Global E-Commerce: Business Plan for Online Book Retailers

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E-Business Plan

Prepared 16 April 2010

Submitted by: Danny O’Mara u114690

Contents
1.Executive Summary3
2.Business Description3
3.Market Analysis4
3.1.Customers4
3.2.Pricing5
3.3.Payment5
3.4.Competition5
4.Operations6
4.1.Marketing & Promotion6
4.2.Management and Staffing7
4.3.Hardware & Software8
4.4.Risks9
5.Financials10
5.1.Developmental Costs10
5.2.Operational Costs10
5.3.Sales & Marketing Costs11
5.4.Revenue Model11
5.5.Profit and Loss Forecasts12
6.Timeline13
7.Conclusion13
8.Bibliography14
9.Appendices15

1.
Executive Summary
There is a strong future in the sale of electronic books (e-books). In its Global Entertainment and Media Outlook 2008-2012, PricewaterhoureCoopers predicts that whilst they will not threaten traditional book sales, in countries like the United Kingdom, sales of e-books will increase and be worth $386m USD by 2012 (PricewaterhoureCoopers, 2008, p. 663). notaprintedbook.com is an online (e-book) website, which allows users to download and access a wide range of fiction and non-fiction books in different electronic formats. Users can download e-books to PCs, mobile phones and PDAs as well as read them online. The following business plan will outline the market analysis, pricing, management structure; risks; and financials to explore the proposition of launching this Australian based business into the United Kingdom. 2. Business Description

notaprintedbook.com is a wholly online e-book retailer that allows users to download and/or store text on “my books”, an online directory which bookmarks all the items you have purchased, sorted by genre or author. This means that the customer has no need to use up memory on their computer, PDA, e-book reader or smart phone. It also means that books are accessible from sources that are not usually the users, such as an internet cafe, as no additional software downloads are required. The text source comes from smaller traditional domestic book suppliers and publishers who have bricks and mortar operations. notaprintedbook.com provides these companies with a way to compete with the large book retailers and access the new generation of customer who do not want paper books, those who are remote locations, or those who simply do not want to wait for shipping. Users can preview books before buying, just as you would in a traditional bookstore, read reviews posted by other users and media outlets, as well as have books suggested to them by the website. The preference will be to offer customers shorter stories as opposed to lengthy ones, which will encourage quicker return sales. The website offers free account access, online help as well as a secure shopping facility, as discussed in section 3.3. 3. Market Analysis

4.1. Customers
The international market chosen is the United Kingdom. The United Kingdom has some of the highest disposable incomes in the world (WorldSalaries.org, 2005), as well as some of the highest internet usage (Dholakia, 2006, p. 232), which has increased 28 per cent since 2006 (Society - Internet Access, 2009). These factors make them ideal target markets for non essential, creative items such as books. Within this geographical market, a specific target consumer would be those people commuting into and around the larger cities. In the United Kingdom, the average one way commute time can vary anywhere from 41 minutes in Wales to 78 minutes in London (Personnel Today, 2009). Whilst a proportion of these would include people travelling in motor vehicles, the remaining would be commuting via public transport and would form the main target market. UK consumer book sales (that is excluding academic and schoolbooks) market is worth some £2,538m (or approx $5,300m AUD) in 2008 (Book Marketing Limited, 2008), and the e-book market worth $61m AUD1 (PricewaterhoureCoopers, 2008, p. 658)....
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