Comparison of 4 businesses in e business categories.

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MOHAMMAD ALI JINNAH UNIVERSITY
FINAL PROJECT REPORT ON DETAILED ANALYSIS OF
ECOMMERCE
E-Business
Section: A
Submitted to Sir Manoj Kumar
Sahrish Darjat Sp10-BB-0066
Umaima Siddiqui Sp10-BB-0075
Date: 1st December 2012

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TABLE OF CONTENT
Introduction…………………………………………………………………………………pg3
Category of E-commerce……………………………………………………………………pg3
Issues faced in B2C category………………………………………………………………..pg4
Porter’s Value chain model…………………………………………………………………pg4
Porter’s Model of competitive forces……………………………………………………….pg5
Internet Business Model…………………………………………………………………….pg6
Online Payment Method…………………………………………………………………….pg8
Implementation of 7c’s………………………………………………………………………pg8
Framework for market opportunity………………………………………………………..pg10
Segmentation Approach…………………………………………………………………….pg11
Delivery System………………………………………………………………………………pg12

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INTRODUCTION:
TheStyling Room.co.nz offers customers the convenience of purchasing complete seasonal wardrobes from one
website - with the added benefit of styling notes on each individual product. The Styling Room prides itself on
superb customer service, easy to use website and no quibble return policy. If you have ever wanted to overcome
your fear of online shopping this is the place to start.
The Styling Room is a leading online supplier of NZ labels Ketz-ke and Millicent featuring all the latest
spring/summer styles.
Daraz.pk offers a variety of brands under one roof. It caters to a huge market in Pakistan.
Mariab.pk is one of the well known designers who is catering in Pakistan and other foreign countries. Providing
innovative designs and giving consumers a chance to explore them through their well managed e-store.
Saadiamirza is also a designer who has focused to cater to Pakistan and London. She has given some samples online
but mostly deal offline through appointments and phone calls.
CATEGORIES OF E-COMMERCE:
The stylingroom.co, daraz.pk , mariab.pk and saadiamirza are in Business to Consumer (B to C) category.
Stylingroom.co.nz and Daraz.pk are additionally dealing with the Business to business (B to B) by making deals,
contract or partnership with other company or site.

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ISSUES FACED IN CATEGORIES OF E-COMMERCE:
The issues are rely on same which normally were use to while offering or dealing in B to B and B to C category by
thestylingroo.co.nz.
They are mostly dealing and involving in B to C category so here discussing its issues which are:
 Leveraging the firms logical systems
 Pricing and managing online transactions
 Optimizing communication key to consumer markets
 Achieving excellence through services
PORTER’S VALUE CHAIN MODEL:
Supporting Activities
 Firm Infrastructure: Offices, outlets , factories
 Human Resource Management: Employees and textile labors
 Technology Development: Dyeing, spinning, Weaving ( Quality management)
 Procurement: Stitching , Packing
Primary Activities:
 Inbound Logistics: Cloth material
 Operations: Designing, coloring, printing
 Outbound logistics: Warehouse, Packing and stitching
 Marketing and sales: Fashion shows, catalogs
 Service: Dress care and handling

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PORTER’S MODEL OF COMPETITIVE FORCES:
There are 4 porter’s competitive models.
 Threat of new entrants
 Threat of substitution
 Bargaining power of supplier
 Bargaining power of buyer
Thestylingroom.co Competitive model:
All the competitive forces are there in this site.
 Threat of new entrants: As already many new entrants came in New Zealand as a competitor of this site .
 Threat of substitution: There is no threat of substitution as thestylingroom.co is a site which provides
different designer dresses, but somehow there is a risk that other sites would copy those dresses and offer
them at cheap prices.
 Bargaining power of suppliers: The suppliers are the designers so the price will be set by their choice not
by site stylingroom.co
 Bargaining power of buyer: It’s an online boutique offering different designer wear so it has a fixed price
no bargaining power by costumers.

