Online Business Enterprises
Introduction
I have written a research analysis market and services provided for the company I work for. The company is an online-based enterprise that mainly deals with online service provision. The services also include work stations deliveries and door to door home deliveries if requested by a customer. The paper analysis was written simply speaks about market analysis of the business, major market determinates of our products, lastly our relations to the government rules and policies(Becerra Díaz, 2017)
Market and Competitors
The online business enterprise I work for has a vast market with minimal competitors. The market command mainly consists of the youth, working professionals, small businesses and shops in towns, and lastly, customers in residential areas. The youth market primarily consists of electronic products, which are phone, television, and computer accessories. The professional customers mainly consist of working individuals at offices who order food, especially during lunch hours.
The other loyal customer consists of small shops and minimarts in towns and shopping centers. The company I am working for supplies them a stock of their various products upon called to deliver, lastly we also do home deliveries in terms of glossaries that have been ordered by our loyal customers. Our competitors, unfortunately, have a lower hand trig to compete with us. Reason being that we command a large following on the internet and also our company has been well advertised through other forums of mainstream media.
The Market Power
The market power command held by the company I work for is very vast. This is because we have well-advertised ourselves through mainstream media forums. The company also has spencer, many youths, and charity programs that have marketed our company well. Moreover, the company has been on the frontline in various social media platforms as they advertise themselves. Lastly, the company has been on the frontline giving our customers discounts also standard price for their preferred products.
Challenges Concerning the Market Power and Ways of Overcoming Them
The main challenge that has faced the company I work for is poor network and internet services. These challenges are mainly faced by individuals who reside in rural settings. They are unfortunately not vibrant in terms of their ordering rates. This challenge, fortunately, is not witnessed in towns and urban environments hence people in this areas command a prominent clientele figure(Mora-Motta & León,2017)
The ways to curb the raging challenges were straightforward. The company I work with consulted with the telecommunication service providers who agreed to look into our problem. Fortunately, they helped us handle the network problem by adding more network boosted in rural settings. Moreover, they applied affordable internet services for local customers to buy them easily.
Product Differentiation
The company that I work for does product differentiation. We generally market similar products with minor variations that are used by consumers when making a choice. Moreover, the company has introduced a policy that entails the selling of their products at meager prices and discounts on specific months and days. The said days usually are done on a selected month and days a good example being the month of November at every Friday.
Determinants of Demand in the Market
The determinants of demand in the market of the online business enterprise I work for is quite impressive. We have the youth on one side to deal with, we have the old and young professional elites on one side, and we also have the modern working-class women who are our loyal customers. The three distinct groups of people mentioned are our loyal customers who we have to handle differently and professionally.
The main determinant factor is the quality of our products and the efficiency of our services. We make sure that our customers get quality products at the right time upon receiving an order. We have survey analysis of our online platforms, where we have questioners that collect feedback of after delivery of the products to get the customers opinions of our services(Rediyana & Mulya, 2019)
Controllable and Uncontrollable Factors of the Market Demand
The company I work for face various controllable and unconformable factors on the demand of the market we command. The controllable factors being the company’s ability to regulate orders that they deliver daily. The rules to be sent to different towns may take a period of two or three days upon delivery of the products requested. Unfortunately, rules for lunch hours for the professional individuals to be done fast and quickly at that lunch period.
The uncontrollable factor of the market demand is that of shipping delivery short-comings. Delivery agents may face accidents while delivering hazardous products such as televisions and fridges. The company sometimes goes into losses as their customers complain immediately a faulty product is delivered. This is because a refund or exchange of the product may be required. Fortunately, the company keeps coming up with ways to curb and insure such occurrences if they emerge.
The Changed Factors in Recent Years
The main factor that has changed in recent years is the increase in customer numbers. The customer number has vastly increased as the years go by. This is because of the popularization of our online business enterprises through mainstream media platforms. The numbers keep growing to our advantage, thus increasing our clientele numbers.
The youth in colleges and universities being the front-line toward spiking those numbers. Over the years, the statistics keep growing a clear indicator that we provided not only affordable services but also quality services to all our loyal and esteemed customers all the time.
The Major Demand Shifters
The primary demand shifters in the online business enterprise that I work are mainly based on the customers. The various customers have their choices and preferences about their products. The youth who are our loyal customers, especially in higher learning institutions, prefer discounts on their shipping fees upon delivery of their products. They also love additional packages to their products, a good example being a phone accessory bought accompanied by a flash disk drive.
