E-procurement

This week blog assignment:

E-procurement

E-procurement is the term used to describe electronic methods of conducting business transactions. E in e-procurement stands for electronic. E-procurement can be used in every stage of the process. It can begin with the actual sale coming through to the purchaser and end with the customer’s invoice and payment.

With the advent of the Internet, many businesses now sell only via computer technology. It is an excellent way for businesses to cut overhead costs and reach a larger customer base. E-procurement is not only beneficial for businesses; customers can also find this method of purchasing advantageous. They have a wider choice of merchandise and can shop without leaving their home. With a little web research, they can easily find the lowest price when purchasing goods.

Specific benefits for a business using e-procurement include modernization, which brings the workplace up to date with the latest marketing and selling methods. It can also help departments manage their supply chain more efficiently. E-procurement also opens up a diverse range of markets, including tendering bids and reducing costs on government contracts.

An easy to recognize web business that utilizes e-procurement is ebay. Businesses or individuals sell their products on this web site to the highest bidder. Sellers can also advertise buy it now price which customers can accept for purchase without bidding.

E-procurement does not just deal with sales and purchasing. With today’s Internet capabilities, it has never been easier, or cheaper, for businesses to market and advertise their products. Instead of costly and time consuming mail shots, a single email can be sent to many customers at a fraction of the price. Even business conferences with staff based all over the world can take place electronically.

There are no limits to what businesses can do using the technology of e-procurement. Almost anything you can think of can be bought or sold using this process. Wholesale buyers can search electronic catalogues for goods, purchase their requisitions and send the goods to their suppliers. The time scales using e-procurement compared to previous methods are extremely quick. In today’s fast paced consumer marketplace, no business can afford to underestimate the value of e-procurement.

Six Strategy Definition Choices

This week blog assignment:

For a company with which you are familiar with, review the six strategy definition choices.

Toyota, the world largest automaker is a multinational corporation headquartered in Japan, and currently the world’s largest automaker. Toyota employs approximately 316,000 people around the world. The Toyota Motor Company was awarded its first Japanese Quality Control Award at the start 1980s and began participating in a wide variety of Motorsports. Due to the 1973 oil crisis consumers in the lucrative U.S. market began turning to small cars with better fuel economy. American car manufacturers had considered small economy cars to be an “entry level” product, and their small vehicles were made to a low level of quality in order to keep the price low. Japanese customers, however, had a long-standing tradition of demanding small fuel-efficient cars that were manufactured to a high level of quality.

The 6 strategy definition choices of Toyota:

1. e-Business Channel Strategies

From toyota.com, the official site of toyota, we can see about all profile of all newest toyota vehicle, even more you can build customize toyota.

2. Organizational restructuring and capabilities.

Toyota have manufacturer factory that spread in many country. One factory usually support for sales in some country, for example Toyota Motor Indonesia made production of  Toyota Kijang Innova for sales in Indonesia and some country in southeast asia.  So the partnership are between Toyota itself but in the different country.

3. Business, Service and Revenue Models

-Business model: They are make their own brand car with flashier design and a broader range of models.

-Service: Sales from dealer or through their website with many variation of car models so the customer can choose whatever they like for their needs. Also Toyota provides after sales service in every dealer to maintenance of the car and also to make the customer satisfy with toyota services.

Profit: Toyota got the profit from price margin of car sales between the production cost and price in the market and also they got profit after sales service from their spareparts sales.

4. Marketplace Restructuring

From two channels:

-Buy side:

They’re buying row material for support their production.

-Sell side:

They sell the car,aftersales service and accessories for the customer

5. Market and Product Development Strategies

-Market development:

Building an image about Toyota from their advertising, campaign and other movement. Therefore people will attracted with their product. And until now, Toyota have their loyal customer.

-Market penetration:

New product that can fill what customer want. Their innovative strategy with their new product make people always think to buy Toyota. This thing that make the competitor left behind.

-Product Development:

Toyota always develop their product with innovative ideas. For example, Toyota eco-green friendly theme that they published bringing Toyota Prius show up in the market.

6. Positioning and Differentiation Strategies

Toyota always make a good quality car but with  affordable price. This thing make their different with other competitor. Therefore, from this differentiation, Toyota positioning theirself into a carmaker manufacturer that make a car for everybody.

How Internet Affects a Company

This week blog assignment:

“For an organization you are familiar with, examine the alternative business and revenue models afforded by the Internet and assess the options for the type and location of e-commerce transitions.”

MANDALA AIRLINES

Mandala Airlines

Mandala Airlines, one of airline company in Indonesia nowadays using internet to promote, introduce and market their services.  Internet looks affect right here, by using internet, they’re now can show to the people all about their services such as the schedule, the facility,per maximum bagage and many more through world wide web.

Maybe in the past, they did their promotion and how to made people know about their services are through magazine or travel agent.  But now if we look for www.mandalaair.com all the services by Mandala Airlines are listed there. And like many other airlines company do even Mandala just still only for book , but at least they can make the customer can book the ticket via their website.  Just choose whether you want to buy one-way or return ticket then choose your departure and destination city, then select the date then the final result the will showing the flight option for the customer for book the flight.

I know that many other airlines company now can make their customer can buy their ticket over internet, i believe Mandala Airlines will always develop their website performance as good as the other have otherwise they will left behind.  This is one of the example that internet affect a company and make that  company doing transition at least to have alternative way to the customer to reach the company service.

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