Business Model Idea for Business Market - MyAssignmenthelp.com

Question: Discuss about theBusiness Model Ideafor Business Market. Answer: Introduction Starting up business has become a latest trend among the youth. Everyone wants to do something on their own rather than doing jobs in other companies. Australian business market has observed huge growth in online retail sector in the past 2 years. Statistics shows that 80% of the Australian internet users have made online purchase last year. The demand of online retail store has grown huge in the recent years. So it is definitely a great business idea to start an online retail store. It is also to be noted that more than 75% of Australian household have access to internet (Sohaib Kang, 2014). Most importantly the busy daily life schedule has made it extremely difficult for the people to find some time for some shopping for near and dear ones. Online shopping gives those people the perfect opportunity to buy their desired product without spending any extra time in store. The most essential business components that the business idea needs are Revenue Model This model is basically related to the strategies and process that the company will apply in order to generate revenues from the market. It completely depends on what are the products that the online retail store will sell and how the customer will accept the products. It is all about the positioning, value propositioning. As opined by Verma, et al. (2016), every business should be unique and innovative. The business has to be designed in that way. Suppose anyone wants to open an online retail store then they have to make sure that whatever service or product they are selling has to be of top quality. People should provide positive feedback for the product. This is the only way through which the business can bloom. All these components are extremely essential for the success of the business. Gross Margin Components This is the most important components as it is of no use for starting a business if the owner does not have any idea of how much profit the business will make. This is extremely crucial for the company. The online retail markets have a huge demand in the market. So the pricing factor is very essential in order to draw more and more customers. Porters cost leadership strategy is a very good example for this. The more discount the company will give the more profit will get generated by the company. But in all these it has to be made sure that the companies do not face any kind of loss. Operating Components The maintenance of website, shipping cost, tie up with some online retail market leaders and maintaining a SEO team is some of the most basic start up expenses for any online retail company. Every company has to ensure that the payment gateway is authentic and secure so that money transactions can be done properly. All these are main operating costs. The company has to make sure that all these are properly maintained so the employees working gets satisfied with whatever the salary that they are receiving. Financial Components Majority of the startup business gets doomed due to lack of capital. For starting up a business one has to make sure that they are backed up with their proper fundraiser. Fundraiser can be any banks providing loans. Without the help of external resources it is impossible for any start up business to flourish (Verma, Sharma Sheth, 2016). Security Components Online stores have become hugely popular in the market in the recent times. Still some section of the populations gets panicked and afraid while spending money due to security issue. They feel that the company might steal their money and their account can also get hacked. This is why the paypal system has the transaction procedure has to be proper so that such misconception can easily be avoided. The more people will get comfortable in paying the money the more sell will (Shrier, Canale Pentland, 2016). . Conclusion In this report online retailing has been selected as the business idea due to its huge success in Australia and also all over the world. The more the days are passing the demand for such online services are also getting increased. Now for every business a proper revenue model has to be followed and along with that revenue model some of the major business components has to be taken care off without which a business can never become successful. This report suggests that in the current marketing scenario Online shopping is definitely one of the great business ideas. Reference List Shrier, D., Canale, G., Pentland, A. (2016). Mobile money payments: Technology trends. Sohaib, O., Kang, K. (2014). Cultural aspects of business-to-consumer (B2C) e-commerce: a comparative analysis of Pakistan and Australia.The Electronic Journal of Information Systems in Developing Countries,61. van Loon, P., Deketele, L., Dewaele, J., McKinnon, A., Rutherford, C. (2015). A comparative analysis of carbon emissions from online retailing of fast moving consumer goods.Journal of Cleaner Production,106, 478-486. Verma, V., Sharma, D., Sheth, J. (2016). Does relationship marketing matter in online retailing? A meta-analytic approach.Journal of the Academy of Marketing Science,44(2), 206-217.