Creating a New Internet Business
List the business model description, Web site(s) visited, summary of the GREAT things that are on the Web page that makes the company successful for each Internet business model of uses for electronic commerce.
Business 1: Aerospace Metal Alloys
Aerospace Metal Alloys is a distributor of exotic steel, aluminum, and titanium alloys to the aerospace industry and other specialized industries. These metals such as kovar and inconel, must meet exceptionally exacting standards because they become parts in airplanes, rockets, industrial furnaces, and other high performance products. Aerospace sells raw materials produced in the form of bars, sheets, rings and ...view middle of the document...
Management believes the correct Web strategy could help Low Cost Tires improve customer service locally, increase its customer base, and help it create retail outlets in new locations.
1. What Internet business model would be appropriate for the company to follow in creating a Web site? Why?
Today it is becoming very easy to build a website in any market niche. Web editors like WordPress, Joomla, Drupal and recently PageCloud provide opportunities to any online marketer to be able to build websites that match any Fortune500 company websites in design and layout. Whether we want to open an e-commerce store, provide consulting services or affiliate marketing, there are themes of all sorts that have been already designed and engineered in a specific way to create more opt-ins and leads from all web traffic. So by acquiring these themes that have been already coded, designed, and search engine optimized, we get the advantage to further refine the layout and functionality of our business website for better customer experience.
The first step is always about information gathering. Identifying things like the website purpose, website goals and target audience are essential to help identify the most appropriate online business model. Both the Aerospace Metal Alloy (AMA) and Low Cost Tires (LCT) companies fall under the business model of selling physical products & services. AMA will be selling raw materials produced in the form of bars, sheets, rings and forgings as their products, as well as, specialty engineered items using their processing technology to satisfy any specific custom orders that drop in from their customers. They also could act as brokers to facilitate special-orders when certain products are not carried in their inventory.
The LCT company, on the hand, will be selling a different niche product; new & used tires to their local customers in the city. They will also be willing to provide tire installation and other repair services if necessary. Their prime focus though is really to sell tires. It has been profitable for the company over the years compared to auto repairing. So the online business model would mainly focus on marketing their tire inventory and perhaps add complementary auto services such as tire installation and oil change as options to their front-end product.
Both AMA and LCT companies would be considered as e-commerce businesses. While AMA and LCT each have distinct products & services that make them best fit under the e-commerce online model, their respective business models differ slightly due to one company functioning as a supplier for metal alloys and the other one as a retailer for auto tires. This difference will affect the way customers will be ordering and paying for products on each of these websites. We have a final product like tires from LCT that could be sold instantly online then picked up or delivered. Or, we could have metal alloys from AMA that need to be processed and...