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Aishath Muneeza

S12425307
BBA B16

Contents
Introduction................................................................................................................ 1
Introduction of the selected e-commerce company................................................1
E-commerce business model...................................................................................... 2
Value proposition..................................................................................................... 2
Revenue model....................................................................................................... 2
Competitive environment........................................................................................ 3
Competitive advantage........................................................................................... 3
Management team.................................................................................................. 4
Recommendation....................................................................................................... 4
Develop their customer service team efficiently, accordingly with the mission and
objectives................................................................................................................ 4
Have more satisfied and loyal customers................................................................5
Conclusion.................................................................................................................. 7
Bibliography............................................................................................................... 9

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Aishath Muneeza
S12425307
BBA B16

Introduction
Introduction of the selected e-commerce company
Focus Computers Pvt. Ltd is the leading information and communications technology company
in Maldives. They established their company in 1994. Their aim is to build customer experience
combined with technology and support services. Their service outlet provides the latest
technologies. By responding to customers needs through quality service delivery, the company
ensures that they provide the best services to their customers (Focus Computers , 2015).
Their mission statement is to offer their customers innovative solutions and providing the latest
ICT products by responding to their customers needs through quality service delivery. Their core
value towards their customers includes trust, honesty, care, respect, integrity, social
responsibility, customer delight, compassion and perseverance. Their operating philosophy is to
guide their decisions and actions by their vision, mission and their core values (Focus Computers
, 2015).
Their services include providing all consumable products such as HP supplies, computer
peripherals and accessories. They provide repair and maintenance services of computers, printers
and ATMs. They provide network solutions and system integrations such as structured cabling,
security surveillance. Focus Computers is the only company that has an Apple Authorized
Service center in Maldives. Their service center is located in the capital city of Maldives. They
also have an online showroom www.istore-focus.com, which features products that are sold in
their physical showrooms (Focus Computers , 2015).

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Aishath Muneeza
S12425307
BBA B16

E-commerce business model


The main objective of an e-commerce is to leverage the unique qualities of the internet and
World Wide Web. Business model is known as a set planned business processes planned to
generate profit in a marketplace ( Laudon & Traver, 2004). Business model is a vital component
of a business plan. Business- to- consumer (B2C) business model is used by Focus computers. In
this model businesses seek to reach individual consumers. This is also the most well-known type
of e-commerce. When they first established their company they provided their products and
services from their physical outlets in the capital city. They have also established their online
showroom. Online retail stores are also referred as e-tailers.

Value proposition
Value proposition is defined as an offer made to a customer that includes features in terms of the
price, target customers and the benefits offered to the customers (Bachok & Seng, 2007). By
understanding customers buying behavior and loyalty, a business can successfully implement
value proposition in a business. IPhones are the most famous mobile phone brand in Maldives.
Focus Computers are the only Apple Authorized Service Provider in the Maldives. Their
showroom provides Apple Warranty Repairs which are free of charge and Out-of-Warranty
Repairs which would bear a cost.
The value proposition must have multi-channel buying process, rather than limiting the
customers buying process to online transaction (Bachok & Seng, 2007). The customers can buy
the items from the stores located in Male and also purchase products online. Transactions could
be done through PayPal, Visa Card, American Express Card and Master Card.
Successful e-commerce value proposition reduces product search costs and price discovery costs.

Revenue model
Revenue model of a firm defines how the firm can earn revenue, generate profit and produce a
higher return on the invested capital. Profit alone is not enough to make a company successful. If
a company wants to be successful in a market, they need to produce more returns than alternative
investments (Bachok & Seng, 2007). There are many e-commerce revenue models adopted by
businesses. E-commerce business models include the advertising model, the subscription model,
the transaction fee model, the sales model and the affiliated model ( Laudon & Traver, 2004).

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Aishath Muneeza
S12425307
BBA B16

Customers of Focus Computers can subscribe to their services. They use subscription model to
inform their customers about their latest deals and other business related information. They also
use the sales revenue model by becoming the wholesaler and retailer of their goods. This model
is used to save the time of their customers and provide better service to their customers in a short
period of time. This is because the website is used as a common entry point for all the goods sold
in their company (Focus Computers , 2015).

Competitive environment
When a firm operates in a market space where there are companies that sell the same products
that the firm sells is referred as competitive environment. This gives the opportunity for other
companies to provide substitute products to the market. There is always the possibility of new
businesses entering to the market. A firms competitive environment is influenced by numerous
factors. These factors include the knowledge of active competitors in the market. Competitors
operation size, market share, their profitability, and the price of their products are factors that
influence a firms competitive environment.
The competitors of Focus Computers include Mega Chip and Ibay. Currently Ibay is the most
viewed online website that offers similar products as Focus Computers. The customers rely more
on the products offered by Focus Computers. This is because websites such as Ibay offers
products that are sold by individual. Due to this consumers are hesitant to buy products from
their website. On the other hand customers of Focus Computers trust the services and product
provided by the company throughout the years.

