introduction
Electronic Commerce in the World, has its antecedents in 1969 when the first electronic communication network emerged, due to a development of the network known as ARPANET in which four US universities and the Department of Defense participated.
business-plan-store-electronic-commerce-b2c-electrodita-cubaIn 1972 there was an online discussion, access to remote databases and e-mail sent, where the digital exchange of data between companies took place.
In 1994 the first Web sites appeared, spread as a problem of marketing, sales and communications.
In 1999-2000, where greater connectivity of equipment existed in that period, retail sales in the US, by electronic commerce amounted to 1%, with non-tangible products (computers, books, records, etc.) being more widely accepted and the changes in traditional businesses evident in computing, electronics, telecommunications, financial services, retail, energy and travel. ()
The emergence of the Internet with its greater connectivity of users, begins to dazzle as a powerful trade tool by guaranteeing: reducing costs, reducing marketing times of products and services, delivering information in digital format, reducing transportation and distribution costs, allowing Strategic Alliances.
The business concept of electronic commerce in the world, in the B2C company / consumer mode, arises from the international technological development, through the use of the Internet, as a computer platform, of the so-called network of Con international networks that allows greater connectivity between Companies and sinks, although there are other modalities such as.
• B2C Company-consumer, are sales directed to the final consumer, retail market, which will be our object of study
• B2B Company-company, sales between national companies aimed at wholesale markets, previously developed in electronic data interchange (IED).
• B2E Company-employees, sales to internal customers through the network itself.
• B2G Business-government, which allows serving citizens through the network for customs procedures, certifications, social security, payments, collections and other official services.
• C2C Online auctions, is a platform where anyone can sell their products, they are relationships between consumers that become at the time of carrying out the commercial transaction.
• C2A They are relationships between the Consumer-administration, where the consumer can pay their taxes, advice, returns, etc.
• IED Electronic data exchange
In Cuba, Electronic Commerce began at the beginning of 2001, having as a pioneer the Cuban Company, of Softel software, with its virtual store, in which the Dita Society, belonging to the Cubalse Company, was its first Supplier of household appliances.
The then Dita Society, belonging to the Cubalse Group, through strategic alliances begins to take its first steps in Electronic commerce, as its minister of the Softel virtual store, taking advantage of its strength in the specialization in household electrical equipment and is projected in the contracting of the design your own virtual store and reserve your own domain for the marketing of technologies and home appliances
When the structure change from Companies to Companies took place in 2006, this business concept disappeared, as it was not inserted in any development Strategy of the organization.
With the new organizational structure adopted by Cubalse in 2007, the need arises to introduce this new service to increase sales and raise the profitability of this business concept, based on a resizing and business conception grouping all the families of products and insert complementary services of the Company, whose objectives are:
• Guarantee a comprehensive offer by taking advantage of the unification of the Companies, distinguishing itself by the diversity of business lines, business concepts, the level of assortment and its depth of assurance of after-sales systems in household appliances, air conditioning and automotive lines.
• Achieve synergy between the retail, gastronomy, photography and technical services business lines.
This investigation is limited in scope because the marketing of the www.electrodita.com store stops and having to estimate the figures for 2009.
II. Executive Summary
Business Plan for a New Product or Services Electronic Commerce B2C Modality Location 5th and 42
Description. Marketing of goods and services through the use of electronic commerce, operated through its own virtual retail stores
View. Position ourselves as facilitators in the delivery of gifts and gifts to relatives and friends of the Cuban Community abroad who reside in Cuba.
III. Business concept of new product or service
The Electronic Commerce business concept through its own virtual store www.electrodita.com, aims to cover the need to deliver goods and services of all kinds in Cuba and not only of electrical appliances as happened in the Dita corporate system in the year 2007, but of computers, furniture and hardware, taking advantage of the opportunity offered by the potential market of Cuban residents abroad, fundamentally the Cuban community abroad, with settlement in the United States, since remittances from Latin American countries in general It is calculated that it is equivalent on average to 10% of the Gross Domestic Product of each country (). To achieve this objective of charging abroad and avoiding the blockade, a strategic alliance has been made with a mixed company,with Spanish private capital that guarantees what is called the Payment Gateway, that is to say that it carries out the collections abroad and its validations of credit and debit cards to detect fraud and in this way allows its relatives in Cuba to receive their gifts and gifts delivered at home by the transport company.
