Business Models and Market Practice

Table of Content


Every organisation wants to do their organisation in more refine signifier and more updated engineering. One of these companies has planned to upgrade and implement engineering. For that intent we need to analyse the market of what market is concentrating on the newest engineering. Horizon Solution is besides looking in front to do all the systems by following Ecommerce so that they can bring forth their concern as per mark per twelvemonth. It is an administration that trades with whole merchandising nomadic phones, naming cards and Computer accoutrements.

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The company deals with B2B along with B2C. First, all parts of the work were done on the footing of papers or paper work. There was no cogent evidence of work that was usage to be done electronically. Now E-marketing solution is traveling to change over its concern into E-business. They are offering advanced on-line characteristic at present that is Selling Naming cards. Selling and buying nomadic phones. Selling SIM Cards, Selling Headsets, Headphones, Earphones and accoutrements, Supplying cyberspace services, Covering with computing machine installing and hardware care.


Recently Horizon is doing a net income from B2C for more than ?5 million lbs per annum and doing a less net income border from B2B concern that is about ?1 million lbs per annum. Now they are aiming towards more gross revenues in B2C and B2B as they are concentrating with B2B particularly because of less gross in B2B. With this suggestion of following E-Commerce they are be aftering to publicize their merchandises through cyberspace and the advertisement is given as below for this intent. Before traveling on doing the suggestion more to the company we should besides analyse the selling of what selling scheme is used to follow utilizing E-Business.

Minutes IN THE Company IN Year 2008


Presently you can analyse the market by utilizing done cyberspace as assorted hunt tools are available for this intent. For Example you can utilize Google, yokel, AltaVista, Lycos, hotbot etc.

The scheme and actions takes to set up a trust relation with a consumer and promote purchase of its merchandises or services. Marketing analysis can besides take attention by traveling topographic point to put publicly and taking some public sentiments and besides taking public through cyberspace. We can besides utilize the analysis by doing through flow chart of what processs is to follow during analysis.

In Horizon they making two types of selling Direct Marketing and indirect Marketing.

Direct Selling:

In direct selling Horizon contact straight to the costumier through Telephone, electronic mail, Fax and run into to client by ego.

Indirect Selling:
In indirect selling Horizon contact computing machine through booklet, booklet, and sing cards.

Elementss that company considers included monetary value, topographic point, publicity and merchandise

Price – Horizon fixes their monetary values merely suitably to the clients, monetary values vary with the points and the trouble involved in acquiring them. Items usually are obtained from fixed providers one of them is UNIK beginning which offers high quality merchandises at a fixed monetary value

Product – A broad scope of merchandises are sold by the company. The company sells Calling Cards, computing machine accoutrements, phone accoutrements, international naming apparatus etc.

Topographic point – The Company has stores at three locations, all of them are located at busy topographic points like Barking station parade, Water lane and Edge-ware route station. Therefore most of the clients are riders.

Promotion – company provides price reduction on their service to pupils, they put ads on Television, the company besides believes in client keeping. New points are offered to the clients for free who give the suited feedback.


Our concern theoretical account will be B2C which is business-to-consumer and B2B which is business-to-business. We will make the clients and concern though cyberspace with our new selling scheme. Since the company is little it responds good merely to the demands of clients. Our mark clients will be general public who provides the maximal portion to the company.








Horizon have an issue how to come in the market, and stabling the aims of their on-line presence. They are focussed four basic market entry schemes. Which are reference in the Generic Market Entry Strategies Chart.

First mover

Fast Follower Carphone

Brand extender REI LL Bean WAL-Mart

Alliances ( Toys

Referee: Laudon, C Kenneth Cover image 2001 by eyewire Chapter 7 E-Commerce Marketing Concepts page No 378.


Once horizon chooses a market entry scheme, there following mark to make trust relationship or set uping a relationship between Horizon and Customer. They start publicizing through media ( newspaper, direct mail, magazines, telecasting, and even wireless. Horizon need to follow three new techniques.

Permission Selling

Affiliate Selling

Viral Selling

Permission Selling:

Horizon need permission marketing the scheme of obtaining permission from consumers before directing them information or promotional messages.

Affiliate Selling:

Horizon focused on Affiliate selling. Affiliate selling is the on-line application of this selling method where one Website agrees to pay another web site a committee for new concern e.g. Google ads.

