e-Business Case Study

1. BRITELITE
Development and Launch of a New B2B E-Commerce
Site

2. Introduction
 BriteLite is a well recognized lighting company providing
a wide array of lighting goods to retailer businesses.
 Sales are made within the region the business sells its
products using traditional hard copy catalogues and
visits from sales executives.
 Since net profit is less compared to the annual revenue,
the company seeks to set up a B2B ecommerce site in
order to expand its customers and also reduce expenses.

3. E-Commerce
 The use of modern technologies comprising of the
internet and other mobile transmissions to facilitate the
traditional buying and selling process is called e-
commerce.
 Businesses use ecommerce to support their internal
activities and also to sell their products to customers
and other businesses online.
 After its inception, ecommerce has created a boom in
economic activities round the globe.

4. Benefits of E-Commerce to BriteLite
 Can escalate sales due to the presence of world wide
customers.
 Cuts down major expenses resulting in lower product
prices.
 The business can operate 24/7 without worrying about
additional operation costs.
 BriteLite can create an online business image to millions
of customers using online promotions.

5. Enhancing Supply Chain
Management
 Information regarding change in customer demands can
be communicated over internet.
 Business transactions can be carried out at a faster
pace.
 Lesser paper works reduces the cost of carrying out the
business online.
 Manufacturers can be provided with product
specifications more efficiently.
 Frequency and information about product flaws can be
notified.

6. Business Process Efficiency
 Computerized stock control system
 Enable close coordination among manufacturers,
suppliers, and customers
 E-commerce leads to the elimination of middle men
thereby increasing the speed of transactions.
 E-commerce also improves the flow of price information.

7. Benefits to BriteLite’s Business
Partners
 Identify new suppliers and business partners through
the new site.
 Discussing about price reductions and other terms and
conditions between businesses is easier.
 Swift and precise interchange of information between
businesses.
 BriteLite can link its production suppliers and retailers
at different tiers to share timely information.

8. Range of Cost Savings
 Reduction in administrative costs.
 E-commerce helps in personnel reduction.
 Decreases cost by reducing customer order cycle time.
 Accurate demand forecasts help in inventory cost
reduction.
 Reduced utilities and operation costs.

9. Cost of Implementation
 Cost of purchasing e-commerce software.
 E-commerce maintenance cost.
 Network communication expenses.
 E-commerce personnel to take care of the online
system.

10. Cost Justified?
Online Store
 Domain name = £ 5,000
 Site Maintenance = £ 4,000
 Hosting = £ 4,500
 Internet service = £ 12,000
 Online ads = £ 15,000
Total = £ 38, 500
Physical store
 Rent and utilities = £ 35, 000
 Salaries = £ 22,000
 catalogues = £ 26,000
 Transportation = £ 10, 000
 Others = £ 4,000
Total = £ 97, 000

11. Barriers to Using E-Commerce
 Potential customers in some areas may not have access
to internet services.
 Complexity of incorporating prevailing databanks and
software for handling transactions into ecommerce
software.
 Many customers do not fully trust online payment
methods using credit cards as it may lead to frauds.
 Customers don’t get to check the products physically
before purchasing.
 E-Commerce is highly competitive since thousands of
other businesses are also moving online.

12. Conclusion
 E-commerce would enhance BriteLite supply chain
management and business processes.
 It would increase BriteLite’s customers around the globe.
 It would provide a wide range of savings compared to a
physical store.
 E-Commerce is an ideal solution for BriteLite.