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INTERNET BUSINESS MODEL:
Business model is an hypothesis which determine how a company will make money, what the company will sell, to
whom will it sell, how will it sell, how will it collect revenue, which technologies will it implement and when it will
rely on partners.
How a company will make money:
 Set up an online retail store.
 It gives value to customer by
1) Use website to merchandise physical goods
2) Rely on third party for service providers.
What the company will sell:
 Attribute of the product category.
 Large selection: Clothes are offered with varieties of colors and styles.
 Little need for hands on service and trial: After buying the clothes little service is needed for its handling
and doesn’t require a trial since the accurate measurements are given.
 Rapid changes in stock availability, demand or price: They don’t usually have loss in storing clothes since
they work according to the orders.
To whom will it sell?
 Segmentation:
Geographic: The firm will decide which country, region or city to cater.
Saadiamirza caters to London and Pakistan both online and offline.
Daraz.pk offers solely to Pakistan.
Stylingroom.co.nz to New Zealand
Mariab.pk to Pakistan and many other countries.
Demographic: Saadiamirza and Mariab.pk offers to young people starting from late teens to mid 20s and to people
of higher income.
Daraz.pk and Stylingroom.co.nz offers a variety of product for different age groups and different income group.
 Occasion:
Saadiamirza : grand parties, marriages etc.
Daraz.pk: casual, formal, routine occasions.
Mariab.pk: rfancy and elegant wear.
Stylingroom.co.nz : western dresses and cocktail dresses.

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How it will sell:
 By studying different types of shoppers in Pakistan and knowing their behavior for online shopping.
 E-bivalent newbies: Since the internet was introduced recently to the general public. Around 50%
population are still unaware of its usage due to illiteracy and less resources.
 Clicks and mortar: They tend to search for product specifications, features and prices online but buy offline
due to the uncertainty and risk of misuse of credit card number. About 60% of the literate internet users
hold back to online shopping just because of this risk
 Hooked, online and single: These are the young people who like to experiment yet they comprise only 3%
of the literate internet users and more frequent they buy online games. They are mostly males. Females tend
to buy jewelry from pages in social sites by ordering online but paying offline.
How will it collect revenue?
 Transaction fees: Actual fees charged of the product.
 Spread: Between the cost incurred and price given.
 Ancillary Services: Deduction from the credit card and delivery costs.
 Advertising fees: Daraz.pk earns a lot of revenue by advertising the well known brands on their website.
 Such revenues are collected mostly by payment of cash offline or usage of credit cards.
What technologies will it implement?
 The company has to decide whether it has to aesthetically dominate or functionally.
1. Functionally dominant: Daraz.pk and Stylingroom.co.nz
2. Aesthetically dominant: Saadia mirza
3. Integrated : Mariab.pk
 It also has to determine whether to integrate online, offline or hybrid.
 If online then needs to establish ERP and CRM.
Hybrid focuses on Ordering and catalog showing in Pakistan.
When it will rely on partners:
 The reason of failure in e-business is the delay in order fulfillment. Thus four primary models of supply
chain has been given:
 Stock it yourself: For bricks and mortar companies that sell online they require an integrated warehouse
that handles shipments to stores and web customers. In pure online stores this is an automated process
which gives the firm whole control
 Outsource warehousing: It requires the third party interference to fulfill the order.
 Drop shipping: It involves the e-commerce company to depend on its manufacturers or distributers to pack
and ship its retail to web orders.
 Fulfillment intermediaries: they take care of all the back operations order processes, direct orders to
suppliers, keep customers updated of the order.

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ONLINE PAYMENT METHOD:
 Credit card :
Their online payment method is through of two kinds to put the credit card number if costumer is new one and if
costumer is purchasing second time and registered them as a member in a first time so then when return back in
second time so they would first login through membership and then purchase and the site knows their credit card
number as well as their choice of designer and suggest that designer’s dress to costumer who return back to them at
second time. After entering the credit card number the site have the receipt which they give by fax to costumers that
to show the costumer that their order is being in a process and will send them at the date and time.
IMPLEMENTATION OF 7 ‘S COSTUMER INTERFACE:
1. CONTEXT:
 Section breakdown:
Thestylingroom breakdown their sections into different categories which comprises of another site in single
blog which have sections to shop online ,catalogs and viewing designs
 Linking structure:
They link their blog into different hyperlinks showing different varieties of dresses having customized links
separately viewable in a new window.
 Navigation tools:
They are providing the different navigation tools such as quick search, zoom in and home page.
PERFORMANCE:
 Reliability:
The styling room is reliable as they strive for the safe delivery of order to exact location.
 Media accessibility:
They can access to their customers through internet that the browsing of different sites n selection can be
accessible.

