E-Commerce: XYZ Company Working the Internet

Executive Summary

Our company XYZ is aiming to explore a newer way of expanding its business operations. The management of the company has decided that the company’s current traditional business model will be modified by adding new modules of e-commerce. By doing so, the company will be able to cater to a larger market. However, this business model does have its limitations and expectations from the customers who need to be kept in mind and fulfilled through the successful implementation of the changes required for bringing this change in the business.

In this report, various aspects of doing business over the internet and its relevance to the company’s business are discussed. Specifically, it will provide a background of the company, reasons for considering the new business model to be a success,


Our company XYZ has been established by three partners who have equally financed the company and share equal rights in the company’s business decisions and the income or loss generated by the business. The company was set up in the year 2008, and it has been successfully carrying out its business in a traditional manner. By the traditional manner, it is meant that the company mainly operates through local channels and communication mediums to acquire business from its existing and potential clients.

The company’s main clients are private individuals and corporate clients who can place orders for gift baskets to be delivered at their requested addresses. The company currently operates locally, and the majority of its orders are received via email or telephone booking by clients. However, the management of the company has realized that there is great potential for the company’s business if it is put on the internet.

This would allow the company to reach out to a large spectrum of customers worldwide, and it can set its operations in such a manner that it is able to meet the demands of global customers. Adopting the new business strategy will surely require alignment of the existing business model in such a way that the company does not lose its current standing in the market, and at the same time, it is able to launch itself successfully on the internet.

This report deals with various considerations that the management of our company has reviewed and incorporated in our decision to go ahead with the new business model that is based on web technology.

Virtual businesses are the latest inventions of internet services that have allowed business owners to trade their products through digital sources. The system of virtual business facilitates purchasers to send gift baskets through the internet to their corporate clients, relatives, or friends. Big companies are transforming their businesses from traditional local stores to online stores in order to take up the advantage of this new technology, which has decreased time consumption and energy at the same time.

Our company is new in the e-commerce business sector, but the professionals leading it are experienced and skilled enough to take it up to the ladder of success in the world of digital businesses. This system of business is far much better and successful than the traditional local store business system. SWOT analysis of our company shows that the following outcomes.


Our company has the capability to stand in competition with other international organizations that are running the same businesses locally and internationally. Several digital business strategies and methods of countering emerging challenges help companies to further strengthen their businesses along with affordable expenses. Moreover, the increasing trend of social networking and a larger number of internet users are promoting this type of business system. In addition, the internet allows business runners to enter the digital business world without confronting barriers to entry and high costs of starting businesses like traditional businesses. This sort of commerce permits business owners to communicate with their clients directly. It eases both service providers and consumers to communicate about order placement and receiving procedure.


Without a doubt, along with so many strengths, there are some weaknesses as well, such as higher expectations of the consumers. It means customers are unable to guess the size, resources, and power of the business. Moreover, because of the emerging trends of this business, competition has increased, which confuses customers to choose between the companies via which they want to buy a gift basket.


E-commerce companies can avail of several opportunities because the internet allows global exposure to our products and services. It is available for 24 hours, so anyone can place an order at any time. In addition, different business organizations get a chance to communicate with each other, so they can exchange their view and ideas. It has been observed that the e-commerce business is replacing local businesses because of its large consumers, more profit, and less time and energy consumption. Also, continuous advancements in computer technology can further strengthen the system of the e-commerce business.


There are certain threats to our company, like other digital companies. The main threat is competition, which has increased because of low entry barriers and countless opportunities for running business digitally. Another threat factor includes fraud, as the digital business has dissolved all boundaries, and financial data is at risk. Thus, it is always a threat for companies that their financial data might be stolen by someone for misuse. There is no privacy of the company having all-digital processes of running a business. In the future, it is expected that by viewing the sale of a large number of products through online sources, the federal government might impose a tax on service providers and consumers both in the future.

SWOT analysis of e-business shows that this system is strong, and it has a brighter future with good revenues and reputation in the market. However, there are some weaknesses and threats, but still, opportunities and strengths are potential enough to overcome those shortcomings. Thus, our company will be flourished and highly successful in the internet world.

Impact of Going Online on Business

E-commerce is expected to change the fundamental bases of the business, and the way business activities are carried out. Going online will provide a number of benefits to XYZ Company and will open doors to new markets. E-commerce will help the company to expand the scope of the business and market its products in a more efficient manner. It will help the company to compete with an edge over the competitors, attract and retain masses, which includes customers in international markets and offer tailored products and services to cater to the needs of the target customers.

The first prominent change will be observed in the organization’s business activities. By going online, XYZ will be incurring fewer expenses as the digitalization of the business process will require fewer workforces to operate. The second change will be observed in the sales and distribution channels of the company. As the orders will be taken online and delivered on customers’ calls, there will be no requirement of maintaining a sales force. The enhanced marketing opportunities that the company will be availed of through online mediums of marketing and promotion will attract customers towards the website and other online efforts of promoting the products.

XYZ will also be able to provide detailed information regarding the company itself and the products and services it is offering to the product. It will require the company to carefully design the product attributes and information regarding its usage in order to provide complete inside into the product and its utilization. Greater research and development activities should also be initiated by the company in order to understand consumer psychology and their needs and wants. Research and development are simplified by the arrival of online data warehouses, which provides timely and accurate information regarding a target market’s psychological and demographic attributes along with their preferences.

Another change that XYZ will be needed to bring in its business process is to efficiently design the marketing activities. Knowing the fact that the internet users are well educated, professional and have sufficient knowledge of different products and services, XYZ has to tailor the marketing activities in such a manner that it delivers the marketing message clearly.

Approaching the customers will also be simplified as the company can build direct connections with customers by accessing their personal profiles on social networking sites and data warehouses. It should be kept in mind that the company will have to acquire permission from the customers and other concerned authorities before accessing the personal information of the customers.

Conducting Business Online- Difficult or Easier?

Unlike the traditional way of conducting business activities, online businesses are easier to manage. In traditional businesses, the sales team directly interact with the customers. Marketing expenses and other operating expenses are greater in traditional offline business management, whereas online businesses are less expensive and easier to manage a business. The expenditure of maintaining a sales team can be avoided as the customers get complete product information over the website or online portal of the manufacturer.

Marketing expenses can also be reduced as the company does not have to place billboards on roads or place advertisements in magazines and newspapers or television. All advertisements and other promotional messages can be placed on the official website of the company, on social networking websites, blogging sites, and portals.

Similarly, a small team or group of individuals can manage the business and run operations. XYZ can run the business by employing two or three potential and deserving workers in each department of the company. In this way, XYZ will be operating with minimum possible assets and generate sufficient profits, which can be utilized to enter new markets with its products and services, rather than spending on increasing the number of assets that the company holds.

The most crucial stage of conducting XYZ’s business activities online will be the management and continuous monitoring of the website. It is the foremost responsibility of the company and its management to keep a check on the web content and make sure that it is not violating copyrights or hurting customers’ feelings and values in any way.

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BusinessEssay. 2022. "E-Commerce: XYZ Company Working the Internet." November 12, 2022. https://business-essay.com/e-commerce-xyz-company-working-the-internet/.

1. BusinessEssay. "E-Commerce: XYZ Company Working the Internet." November 12, 2022. https://business-essay.com/e-commerce-xyz-company-working-the-internet/.


BusinessEssay. "E-Commerce: XYZ Company Working the Internet." November 12, 2022. https://business-essay.com/e-commerce-xyz-company-working-the-internet/.