Be able to explain the trends in the use of e-business

Outline the nature of business, its size, its products or services and its customers:

Nature of business refers to types or category of business which types of operation they executed. There are three types of business based on their size such as: small, middle and large. Products or services refer to that thing which helps to survive a business. Customer refers to a group of people or organization which enjoys and takes benefits from business.

The Great House restaurant and hotel:

  • Nature of business: hotels and restaurant are includes in food service business.
  • Size: it is a chain hotel and restaurant in UK and all of them have luxurious rooms and accommodation, large no. of employees etc. so, it’s includes in large business organization.
  • Products or services: room services, Minibar, suits, family rooms, free high speed internet-WiFi, foods, various recipes, restaurant etc.
  • Customers: families, couples, business organization, general people, travelers, etc. (The great house restaurant and hotel, 2015).

The Pig hotels:

  • Nature of business: hotels and restaurant are includes in food service business.
  • Size: The pig also a chain hotels in UK and they have fully decorated luxurious rooms with fresh natural dishes, large no. of full time or part time employees etc. so, it also concludes large business organization.
  • Products or services: room services, suits, meeting rooms, tennis court, bar/ lounge, restaurant, non-smoking rooms, free parking, wheelchair access, free wifi access with high speed.
  • Customers: families, couples, children, business organization, travelers, general people, young people etc.(The Pig, 2015).

Describe the competitive forces which are leading them to develop or update their use of e-business

Frequently adaption of new technology and innovative products of a business helps to gain competitive advantage. In Michael Porter’s classic model of competition, any business that want to survive and succeed must develop and implement strategies to effectively counter (1) the rivalry of competitors within its industry, (2) the threat of new entrants into an industry and its markets, (3) the threat posed by substitute products which might capture market share, (4) the bargaining power of customers, (5) the bargaining power of suppliers. Businesses can contradict the threats of competitive forces that they face by implementing five basic competitive strategies: differentiation, cost leadership, innovation growth, building switching costs, alliance, locking in customers or suppliers, raising barriers to entry, and leveraging investment in information technology.

competitive strategies are developed by a business to gain competitive advantage
competitive strategies are developed by a business to gain competitive advantage

 

How internet helps to create competitive advantage.
How internet helps to create competitive advantage.

A well-designed supply chain management system helps the company by optimizing the following:

  • ensuring the right quantity of parts for production or products for sale arrive at the right time,
  • ensuring production lines function easily because high quality parts are presented when needed,
  • keeping the cost of transporting materials as low as possible consistent with reliable and safe delivery,
  • keeping the cost of purchased parts and prices of products at acceptable levels.
  • ensuring no sales are lost because shelves are empty (Lumpkin & Dess, 2004).

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