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Assignment on E-Commerce Business in Saudi Arabia

Category: Computer Sciences Paper Type: Assignment Writing Reference: APA Words: 2650

Contents

Set up Your E-Commerce Presence

The basic purpose of this study is to establish a new online business setup that should be prevailing in Saudi Arabia. Saudi Arabia is a desert country and considered as the center stage for the Muslims and the largest economic sector in Gulf countries. It is considered as the youngest population who use the internet around the globe. Saudi Arabia is engaged in a large sector of businesses that show the usage of the internet in different sectors.  According to the current survey, it is expected that will increase the sales by 14 billion up to 2021, so it is considered to take investment in the business of E-commerce in Saudi Arabia as it is a golden chance to get the higher result in the investment (I.Eid, 2011).

·         What is the idea?

                I want to start a business in fashion apparel and clothing which is for both winter and summer collection. The weather of Saudi Arabia has required both stuff like it, a dessert based country that has severity in both kinds of weather.

·         Product and type of services of E-Commerce Business in Saudi Arabia

o   I want to deal with the clothing as it is required in the Saudi Arabia in both seasons, and my product will be based on high quality. Owing to a physical store in Saudi Arabia may be a high-cost oriented business, but the online store could be beneficial for the revenue state of the business. In winter collection, there may be products such as jackets, blazers, and winter coats, as well as jeans and trousers. In summer collection, there might be shirts and trousers and fashion apparel, which would be liked by the people of Saudi Arabia.

o   We will provide services for home delivery and shipping to the customer’s doorstep with the ease of payment methods. Payment could be made by card or by cash, or it may be paid by gateway options suchlike PayFort, 2Checkout, PayPal Express checkout will doubtlessly get more local community support; we can also use COD- CASH ON DELIVERY for convenience of our customers. There is a facility to exchange the product if there is any deficiency in quality, or there is a misplacement of the order. We will available 24 hours to serve our customers if there is any complaint about our product it must be resolved.

§  Business statement of E-Commerce Business in Saudi Arabia

To establish the platform, this could be easily accessed by the customer and provide them high-quality clothing items

§  Business vision of E-Commerce Business in Saudi Arabia

To get high ranks in the e-commerce business and expand the business around the globe with a high quality product with higher customer retention.

 

§  Business objective of E-Commerce Business in Saudi Arabia

Ø  There may be different objectives in business, but when you take the startup of the business, its ultimate purpose is to get the customer retention and customer reliability in the services which are being provided by the company.

Ø  To create long term relationships with the customers by providing them high-quality products with the easiness of payment method.

·         Where’s the money: business and revenue model

the business is about to earn online revenue from dealing with the customers; the startup of business could get out with the product you have listed in the plan such as clothing, jackets, and fashion apparel, which is according to the requirement of the business (S.Alfuraih, 2008). The budget plan could be divided into different portions such as:

Items

Price/pcs $

Quantity

Clothing

30

100-300

Fashion apparel

80

      50-100

Jackets

100

     100-120

Jeans

20

     30-45

As the business is on the startup level; therefore, prices could be lower as it is the period in which business required efforts to get the customer’s reliability in the market.

§  A general idea of how your business will generate revenues

Although business is on startup stage, but there must be a sufficient amount of profit which could be generated from the activities of business so there must be profit such as business should set up a profit margin of at least 0.5% which should increase with the time according to the customer’s demand and requirement about the product.

·         Who and where is the target audience?

Every business before its startup prepare its marketing plan which helps to find out

§  Demographics of E-Commerce Business in Saudi Arabia

The main area to target the customer for the clothing brand is young people and teen agers. There may be stuff for the children, but the main area to target is office going young people or who is the ones who go to daily in any place and need to stay up to date.

§  Lifestyle of E-Commerce Business in Saudi Arabia

The people of Arab have a different kind of lifestyle, such as some customers are office going, and some are college-going, which is the main area of targeting by the business of clothing.