Competitive advantage
When a firm is able to provide their products at a lower price than their competitors, then the
firm has achieved competitive advantage over their competitors. The competitive advantage
could be gained due to their favorable relationship with their suppliers and shippers. Having
skilled and experienced managers to operate the business could be a competitive advantage to the
firm. By having skilled and experienced managers would help a firm adapt to changes that
happen in the market space, as the managers would have the ability to apply their experience in
solving problems and adapting to new situations (Bachok & Seng, 2007).
Focus Computers biggest advantage against their competitors is that they have an Authorized
Apple Service Center and a website that provides information about their products and services.
Their management team includes Apple Certified technicians who can assess and diagnose Apple
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Aishath Muneeza
S12425307
BBA B16

computers and repair the computers in a short period of time. The trust and loyalty they have
establish between their customers also plays an important role in their e-commerce model (Focus
Computers , 2015).

Management team
The most important element of a business model is the management responsible for the
development of the business model work. An efficient management team gives the model instant
credibility to investors. A strong team will also be able to immediate market-specific information
and experience in executing the firms business plan. The management should also be able to
recognize any necessary changes that need to be made in order to retain and attract more
customers ( Laudon & Traver, 2004). They currently employ 45 staffs. Their management team
includes a sales manager, an accountant, assistant manager operations of Focus Services and
Deputy Manager of engineering and enterprise solutions (Focus Computers , 2015).

Recommendation
In todays technological world, to thrive in market any company would need to improve their
business strategy and philosophies in accordance with the technological development in
economy. Customers are more knowledgeable and reacting since the information technology has
connected world from place to place, person to person. Therefore, any negligence towards even a
single customer might result in tragic results to the company.
Since focus computers Pvt Ltd is the leading information and communications technology
company in Maldives and has a mission that is for the betterment of the customers, they need to
ensure some certain strategies are met in order to attract potential customers, persuade and retain
their existing customers.

Develop their customer service team efficiently, accordingly


with the mission and objectives.
Since, customer service representatives are the main body that enacts and interact with the
customers on regular basis, it is important for focus computers to ensure that their customer
service representatives are worthy and suitable to handover the responsibilities of
communicating the company philosophy to their customers. In order to ensure this, the

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Aishath Muneeza
S12425307
BBA B16

management has specific responsibilities towards the employees. It is because; a satisfied and
motivated employee will be the best asset for any company.
Create a platform for employees where they can truly realise their worth for the company. For
example, provide employees with access to modern technology and make them feel they are their
own boss. Focus computers can do this by providing opportunities for employees to be a part of
decision making department, by welcoming their ideas and knowledge on customers expectation
and reaction.
Performance appraisals: By midway acknowledging the performance evaluation data within a
formal online structure, management can effortlessly convey business philosophy and make
quantifiable objectives for their workers that will bolster general organizational targets. It
likewise considers more prominent visibility, in this way permitting workers to see the entire
picture and acknowledge better, how individuals objectives are suitable into the organization's
business targets. This makes empowered and drew in representatives, subsequently raising the
business efficiency of the organization (Using Technology to Increase Your Business
Productivity).
Virtual Employee team: Focus computers can connect their employees with each other and with
management, through technology. This will enhance the performance and productivity of the
employee. Customer representatives, on the spot can communicate with rest of the team when
any uncontrollable situation arises with a customer.

Have more satisfied and loyal customers


A company can only strive in the market with the existence of its customers. Therefore, they
need to satisfy their customers accordingly in order to have loyalty and trust from the customer.
A happy customer: treat your customer like he/she is the only customer for focus computers.
Thank them, apologise even if not needed, help out them, greet nicely, ask about their day and so
on, can make the customer happy and feel valued.
Have a strong relationship with the frequent customers: occasional wishes, greetings, promotion
mails, new arrival mails etc., can assist in having a great connection with the customer. That way,
customer will believe they have a potential for the company. Ask for feedbacks: customer
representatives personally can ask for feedbacks for the products or services that the company
offer. They should encourage customers to help them out in improving anything related to
business and professionalism. Hence the customer will be satisfied with the fact that the
company actually considers and listen to them.
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Aishath Muneeza
S12425307
BBA B16

The above is main areas where focus computers can improve their business in the competitive
market. That is to build a strong and empowered employees and have satisfied and loyal
customers; because they are the key people of any business.

