Professor Alessandro Signorini
ISM - 2012
1) Industry analysis
E-Commerce, and to a greater extent the e-Business involves many process : from navigation to the order, from the management of the order to the sending of the product, customer service to the treatment of customer reviews all these steps are crucial for an e-Commerce company.
For a client accesses a site selling online it must first be found: The referencing is so important that it even became the new sinews of war on the internet. Once on site, the client will both find the site enjoyable and functional if not found what he's looking in a few clicks, the customer will go elsewhere. With new technologies, the customer always knows where his command is: Step Logistics is one of the most decisive in the opinion of the customer... All these steps perfectly summarize the philosophy of e-commerce solution: taking into account all process of an order in order to boost sales.
a. Definition of the industry
The equipment of the house is a large market where there are furniture, appliances, decorative objects, lighting, as well as articles from the world of TABLE ARTS, linens, textiles furnishings... 42.5% of the French attach great importance to their homes, far ahead of the holidays (34.5%), clothing and cosmetics (16.9%). Overall, households believe that their spending on their home equipment (excluding rents and loan repayments) are the second largest expense, behind those related to food. Certainly, the crisis has slowed the purchase volumes, and in some sectors of the equipment of the house, it caused many record declines, but the equipment housing still remain prominently in the heart of the French as in fact, most times are tough and more the French back on the house ...
b. Market trends in the last years
Furniture, decor, appliances ... The online sales of home equipment would show Olympic form. A survey by PowerBoutique reveals the growing interest of the French for their interior. So today, 24% of e-commerce sites in France would be devoted to the sale of equipment for the home. Therefore, the turnover of these champions of e-commerce has increased by an average of 58% per year.
If you look closer, the furnishings segment is the most efficient. It would have recorded the highest increase in activity, with an evolution of more than 136% of the revenue for sites selling furniture. The decor is no exception. Specialists in this segment represent 41% of online shops sector equipment home, but their turnover does not stand up to the furniture segment, due in particular to lower unit prices. In contrast, the category called "other equipment" (cleaning products, household products, etc...) As well as gardening, DIY and household appliances represent respectively 26%, 25% and 21% of revenues generated by e-commerce sites devoted to the world of home.
An average basket higher than other sectors
Building security systems around the online payment reinforces the confidence of Internet users to the sites. They are now more prone to large purchases on the web. One feels the impact on the average basket sites, which would be higher by 60% than other sectors of e-commerce (€ 222 against € 136). For the purchase of appliances, it stood at 480 €, and for furniture, it reached € 331. Far from being short of ideas to surf their ascent, e-merchants positioned in this sector are now larger. And in 2009, two thirds of them were making export sales, especially outside the European Union. Still anecdotal, these sales represent only 8% of their turnover. Moreover, it is also evidence that the development potential remains considerable.
c. Basic business models (differentiation strategies, cost-leadership strategies, and focus strategies)
The company that I chose opts for the strategy of differentiation. It counts more than 5000 references and in 10 different categories....