Student Name: Raval Darshan

Student ID: 648071

Year: Sep-2015(Fall)
Assignment No: 4
Lecturer: JANE WERE

Table Of Contents
Introduction.3
Component of an Internet Business.4
Strength5
Weakness.5
Opportunities..5,6
Threats..6
Advantages...7
Disadvantages8
B2B..9
B2C10
C2C11
Conclusion..12
Recommendations.13
References..14

Introduction to E-Commerce
So what does e-commerce mean anyway? E-commerce is the pre-eminent
buzzword of the online business revolution. It captures the excitement and focus of
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this fast emerging market. However, it is more than a slogan or glib party line. At its
core, it embodies a concept for doing business online.
Electronic commerce is the paperless exchange of business information using
electronic data interchange (EDI), e-mail, electronic bulletin boards, fax
transmissions, and electronic funds transfer. It refers to Internet shopping, online
stock and bond transactions, the downloading and selling of soft merchandise
(software, documents, graphics, music, etc.), and business-to-business transactions.
The concept of e-commerce is all about using the Internet to do business better and
faster. It is about giving customers controlled access to the computer systems and
letting people serve themselves. It is about committing a company to a serious online
effort and integrating the website with the heart of the business. If you do that, you
will see results!
It is a way for people to communicate with each other. It is also a way for a consumer
to communicate with a companys computer systems without human intervention. In
fact, the Internet is a communication medium like the many others we use in
business every day.
When you cannot meet face to face, you may use any of a number of different
means to communicate a telephone, a fax machine, Federal Express, the Postal
Service, or maybe even a messenger service. These are all ways to deliver or
receive information, authorization, even shipments of goods and merchandise.
The Internet is a reasonable alternative to all of those means of communication. Any
place and any way that your business communicates with its customers, you should
think about how you could have done it online. That is the power of e-commerce.
When it comes time to pay for merchandise, use a secured server to pay by credit
card, or even digital cash! The opportunities and situations in which online business
is possible are limitless.

Components of an Internet Business

Every era of business yields new strategies and new ways of doing business. With
the advent of radio and television came the first mass-market advertising. Now, the
Internet has so radically changed business that the rules for corporate strategy that
held for the last 50 years (since the dawn of television) have begun to crumble.
There are some literal elements of commerce that are necessary for any
transactions to take place, which are as true for regular bricks-and-mortar commerce
as they are for e-commerce. First, whether you are doing business online or in the
real world, you have to have a product to sell or a service to offer. Then, you must
have a place from which to do business. In the traditional world of commerce this
can be a physical store or, in a more figurative sense, a catalog or phone number. In
the world of e-commerce, the place from which you do business is your Web site.
Adding a Web site is a means to enhance their business. For Internet startups, the
Web site is the only place that they do business.
In both regular commerce and e-commerce, you need to find a way to attract
customers to your place of business. This is embodied by your marketing strategy,
and everything from advertising to word of mouth fits into this category.
In order to do business, you also need a way to take orders and process payment. In
a retail store, there are no orders. Customers simply find the products they want, get
in a line at the register, and pay the cashier. In e-commerce, orders have to be
placed and items shipped. Orders are usually handled through interactive, online
forms. Money is another issue easily handled in traditional commerce.
Customers in a retail store pay by check, cash, or credit or debit cards. Online
customers cannot pay by cash or check, only through electronic means. In addition,
there are issues of security that surround online payment that do not come into play
in the traditional bricks-and-mortar world. E-commerce transactions have to take
place through secure electronic connections and special merchant accounts for
accepting payment.
Once payment is collected, delivery of the product must take place. Fulfillment in
traditional stores is as easy as putting the item in a bag and handing it over to the
customer. Fulfillment in the world of e-commerce is more difficult, requiring shipping,
transportation similar to catalog, and mail order businesses.
For businesses that integrate e-commerce into their existing business plan,
fulfillment is as easy as hiring an extra employee to ship online orders. In Internet
startup businesses, fulfillment must often be outsourced to a facility that can handle
order processing and shipping in a more timely and professional manner.

1. STRENGTHS
a) Menu changes in weekly basis. Some cupcakes are available every day of
the week, some only one day a week, and others at completely random days
of the week.
b) Different operating policies. It includes on working hours, days of operation,
delivery policies, price differences and unique menu items.
c) The product had to remain king. We had to design the site in such a way
that the cupcakes remained the heroes of the Web site.
d) Growth was imminent. Whatever plan was implemented had to be flexible
enough to accommodate rapid expansion through e-commerce in the next 12
months.
e) Importance of the consumers. We believe in treating the consumers fairly
and friendly.
f) Owners play a big part on the site. The site has become the home base for
the growing family of franchise owners, including store policy statements, art
downloads, e-commerce, corporate communications and email.
g) Design. The sites design had to live up to the high standards of the product.
Meticulously designed icons, typography and photography that made the
product shine.
h) Brand Value. The brand value of the business, awareness and easy
availability has proved to be great strength for the company.

