Business Plan: Online Venture Business Plan Four

Pages: 8 (2497 words)  ·  Bibliography Sources: 5  ·  Level: College Senior  ·  Topic: Business  ·  Buy This Paper

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[. . .] Ethical Issues

There are no ethical risks involved as such because the entire process is more or less transparent and reliable.

Potential Risks

The potential risks involved in this online venture are as follows:

The cost of joining the venture and getting the membership renewed are relatively high so many customers cannot be retained.

In certain circumstance, some members do not get the chance to get any business for a whole year so retaining such customers is relatively tough.

As there are large number of suppliers and manufacturers so buying power of customer is increased. Many products can be bought at relatively cheap rates and this in turn reduces the profit of the online business venture. Thus this can incur a heavy loss to the online business venture itself.

Power of the supplier and manufacturer is much lower so this disappoints a supplier which in turns make it difficult to retain the membership of the supplier.

There are very minute chances of fraud. Although the chances are rare that purchaser receives the order and does not make complete payment but still there is a probability. In order to avoid such risk, a refundable security is charged at the time of registration so that the losses can be covered.

Competition is severe. Convential business is confined to limited geographical area so it has lesser opportunity but online venture has a wide variety of oppourtunities. As competition is fierce so sales pitch of the forum should be attractive.

Strategies for Protecting Privacy

Privacy is an important and essential aspect of online ventures. It needs special attention. Many advanced privacy measures need to be adopted in order to avoid situations of fraud. Following meaures for privacy are adopted:

High amount of refundable security are charged at the time of registration in order to cater with situations of fraud.

Supplier and buyer are not given direct access to each other, the buyer cannot have the access to the personal information of the supplier because this will lead to the loss of profit on every purchase made. If the supplier and buyer have access to each other, they can contact each other directly and this in turn would end up the role of this online business forum. The commission to be generated is affected.

Only registered firms that pay regular tax can acquire the membership. It is made sure that the companyis not black listed in order to avoid situations of fraud.

Potential Benefits

The potential benefits of online business venture are as follows:

Online business provides opportunities across the globe. It is not confined to a limited geographical area, time zone and culture. It has a huge market and the cost to advertise the product is very low. World wide web is a market itself with a huge number of customers.

It reduces the overhead expenses like sales and marketing strategies cost, utility bills and rental space.

With increased technology and overall advancement across the globe, this online business is an oppourtunity to create a huge global market. Internet is a very cheap form of technology which is usually at the disposal of almost everyone these days so there is no constraint or hinderance in seeking oppourtunities. In short, it is one of the easiest way to expand a business with lesser chances of fraud and low cost of entering in the market.

The basic and one of the most eminent feature that attracts a wide variet of customers across the globe to get the membership of this online venture is its low cost structure. People can avail numerous advantages and make several savings. They donot need to invest in expensive areas to setup a business center and this would greatky reduce the operating cost.

Time zone is not a constraint which is another major advantage. One can communicate across the globe while saving heavy cost of travelling and participating in business exhibitions.

An online venture offers suitability to customers, who can look through product reviews and place orders at their ease.

Conclusion

On the whole, online business venture is a low risky investment with a wide variety of opportunities. It can avail great chances to excel. It is a rather progressive idea in today's ever evolving technology across the globe. It has numerous advantages like low initial investment, low probability of risk and security issues, lesser chances of fraud, capital can be easily recovered and lesser overhead expenses. Cost of entering the market are quiet low thus benefits are maximized ( Shin, 2005).

From the customers point-of-view, it has uncountable advantages. Firstly, it gives them access to huge market across the globe while sitting at home. This will actually increase the oppourtunities to do business. Secondly, buying power of consumer is greatly enhanced as one can receive the quotation of wide range of suppliers and manufacturers. Additionally, as people from various cultures are involved so many domestic and cottage industries gain the oppourtunities to make their name in international market. Exchange of cultural traditions through trade and increased social interaction is another significant benefit that can leave a positive impact on global market as a whole and improve the economy. Lastly, as cost of travelling and heavy marketing are avoided so many customers can be attained and retained by the forum which in turn increase the scope of business (Holden, 2010).On the whole, this is a very progressive and unique idea that can greatly benefit the individual as well as economy as a whole.

References

Holden, G. (2010). Starting an Online Business For Dummies. Torronto: Wiley Publishing Inc.

Kaplan, S. (2012). The Business Model Innovation Factory: How to Stay Relevant When The World is Changing. New Jersey: John Wiley and Sons.

Lynn, J. (2010). Start Your Own Freight Brokerage Business, Third Edition. New York: Jere L. Calmes.

Moschtaghi, A.-R. (2010). Permission Marketing of Infomediaries in M-Commerce Advertising. New York: Grin

Shin, N. (2005).… [END OF PREVIEW]

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Online Venture Business Plan Four.  (2013, February 13).  Retrieved July 18, 2019, from https://www.essaytown.com/subjects/paper/online-venture-business-plan-four/1771383

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"Online Venture Business Plan Four."  Essaytown.com.  February 13, 2013.  Accessed July 18, 2019.
https://www.essaytown.com/subjects/paper/online-venture-business-plan-four/1771383.