Report On Coventry Books E-Commerce Model

Coventry Books E-Commerce Framework

Introduction
This report seeks to analyze and summarize the overall framework within which Coventry Books would incorporate an e-commerce approach into its current operations. Coventry Books is a traditional brick-and-mortar retailer which operates purely on its physical premises and it has no online presence. Therefore, this report seeks to highlight the main considerations that the company should focus on in introducing an online approach in its sales and marketing activities. The main considerations that have been addressed in this paper include an introduction of the company to the various e-commerce models and frameworks that include the B2B and B2C. This report will also analyze the main opportunities, benefits and challenges that the company is likely to encounter in its e-commerce approach. Lastly, this report will also review the consumer behaviors and perceptions from an e-commerce perspective.

Theories, Models, Frameworks and Application of E-commerce

According to Steve (2013, pg. 40), e-commerce is defined as the execution of a significant or entire component of an entity`s commercial operations through electronic media such as the internet. In this regard, business entities such as Coventry Books can operate their e-commerce activities by serving their customers through two main e-commerce models. These models are the business-to-business (B2B), and the business-to-consumer (B2C) models. According to Steve (2013, pg.40), the B2B model refers to the commercial transactions between two business entities such a manufacture and a wholesaler. On the other hand, the B2C model is more ideal for Coventry Books because it directly relates to the nature and scope of the entity`s operations. In this regard, the B2C model is defined as the process through which business entities sell their products and services directly to their targeted consumers (Hutt, 2012, pg. 405).
According to Lee (2001, pg. 355), there are several key considerations that a business entity such as Coventry Books must make in creating a sustainable and effective e-commerce strategy for its subsequent operations. Key among these attributes is the creation of an e-commerce framework that enables effective communication and interactivity between the company and its targeted consumers. Secondly, the company must ensure that its preferred e-commerce model duly creates and delivers economies of scale from a network connectivity perspective. Thirdly, an effective e-commerce model for a business entity such as Coventry Books must also facilitate the effective movement of the underlying merchandize from the seller to the buyer. In this regard, an e-commerce model must ensure that it ultimately guarantees the effective existence of a B2C platform between the two concerned parties (Lee, 2001, pg. 355).

Opportunities within E-Commerce Platforms in Relation to Online Retailing

According to Sperdea and Enescu (2011, pg. 195), there are several opportunities that are created by e-commerce platforms, and which may not inherently exist within the traditional brick-and-mortar business models. Key among these factors is the creation of economies of scale especially in reference to an entity`s sales and marketing activities. These economies of scale are attributed to immense marketing capacity, which is created by the e-commerce platforms, and which enables business entities to extend their marketing reach to unlimited possibilities (Sperdea and Enescu, 2011, pg. 195).
Secondly, e-commerce platforms normally enable business entities such as Coventry Books to create new income and revenue sources that did not previously exist under the traditional brick-and-mortar models (Sung, 2006, pg. 1167). These new sources of revenue are attributed to opportunities such as web advertising, the creation of customer referral programs, the charging of commissions to access websites, and the creation of paid website membership plans among other opportunities. In this regard, Coventry Books will be able to tap into this revenue sources and increase its overall profitability by creating and implementing an e-commerce platform going forward.
Thirdly, the e-commerce platforms also tend to create economies of scope opportunities for the business entities that engage in this model of sales and marketing for their products and services (Sperdea and Enescu, 2011, pg. 195). Economies of scope refer to the overall decline in the cost of an entity’s operations due to the introduction of cost effective operational strategies (Sperdea and Enescu, 2011, pg. 196). Accordingly, Coventry Books will be able to market its products to a wider customer base through a cheaper distribution channel by incorporating an effective e-commerce platform into its operations.

Challenges of E-commerce Models in Relation to Online Retailing

According to Sung (2006, pg. 1167), there are several challenges that are faced by both business entities as well as their customers in the process of the execution of commercial transactions through the different e-commerce avenues. Key among these challenges is the security of the online transactions both on the part of the seller as well as the individual buyers. The critical contentions relating to e-commerce security are manifested by compromised system networks that may lead to the leaking of private information relating to the clients. In recent times, cyber-attacks targeting major corporations have also become a common occurrence within e-commerce platforms (Sung, 2006, pg. 1168).
The second main challenge of e-commerce operations for both corporate entities as well as their customers relates to the regulation of the industry. According to Sung (2006, pg. 1169), regulation mainly refers to the creation of a legal framework within which the concerned parties can use for legal redress in the occurrence of any disputes and disagreements. As a result, many participants of e-commerce transactions perceive these platforms to be relatively risky because of the possibility of losses that may be attributed to fraudulent transaction procedures by some of the concerned parties (Sung, 2006, pg. 1170).
Thirdly, e-commerce platforms are also plagued with challenges relating to the recognition of essential e-commerce documents that include digital signatures. In this regard, some market participants have not fully embraced this new concept, and this hesitancy has resulted in the breakdown of some e-commerce transactions and relationships between the concerned parties, that is the buyers and the sellers (Sung, 2006, pg. 1171).

