GROUP WEB PAGE: Creating a New Internet Business  (30points)

We have prepared a list of new businesses that could benefit from going on the Web. Select one of the businesses from the list and develop an Internet strategy for that business. You will need to identify the Internet business model to be pursued, use the Internet to research and analyze markets and competitors, and design part of the Web site for that business.

Virtual Tour of Electronic Commerce Sites
To prepare for this project, review Internet business models by taking the virtual tour of the electronic commerce sites described in the following table. To take the tour, visit the Web site representing each business model. Explore the Web site so that you have a clear idea of how that business uses the Web for electronic commerce.

Selecting an Internet Business Model and Designing a Web Strategy
The five businesses we describe are fictitious but are based on real-world scenarios. Review each of them. Then select one business and answer the following questions:

1.     What Internet business model would be appropriate for the company to follow in creating a Web site?

2.     In what ways can the company benefit from a Web site? How would it provide value to the firm? What functions should it perform for the company (marketing, sales, customer support, internal communications, etc.)?

3.     In what other ways might the company use the Internet for its own benefit?

4.     Prepare functional specifications for the company’s use of the Web and the Internet. Include links to and from other sites in your design.

5.     Prepare a cost-benefit analysis of a proposal to implement the company’s use of the Internet.
For each of the five businesses, we list a Web site of a real- world company in the same or a related business to help you understand that type of business. Visit the Web site related to the business you have selected and review it carefully.

Virtual Tour of Electronic Commerce Sites

 

Business 1: Infolnc

Infolnc is a start-up company that would like to provide a service by offering easy access to needed information in specialized fields such as accounting, finance, or medicine. Although its business plan calls for moving into a number of fields, Infolnc would like to begin by addressing the needs of people in the accounting and tax fields. Its first two target groups are accounting professionals and the general public. For the general public, the plan is to provide a Web site with advice on various issues such as tax laws and IRA savings rules. The site would also contain links to other sites where visitors will be able to obtain advice on such issues as how to establish a new business. For accounting professionals, such as certified public accountants (CPAs) and corporate financial officers, Infolnc would like to offer more detailed information services. In addition, the company wants to provide capabilities that might help the CPAs and financial officers manage their e-mail, voice mail, and fax.  

Web reference: WebMD Inc. http://webmd.com/

 

Business 2: Aerospace Metal Alloys 

Aerospace Metal is a distributor of exotic steel, aluminum, and titanium alloys to the aerospace industry and to other specialty industries. These metals, such as kovar and inconel, must meet exceptionally exacting standards because they become parts in airplanes, rockets, industrial furnaces, and other high-performance products. Aerospace sells raw materials produced in the form of bars, sheets, rings, and forgings. In turn, Aerospace customers use these materials to fabricate their final products. Many Aerospace customers are actually parts suppliers to end-product assemblers such as Boeing Aircraft. Aerospace Metal maintains a sales staff to sell these metals, and the company stores its products in seven warehouses throughout the country. They obtain their products from steel and metal manufacturers throughout North America. If a customer requests a product not carried by Aerospace, the company will special-order it from an appropriate supplier.  Web reference:

Specialty Steel and Storage  URL:   http://www.steelforge.com/

 

Business 3: Columbiana
Columbiana is a small, independent island in the Caribbean. It is underdeveloped and is also off the tourist path for most visitors to that area despite its many attractions. The island has a unique history, with Indian ruins dating back 800 years and with many historical buildings, forts, and other sites built during its centuries as a British colony. A few first-class hotels have been built along some of its beautiful white beaches, and less expensive accommodations are also available along beaches, in several towns, and near several fishing villages. Its rain forests, rivers, striking mountains, and volcano cone all could be of interest to tourists. In addition, it has many restaurants that specialize in native dishes and fresh fish. The government not only wants to increase tourism but it also wants to increase trade by developing new markets for its tropical agricultural products. In addition, leaders hope to attract investment capital so that many of the unemployed residents can find jobs. Two major airlines have regular flights to Columbiana, as do several small Caribbean airlines. The island is on the tourist itinerary of only one cruise ship company. The Web site will not transact any business, but it will offer information and links to other appropriate sites. Web reference:

Dominica  URL:  http://www.dominica.dm/

Business 4: Home Do-It-Yourself Tools Inc.
As more and more people are turning to do-it-yourself home repairs, the market for tools of all kinds for home use has grown rapidly. The buyer has thousands of tools to choose from, and so the search can be time consuming and the prices paid can be very high. Home Do-It-Yourself Tools Inc. (Home Tools) was founded to capitalize on this trend. The founder initially opened a small store in Atlanta, Georgia, and soon thereafter established a catalog to try to expand the business. Home Tools uses a toll-free 800 telephone number to take orders and to answer potential customers’ technical and product questions. It solicits new customers through advertisements in magazines read by home repair enthusiasts. The owners now wants to make better use of the Internet to reach out to new customers, reduce Home Tools’ cost per sale, and improve service quality. The heart of the business is a database listing several thousand tools and the tasks for which they are commonly used. Web reference:

 iGo.com  URL:   http://www.igo.com/

 

Business 5: Low Cost Tires Inc.
Low Cost Tires Inc. (Tires Inc.) began as a small auto repair and tire shop in a small city outside of Chicago. While the original goal of the shop was to gain a reputation for quality repair, the owner also stressed meeting customer needs on the sale of tires. Tires Inc. carries a very wide selection of tires so that customers can always be served on the spot. Its staff is highly trained and very knowledgeable about tires. Selling tires has turned out to be more profitable than auto repairs. Although the owner plans to maintain the auto repair business, he wants to use the Internet to expand tire sales and to capitalize on his staff’s understanding of customer needs. Management believes the correct Web strategy could help Tires Inc. improve customer service locally, increase its customer base, and help it create retail outlets in new locations. Web reference:

The Luggage Factory  URL: http://www.iuggagefactoryoutlet.com/