Taking into account the positioning of the 5th and 42nd Shopping Center in the Cuban community abroad, it was decided to move the Virtual Store to this Shopping Center and take advantage of its diversified offer and depth of the assortment.
IV. Industry analysis
4.1.1 Market Study of the Macroenvironment
Legal
• Blockade imposed by the US that limits travel to Cuba
• Lack of Payment Gateway in Cuba
• Insufficient legal legislation on Electronic Commerce in Cuba
Demographic
• Cuban community immigrants to the US amounting to 977,258, although if we add the descendants born in the US the figure reaches 1.6 million. ()
Economic
• Sale and delivery of gifts and gifts to family and friends in Cuba.
• Remittances to Latin American countries, represent 10% of the GDP of each country, in Cuba it is estimated by some means 830 million annually and approximately 460 million from the United States ()
• World Crisis provokes regulations to grant loans from banks to citizens in the US.
Technological
• EU World leader in digitization and connectivity.
• Lack of digital Payment Gateway in Cuba
4.1.2 Market Share
The market share was determined for 2008, taking into account that in
2009 the restructuring of the trade took place and the Cubalse company merged
with TRD, at that time the participation in the market share of the
Virtual store www.electrodita.com, is 4% as a result of all the
structural changes to which it has been subjected since its creation.
4.1.3 Determination of Demand
Q = nxqx P
Q. Market size
n. Demanding population
q. rule of use
P. Product price.
n. It is assumed that the potential demanding population are immigrants to the United States, without considering their descendants, and it is estimated that they buy or can buy on behalf of citizens born in Cuba, immigrants to the United States, gifts and gifts to family and friends in Cuba. which amounts to 977,258, at least once a year, without repetition, without considering the descendants that the figure would rise to 1.6 million.
The current statistical behavior according to experience in Palco, a store with 10 years of experience with cyberconsumers, indicates that not all immigrants have bought at least once, but what they associate buy quarterly, having as preference fresh products, non-alcoholic beverages, household appliances, furnishings and hardware.
P. Not each product itself is fixed, but the average amount of purchases made by a person, according to statistical sources from the Tienda Palco experience, the average purchases amount to 176.54.
q. Norm of use, it was not determined since the average amount in P was determined, therefore it is included in the predetermined calculation.
The size of the market for emigrants to the United States can reach the figure of $ 172,525.1 per year if we take into account that some cyberconsumers of the emigrants to the United States, buy on site that deliver goods or services in Cuba, as an annual average that benefits some family member or friend in our country, without considering the descendants born in that country, if we do not limit Florida it is 104.4 and its behavior would be similar to online purchases in the US it would be 8.6 million.
If the offer is limited to the categories of household appliances, computers, furniture and hardware and that their behavior in purchases is similar to the behavior of the retail network (26% of total sales), the figure would rise to at least 2.2 million, regardless of repetition.
Figures issued by the MIF (Multilateral Investment Fund) estimate that remittances in general reach 830 million per year, of which the US 460.0 million and the rest Europe, being the main issuer Spain, so the demand for Electronic Commerce in Cuba, it can grow if the conditions are created and the offers are redirected towards the main market segments.
Demand Forecast
Note: Copextel is a wholesale distributor in Cuba that does not have stores in the B2C mode and Citmatel is a virtual store that acts as a B2B and B2C virtual store.
It shows the growth in sales and forecast in 2009 of the store www.electrodita.com.
