E-commerce Toy Industry Analysis Report
Rationale for adoption of e-commerce
Barriers to e-commerce & Business Challenges
The Internet as Communication Medium
Word count from Report: 3385
The Toy industry is mainly responsible for the safety standards products and to advertising and marketing to the children. It produces and imports of toys, games and children's leisure products. Most of the country have their own toy industry association or sometimes may work together. In the US, Toy Industry Association, Inc. (TIA) connect to their members who has contains toy testing laboratories, to design firms and professional creators, government, the trade, the media and consumers etc. these are the respected vote of the U.S. toy industry. The main aim of the industry is the toy manufacturing companies have been enthusiastic to the happiness of the children and the upgrading of their physical, emotional and mental situations (Toy Industry Inc., 2007).
Toy industry has good impact of e-commerce and e-business. Nowadays in all over the world there are so many toy companies have their own website and sell their products online like Mattel Inc, Fisher Price etc. It generates more revenue on the internet. They use both e-commerce and e-business for developing their business. Kalakota and Whinstones (1997) tell four different types of perspectives for e-commerce: (1) A communication perspective it means the delivery of information, products/services or payment on the net. (2) A business process perspective business transactions and workflows. (3) A service perspective reduces the cost and increasing the speed and provides reliable services. (4) An online perspective the buying and selling the products/services on the internet (Chaffey, 2004, p.8-9). In the e-commerce, business model evaluates company's revenue, target market, products or services offering and potential customers. Pant and Ravichandran (2001) describes three alternative perspectives on business models. According to their point of view the toy industry uses three different types of business models like, (1) Marketplace position perspective they can be manufacturer or primary service provider, reseller or retailer, media owner or publisher and supply chain provider. For example, The Mattel Inc. organisation manufactures their toys and selling online from their website and other websites like Amazon.com, Toys r us etc. (2) Revenue model perspective The toy companies can be direct product sales of product or service, subscription, commission based sales and advertising etc. For example, Toys r us selling their products or service direct through the website and also they provide subscription for marketing their product, and (3) Commercial model perspective they can be sell the products on fixed price (Chaffey, 2004, p.61-63). The toy industry widely uses business-to-business (B2B) and Business-to-Consumer (B2C) e-commerce models.
(2) Rationale for adoption of e-commerce:
The e-commerce drivers are very useful for each and every big organisation and industry. There are numerous e-commerce drivers in toy industry, like (I) Digital Convergence The digital revolution has good impact on the global toy market. The internet is very useful digital technology and it improves the e-commerce and pushes market-up in to the toy industry. (II) Anytime, Anywhere, Anyone it is available anytime, anyone and anywhere in the world 24/7 days. It is the biggest advantages, if customer wants to buy the doll, they just need to go online on their website and buy it from home at anytime. So it saves the time and money also. For example, Barbie.com websites working 24 hours a day and 7 days a week, customer can buy anything at anytime or anyplace using the internet or mobile...
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