The impact of online selling on small businesses Essay

The impact of online selling on small businesses - Essay Example This essay outlines the benefits and the costs from online retailing for small businesses that use online retailing and for those that do not use online retailing. It also outlines how online retailing would affect the financial management of an existing small business that chooses to move into online retailing. The benefits and costs from online retailing for small businesses that use online retailing Online retailing presents various benefits to small businesses that use it to offer their products and services. In online retailing, the cost of business operations is lower as compared to operating through physical stores. Dale (2010) explains that in online retailing, all only one retail facility is required for sales, shipment and customer services. This reduces the cost of running many retail stores. This mode of business operation involves inbound shipping of products to one location and this makes the cost of shipping lower compared to making shipments to many retail locations. In online retailing, it is easy to control the costs of staff. An example of this is that phone and e-mail support specialists handle all requests from customers. This eliminates the need for sales persons to be stationed at individual retail locations of a business. Online retailing leads to a reduction of time costs because all decision-making personnel are located in one place leading to a quick dissemination of new directives. Lesonsky (2009) states that online retailing leads to improved sales. This is because all the products of a company are housed in one place hence customers benefit from enhanced employee knowledge and stock selection. Improved sales also result from owning an open store that operates all days and all hours of the week. Unlike physical stores who need to attract customers through appealing merchandise displays and securing a prime location, online retailers just require the website. Nissanoff (2006) explains that this is their only interaction point with th eir customers and this helps to eliminate high rent rates charged at prime locations. Owning a physical retail entity is expensive compared to owning an online storefront that is backed by a warehouse that is well-organised for inventory purposes. This is also to say that online retailing presents lower capital requirements for start-ups. It is the desire of every business to gain a competitive advantage over its competitors and online retailing offers this chance. According to Kumar et al (2004), online retailing allows small businesses to capitalize on the differences between them and brick-and-mortar stores by developing efficient business operations that support online storefronts that are user-friendly. This creates a unique opportunity for success to e-retailers. Online retailing also makes it easy to achieve repeated business with customers because online business requires customers to fill in their names, contacts and address in order to purchase products. This creates chanc es for customer follow-ups and timely notification on new products, discounts, offers and promotions. In addition to the above, online retailing creates a chance for expanding the operations of small businesses into the global market. Despite the above benefits, there are some costs from online retailing for small businesses that use it. Unlike retailers with physical stores,

Principles Of Marketing Management Chocolate in the UK Essay

Principles Of Marketing Management Chocolate in the UK - Essay Example Thorntons' website is a strong source of sales and allows customers to pick and chose chocolates. Thorntors also promotes its new products readily. Unique season based product packages such as wedding favours are also highly demanded. The company provides chocolates of various ranges including Belgian, Winter, Viennese,etc. Chocolates of various types such as milk chocolate, dark chocolate, mint chocolate, etc., are also available for customers This research paper seeks to analyze the current market standing of the company via a comprehensive swot analysis. The findings of this analysis shall be used to frame the marketing and positioning strategies of the company. Thorntors chocolate has been in the UK market for over 100 years and possesses a turnover of 210 million pounds in the year 2008. Along with general retail outlets, Thorntons also sells its products through the internet, mail order and by using other commercial services. Analyzing Thontorns in depth:- Thorntors poses a challenging test to any marketer. The company boasts of its legacy, however, it faces increasing competition from newer entrants that threaten to torment its reign as a top chocolate company. A swot analysis of the company shall help understand aspects that it can rely on and things it needs to work on to cement its position as the top chocolate company.... 6) Premium brand positioning. Weaknesses 1)Retail Outlets’ failure to meet targets. 2)No customized products at retail stores. 3)History of problems with hand finished chocolates. 4)Weak performance by OWN Stores channel. Opportunities 1)Export market potential. 2)Product Innovation to counter economic downturn. 3)Discovery of new ranges such as biscuit desserts can help enhance brand equity. Threats 1)Fluctuating raw material and dairy prices. 2)Rising inflation and affordability issues. 3)Economic downturn and customer’s changing preferences. 4)Failure to address retail sales issue before competitors can gain advantage. Target Market and Seeking new opportunities:- Thorntons is a premium brand of chocolate that has established considerable brand equity over the 99 years of its existence. While the company welcomes and appreciates every walk in customer, there are specific people it targets with each of its innovative products. Kingston Upon Hull is the market that Tho rntons seeks to capure this Christmas. The city is located in the East Riding of Yorkshire and has a population of around a quarter of a million people. Hull is home to around 97% local residents while a small minority group of within 1000 people reside in the entire city. The city boasts a high percentage of people who use personal transport over public transport and the economic conditions of the people are relatively good. There is however, a 6.2% unemployment rate which acts as a threat to potential market. Hull is also home to several types of restaurants, including Chinese, English, French, Italian etc (Hull and East Reading, 2011).The city acts as a busy port and economy is built around trading and seafaring. Considering the company’s premium positioning, it will