Historical Sales and Forecast
4.2 Microenvironment Study
Porter's 5 Forces Analysis
1. The rivalry between competing companies. There is great rivalry and similarity in terms of capacity and size, technological process of digitization between the Corporations attending to products, brands, prices, quality of service and guarantees, the fundamental difference is that the diversified offer and complementary services, is aimed at the customer satisfaction of the high, medium and economic segments of recognized brands in the North American market.
However, Palco's offers are aimed at the medium-high segment and Cimex, aimed at the economic and medium segment with exceptions in some product categories such as perfumery and clothing and supported by the product lines of the Shopping Center itself.
2. The potential entry of new competitors. It is feasible since the sector is growing, despite the delivery of products in Cuba, is subject to alliances with national companies in the country and mainly those that have carried out the digitization processes and commercialize in convertible currency. cuc.
3. The potential development of substitute products. It is a race to obtain greater profitability and market penetration due to the attractiveness of the price variable, which has been made possible by access to producers of Asian origin, whose production costs are low for their own brands, but of medium quality, such as how; siding, floor tiles, DVDs, TCL color televisions, Midea semi-automatic washing machines, Midea fans, etc., while the competition gains access to the first distributors in the area, whose cost is higher.
4. The bargaining power of suppliers. There is no differentiation, the same requirements are required for all companies in the country in the current legislation by the Ministry of Finance and Prices, the National Bank of Cuba and the Ministry of Foreign Trade.
5. The bargaining power of consumers. It is scarce since cibreconsumidores, look for the different alternatives in the limited supply of assortment of the few existing virtual stores in our country, which allows them to save monetary resources.
4.2.1 Clients
It is aimed at potential Cuban immigrant clients in the United States with a medium-high average income level and residing fundamentally in Florida 68%, New York and California (), who demand, according to a market intelligence system, to be able to give gifts and give to family and friends in Cuba, the categories of household appliances, computers, furniture and hardware, which in the retail network has the following behavior:
• Appliances and computers 19%
• Furniture and mattresses 3%
• Light and heavy hardware 4%
• Complementary After-Sales Services for computers, electrical appliances, refrigeration and air conditioning
According to an analysis of the sector in the US, the trend shows that although the sector decreases until 2013, it shows a favorable trend in distance purchases, despite the global crisis.
4.2.2 Competitors
Characterization
Corporación Palco (www.mallhabana.com), belongs to the Palco Goods and Services Corporation, which is strong in canned and fresh food, hardware, household supplies, trousseau and upper-middle-line perfumery, its partner abroad is Exclusive Latin American, your virtual store is not your own, they are suppliers of a Spanish company with residence in Cuba.
Corporación Cimex (www.carlostercero.ca), belongs to the Corporation of Goods and Services, Cimex, which is strong in canned food, beverages, hardware, footwear, perfumery, household items, office automation, furniture, appliances, not so in Bakery, candy store, food, the store is its own and its partner is a company with residence in Canada.
4.2.3 Distribution channels
The payment gateway is guaranteed with foreign partners who charge credit and debit cards not issued by North American banks and Money Orden, so their collection capacity is limited, and in the case of merchandise deliveries, two variants are applied, one by delivery to the clients by the Trasval company and the other that the client himself picks up at the unit in the case of Carlos III.
The price variable is regulated by the national market, according to the established minimum margins and the revaluation of product prices is twice a year due to slow movement for all chain stores, so there is competition in similar conditions and there is no consider an advantage.
Advertising and promotion is inserted in the media through banners and hyperlinks between pages, in the case of Mallhabana, it takes advantage of the magazine that circulates Exclusivas Latinoamericanas en Cuba among Embassies, Commercial Firms, Foreign Investment, Marketing Companies, Spain and Florida and has been inserted Article in the Miami Herald, the most popular newspaper in Florida for Cuban immigrants and has a greater presence and tradition in the market in the commercialization of virtual stores, represented in Cuba, having in our country among its main suppliers Corp. Palco, Corp. Cubalse and FlorHabana, also relies on advertising releases that are distributed in the main stores of our capital.
