The model of Internet Business - Taking a Frozen Food Company as an example
Date Issued
2004
Date
2004
Author(s)
Ko, Cynthia, ManTzu
DOI
zh-TW
Abstract
As industries are growing toward the economic scale, the trend for super discount store to replace the traditional market and grocery stores is more obvious than ever before. The market survivors grow even bigger, however, the number of players become lesser and lesser. From the economic perspective, the consumers are now able to enjoy cheaper goods due to the shortened and simplified distribution network. However, it seems that with our fairly high level of technology today, it is still unlikely to have a breakthrough in food processing technology. And consumer’s taste is a very personal matter, with lesser players in the market, choices for homemade food material become more restricted.
With the advent of the Internet, small food processors can contact their potential customers through the Internet directly, without going through the distribution network or discount stores. Consumers can pick the food they like with distinguishing features anytime and anywhere just by clicking on the Internet. The Internet has created a new sales network for the small to medium size players. With their products going to the consumers directly, they can use the savings to maintain the quality of their products to a higher level.
The manager in this case study is involved in importing of unprocessed food for almost 20 years. He has found out that most of the big food processors tend to purchase from lower grade material in order to reduce cost, therefore the end products are usually less tasty. On the other hand, some big food processors are willing to purchase from high-quality sources, however, they just do not have the master worker’s skills to turn them into unique and high-valued products. Some small and medium sizes players insist to use high quality input and also have the skills to produce high-quality end products. When faced competition with the big distributors, they do not have the bargaining power to command a reasonable price, so the sales are limited.
The reason for this difficulty of the smaller players is that they rely totally on traditional distribution methods; afraid of new technology; not interested in marketing and therefore their sales are restricted to the local vicinity. The manager in this case study wants to build a transaction platform on the Internet emphasize on Warm; Share; and Quality, where those consumers who are more demanding in food can find quality food from this new sales channel. It’s also pave the way for future exporting.
The company in this case has prepared a plan for the above-mentioned undertaking including the logo, brand name, packaging, web page design, logistics, cashflow, organization, profiles of the competitors, sales strategies, back office support. In fact, it is a complete business plan for an e-shop on the Internet. This can be an example for those small to medium sized companies trying to switch to a different sales channel.
Subjects
冷凍食品
網路行銷
電子商務
e-commerce
Internet marketing
frozen food
Type
other
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