The main objective of this presentation is based on a comparison of the three book sellers in relation to their business models, use of IT and M-Commerce. The findings of such a compression will be used to improve on their operations based on the advancement of their counter part.
The success of use of ecommerce by Amazon and Strand Book Store Inc has attracted other sellers of different items such as toys, electronic goods and other to partner with them to sell their products (Amazon, 2009). This partnership has mutual benefits to the partnering companies in quest to tap more market. By the company owners of the goods sold via the booksellers website increases their sales while the booksellers have a high turnover of customer who visit their website for those additional goods and they end up buying books, audios and videos.
The core business of the booksellers is selling books, Compact disks and DVD’s. However, they have diversified their operations to meet the other needs of their customers so that they would get more customer traffics who visit their sites to buy those additional goods and in the process they will be wooed to purchase books especially the ones in offer.
Amazon was the first company in use of ecommerce to overcome the challenge of meeting their customers needs who were increasing by the day and were at different geographical regions (Amazon, 2009). It success was replicated in other companies in different economic sectors and has been widely accepted as the mode of doing business and actually its the future way of doing most of the transaction based on its development trends. Although initial investments in Information Technology is high its operational costs are much relatively low. Use of eBooks has increasingly being getting more popular with most customers preferring them because they are much are accessible easily, its navigation is much easier as one would search in the book, has no delay in delivery and the bookseller saves on storage space of hard books.
Book sellers are using mobile commerce to have a wider reach of the youth clients (Timpson and Troutman, 2008) who are the most users of mobile phone innovations such as reading the eBooks using their phones which is very much ideal for students. Use of Mobiles to advertise is much cheap and convenient to the books sellers. They collect contacts as the customers purchases their goods or enquire from the book stores. When ever they are having promotions they use those contacts to forward messages to them which has proved to be much more effective because the mode of conveying the message is much more personal.
Coupons and vouchers sent to the phones are meant to meet the customers needs who buy for goods and pay them when being online to have access to the coupons which are given to those who buy over the counter (Buse & Tiwari, 2007). According to Timpson & Troutman, (2008) website optimization makes is much easy to browse it using the phone and all the feature in the website including photos are visible.
Transcript of "Power point presentation use of mobile commerce"
Booksellers Business Models, IT and M-Commerce
Introduction <ul><li>This is a comparison of three booksellers: Amazon.com, Barnes and Noble and Strand Book Store Inc on their Business models use of Information Technology and Mobile Commerce. </li></ul><ul><li>M-Commerce in the most recent technology which the booksellers has embarked on to increase on their coverage and make their customers reach them with ease. </li></ul>
Business Models <ul><li>Strand Book Store Inc </li></ul><ul><ul><li>Sells hard books which are used and old. </li></ul></ul><ul><ul><li>Has diversified its services to sell gifts cards and offer library services to its clients </li></ul></ul><ul><ul><li>Their target market is regional mainly United States. </li></ul></ul><ul><li>Amazon </li></ul><ul><ul><li>Sells books hard books and eBooks, CD & DVD as their core activities </li></ul></ul><ul><ul><li>Has diversified to sales of electronics, toys, home and garden wares, auto & industrial tools clothing and jewelry among others. </li></ul></ul><ul><ul><li>Its target market is international. </li></ul></ul>
Business Models continued <ul><li>Barnes and Noble </li></ul><ul><ul><li>Have as well diversified to sell home and gift goods, toys, music and DVD its business model resembles that of Amazon but its market penetration is not as high as Amazon. </li></ul></ul><ul><ul><li>Its target market is international market </li></ul></ul><ul><li>All the three booksellers are competing for the same market hence they need to improve in their approach to the market by being innovative and meeting the needs of the customers. </li></ul><ul><li>All of them has diversified to ensure they meet other needs of their customers as well to improve on their </li></ul>
Use of Information Technology <ul><li>Amazon is the one which pioneer use of e-commerce by selling its goods online and they are currently marketing their electronic book reader the Kindle. </li></ul><ul><li>While Barnes and Noble is aggressively marketing their eBooks. </li></ul><ul><li>Strand Book Store Inc does not sell eBooks but their website is enabled for e-commerce. </li></ul><ul><li>Investment in setting up IT infrastructure is expensive but it is makes the operational cost of the booksellers to be less hence being more profitable. </li></ul><ul><li>Use of information technology has made the bookseller employ few staffs as most of the transactions are done online. </li></ul><ul><li>Invention of converting books to electronic format has saved on storage space and management of hard copies and the customer would have access to the books with out delay of shipments. </li></ul>
Mobile-Commerce <ul><li>Amazon and Barnes and Noble uses mobile marketing and advertising to reach their customers by sending promotional messages. </li></ul><ul><ul><li>Ensures personal contacts with the customers </li></ul></ul><ul><ul><li>Its cheap and reliable </li></ul></ul><ul><li>Mobile commerce is also being promoted by Barnes and Noble and Amazon for customers to use it to read the eBooks which they stock. </li></ul><ul><ul><li>Ensures customer would have access to the books they need when in at a remote location via their phones. </li></ul></ul><ul><ul><li>Increase customer base by meeting the needs of customers though their phones. </li></ul></ul>
Mobile-Commerce continued <ul><li>Use of mobile to distribute coupons, vouchers and loyalty cards. </li></ul><ul><ul><li>Customers are provided with coupons or vouchers which is sent to the mobile phone which serves like the ones provided at the point of sales. </li></ul></ul><ul><li>All the three booksellers have developed optimized their website to be able browsed using phones. </li></ul>
References <ul><li>Amazon, (2009). WebStore for E-Commerce Business. Retrieved on October 08, 2009 from http://webstore.amazon.com/WebStore-for-eCommerce-Business/ </li></ul><ul><li>Buse, S. and Tiwari, R. (2007). The Mobile Commerce Prospects: A Strategic Analysis of Opportunities in the Banking Sector , Hamburg: Hamburg University Publishers </li></ul><ul><li>Timpson, S and Troutman, M. (2008). The Transition from E-Commerce to M-Commerce, Journal of Interactive Advertising. 20(4), 67-89 </li></ul>