Recommendation to the business model


Focus could use the advertising revenue model as it is the primary source for Web-based
revenue. In addition to their products and services that they offer, they could provide a forum
advertisers put their advertisement on the website by paying a fee. As they are the only company
that provides Apple authorized products and services more people access their website. The
company could use this advantage to increase their revenue. Yahoo.com has been using this
model. They have been generating a significant amount of revenue from selling banner ads
(Bachok & Seng, 2007).
Customers of Focus Computers can subscribe to their services for free of charge. Focus
Computers could adopt the subscription package offered by Yahoo.com. Yahoo Platinum is a
subscription package that provides their viewers to access to websites such as CNN, NASCAR
racing and other video feeds. In order to access this viewers have to pay $9.95 monthly (Bachok
& Seng, 2007). Their aim is to provide high value added services and making sure that they are
the only company that provide this service. This is to ensure that the content that they are paying
is not readily available elsewhere.
As they are the authorized apple service center, they could introduce a subscription package to
their customers. The contents of this subscription could be the latest news about Apple products
and services. They could include the latest development in the technical team. As iPhones are
introduced very frequently the subscription content could focus on the new updates and new
products that APPLE Company plans to introduce. Customers would subscribe to the package as
they want to know about all the developments and new products introduced by the company.
Market opportunity is often referred as the companys intended market space. It is also
considered as the potential financial opportunities available to a firm in that market space.
Generally market opportunities are separated into smaller market niches. A realistic market can

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Aishath Muneeza
S12425307
BBA B16

only be determined when a firm knows about revenue potential in the market niches where the
firm wants to venture into (Bachok & Seng, 2007).
A realistic market opportunity is defined as the potential revenue a company would get from
each market niche that they hope to enter. Currently Focus Computers has their outlets in the
capital city and they deliver their online orders to Male only. If they provide delivery service to
highly populated atolls such as Addu City, Laamu atoll and Fuvamulah are market niches that
Focus computers could aim to enter.
AOLs marketing strategy to increase their subscribers was by distributing their trial offer CDs
enclosed in magazines and newspapers across the country. This method was successful because
they were able achieve more than what they targeted for. When they initiated this strategy their
aim was to at least a small percentage of users would try their software and decide to become
their new subscribers. This strategy proved to be a successful strategy for AOL as they currently
have more than 30 million customers (Bachok & Seng, 2007).
Focus computers is a company that provides the latest ICT products and services could also use
this method. Even though people are aware of the ICT products such as computers and other
electronic devices, people are not aware of the high quality service they provide when they repair
products. And the maintenance services provided for the products.

Conclusion
Focus Computers Pvt Ltd being the leading information and communication
technology company in Maldives and having a mission of building customer
experience and satisfaction; has got a demanding task to accomplice in the
modern technological market. Therefore, in order to meet their objectives,
the company needs to rationalize their strategies according to E-commerce
today in business world. Hence, for the hindsight of Focus Company, some
models of E-Commerce are proposed with the idea on how they can utilize it,
in this coursework.
Among the models; Value proposition model, which is defined as an offer
made to a customer that includes features in terms of the price, target
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Aishath Muneeza
S12425307
BBA B16

customers and the benefits offered to the customers. Revenue model of a


firm defines how the firm can earn revenue, generate profit and produce a
higher return on the invested capital. Under this model Customers of Focus
Computers can subscribe to their services. The next model which is
competitive advantage model which states that, a firms competitive
environment is influenced by numerous factors. These factors include the
knowledge of active competitors in the market. Competitors operation size,
market share, their profitability, and the price of their products are factors
that influence a firms competitive environment. The competitors of Focus
Computers include Mega Chip and Ibay. When a firm is able to provide their
products at a lower price than their competitors, then the firm has achieved
competitive advantage over their competitors. The competitive advantage
Focus Computers biggest advantage against their competitors is that they
have an Authorized Apple Service Center and a website that provides
information about their products and services.
The most important element of a business model is the management
responsible for the development of the business model work. An efficient
management team gives the model instant credibility to investors. A strong
team will also be able to immediate market-specific information and
experience in executing the firms business plan. In this model Focus
company has gained advantage precisely.
Apart from the models proposed, there are recommendations provided on
how the company could enhance their business to further levels. The main
area that the company needs to focus on is the employee development. It is
because employees are the main bodies that actively engage with the
customers in regular basis. To improve this area, the company should
develop their customer service team efficiently, accordingly with the mission
and objectives. The other main important area is to have more satisfied and
loyal customers. Besides that Focus could use the advertising revenue model
as it is the primary source for Web-based revenue.
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Aishath Muneeza
S12425307
BBA B16

As mentioned earlier, Focus Company being the leading company in


technological area, has to thrive and strive for success in accordance with
what technology and E-commerce offers to improvement in the competitive
market.

Bibliography

Laudon, K., & Traver, C. G. (2004). E-commerce Business Models and Concepts. In C.
G. Traver, & K. Laudon, E-Commerce: Business, Technology (pp. 59-113).
Addison Wesley, a division of Pearson Education, Inc.
Bachok, H. S., & Seng, Y. C. (2007). BBED4103 E-COMMERCE. Selangor Darul Ehsan:
Meteor Doc. Sdn. Bhd.
Focus Computers . (2015). About Us. Retrieved from FOCUS COMPUTERS PVT. LTD.
Using Technology to Increase Your Business Productivity. (n.d.). Retrieved from
Success Factors : https://www.successfactors.com/en_us/lp/articles/usingtechnology-to-increase-your-business-productivity.html

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