In the case of carlostercero, the disclosure by the media is Canada and Florida, but its penetration in the market began in 2008, with Corp. Cimex as the only supplier.
4.2.4 Suppliers
The suppliers are the central warehouses of the organizations that receive the imported merchandise and the national suppliers that supply directly in the stores or in the territorial warehouses.
4.2.5 Internal Organization
Operating Flow
The Cubalse virtual store is associated with a foreign partner to guarantee the payment gateway for the sending of gifts and presents from relatives and friends of Cuba abroad, mainly to the market segment of Cuban-Americans residing in Florida, through collection through debit and credit cards, not issued by US banks, so that financial resources are not confiscated, by the US Blockade Law against Cuba.
The Company with mixed capital, Exclusivas Latinoamericanas SA guarantees the collection and validation of the means of payment to avoid fraud and through a strategic alliance with a carrier specialized in cargo transportation in Cuba (Trasval Company) is in charge of collecting the merchandise. in the store and delivery to the beneficiary located in the national territory within Havana City 3 days and the rest of the country 7 days.
This virtual store as a result of the organizational restructuring carried out in Cubalse, is managed by the Mallhabana virtual store, located in Palco with a link to our store, since our store has undergone several organizational changes ranging from the physical location and levels of subordination Even the instability of the specialized personnel and low preparation in the administration of the virtual store, this has led to the fact that for some months the site is not available on the Internet and it has become unmarketable, functioning only as a supplier of the Mallhabana virtual store.
At the end of 2008, the administration module has been reprogrammed in order to facilitate its administration according to new market trends, since currently the commercialization of some categories that are offered by the Palco virtual store such as food, is limited. alcoholic and non-alcoholic beverages, fur, perfumery and cosmetics, trousseau, etc. and that we have conditions to offer in our own virtual store, if we carry out the preparation of the sales force in the administration module.
The administration module allows the centralized update of new products on the site, change prices, act on merchandising, put photos, advertise, interact with customers online about unsatisfied demands or claims, etc.
Necessary Human Resources:
• Web Master, manages the virtual store through the administration module, must have computer knowledge and have been trained by the programmer of the virtual site to upload products, put stocks, view digital photos, technical commercial characteristics, etc.
• Commercial, graduated in trade courses and know merchandising and product techniques
• Economic, graduated in accounting and finance branches
• Warehouseman, graduated in warehouse manager course with experiences in product storage
Assortment Analysis
The following categories are offered in electrodita and the categories of products that they do not have are supplied to the Mallhabana virtual store, within each category the products that cyberconsumers demand are represented to facilitate the search for products and / or services.
• Home appliances and office automation (CRT and LCD color televisions, Midea fans, washing machines, gas cookers with oven, gas heaters, DVD, kitchen appliances, air conditioners, monitors, UPS, UCP, parts and accessories and accessories.
• Decorative table, pedestal, wall and ceiling luminaires
• Hardware (wall tiles, flooring, cement, taps, paints and varnishes, etc)
• Furniture and mattresses (living room, dining room, metal, wood and PVC terrace, auxiliary tables, beds, bedside tables, cabinets, etc.)
• After-sales services for electrical appliances (electrical appliances, computers, air conditioning and refrigeration).
V. Strategic Diagnosis
5.1 Mission
Insert ourselves as a national retail marketer of Electronic Commerce
in Cuba, in the B2C mode, by offering gifts and gifts to
Cubans residing abroad with delivery in Cuba to family and friends.
5.2 Vision
Position ourselves as facilitators in the delivery of gifts and gifts to family and friends in Cuba
5.3 Strategic Objectives
• Sales growth
2008 / 1.1
2009 / 1.6
2010 / 2.0
• Increase in Market Share
2008 / 6.9%
2009/12%
2010/25%
5.4 Key Success Factors
• Differentiation for customer satisfaction, taking into account the possibilities of offering a diversified offer of products and services, aimed at the economic, medium and high market segments and assurance of after-sales services for refrigeration, climate and household appliances.