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Aesthetic:
In aesthetic the styling room.co.nz is moderately focused such as on graphics, photographs of dresses,
colors and mostly on functionality. On the other hand saadiamirza.com is highly focused on aesthetics
with a moderate focus on functionality.
2. CONTENT:
 Offering mix:
They are offering different designer dresses for all ages.
 Appeal mix:
They are focusing on cognitive appeal by offering special summer collection, best quality and durability.
 Multimedia mix:
GIF images on their site.
 Content type:
Changing according to trend and season.
 Specialty store:
Specialized in offering and dealing with different designer dresses.
3. COMMUNITY:
 There’s a self regulation in the styling room and specialized language also.
 Their focus is on enthusiastic people, especially the girls, who are attracted towards unique and customized
dresses.
 There’s a member to member e-mail option in their site for a better recommendation and first hand
feedback from customers .Also a option to avail the membership .with benefits
4. CUSTOMIZATION:
 They communicate to their customers through mass mailings.
 Though frequently asked questions, and a forum of feedbacks.
 The archetypes are one to many, responding users (through feedback).

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5. CONNECTION:
 The hub site they are having in their blogs.
 The outsourced content the different designer dresses.
6. COMMERCE:
 There’s a catalog fix price which they offer in site.
 The credit card payment and registration fee.
FRAMEWORK FOR MARKET OPPORTUNITY:
 SEED OPPORTUNITY:
With the hectic routine and fuel charges it is quite inconvenient to shop physically almost all over the world, thus the
styling room brings a solution by letting people avail dresses with designer choice guidelines via online hassle free
site.
 UNCOVER OPPORTUNITY NUCLEUS:
They are providing the underserved needs with an immense variety of designer dresses. They get their customer
satisfied from order base (delivery system) with a reasonable price and durability.
 TARGET COSTUMERS:
The target costumers of these sites are mostly females of almost all ages.
 DECLARE THE COMPANY’S RESOURCE BASED OPPORTUNITY:
The styling room uses distinct resources and have capabilities to serve customers at the best level.
 ASSESS COMPETITIVE,TECHNOLOGY AND FINANCIAL OPPORTUNITY
ATTRACTIVENESS:
These sites have some strong competitors providing more innovative designs with a less price and expanding their
online retailer services to the same geographical markets. For example one competitor for thestylingroom is Annah
Stretton .

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OPPORTUNITY ASSEMENT:
Variable Positive Factor Neutral Negative Factor
Competitive Vulnerability Mariab,daraz,stylingroom saadiamirza
Magnitude of unmet
needs
mariab Daraz, stylingroom saadiamirza
Interaction between
segments
Mariab,daraz,styling,saadiamirza
Likely rate of growth Mariab,daraz,styling saadiamirza
Technology vulnerability Mariab,daraz,styling saadiamirza
Market size Daraz, styling mariab saadiamirza
Level of profitability mariab saadiamirza Daraz, styling
SEGMENTATION APPROACHES:
 DEMOGRAPHIC:
The styling room has divided their customers demographically according to affordability by class.
 GEOGRAPHICALLY:
To divide the target customers by geographic region these sites have customized designs according to cultural taste
and prevailing trend.
 BEHAVIOURIAL:
Customers are divided through identifying their pattern of buying behavior in two steps. The new customer during
first purchase have to provide his credit card number, address, preferences etc. After returning the membership is
offered, giving customer the opportunity to get membership thus saving history of purchases and offering deals on
preferred products.
 OCCASIONS:
The styling room is providing the designer wear according to season as well as offering off season or trend clothes
worldwide.

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THE DELIVERY SYSTEM FRAMEWORK:
 PEOPLE:
Behind the every successful internet company the key characteristic is their human resource and an associated
culture of that company.
 SYSTEMS:
The routines or established procedures for the organizations that are related to all aspects of the organization
 ASSETS:
. Physical assets and information based both are the property of organization.
 PROCESSES:
The payment/billing process is through online by entering the credit card number.
 SUPPLY CHAINS: (B to C)
Stock it yourself model is in their delivery system as it generally involves an automated warehouse that can directly
fulfill online orders.
Drop shipping systems allow them to depend on the designers who transfer their dresses to meet the order of
customers.
Fulfillment intermediaries direct their customer’s order to the designers/suppliers, by keeping their customers up to
date according to seasons and trends.