E-Business Fundamentals and Systems
The twentieth century laid the foundations for a dynamic work environment incorporating the various markets into one global market. The increased interactions between the various markets demanded a major overhaul of the existing technologies. With the turn of the century, businesses started realizing the need to adapt its infrastructure to the radical changing environment of the global market. Consumers were starting to understand the various perks that foreign goods provided and hence economies had to implement various measures to capitalize on this new demand. One of the ways for the companies to deal with this growing demand was the internet, which revolutionized the way people interacted with companies. Products and services now can be supplied directly to the consumers without the need for distributors and people can order and receive such products and services from the comfort of their living room. This radical change paved way for a new type of business to emerge known as e-business. This new form of businesses capitalized on the technology available to them and attempted to reinvent the way traditional markets worked.
This assignment shall strive to shed light on the various pros and cons of an e-business website and the infrastructure related to the same. It shall also highlight the major differences between the infrastructures of two companies’ business models with a case study conducted on two B2B websites providing financial and accounting services to small businesses in Australia. The assignment shall conclude by highlighting the key features of the two businesses and analyzing the available data to draw effective conclusions.
A. Clearly state which e-commerce business model you have chosen. For each chosen website; report the business name, the homepage URL, and include a screenshot of the homepage.
The e-commerce business has various business models that are differentiated on the basis of the consumers and the market they cater to (Hodge and Cagle, 2004). This helps in proper categorization of the business so that consumers can choose to buy from businesses that cater to their individual need. E-commerce businesses like Amazon cater to individuals and are known as business to consumer business model or simply the B2C business model (Andreini and Bettinelli, 2017). According to Kumar and Raheja (2012), business to consumer e-commerce provides organizations with a system that allows them to deliver buyers to the merchants and gain from the commission rewards provided by the merchants. This symbiotic relationship enables small businesses to cater to a wide consumer base while maintaining the database of the service provider (Sheikh and Basti, 2015). Certain businesses choose to cater to other small businesses like in the case of e-Bay where the company is boosting its services it caters to other small businesses.
The businesses chosen for the purpose of this assignment are:
B. For each chosen website; in 1-2 paragraphs, explain why the website belongs to that particular e-commerce business model.
The B2B business model caters to small businesses across a given market. Companies orient their product or service according to the needs and demands of a particular sector of the market. An e-business model refers to a structure that increases the value propositions to customers as compared to traditional business models and to provide guidance for organizations to conduct their business activities in the e-business environment on a sustainable basis (Ng, 2005).
Azure Groups are a financial services provider to small businesses founded in 2002 by lead managing partner, Michael Derin (Azuregroup.com.au, 2018). It helps businesses to grow and develop by providing them with financial help and education. It also provides management and audit services to independent firms.
Accountants Australia is also a B2B financial service provider that provides financial advice to small and medium businesses. The company was founded by a couple of dedicated Certified Practicing Accountants (CPAs) back in 2001. The company is registered with CPA Australia Tax and Accounting Service and also a registered tax agent under the Australian Taxation Office and a member of the National Tax and Accountants Association Ltd (accountantsaustralia.com.au, 2018).
C. For each chosen website; in 1-2 paragraphs, identify what you think is/are the principal business goal(s) of the website.
Azure Groups are one of the leading financial service providers in Australia. It strives to be one of the best innovative leaders in finance and accounting. According to azuregroup.com.au (2018), the company goals are set as:
- To educate,
- To influence, and
- To lead
The company strives in helping small businesses with the handling of their accounts and maintaining their audits and taxes. The company states their business plan as “Plan for tomorrow by understanding today”. A set of core values serve as a constant reminder for the company to deliver superior services than their rivals and therefore remain competitive in the market (azuregroup.com.au, 2018). The goals set by the company in reference to its duty towards other businesses include:
- Growth of the company to expand into new markets.
- Implement proper financial activities.
- Increase company productivity.
- Build on the company’s competitive strength.
- Counter the risk to total business failure.
- Increase the company’s overall value and influence its business.
- Adhere to company’s obligations and manage the company’s taxes.
Accountants Australia is a rival financial service provider providing financial services to small and medium businesses. Similar to Azure Groups, it is an e-commerce financial service provider in Australia that follows a B2B business model. According to (accountantsaustralia.com.au, 2018), the goals set for the company are:
- To understand,
- To help businesses grow, and
- To help businesses prosper
The company strives to become one of the leading professional and friendly providers of strategic financial and business solutions. It also helps other small businesses to build financial wealth while maintaining their market share (accountants australia.com.au, 2018).
D. For each website; consider the following attributes and assess them on the following five-point semantic differential scale.
E. Compare and contrast your chosen websites: which website is more likely to be successful than the other, and why?
Azure Group and Accountants Australia are both well versed to provide financial services to its clients. However, Azure Groups has a much more streamlined approach towards providing support to its clients. The website is much more detailed even though it lacks some navigational support. Accountants Australia is also adept when it comes to providing the same services but is plagued by minor issues related to website design and customization. Product and service management is top notch for both the companies. Even though both the companies are evenly matched when it comes to services, the general attraction towards Azure Groups is solely due to its innovative website design which attracts a larger amount of people. Hence, Accountants Australia should implement various design changes to its website to remain a constant threat to its rivals in the Australian e-commerce financial service providers market.
This assignment has attempted to analyze the e-commerce business models adopted by various companies worldwide. It has shown the various perks and cons that this radical market provides to its clients and also the various challenges faced by the businesses in this fast changing environment. It has highlighted the need to businesses to stay relevant and adapt to the changes brought about by the increased amount of interactions between cultures resulting in the need for personalized products. Companies that succeed in providing such services and products will survive the radical market and those that fail will slowly fade away.
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Accountants Australia. (2018). Home. [online] Available at: https://www.accountantsaustralia.com.au/ [Accessed 26 Sep. 2018].
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