This differentiation is based on the following variables.
Related to the product, sales activities, complementary after-sales services.
5.5 Dafo Matrix
Strengths
F1 Diversified offer with depth in the assortment, aimed at the economic, medium and high market segments.
Weaknesses
D1 Limitation of the software to deliver in multi-origin-destination nationwide
Opportunities
O1 Cuban community of immigrants, residents in the US, with medium high purchasing power, inserted in a country that is a world leader in connectivity and electronic commerce.
O2 Positioning in the Cuban Community outside CC 5ta y 42, as a retail marketer in the Cuban market.
Threats
A1 Not having a Payment Gateway in the country
A2 Centralized transportation nationwide
Dafo Matrix
5.6 SWOT analysis
1.
Mini Mini Survival Strategies (weaknesses vs. threats), to minimize threats and weaknesses
• D1A1 Centralize deliveries and develop Strategic Alliances with other partners that offer Payment Gateway that access other market segments
• D1A2 Enable collection with own means by the beneficiaries
2. Strategies Reorientation
Mini maxi (weaknesses vs. opportunities), minimizing weaknesses and maximizing opportunities
• D1O1 Advertise through tour operators our virtual store with in-store pick-up option
• D1O2 Advertise Mallhabana and electrodita virtual stores.
3. Defensive Strategies, if market share decreases
Maxi mini (strengths vs. threats), maximize strengths and minimize threats
• F1A1 Increase the supply of assortments and have potential partners that assume the Payment Gateway identified
• 1A2 Provide the option of collection in stores by the beneficiary in Cuba and introduce own transportation within the City
4. Offensive,
Maxi Maxi growth strategies, (maximize strengths and opportunities)
• F1O1 Increase the representation of leading products by families and incorporate business lines that guarantee the supply of after-sales services for refrigeration, climate and electrical appliances
• F1O2 Relaunch the name of the virtual store www.electrodita.com to www.mall5tay42.com
In our case, strategy 4 is expected to be adopted, to maximize strengths and take advantage of opportunities, since the attractiveness of the sector is growing and offensive-type strategies are required.
Virtual Store Sales www.electrodita.com
The sales achieved in 2006 and 2007 correspond to the Electrodomes ticos family before the release that took place in April 2008, as a supplier of Mallhabana since our store was in the process of reprogramming the software of the management mode and Organizational restructuring of the Company and in the first quarter of 2008 the operation of the store passed to the La Copa Unit to achieve a greater depth of the assortment in the families of products offered, in 2009 the program was set up and the first operations began with the virtual store and continues as Mallhabana supplier.
In 2009, after an analysis of the competitor's virtual stores, it is proposed to transfer them to the 5th and 42nd Business Unit, on March 1, 2009, in whose Shopping Center all product families are represented, which constitutes a strength of our organization and key factor of success, with the synergy of the sales of the Mallhabana virtual stores and with the Electrodita.com store Administration, inserted in the 5th and 42 Shopping Center, where you can take advantage of the full depth of the assortment you must reach a minimum monthly average of 20.0, currently 13.0, which means 240.0 per year for 2009, still below the expected sales of 40.0 per month, amounting to 480.0 per year, for 2010, in which multi-origin-destination is inserted, which means,ensure that the page is a single page for the cyber consumer, but the source of supply is not only from a unit but from different stores without it being perceived by the customer and that the same order can be delivered to several beneficiaries in Cuba.
5.7 BCG Matrix (Based on Product Life Cycle)
The Retail Electronic Commerce business line has a high growth of 300% and a low participation in the Market Share of 6.9, as the average is 50, which places it in quadrant I as Question, so it must be heavily invested to increase participation, supported by its key success factor.