Viral Selling:

Horizon usage Viral selling because Viral selling is same like affiliate selling involves utilizing a sure web site like Google, yokel, AltaVista.Viral selling is the procedure of acquiring clients to go through company’s selling message etc. friends, household, and co-workers.

The execution of the E-Marketing strategic program will hold 3 parts,

E-Promotion, E-Pricing and E-Distribution

E-coupon – For old ages, many retail merchant and trade name have made usage of money-off or price reduction voucher to hike the purchase rates. Traditionally it can present though mail, or placed in the cusp, newspaper, magazine or even the battalion of the merchandises. As the Internet shopping become popular, some enterprisers realized that this could be apply to the universe of cyberspace shopping every bit good, this is the beginning of the e-couponing. To administer voucher though the Internet, we can setup a voucher codification and direct it together with our publicity missive ( See appendix c for the sample ) .

Alternatively, we can upload the voucher to our web site and allow the client download and utilize it ( See appendix a for the sample ) .Internet provides a larger platform for distribution voucher to consumer, when comparison to the traditional distribution web included cusp, newspaper, magazine, etc. However, online user may derive repetition price reduction by utilizing the codification more than one time and debut of engineering to cut down e-coupon maltreatment is a must for many company which give e-coupon to client wish us every bit good.

Banner advertisement – one of our aims is to increase the consciousness of our trade name, one of the possible method is to put a streamer ad in some well-know picture taking forum, hunt engine, etc. As more people start to look up information though Internet, seting ads on web site will derive consciousness to our client ( or possible client ) . Another possible publicity method is setup a rank referral plan, which let bing member to mention more members to derive more consciousness and therefore procure more possible client. ( See appendix B for the sample )

e-pricing and e-distribution – A policy of low monetary value but acceptable value at extremely competitory monetary value to clients who are monetary value sensitive is normally a contemplation of limited fiscal agencies. It can be highly successful selling place, nevertheless, as the border / unit is low ; this means the provider has to prolong a really high degree of dealing for adequate net income. We will monetary value our service somewhat lower than the mean market monetary value to promote our client to seek our service and we will put up more mercantile establishments in the new development country like Tin Shui Wai or Yuen Long.

The undermentioned strength of E-MARKETING is stated as below.

1- Global Acceptability and Gross saless Reach

Businesss can spread out their client base, and even spread out their merchandise line.

2- Closer Relationship

Business-to-Business ( B2B ) Sellerss can turn closer relationship

3- Free Samples

The merchandises can be shown as a sample through the Web fast which is non merely easy but at least it is free of charge.

4- Reduced Costss

We can hike the Businesss by cut downing their cost production which we can dynamically set the monetary values.

5- Media Breaks

Media interruptions can execute an of import function which is necessary to transport information.

6- Time to Market

Shorter clip to market and faster response clip to altering market demands.

7- Customer Loyalty We can better client trueness and service by utilizing an easier entree to latest information and a ne’er shutting site.


Harmonizing to the description of the company and their pattern, following are the suggestions for the hereafter betterment.

Since all the minutess are being done on the cyberspace owing to the ever-increasing use, the addition in sale and the aim is keeping of clients.

To accomplish this, a suited pricing scheme should be formulated to increase market incursion. Promotion should able to spread out the consciousness about the merchandises and stimulate repetition purchase.

And Distribution scheme will enable entry of the merchandises into new mercantile establishments for enlargement of the market

The Internet has become the 4th channel for trade. The Internet allows concerns to sell more and at a lower cost. Information can be exchanged on a world-wide footing without the demand to esteem clip zones and vacations. Before establishing the new channel it is of import to happen a manner to decide the channel struggle. If on-line gross revenues cut down the gross revenues volumes in the bing channels so it need to be determined which impact it will hold and what can be done against it. One manner would be to redefine the function of all channels by dividing up the market into four sections. New concern should be distributed over the Internet.

The Internet can back up the telling procedure between manufacturers, distributers, resellers and end-customers and they become a value concatenation by working jointly for the concern. The value concatenation is besides used to give clients entree to merchandises irrespective of the location of the maker. Without the value concatenation, a auto could merely be bought straight at the mill, which would necessitate everyone to travel to a individual location, which would be excessively much for the auto maker and excessively much for the clients.

