CanGo Final Report
Team Blue Consulting
Team Blue:
Tiahease Williams
Keisha Isley
Kimberly Brown
Naim Mustafa
DeVry University
BUSN 460: Senior Project
June 22, 2014
TABLE OF CONTENTS
EXECUTIVE SUMMARY……………………………………………………3
SWOT ANALYSIS……………………………………………………………4 & 5
MARKET ANALYSIS………………………………………………………..6
COMPETITIVE ANALYSIS…………………………………………………7 & 8
FINANCIAL ANALYSIS……………………………………………………..9 & 10
STRATEGIC PLANNING……………………………………………………..11 & 12
CONCLUSION…………………………………………………………………13
REFERENCES………………………………………………………………….14
CANGO FINAL REPORT
TEAM BLUE CONSULTING
EXECUTIVE SUMMARY
Elizabeth Bennett, a businesswoman that had a great idea and worked hard to start a new business in the ecommerce market named CanGo.
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Online retailers or online company which is what CanGo is provides the power of online purchases from the comfort of the consumer homes and delivery to their doorstep. While doing some research, “In June 2009, a study by the Carnegie Mellon Green Design Institute in the US found that shopping online can reduce our environmental impact by as much as 66%.” For businesses like CanGo, the advantages of e-commerce lies mainly in the low cost setting up and maintaining the business.
According to MarketLine, the world online retail market expanded by almost 18% in 2010 and is predicted to reach close to $435 billion in sales. The market is expected to reach a 90% growth by 2015 and exceed $827 billion in sales. Listed in an article “Ecommerce Growth Statistics”, the average amount spent by each consumer is expected to rise from $1,207 per year to $1,738 per person by 2016. That is a significant increase. That shows that people prefer to shop online than going to the actual store in today’s society. Shoppers will spend on an average of $327 billion online shopping in 2016, which is about 45% from $226 billion in 2012. It is very evident that consumers will drive ecommerce into the future; especially e-retail. In just a few years, purchases online will be more profitable than ever, with others products and services available to purchase such as mobile and social allowing consumers to shop to their convenience. For retailers and
CanGo currently operates primarily as an online retailer of books, compact discs, mp3 files, videos, and video game software. This configuration has allowed them to take advantage of internet marketing and expand their customer base worldwide. Despite the drawbacks of increased competition, overall growth in internet retail sales is projected to continue for many years to come, providing CanGo with ample opportunities for continued growth and expansion. The Forrester Research Firm projects that online sales in the U.S. alone will reach $248.7 billion by 2014, with an estimated increase of 10% in the five years following. ("The growth of,") Online sales in foreign markets will also continue to grow as internet technology expands into developing markets such
The definition of E-Commerce or E-Tailing is replacing the traditional relationship of buying and selling in person or the phone with the use of the Internet, Smart Phones and networking. The more people that use the Internet regularly, the more Internet commerce increases. This causes a continual loop of improvements and innovations of which businesses must be aware. Most economists see e-commerce as a market segment that leads to intensive price competition and consumers armed with greater knowledge. E-commerce has changed business models globally, and allows customers to engage in the process of shopping either online or to a destination. Brick and mortar stores do have a conundrum do you want traffic into the store, or do you want the sale based on ease of shopping and/or convenience? (Eisingerich).
As discussed earlier, the concept of e-market and e-commerce is directly related with internet. The modern technology has not only provided platform where companies can directly engage with customers and advertise their products, but also they can sell products. The statistics below depict the annual increase, from the year 2012 to 2013. As per projections, in the year 2018, the Business to Consumer online sales would reach $2, 356 billion, which shows effective these e-markets are and how high e-commerce activities are (Statistica, 2016).
The Internet has changed the way we do virtually everything, including the way we shop. However, shopping is not the only thing that has changed. In the last decade we have changed the way, we apply for loans, study, and even plan a vacation. Doing any of these things would have been impossible a few decades ago. At present, online banking, paying bills, ordering new services, and shopping online have become part of our daily lives. Traditional brick-and-mortar stores have been around much longer than online stores, but we cannot deny that online shopping is giving the traditional stores competition. Many consumers still choose to shop at regular brick-and-mortar stores because they like to see and
Business like Amazon wants to make buying item from their business easier for customers. This is why Amazon offers E-retailing which gives customer option to go shopping online. The internet has had impact change on consumers shopping habit as shopping online has numerous advantages which is why online shopping continues to gain popularity. Some of the advantages of E-retailing is that it’s convenient as consumers are able to go shopping at home which could help them save cost on travelling and also gives consumers an option to compare prices of different products as there are wide range of products being sold online.