2. WEAKNESSES
a) Operating without a storefront. Watties weakness is being operating the
business without a store or a caf concept in the neighborhood.
b) Delivery range. The delivery ranges of the cupcakes are limited. They only
were delivering within the range of 100 kilometers to 120 kilometers.

3. OPPORTUNITIES

a) Growth. Business of cupcakes has room for growth in market space

nowadays.
b) Making real life connections in person at networking events. Connecting
with social influencers on Twitter in the target markets (the only real social
networking platform weve used in which were able to interact with people we
havent met yet.)
c) Demand. The increasing demand for cupcakes among the young people,
wedding couples, family gatherings, birthday parties, special occasion, sports
leagues and local activities is an opportunity for the business.
d) More Choices. People like eating outside more these days. The expanding
demand of such foods and more varieties and flavors is an opportunity for the
company.

4. THREATS
a) A declining economy. Economy does sometimes play a major role in
affecting the country. It involves on sugar and flour price when it increase in
the market space. This will effect slightly on cost of the production of the
cupcakes and hence on increasing the selling price of the products. The
economic recession has affected the sales of the business badly. People in
the current economic situation do not have much spending power.
b) Various competitors. A lot of competitor nowadays competes in the market
level to introduce and sell the product at any cost.
c) Fast Food Outlets. Due to increasing number of food outlets and restaurants,
the customers can shift to other high quality affordable products from other
sources or business such as KFC, McD, Burger King, Ayamas and others as
well.

ADVANTAGES
Like any business, there are major advantages and disadvantages.
The top five advantages to starting a cake business from home are as follows:
a) You can run this business from home and do not require separate quarters to
do so. If you feel in the future you need more space for your growing venture,
then by all means upgrade!
b) A cupcake business is fun! Most people need cupcakes for special days or
events so what better way to make someone smile and earn a little extra
income while you are at it
c) Your cupcake business will allow flexibility in your schedule. You can decide
when and how many orders to take. You do not have to ask for vacation days
off and you can spend time with your kids or family anytime you like.
d) Low startup costs! Since you do not have to rent some space, then rent can
be taken off from the budget list. In addition, cake supplies are relatively
cheap and definitely easy to come by. Moreover, as your business grows, so
can your supplies and equipment.
e) High mark-up for cupcakes. Since cupcakes are easy to make, you can price
them according to what you feel they are worth. Your prices do not have to be
set in stone! Some are worth more than others are but either way; you are
going to make a nice profit!

DISADVANTAGES
This is not to deter you but to make you aware of some of the things you need to
keep in mind before starting a cupcake business from home.
On the other hand, you are going to have some disadvantages and they may vary
from person to person but they are as follows:
a) You might have to sacrifice time from other activities to get the job done. You
will find that certain orders have to be completed at certain times. Time
management will be your greatest ally!
b) Most events have been scheduled for weekends when people are off work.
Therefore, you will need to be sure that you have this time available to deliver
cakes or be available for pick-ups.
c) Depending on the size of your kitchen, you may need extra storage space for
your supplies. This may require purchasing an extra cabinet or rearranging
your kitchen.
d) You may have to budget for classes or courses if you need a little extra help
learning the ropes in the beginning.

e) Lastly, as with any business from home, there may be zoning requirements
that you have to look into.
You will find that a cupcake business, just like any other business is full of
advantages and disadvantages.
Cupcake businesses are fun and fulfilling but it is up to you to decide if it is the right
avenue to take. However, if you do decide to take that leap then remember to enjoy
and have fun!

Categories for Electronic Commerce

Business-to-Business (B2B)
Business-to-Business (B2B) electronic commerce is now universally recognized as
the e-commerce segment with the largest potential. The growth of the Internet and
commercial web-based applications is offering ever-increasing operational cost
savings to large enterprises, extending trading communities and lowering the
financial barriers to ecommerce participation.
a) Save time and money by increasing the cupcakes business supply chain
efficiency and reducing the costs.
b) Increase the customer retention rates by servicing and anticipating their
needs and expectations in the B2B arena.
c) Gain competitive advantage through an understanding of the massive cost
reductions associated with B2B technologies.
d) To plan more successful B2B e-commerce strategies with understanding of
the latest B2B trends and technologies.
e) Increase the supply chain efficiency by maintaining successful supplier
relationships and modernizing the business processes.
f) Affiliate suppliers.
g) Franchising among the friends and develop a healthy environment.
h) Purchasing the core products in bulk system and at the same time ensure not
to store raw products excessively.
i) All deals are closed with signing up agreements with all the suppliers, small
business associates such as retailers, transportation agency, Courier Service
and friends as well.
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BUSINESS TO CONSUMER (B2C)