With the Internet, the things are altering quickly. Customers are able to take their preferable company ; no affair how nigh or far it is located. The Internet allows a more direct communicating all degrees along the value-chain. The traditional value concatenation is additive. The maker construct the merchandises, distributers buy merchandises from multiple makers and convey them through several degrees of distribution in little tonss to resellers who deal straight with consumers. Some channel spouses are non prepared for the Internet and can make channel struggles.

Channel conflicts, arise, for illustration, if maker sell goods on their web sites, although they have a web of resellers in the value concatenation to reach the clients. With the Internet, every spouse in the value concatenation is able to reach the end-customers. If channel struggles are non resolved, spouses in the value concatenation may make up one’s mind to go forth the concatenation. The most of import thing is to reach all spouses in the value concatenation and make up one’s mind who sells what to whom. If everybody targets the end-customers, cipher can win because all spouses try to hold the lowest monetary values for one and the same merchandise.

By following of E-Commerce through cyberspace we can buy merchandises and supply online services whether if the shop is closed it will be delivered on the following on the job twenty-four hours. Due to avaiblilty of cyberspace all over the universe 24 hours a twenty-four hours. It is easy to utilize and besides the dealing costs for the terminal user is cheaper and easier to excess along with securable.

The costs are besides inexpensive for the sellers on the Internet, in comparing to traditional distributions channels. The two- manner communicating on the cyberspace allows for direct feedback of the clients and the unfastened criterions means which had the capableness of altering between companies, services and web sites. Along with that if there exist any new characteristics and other publicities so we can publicize in cyberspace. There is besides another signifier of advertisement cyberspace concern and the other manner is marketing.


With the aid of E-Business we can besides track the online order system. For Example, a client has placed an order and the following on the job twenty-four hours is Monday and the client has ordered on Saturday. Therefore if he can’t acquire the order on Monday he can track the order through Internet. Possibly this is one of the good characteristics of E-commerce by utilizing E-Business in it.



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Direct selling on the Internet is really powerful, but one has to be really careful non to misapply the power, Sending out an electronic mail to 1000000s of people has become really simple. If you send out 5 million e-mails, you may hold 10,000 people who may be interested, which is more than you could make with traditional methods, but you will hold 4.99 million angry users. May be merely 5 % of the 4.99 million users start to kick back to your company that they did non desire to have information from you. we kept the undermentioned points in head.

Audience: On the Internet the audience marks you and non the other manner around

Clarification: Question and confirm any message that appears to incorporate a critical error in typing.

Cross-Borders: The Internet is unfastened to any civilization and state. Be certain non to pique your mark audience.

Customers: Use one-to-one selling engineerings to derive information on your clients.
Lists: Don’t rent or sell client lists without written permissions.

Log Files: Don’t rely on web waiter log files. Try to happen more meaningful informations.

Privacy: Privacy is of import. Dainty any personal information as confidential.

Spam: Never misuse electronic mail to spam ; it provokes more choler than response.


Security is really of import by utilizing E-Commerce. As there are many hackers that can chop up the histories of the client presents. In order to avoid that we must take some of import stairss towards security side. Even though many people are scared of security rupture by utilizing internet engineering. Through the procedure of cyberspace, it can be made really unafraid dealing through informations security, digital signatures and firewall software’s and unafraid methods. For illustration, Banks allow clients to look at their ain personal history balance in existent clip environment without worrying that a hacker can interrupt in to bank’s Computer system.

Horizon is besides be aftering to look into the security as they are besides opening a secure and on-line dealing for the clients so that client can hold a safe and unafraid on-line dealing through cyberspace web site. Website is besides used for the questionnaires of clients, one is able to cut the figure of calls to your service figure and one is able to give 24 hours of aid. Nowadays the communicating and work is making by concentrating on media interruptions which costs a batch of clip. Online trailing has become rather successful and is going more popular in the society.


We have used E-Marketing to increase the turnover of Horizon uk ltd, the jutting gross revenues can be reached merely by making to more clients. Internet is a really of import and the best manner now a yearss where about everyone uses them. We have used E-Marketing here for both B2C and B2B. By seting some suggestions and solution to the company I hope by following the vitamin E commerce the company can accomplish the gross revenues mark and whatever the jobs company is confronting during the dealing and managing concern will manage in an easy manner.

Referee: Laudon, C Kenneth Cover image 2001 by eyewire Chapter 7 E-Commerce Selling Concepts

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