§  Consumption patterns of E-Commerce Business in Saudi Arabia

People of Arabs are most likely to spend in excess as it includes in their nature; therefore, it could be a better opportunity to take a startup of online business in Saudi Arabia.

·         What is the ballpark?

A numerical estimation about the value which is invested in the business by unknowingly to attain the revenue in the market by the salesperson and other professionals, which is used to estimate that how much cost should be retained for the specific product in the market. It could be divided into terms of size, growth, demographics, and structure.

Size: the size of the business should be reasonable according to the size of the market in which business is going to establish. It should be not so small that it could not fulfill the requirement of the customer, and if it would be large scale business, it may be high cost-oriented in the market, which will reduce the profitability ratio.

Demographic: The main area to target the customer for the clothing brand is young people and teen agers. There may be stuff for the children, but the main area to target is office going young people or who is the ones who go to daily in any place and need to stay up to dated (Cohen, 2005).

Structure: the business structure is totally based on the online; it means all the transactions will take place with the help of internet connection.

·         Where’s the content coming from?

The content is based on the online business, which is going to take a startup in Saudi Arabia which is totally based on dealing with the help of a developed website.

·         SWOT analysis of E-Commerce Business in Saudi Arabia:

A SWOT analysis is a better deal to find out that the business is going on in an effective way. it could be done by yourself as it is a source which is examined by own data and it gives the information which is suitable for the business and which step should be taken for the improvement of the business. E-commerce business should have a comparison with the other business which already exists in the market so that it could be derived that how the business could attain the position of the best business in the market (K.Valentin, 2001). The SWOT analysis of the E-commerce business could be explained as:

§  Strength of E-Commerce Business in Saudi Arabia

There is a more competitive advantage in the market for online business as there are fewer businesses that are working online in the market, so there is a low rate of the competition, which is a positive point for the business. It makes the business unique in terms of services that are related to the products.

§  Weaknesses of E-Commerce Business in Saudi Arabia

There are no more effects of the promptly used products in the market. There is a deficiency in the business that people don’t rely on online products as they considered that the product would not be according to the prescription or maybe they face difficulty in payment method.

§  Opportunity of E-Commerce Business in Saudi Arabia

E-commerce business is totally based on the technology use s it deals with the people who are sitting far away and get the product just by a single click. The E-commerce business is most likely to change with everyday requirements. Therefore it used technology in dealing with customers and in the production process so that it could be easy for them to run the business.

§  Threat  of E-Commerce Business in Saudi Arabia

The businessman could never be tension free as he has to compete with it an everyday challenge, which is more critical in every new day. There may be some barriers that could affect the performance of a business. The performance of the business of e-commerce may have to face the threat of being kicked out from the market as there is a reduction in the total sale of the business.

 Develop a timeline: Milestones of E-Commerce Business in Saudi Arabia

§  Initial contact

This step is including dealing with the customers according to their information, which is done according to the collected information about the customers. There should be frequent questions to deal with the problem, so it could not be a hurdle for the e-commerce business (Sait, Al-Tawil, & Hussain., 2004).

§  Planning

Planning for every business is the most important task to do, and it is also beneficial for the business to set the timeline and milestone in the work of business. There must be a map designing about the business opportunities in the business, which is according to the interaction with the customers.

§  Content

Every website is based on the content, which keeps the website more reliable for the customers. A good plan of content is the reason for the development of the business in terms of sales and profitability. The timeline of the business is depending on the number of pages which is containing in the web designing.

§  Design

When a web application or website is designed, there must be an initial stage of the cycle that is used by the designer to demonstrate the perspective of the contents.

§  Development

When the design of the website is approved, there may be a step of refining the content and to work on the website. In e-commerce business, all the business is based on website development; therefore, it should be developed with all the requirements.

§  Launch

When all the steps are completed to develop a website, there should be the final step of launching the website in the network system so it could be tested, reviewed, and feedback could get on the website, which is used in the e-commerce business.

