalloum, O. (2011), IT infrastructure – Hardware and software
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Khurana, A. (2012). Advantages of Ecommerce [online]. Available
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2014]
Panday, P. (2012), Business and revenue models in e-commerce
[online]. Available at: http://www.slideshare.net/pranaypanday/business-and-revenue-models-in-ecommerce [Accessed on 17th January 2015]
Tkacz, E.; Kapczynski, A.
(2009). Internet —
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Chaudhury, A.; Kuilboer, J.
(2012). e-Business and e-Commerce Infrastructure.
McGraw-Hill. ISBN 0-07-247875-6.
Miller, R. (2012). The Legal and E-Commerce Environment
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Appendix
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