Custom «E-Business» Essay Paper Sample



Establishing a new business needs the entrepreneurs to consider various factors as a way of minimizing potential risks. It is essential to list down the kind of products to be offered to the target customers. Other factors are location, competitive advantage, distribution models, and quality metrics. I anticipate setting up an electronic business in the local market of Dubai and naming it the Kings Online Store. The business will be selling time-sensitive products like vegetables, meat, and fruits. The report presents the overall background of the Kings online business, facility’s location, distribution model, six sigma, and lean operations.

Mission, Goals, and Competitive Advantage

The mission and goals will play a significant role in the success of the electronic business by guiding the formulation of practical operational strategies.  The mission statement of the business is to make it convenient to conduct business everywhere within the locality. Kings Online store aspires to serve everyone regardless of their location. The major goal of the Kings Online e-business is to reach a maximum number of customers at the right time and place and to increase business profitability. Kings Online electronic commerce will leverage activities towards offering the best quality to customers, acting as its competitive advantage. Another competitive advantage for the electronic business store will be fast and timely delivery. Besides, the website for the business will be easy to navigate and execute business functions. Customers like purchasing from websites that lack complexity.

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Factors to Consider When Selecting Facility Location

Kings Online store electronic business needs warehouses to store the products before distribution to consumers. Since it is a start-up, there will be three warehouses. The fundamental factor I will consider when selecting the location of establishing warehouses is the availability of target consumers. The warehouses will be situated in the township area since it harbors the majority of the target consumers. Another factor is the proximity of carrier services. The warehouses will be located near carrier service providers to facilitate prompt product deliver to consumers when the business expands. Considering this factor will offer convenience and proximity to the target consumers. Setting the warehouse near the carrier services will also minimize the transportation cost the customer is bound to incur when the products are being delivered. Delivery will be done at a cheaper cost. Besides, warehouse storage requirements are another critical factor that I will consider. Before dispatch, the products such as fruits, meat, and vegetables need special storage in the fridge. Therefore, the warehouses will be situated in the township area where the availability of electric power is guaranteed throughout. Therefore, I will consider the availability of target consumers, special warehouse requirements, and proximity of carrier services.

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Distribution and Transportation Model

The most appropriate distribution model for the electronic business start-up is direct selling. Kings Online store will be distributing products to the customers directly without utilizing intermediaries. Customers will be placing their orders through the website, and delivery made to them promptly. Direct selling is the most appropriate distribution model because it is cost-effective. The model allows businesses to sell their products without paying other parties to handle activities such as sales, marketing, and transportation (Dong, 2018). All responsibilities are executed by the corporate. The cash that could have been utilized to pay intermediaries is used to expand the business premise. Direct selling is still the most effective distribution model for Kings Online Store because it gives entities control over the products. since the electronic business is a start-up and has not yet gained a huge customer baseline, selling directly will be practical.

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Lean Operation

Kings Online electronic business will apply a lean management approach to enhance efficiency and quality. Some of the wastes I envision as I establish the electronic business in Dubai are time and money resources. According to the lean operations concepts, wastes identified in the business should be eliminated by cutting out steps that do not create significant value. To eliminate the waste of time, I will ensure the warehouses can accommodate huge product quantities. This will reduce the time taken to get the products and distribute them to customers. There will always be enough products to distribute for a day. To reduce the wastage of money, I anticipate eliminating any intermediaries between the store and the customers. Deliveries will be done directly from the store to consumers, which will help save financial resources for efficiency.

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To succeed in the electronic business industry, I need to improve the quality metric of customer satisfaction. To solve the problem of customer satisfaction, the define, measure, analyze, improve, and control approach is applicable. I need to quantify what satisfies the customers through defining it. The second step entails measuring the customer's needs against the firm's current performance. The third step entails analysis of the existing gap. For example, the gap may be product quality. The fourth step of improving involves devising and implementing action plans such as exchanging product suppliers. To maintain sustainable excellent customer satisfaction, there should be a control plan to constantly check product quality.

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The major aim for setting up the electronic business in Dubai is to offer convenient services to everyone regardless of location. The business aspires to serve a significant number of customers and increase profitability. Before selecting the location of the warehouses, I will consider the availability of customers, proximity of carrier services, and special warehouse requirements. The most effective distribution model is direct selling, as it is cost-effective for a start-up. To maximize efficiency in operations, activities that are not valuable should be eliminated to avoid wasting time and money. Besides, I will utilize the six-sigma approach to enhance the quality of customer satisfaction.

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