Term Paper on "Building an Ecommerce Business"

Term Paper 10 pages (3920 words) Sources: 1+

[EXCERPT] . . . .

Building an E-Commerce Business

It is important that all vehicle owners get wheels that are liked by them, at the lowest possible and within the fastest possible period. It is not enough that wheels function well as probably most wheels in the market now present do, but it is important that buyers check out how the wheels will look on their particular vehicle. The main effort from this new organization will be to make the cars look more beautiful. Even with this being the main effort, the organization will have to look at the business and provide all facilities that are being provided by other major sellers of wheels through the Internet. At the same time, there are some 600,000 odd sites on the Internet dealing with wheels and related material. The important point is to determine what was called "unique selling proposition." While there are a number of sellers, the main emphasis by them for sales is on price, but that will get a new entrant in a long queue and make it very difficult for the organization to reach the top. That is the reason, it is important to decide why buyers should the product that is being sold by this organization, though in practice the product may be no different from the items sold by others. This difference can only come from image, and that is what has been sought in this effort.

Industry Analysis

The concept that is being talked about is not something that was not discovered now; it has existed since 1983 when Superbuytires was started. That organization was not a product of the present age, and their main effort was on selling of wheels. The organization is situated at 9040 E. Rosecrans Ave, Bellflower CA 90706 USA. Their telephone numbers are given as (562) 6030-5848, with two fax numbers. The site is their link to their dealers and the site has facilities for their dealers to log on. They try to sell Asanti and Dub wheels in their own space, while others may advertise in the site. Special fitting on different brands of cars may also be collected from the site. On going through the site, it is clear that they are selling wheels as they the facilities that they have are regarding different brands of wheels that are available, and they expect customers to know what wheel they would like for their car. Only one special section exists, where the fixed wheels on a Mercedes 8 can be seen. (Superbuytires)

Thus the greatest efforts are on selling of wheels, while the efforts of our new site will be on fixing 'the wheel most liked by the owner' on the car. The efforts of the present organizations are to sell wheels, while the efforts of the new planned site will be to satisfy the mental desire for vehicle owners to beautify their cars. This is expected to broaden the market for wheels, as many of the car owners cannot afford to go in for a new car, but they would like to make their cars more beautiful and thus mentally satisfy themselves that they have 'improved' their cars. Thus one may say that we are not talking to the section of owners who want more power and other specific things from their cars, but we are looking at car owners who want more beauty from their cars. We are not in the business of selling wheel sets and related material, but we are in the business of selling beauty for cars.

Competitive Analysis

There are sellers of wheels who are more oriented to selling of wheels, and one such organization is VCT wheels. They offer the customers a lot of choice in brands Absolute, ADR, Akita, Akuza, Alba, Alt, American Racing, Armano, Asanti, Baccarat, Boze, Cabo, Daat, Dakar, Damani, Davin, DBL-G, DeCorsa, Demoda, Detata, Devino, Diablo, Diamo, Dip, DOA, Dolce, Donz, Driv, Dub, Dvinci, DVS, Eco, Edge, Elite, Emo, Enkei, Erotica, Etx, Excessspin, Ferretti, Fierro, Foose, Forte, Foxx, Fusion, G-Racing, Gazario, Gen-X, GFG, Gianelle, Giovanna, Greed, Helo, Ice Metal, Ion, Jesse James, Kaizer, Kaotik, Katana, KMC, KMC Racing, KMC XD-Series, Koky, Kronix, Kruz, Lenso, Lexani Limited, Lionhart, Lorenzo, Mazzi, MHT, Mob Mondera, Nakayama, Neeper, Niche, Nitza, NS Racing, Oasis, Omega, Panther, Pinnacle, Polo, Racing Hart, Rozzi, RSS, RS Limited, Sacchi, Sendel, Sinister, Spinning, Sporza, Stern, Strada, Streetspin, Tenzo, Tezzen, TIS, TSW, UAS, Vault, VCT, Veloche, Volt, X2O, Xoni, Zinik. This is a total of 106 brands, and even more may be available. These are only the regular brands that are available there. They also have special brands like Scarface, Capone, Gitano and Kingpin which are not regular brands which are available at other places, but are made especially for this organization. This is probably designed and delivered specifically for this organization as these are made especially for the customers that this organization targets - "you're not the type of Gangsta they want to mess around with." (VCT Wheels) They also claim to have designed some original changes in wheels of SUVs and this was a wheel with deep lips and distinctive styling. They also say that they have new styles coming out soon.

Then the organization starts describing why it thinks customers should come to them - they say that they sell custom wheels and spinners at really wholesale prices. According to the organization they try to bring custom rims at very low prices for the customers and their prices are lower than the manufacturer's suggested retail prices by more than 30 to 50%. To the customer this would mean much lower prices than what they would pay even at the local shop for the same rim. They are able to do this as they bulk the wheel rims in bulk and pass on the benefit they get to their customers. This is what makes their specialized rims even cheaper than the prices of lower quality material that one would get from the local shop. How the difference in quality comes is not made clear. The point remains however that they sell at lower prices. This business practice is maintained by them for they want the business from the customer for many years to come and not only for the present set of changes that the customer desires. According to them, this also brings them a lot of customers through reference from other customers.

According to them their service at the shop is also excellent, and this is what has made them the biggest sellers of wheel sets in the nation. The sets they sell to the customers are checked by their mechanics before the sets leave the shop. They also try to meet the specifications of the companies through "use plus-sizing techniques to match up your new wheels to stay as close to factory stock heights." (VCT Wheels) This means that the wheel that is used is of a bigger size and that permits the tire to become smaller. This effect is recommended by them, and they are willing to pack it within covering material for a wheel and tire package with complete mounting and balancing and then deliver the set to the customer. For this purpose they have the readymade machines for hunter mounting and balancing. They also use value added items like chrome value stems, stick on weights and road force balancing equipment.

For wheels which are to be just shipped to a customer, they are shrink-wrapping and packaging the material for the delivery to be safe. They even take insurance for the package while it is under shipping. When the customer orders wheel spinning adaptors apart from wheels, the items are shipped separately for safety reasons. The organization claims that they are the oldest among all the organizations in the business. To improve their sales, the organization is now accepting American Express cards, Discover cards, MasterCard, Visa credit or check cards and Western Union cards. (VCT Wheels)

Thus it is clear that the organization has made a lot of effort in selling their products and the same facilities will have to be offered by any new entrant in the business.

This makes it clear as to the facilities that will have to be offered by any new organization competing with them and these can be summarized for easy reference. First point is that the organization will have to offer 106 or so brands that are available, and there has to be promises of new brands being available when they are ready. Second point is that the seller should be very conversant with wheels and even made some changes to the design to prove their competence. The third point is that they claim to sell at low prices which are achieved by purchase at wholesale prices. The fourth point is that they get a lot of references from satisfied customers. The fifth point is that they claim use of latest technology, as that seems to impress the customers favorably.

Along with this is their use of add-ons which seem to… READ MORE

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