Now a day, the internet as a new communication media, offers great opportunities and possibilities to companies. With the help of e-business solutions, the companies are able to reach a lot of potential new customers at once, because of worldwide upcoming popularity of this media. The point of sale becomes a virtual character and is no more fixed to local positions. Moreover, the internet provides the companies the possibility to offer and to sell its products at the same time without any media breaks. This leads to a reduced time to market situation, and an increased velocity to enter new foreign markets over a huge distance. The global expansion can take place without the need for high investment and reduces the operating-risk for companies. An internet shop solution makes it now possible for all actors, existing in a commercial chain, to offer and to sell products. The original equipment manufacture himself also has the chance to meet his customers direct. In the past, this was only feasible for the intermediators in the traditional supply chains. It seems that the internet is an easy way for companies to generate fast profit without any efforts. That is why IT represents a new factor of production for all enterprises. The question is only “How the companies benefit from the IT advantages in combination with their existing operating infrastructure?” It is not only enough to have a domain name for the web shop. In the background you need a good infrastructure and a suitable concept so the question is allowed to ask - what do you have to consider more than only being online, when entering a foreign market with an e-business solution? The aim of the document is to give a brief overview about important facts, which have to be considered when a company wants to launch an e-business solution. It contains a virtual example of a Brazil fashion company called COLEÇÃO BRAZIL. It represents the frame to explain the content. The entry strategy of COLEÇÃO BRAZIL consists of a conducted market research, general recommendations about selling products abroad, the web page development and a description of the physical distribution and fulfillment process. Finally a project plan shows the sequence of necessary activities to realize such an e-business project in a company.
Table of Contents
Précis
Introduction
Why online?
Market Research
Recommendation
Management of returns
Web page development
Distribution
Globalisation – logistic requirements
Distribution Strategies
Operating process
Fulfilment
Project Plan
Objectives and Topics
This document examines the critical success factors and strategic considerations for a fashion company seeking to enter a foreign market via an e-business solution, moving beyond a simple web presence to a complex integrated infrastructure. The core research question addresses what operational and logistical elements a business must account for when transitioning to an international e-commerce model.
- Strategic market research and pilot market selection.
- Technical and organizational infrastructure for web shop development.
- Logistical challenges of globalization and international distribution channels.
- Management of customer returns and automated fulfilment processes.
- Project planning and execution requirements for e-business implementation.
Excerpt from the Book
Management of returns
The logistic requirements for an e-shop solution are very different from the “traditional supply chain”. An e-shop, is not a mass supplier for wholesaler, it is more a supplier for a bulk of single customers. All orders must be sent to individual customers. It is only in the traditional chain possible, to send large amounts goods to the dealers. To benefit from the “economy of scale” effect, is not possible with an e-shop solution. E-shop solution changes the "point of sale" to a kind of virtual nature. The logistics process becomes here more complex. Since the new opportunities to offer products over a web-shop, the delivery times and the time windows become smaller. To bridge the last mile to the customer and to manage possible returns of goods are the most problematical issues in the case of the supply chain. Theses problems represent typical cost drivers in the business to consumer relationship. Not much is left, of the average individual order value, which is not higher than 100 € when such services have to be carried out very often or run very inefficient.
To manage the run of the last mile to the customer, there are two variants. On the one side, a “carry express parcel” service provider serves the last mile. Here the customers receive their commodities at their entry door. This solution is very expensive and can be improved only by round trip optimisations. This concept is suitable for the delivery in rural regions. On the other side there are "pick up stations". These stations represent one point where the customers can fetch the commodity themselves. The large advantage of this solution is that goods are delivered “bundled” to the pick up station. This leads to reduced transportation costs. This logistic solution needs aggravated requirements. This concept is suitable for the delivery in densely populated areas.
Summary of Chapters
Introduction: Provides the context of the internet as a new medium for businesses to reach global customers and introduces the case study of "COLEÇÃO BRAZIL".
Why online?: Discusses the strategic advantages of direct online sales for fashion brands to gain market power and bypass restrictive traditional supply chains.
Market Research: Details the criteria for selecting Portugal as a pilot market for international expansion based on cultural and economic synergies.
Recommendation: Analyzes the regulatory environment for foreign sales, specifically focusing on EU guidelines regarding contract laws and consumer return rights.
Management of returns: Outlines the logistic challenges of the "last mile" and proposes strategies to manage high return rates effectively.
Web page development: Evaluates the "make or buy" decision for e-commerce platforms and the benefits of using ready-made, leased shop solutions.
Distribution: Explores the complexities of global supply chains and evaluates different distribution channel strategies, such as the two-step model.
Fulfilment: Describes the integrated process flow involving customers, web platforms, logistics, and financial providers to handle digital orders.
Project Plan: Sets out the sequential phases, resource estimation, and timeline required to implement an international e-business strategy.
Keywords
E-commerce, Business Development, International Expansion, Logistics, Supply Chain, Fashion Industry, Web Shop, Market Research, Fulfillment, Value Benefit Analysis, Distribution Channels, Last Mile, Customer Service, IT Infrastructure, Project Planning.
Frequently Asked Questions
What is the core focus of this publication?
The document focuses on the strategic and operational requirements for a fashion company to enter a foreign market specifically through an e-business solution.
What are the primary themes discussed?
Key themes include market analysis, selection of distribution channels, the logistics of e-commerce, web shop development, and the regulatory challenges of cross-border online trade.
What is the ultimate goal of the proposed business strategy?
The goal is to increase market power and profit margins for the company "COLEÇÃO BRAZIL" by bypassing traditional middlemen and selling directly to consumers.
What scientific or analytical method is applied in this work?
The author utilizes a "value benefit analysis" to evaluate different distribution strategies and determine the most effective approach for the company's specific needs.
What specific operational areas are covered in the main section?
The text covers logistic requirements, the development of e-commerce platforms, the definition of distribution channels, and the detailed steps of order fulfilment.
Which keywords best characterize this work?
Key terms include E-commerce, Supply Chain, International Expansion, Logistics, and Value Benefit Analysis.
Why was Portugal chosen as the pilot market for the study?
Portugal was selected due to its high affinity with Brazil regarding climate and language, and its membership in the EU, which provides access to broader European markets.
How does the author suggest minimizing the risk of high return rates?
The author recommends improving the "look and feel" of products online through high-quality imagery or 3D presentations and ensuring efficient, reliable delivery to manage customer expectations.
What does the "two-step distribution channel" entail?
It involves storing products in a regional distribution center in the target market (Portugal) rather than shipping directly from the country of origin, which improves service levels and delivery times.
- Arbeit zitieren
- Matthias Hintze (Autor:in), 2005, Enter a foreign market with an e-business solution. What do you have to consider more than only being online?, München, GRIN Verlag, https://www.grin.com/document/44609