While the term e-commerce refers to all online transactions, B2C stands for
"business-to-consumer" and applies to any business or organization that sells its
products or services to consumers over the Internet for own use.
When most people think of B2C e-commerce, they think of Amazon.com, the online
bookseller that launched its site in 1995 and quickly took on the nation's major
retailers. However, in addition to online retailers, B2C has grown to include services
such as online banking, travel services, online auctions, health information and real
estate sites. The following are the B2C benefits
a) Focus on personalization: A wide array of promotion is available to help ecommerce sites create unique boutiques that target specific customers. For
example, American Airlines has personalized its Web site so that business
fliers view it as a business airline and leisure travelers see it as a vacation
site. Amazon, which built its own personalization and customer relationship
management (CRM) systems, is well known for its ability to recognize
customers' individual preferences.
b) Create an easy-to-use customer service application. Providing just an e-mail
address can be frustrating to customers with questions. Live chat or, at the
very least, a phone number will help.
c) Focus on making the site easy to use.
d) Will be entitled with discount voucher whenever there is purchase made in
bulk.
e) On special occasion, there will be special request on custom made cupcakes
directly from the relatives, neighbors, walk in orders and last minute orders.
f) Deliver free samples to several local schools, businesses and restaurants.
Use your imagination; the possibilities are endless for cupcake customers.

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g) Don't forget bridal shops. They may recommend your cupcakes to brides for
the wedding or rehearsal dinner. Make sure you also deliver contact
information and price lists. Be friendly and dressed in business attire.
h) For the web-savvy we provide best practices in search engine optimization
and social media marketing while also providing step-by-step instructions
guide you every step of the way. Cupcake businesses are using the web and
social media to reach vast audiences and grow their market share.

CONSUMER TO CONSUMER (C2C)

Consumer-to-consumer (C2C) marketing is the creation of a product or service with
the specific promotional strategy being for consumers to share that product or
service with others as brand advocates based on the value of the product.
A business model that facilitates an environment where customers can trade with
each other. Two implementations of customer-to-customer markets are auctions and
classifieds. Customer-to-customer marketing has soared in popularity with the arrival
of the internet, as companies such as eBay, Craigslist and other sites have fostered
greater interaction between customers. Customer-to-customer sites make their
money from fees charged to sellers for listing items for sale, adding on promotional
features and completing transactions. Also known as consumer to consumer, or
C2C.
C2C transactions generally involve products sold through a classified
or auction system. Products sold are often used or second hand. So while taking the
site for Cupcake if the consumer is having a good recipe or A grade cup cake then
he/she could conduct a auction for that special cupcake and the highest bidder gets
the cup cake.
However, C2C has some issues such as lack of quality control or payment
guarantees. Theres also the occasional difficulty in making credit card payments. So
still this is not widely used by the consumers or proprietors.

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CONCLUSION
Starting a business is not an easy task BUT applying e-commerce in the business
will lead to a successful business.
There are a lot of things to consider that are interrelated with each other and so each
must be given the right attention for the business to succeed. This same principle
remains true to starting a cupcake business through e-commerce.
Cakes is seemed to be like a staple food in almost every special occasion. For many
years, it has been a symbol for celebration and happy events. One of the breeds of
the traditional cakes that have been in the market since then is the cupcakes.
In starting a cupcake business, the first thing you need to be sure of is the recipe.
The recipe should be competitive enough that even without aesthetics will guarantee
sales for you. It is better to try different recipes until you come up with the taste that
passed your criteria or best cater the taste concept you would want to deliver.
Next is to incorporate uniqueness to your cupcakes. Think of something that will
make your products stand out in the competition. What will define or make your
cupcakes distinct in the market that will make the customers prefer your cupcakes.

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RECCOMANDATIONS
The massive adoption of the Web as an e-commerce platform1 has led to a
fundamental change in the way that businesses of all sizes interact with their
customers. Whereas potential access to a larger, more diverse customer base is
generally viewed as an opportunity, this can also represent increased competition.
The stakes are high and businesses have to develop sophisticated strategies to
attract and retain customers. Rather than focusing on touch points during the
marketing and sales processes, businesses are using intelligent algorithms and
social technologies to form meaningful, ongoing relationships with customers; these
can involve frequent online interactions, often employing social channels. Engaging
costumers in these attractive flows make their business popular and more
consumers visit there stores.

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REFERENCE
1.

Hello cupcake: Irresistibly Playful Creations Anyone Can Make by Alan

Richardson and Karen Tack. Pub. Date: April 2008

2. Boundless.com/e-commerce
3. Get Rich Click, Author: Marc Ostrofsky

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