In 1979, Michael Aldrich gave birth to an idea called online shopping. This idea is a form of electrical commerce in which buyers can directly sell to their consumers without any help of an intermediary and this communication would happen electronically. This simple idea has turned into a trillion dollar industry making it possible for the average Joe to order something online and get it delivered to his/her door step from the seller, eliminating the need to go to a shopping mall to buy new things and overcoming the geographic limits. Nowadays, shopping can be the in the comfort of one’s home making this activity not to be obligated with going to a mall. Also it has had huge impacts in our society, economy and us humans. The online shopping industry has changed the world in drastic measures some good and some bad, nonetheless we continue to shop online increasing the usage and dependency. We as the people have made innovative advances in shopping, we use online shopping in which one can get anything one desires delivered right to their door step with a use of a computer or even a phone. The social impact of this new age of technology has been tremendous and also the different strategies used by the online retailer to convince the public to buy more.
Retailers have adapted to the online marketplace out of necessity and opportunity. The great recession placed many retail companies in financial hardship and while some failed, others innovated and became some of the largest companies in America such as Amazon. A recent trend is consumers are buying more products online than ever before. As a consumer, I enjoy shopping in the convenience of my home and having the items delivered to my doorstep in 48 hours or less. Global internet access continues to increase, with mobile devices and affordable internet for the home, consumers will continue to shift and buy products online rather than in retail brick and mortar locations. Online sales in the United States have increased over 250% in the last ten years, accomplishing $250.0 billion in 2012 (Tehrani, 2014). Therefore, Amazon is in a solid market position to capitalize on the future trends and booming ecommerce
It is the year of two thousand and fifteen—the 45th years after Internet was first invented. Internet is developing in an incredibly speed, so does the online business. People can accomplish more without stepping out of their houses. Imagine what if we are carrying bulk of cash to pay our tuition instead of paying online. Since Internet greatly facilitates the process of paying and choosing, online shopping has become the couple top shopping preferences. Some people love online shopping because online shopping is easier, cheaper, both money and time saving. Meanwhile, some people don’t like online shopping because they think online shopping is unsafe, not reliable, and bad for economy and retails are irreplaceable. This paper will focus on the advantages and also the disadvantages of online shopping.
Online shopping has been a growing phenomenon all over the world especially among countries with well-developed infrastructure with marketing activities over the Internet (Kau, Tang & Ghose, 2003 ). Hawkins, Best & Coney (2001:592) are of the opinion that Internet sales will increase rapidly in years to come.
The idea behind this study is of great significance because e-commerce (online shopping) has grown tremendously since the turn of the century. It has shaped the way people do shopping for the most part.
Montaldo (2017) in a recent article indicated that marketers or e-commerce business owners can offer better deals in online shopping compare to brick-and-mortar stores because the expenses of running a physical store are far greater compared to an online store and considering the less operational costs to meet the needs of the customers, online stores can therefore lower the prices of the products to become affordable to customers. Although this does not imply to replace the traditional retail stores, it is clear that online shopping can better offer customers competitive prices, deals and
E-commerce has made life simple and innovative of individuals and groups; consumer Behavior in online shopping is different from the physical market
Growth prospects e-commerce E-commerce has continued to be a business trend and it continued to grow in 2015. According to the data the Stefany Zaroban got from the U.S. Commerce Department, the web sales in 2015 totaled “$341.7 billion for the year, a 14.6% increase over 2014’s $298.3 billion” (Zaroban, 2016). This reveals that Amazon would continue to have the chance to increase their sales as well as an increase to bringing in more customers. According to the data that GlobalData received, U.S. had around “300 million internet users in the year 2014 which was an increase of 7% over the previous years” (GlobalData). These statistics show that with the increase of online shoppers every year and the definite advance in technology in the future, more people will shop online than to go to retail stores.
The electronic shopping industry is developing with great interest due to technological advances as business develop new ways to attract and retain consumers on their platforms
Even though it might not seem like it, online commerce has multiple environmental benefits. Around 80% of the time, purchasing a product online reduces the amount of energy required to transport the product to the consumer. Online shopping removes the need for the consumer to travel by using postal carriers that optimize routes for fuel efficiency. In other words, much of the time it is more fuel efficient for a product to be shipped directly to a consumer, rather than for the consumer to make a trip to purchase it. When a product is ordered online, it is shipped directly from retailer’s or manufacturer 's warehouse to the consumer’s front door. This removes delivery to the brick and mortar store, and the consumer’s subsequent trip to the store, saving energy. The amount of energy saved by ordering online is typically around 30%, but this percentage