The other vital example of demand shifters of our customers is that group of professional workers. They order food during lunch hours. Most of them love their deliveries to hot, steamy, and aromatic as it is prepared in the kitchen. The other group comprises of the modern-day women who order groceries through our online platforms. They are also delicate and demanding customers as they insist that their products should be delivered on time, and they should be very fresh.
Government Influence on Online Business Enterprises
The government has a significant influence on any online business enterprise. The government has to get taxes and revenues from the proceedings of the said business. A certain percentage is usually given to the authorities in the tax department to cover for business permits and the official go-ahead of running the businesses.
The company I work for interestingly has worked with the current government. Some government offices wanted to upgrade their computer, so we won a tender to supply a new set of machines to the various offices. The company I work for made good money from the business partnership formed. The example stated above clearly indicates that the government has influence and can do business with private entities.
Tax Burdens
Many privately owned businesses have to comply with various tax policies from their respective authorities. This, unfortunately, may lead to the imposition of substantial tax burdens on such activity. A good example is that of the company I work for; they have to pay almost twenty-five percent of their profit proceedings to the government in the form of taxes(Arik, 2017)
.
Subsidies and Price Controls
The government of the country I work for definitely has put subsidies and price controls on the various products. This is to curb inflation and exploitation of the local citizen who is the leading consumer. The price controls and the subsidies that have been put definitely will regulate our product price. Sometimes it may be a bit oppressive to the companies we work for as we are the retailers and the wholesalers, the costs may be a bit low in-terms of profit generation. The only advantage is that the price control and subsidies measures favor not only the rich but also the less fortunate.
Regulations to the Functioning Of the Market Prices
There are standard regulation directives on market prices. The regulations are given in the fields of prices, taxes, minimum wages, and environmental conditions in the country that I work. The rules are not only put in food price commodities but also other products(Zhao, 2015)
Impacts of the Regulations Imposed To My Line of Work
The regulations imposed have to dare impacts on my line. The fields that have been dramatic effects include environmental management, taxes, prices, minimum wages, and many others. The ecological regulation case has affected my line of work in the following way. The regulations imposed state that any delivery agent must wear the correct attire with the company he works at for easy identifications and sporting. The issues of taxes are also addressed. The regulatory measures imposed on the collection if fees I must agree they were quite reasonably imposed. Online based enterprises no pay moderate tax remits to the required authorities in question.
The issues of minimum wages are also addressed. Online-based companies have to comply with the regulation directives on how they should pay their employees. They are supposed to pay them well and as per the required instructions. Failure to which thorough disciplinary measures will be taken against them, which include the cancellation of their business permits.
The commodity prices factor is also addressed. The regulatory directives are that the prices of different commodities will vary as time goes by. The government, through its various ministries concerned, will update the business persons on the standard rate of commodes. This will hinder cases of exploitation of the local citizen. Such a directive impede our line of duty as the price of our commodities, especially the food sector, maybe affected mostly due to the various changes in food prices made.
Conclusion
The online business enterprise docket is a lucrative business to venture into. This is because it has a significant market potential that has not yet been exploited. The only thing to keep in mind is on following the regulation imposed, market your website in mainstream media platform if possible, and lastly, gain customer confidence and loyalty. You will make a quite successful business through online grounds.
Diagram And Graphical Illustrations of Online Business Enterprise processed
References
Arik Siswanto, M. PROSEDUR PELAKSANAAN PEMUTUSAN RAMPUNG DI PT. PLN (PERSERO) DISTRIBUSI JAWA TIMUR APJ JEMBER UPJ JEMBER KOTA TAHUN 2017.
Becerra Díaz, H. A. (2017). Análisis y mejora del proceso del manejo de inventarios, mediante técnicas de inteligencia de negocios, aplicando la herramienta Oracle Business Intelligence OBI (Bachelor’s thesis).
Mora-Motta, A., & León Rodríguez, N. (2017). Changing of perspective in the economics of climate change mitigation. Cuadernos de Economía, 36(70), 169-195.
Rediyana, I., & Mulya, H. (2019). Why Does The Tax Knowledge Give Negative Effect on the Level of Tax Payer Compliance?.
Zhao, K. (2015). research on consumer online purchasing decisions and its influencing factors: take Taobao as an example.