 ·         How much will this cost?

The website development is not a simple task to perform; it may take a huge cost for development, such as there is approximately cost of $200-300 which is started in any business.

Building an E-Commerce Site: A Systematic Approach

In this plan, there is the creation of the website, which is used to run a business online, which is based on the principles of E-commerce customers could get the products at their doorstep (Xu & Quaddus, 2010).

There are different steps which are including in building the website, such as:

§  Planning

§  Web-designing

§  Controlling the website

§  Implementation

Choosing Software of E-Commerce Business in Saudi Arabia

The development of e-commerce needed a great deal to work smoothly, such as the software has the ability to develop the business, which is dealing with the transaction of clothing online, and the customer could get the services according to their requirements. E-commerce business is working with the software of website which is developed by us named Coziup which is working in performing functions such as:

§  Online shopping

§  Blogs and carts

§  Credit purchase

Payment and Security of E-Commerce Business in Saudi Arabia

The payment method is designed to provide services of home delivery and shipping to the customer’s doorstep with the ease of payment methods. Payment could be made by card or by cash, or it may be paid by gateway options suchlike PayFort, 2Checkout, PayPal Express checkout will doubtlessly get more local community support; we can also use COD- CASH ON DELIVERY for convenience of our customers. There is a facility to exchange the product if there is any deficiency in quality, or there is a misplacement of the order. We will available 24 hours to serve our customers if there is any complaint about our product; it must be resolved (A.Al-Somali, Gholami, & Clegg., 2010).

Categorize marketing and advertising strategy and method

All the marketing and business activities will be based on social media and website as the business of e-commerce terms are most likely to be done with the help of the internet or any server connection.

Our business is totally based on online marketing as the business has to deal with the clothing as it is required in the Saudi Arabia in both seasons and my product will be based on high quality. Owing to a physical store in Saudi Arabia may be a high-cost oriented business, but the online stores could be beneficial for the revenue state of the business. In winter collection, there may be products such as jackets, blazers, and winter coats, as well as jeans and trousers. In summer collection, there might be shirts and trousers and fashion apparel, which would be liked by the people of Saudi Arabia.

Conclusion  of E-Commerce Business in Saudi Arabia

The report is based on the start-up of the business which is based on an e-commerce project with the help of web development and to examine how it would be beneficial for the business to take a startup. It also deals with the SWOT analysis and milestone as well as it could be done by yourself as it is a source that is examined by own data, and it gives the information which is suitable for the business and which step should be taken for the improvement of the business. E-commerce business should have a comparison with the other business which already exists in the market so that it could be derived that how the business could attain the position of the best business in the market.

REFERENCES of E-Commerce Business in Saudi Arabia

A.Al-Somali, S., Gholami, R., & Clegg., B. (2010). E-business adoption in Saudi Arabian private sector. . In 2010 International Conference on Information Society (pp. 376-382). IEEE.

Cohen, W. A. (2005). The marketing plan. John Wiley & Sons.

I.Eid, M. (2011). Determinants of e-commerce customer satisfaction, trust, and loyalty in Saudi Arabia. Journal of electronic commerce research,, 12(1), 78.

K.Valentin, E. (2001). SWOT analysis from a resource-based view. Journal of marketing theory and practice, 9(2), 54-69.

S.Alfuraih. (2008). E-commerce and e-commerce fraud in Saudi Arabia: A case study. . In 2008 International Conference on Information Security and Assurance (isa 2008) (pp. 176-180). IEEE., 176-180.

Sait, S., Al-Tawil, K., & Hussain., S. (2004). E-Commerce in Saudi Arabia: adoption and perspectives. Australasian Journal of Information Systems,, 12(1).

Xu, J., & Quaddus, M. (2010). E-business in the 21st Century: Realities. Challenges and Outlook (Vol. 2). World Scientific.

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