Current Consumer Behavior and How to Satisfy Consumer Preferences

According to Panda and Swar (2013), the primary objective of the creation of the e-commerce platforms by business entities is to facilitate the process of the accessibility of their products by customers in a more cost-effective and convenient manner to both parties. As a result, the perceptions, attitudes and behaviors of the customers who are involved in e-commerce transactions is primarily pegged on the platform`s ability to deliver the said accessibility and convenience.
However, according to Stephen and Toubia (2010, pg.217), there are several other considerations and factors that affect the customers` perception and preferences within the e-commerce market place. These factors include the customers` perception of the safety and confidentiality of the personal information which they provide while undertaking e-commerce transactions. In this regard, consumers are likely to embrace and adopt e-commerce options that they feel provide them with a guarantee of safety and privacy in relation to the customers’ sensitive and private information.
Secondly, customers also prefer e-commerce platforms that provide the convenience and safety which is associated with the traditional brick-and –mortar models, in the process of their commercial transactions. This convenience refers to the ability to undertake several functions such as to return products and services, and the provision of a safe payment mechanism which protects them from losses due to unfavorable fraudulent activities by some market players. Lastly, customers tend to prefer e-commerce platforms that enable them to examine the products and services that they wish to purchase before undertaking the transactions, in the same way that they would if they were to buy the products from a traditional brick-and-mortar business premise (Stephen and Toubia, 2010, pg. 217).

Use of Social Media and Social Commerce in Satisfying Consumer Preferences and Behavior

According to Riala and Nummelin (2013), social media platforms provide an effective framework for the satisfaction of the tastes and preferences of consumers as a result of their inherent characteristics. In this regard, the use of social media platforms such as Facebook, Twitter, WhatsApp and Instargram among many others to execute e-commerce transactions is referred to as social media commerce (Riala and Nummelin, 2013).
The critical success factors that are involved in the running of an effective social media commerce platform include value addition from the perspective of information, convenience and price targeted at the social media users by the concerned business entities (Sung, 2006, pg. 1172). In this regard, the availability of the information to the consumers will enable them to make appropriate decisions in relation to their tastes and preferences for the products and services that they wish to purchase. Consequently, their underlying preferences and expectations will be met by the selling entities through this approach (Riala and Nummelin, 2013).
Secondly, social media platforms can also be used by the concerned business entities to satisfy the tastes and preferences of their targeted consumers by ensuring that the entities are able to segment the targeted markets accordingly form a geographical perspective (Sung, 2006, pg. 1172). In this regard, social media users within a particular geographic region can be able to exchange ideas and feedback among each other in relation to a particular product or service which they purchase from an underlying business entity. The said entity can facilitate such interactions by ensuring that they create the appropriate social media platforms that will bring together these targeted consumers within the specified geographic location.

Conclusion

This report has highlighted in detail the main components and constraints that are likely to be encountered by Coventry Books in its quest to introduce an e-commerce platform into its operations. Through this analysis, the paper has discussed several related issues that include the perceptions, behaviors and expectations of consumers within the e-commerce operational space. In this regard, the paper adequately discussed the impact of social commerce to both the company as well as its customers within the e-commerce framework. This report has also discussed other issues that included the opportunities and challenges that Coventry Books is likely to encounter within the e–commerce platform. The summation of the comprehensive analysis which is contained in this paper is expected to create an ideal framework for the company tough which it will implement and execute its e-commerce operations going forward.

Reference List

Hutt, M., 2012. Business Marketing Management: B2B. New York: Cengage Learning
Lee, C.S., 2011. An analytical framework for evaluating e-commerce business models and
Strategies. Internet Research: Electronic Networking Applications and Policy,
Volume 11, Number 4, pp. 349-359 (Accessed 18 March 2015)
Panda, R., and Swar, B. N., 2013. Online Shopping: An Exploratory Study to Identify
the Determinants of Shopper Buying Behavior. IJBIT, Volume 7, Issue 1
(Accessed 18 March 2015)
Riala, M., and Nummelin, T., 2013. Developing and testing an online tool for probing customer
Preferences. International Journal of Market Research, Vol. 57 Issue 1
(Accessed 18 March 2015)
Sperdea, N., and Enescu, M., 2011. Challenges Of Managing E-Commerce. Economics,
Management, and Financial Markets, Volume 6(2), pp. 194–199 (Accessed 18 March
2015)
Stephen, A. T., and Toubia, N., 2010. Deriving Value from Social Commerce
Networks. Journal of Marketing Research, Vol. XLVII, pp. 215–228
(Accessed 18 March 2015)
Steve, R., 2013. Mobile Commerce. How to leverage B2C business value through
Electronic /mobile commerce for China media express holdings. NJ: GRIN Verlag
Sung, T. K., 2006. E-commerce critical success factors: East vs. West. Technological
Forecasting & Social Change, 73, pp. 1161–1177 (Accessed 18 March 2015)