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Designing Your eBusiness
Plan
BACKGROUND
Over the course of the semester,
you will be planning, designing and managing an eBusiness operation which
integrates eBay auctions, direct sales from your eCommerce site, and a back end
MS Access database to capture sales and customer information. You should
begin planning your operations now so as to be well prepared for the design and
management phases of the project. Due to our size, short time frame,
available design tools and very limited financial resources, there are
several Constraints within which we must
work. They are described in the following section. You will also have
access to the resources of Murray State's eBusiness Incubator
Club, which you will find describe below. However, within these
constraints, we do have substantial room for creativity and innovation.
The Decision Factors section below describes
some of the decisions you must make in determining the strategies and tactics
you will implement in your site. You should begin discussing these issues
in your team IMMEDIATELY so you will be ready to begin your eBusiness operations
on schedule.
CONSTRAINTS
These are the constraints within
which you must plan and implement your eBusiness operation,
| Pre-defined
business model |
In
industry parlance, you are a "Net play" or "pure play"
with no "brick and mortar" operations, and therefore no
"click and mortar" or "bricks and clicks" integration
function. While this makes market entry relatively simple and
inexpensive, it also creates a credibility barrier with users. The
eBay structure helps you address that and, should you choose to use it,
the MSU eBusiness Incubator Club helps you establish the purpose of your
site in users' minds. |
| Limited
financial resources |
Unless
your team has access to independent resources, you have very little to
invest in inventory, development, promotion and/or support systems.
This will affect all aspects of your operation and implementation
plan. |
| Short
"time to market" |
You
must implement your eBusiness operations in a very short time by normal
business standards. This will limit your ability to design and test
the site extensively before implementation. This, in turn, places a
premium on simplicity and clear organization in the design of your
operations. |
| Limited
payment options |
You must implement a credit card
payment option for your users. However, you will not be able to
establish your own merchant account or use a direct payment gateway for
your site. Thus, you will not be able to authenticate credit card
numbers and finalize transactions in real time. This will place
great importance on prompt email contact with buyers to confirm
transactions and shipping arrangements. |
| Limited
"backend systems" |
You
will design an MS Access backend for your operations, but it will not be
fully integrated or automated with your frontend sales systems.
While this is a significant limitation, it also spares you the
difficulties firms encounter in trying to integrate eBusiness selling and
transaction systems with their existing "legacy" accounting and
inventory control systems. |
| Limited security
options |
The payment system you implement will be secure, with
that security provided by the payment processor. Security options
for the remainder of your site are far more limited. |
MSU'S
eBUSINESS INCUBATOR CLUB AND ITS RESOURCES
E-Business Incubator Club
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Mission
Statement
The graduate student members of the E-Business Incubator Club of Murray State University
are committed to exploring opportunities in E-Business. We seek to actively learn and
participate in the various aspects of E-Commerce and E-Business. We will pursue these
actions by buying and selling items over the Internet as a club for experience and
fundraising opportunities that will help sustain future club activities. The E-Business
Incubator Club is NOT seeking to operate as a business for profit. The primary goal of
the E-Business Club is to foster a greater understanding of the area of E-Business and
to allow students to actually enter the arena of E-Commerce. The Club will also seek
to raise the awareness of E-Commerce in other organizations and clubs in Murray State
University’s service region.
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Club
Resources
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Inventory - A few miscellaneous items are
available for your first eBay auctions
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PayPal Account - The club maintains a PayPal
account for accepting (and occasionally making payments
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Web Site - The club maintains a Bizland.com
Web site with email accounts and links to your team's site
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IMPLEMENTATION DECISIONS
There are several decisions you must make before implementing your
site. Ideally, you would determine your eBusiness business model and
marketing strategy prior to making tactical decisions related to products,
transactions and fulfillment. However, given our resource base, we must
address the following issues simultaneously and quickly.
| What will you sell? |
Normally, this decision would
flow from the following questions. However, our limited time frame
dictates that it be the primary decision you will make. You have
several options here, including, but certainly not limited to the
following.
- Items belonging to team members, you would be a "Garage
Sale" site
- Items you purchase from the Wholesale category of eBay
- Items you acquire from a local source (MSU Art Club, MSU Ceramics
Club, MSU International Students, etc)
- Items purchased from the MSU eBusiness Incubator Club
Ideally your source of products would allow you to identify a theme
or identity for your site |
| To whom will you sell? |
Follow Morley's planning model to
identify:
- your target market and
- marketing objectives
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| How will you sell? |
- Which items will you offer on eBay? on your independent
site?
- How will you integrate these parts of your eBusiness?
- How will you use eBay to encourage users to visit your independent
site
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| Who is responsible for each
item? |
Each item you offer for sale,
whether on eBay or your independent site, should be assigned to one team
member. That person will be responsible for:
- managing the sale,
- answering questions from users/bidders/buyers,
- confirming receipt and amount of payment,
- arranging shipment, and
- confirming shipment to the buyer of the item.
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| What payment methods will you
use? |
You must make arrangements to
accept credit card payments from buyers, whether they purchase on eBay
or from your independent site. The best way to do so is through a PayPal
Business Account, though you are free to use other systems of your
preference which meet this requirement. If you wish to manage this
function on your own, you may use any option which meets this
requirement. You may also use the MSU eBusiness Incubator Club's
PayPal account to accept (and occasionally make) payments. If you
select the latter option, you must coordinate your plans with the
professor and graduate assistants for the course so they can make the
necessary arrangements. |
| What shipping methods will you
use? |
You must arrange for prompt,
reliable shipping of items sold. In the resources for designing
your site, you will have access to templates incorporating UPS rate
determination and tracking functions into your site. These tools
are optional. You may use whatever shipping method you think
best. You must, however, communicate your shipping policy and
costs to users in both your eBay and independent sites. |
| How will you promote your eBusiness site? |
Chapters 13 and 14 of the text describe the most
common methods for site promotion. You have access to some of
these services through the listings on the Web
Authoring Resource page. You must decide how to attract users
to both your eBay auctions and your independent sites. Obviously,
you will also be using eBay as a promotional method for your independent
site. |
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