The real situation in which it is found is becoming independent with its own virtual store in the administration mode, to make its competitive advantage prevail of differentiating itself by customer satisfaction, supported by the diversity of business lines and after-sales services that can be inserted in the offer, since it is assimilating the management mode of the own store, expanding the payment gateway to credit cards safe and non-secure mode, Money order and the alternatives of subcontracted transfers, own means and collection in stores, and inserting through penetration in the main Internet search engines, but through the same foreign partner,This requires carrying out the investigation of alternative variables with other partners on insertion in the national and foreign media and investing in the new business to achieve expected growth in the sales projection.
5.8 Risk Analysis
• Break with the partner that controls the Payment Gateway
• Limitation of the Partner in charge of the transportation and delivery of the merchandise to the final customer nationwide
• Failures in connectivity
SAW. Organization of the process and resource needs
Need for Resources
For the development of the work, it is required to have a 4 X 4 room with bathroom,
telephone installed and air conditioning, as well as a Warehouse Area of the same
approximate size to reserve the Merchandise that is available on
site for acquisition and collection by the carrier on the premises, which
is paid for its services by subcontracting, by the partner and its utilities are paid
The study of the calculation of the immobilization of the inventory is not attached since it
takes advantage of the same stock of the retail store itself and only makes
a high-turnover assortment stock available for a week, which
is paid by the partner abroad in advance to ensure the level of
activity of the store.
Direct materials / (Cash flow)
Auxiliary materials / (Cash flow)
Tangible fixed assets / $ 3,150.00
Personal computer P4 (2) / $ 2000.00
Printer (1) / $ 400.00
Telephone,
Bureau (2) / $ 400.00
Chairs (4) / $ 200.00
File / $ 150.00
Cost of the merchandise in store and sold is 0.64, which includes all expenses, condition of purchases, handling, reception, distribution cost
Workforce
• Web Master / 300.00
• Product manager / 300.00
• Warehouseman / 250.00
• Economic / 325.00
• Total salary / 1175.00
• Accumulated vacations / 106.80
Social Security
• Social Security / 293.75
Tax on wages
• Tax on wages / 25%
VII. Schedule
2007 Operate as a supplier of the Mallhabana virtual store, but transfer it to the Copa, which is a Shopping Center that serves a larger number of subaccounts such as the hardware store, food, household supplies and has experience in billing systems for companies.
2008 Develop the software update of the own virtual store and continue supplying Mallhabana and gradually create the organizational and structural conditions in the 5ta y 42 Shopping Center
2009 Transfer to the 5th and 42nd virtual store, continue supplying Mallhabana and create other facilities in the own store in terms of assortment and depth, Payment Gateway, advertising, deliveries and collections in stores and continue supplying Mallhabana virtual store, critical point to insert itself as a marketer of virtual stores with its own resources and obtain profits of 56.4 mp.
2010 Extend the multi-origin-destination for Villa Clara and Holguín from our virtual store and continue supplying Mallhabana, critical points, manage the multi-origin-destination and continue developing alliances with the country's carrier as alternatives.
VIII. Conclusions
When in 2007, the trade department evaluated the Virtual Commerce business line, it was considered feasible to take advantage of the business opportunity offered by the market for Cuban residents abroad, since remittances to Latin American countries were It calculates approximately 10% of the GDP of each country, together with the blockade imposed on Cuba, with the limitation of travel, out-of-pocket expenses and sending money, the opportunity arises to be able to help their family and friends in our country.
Strategically, changes were implemented in the conception to take advantage of the reordering of the organizational structure and the positioning of the business unit 5th and 42nd, in the Cuban Community Abroad, as a prestigious retail marketer in our country and for this it moves, The virtual store for the La Copa Unit, at that time just opened and with a better organizational structure and offer than the 7th and 84th Unit and later when the organizational structure of the virtual store of the 5th and 42 Shopping Center is created, it is moved to this Unit, for having specialized personnel, assortment and being able to guarantee the satisfaction of the growing needs of the clients.
This organization has a key success factor, which is customer satisfaction, supported by the diversity of business lines and experience in serving all market segments in the country, which includes the Diplomatic Corps and firms based in Cuba, in the that we must continue working to improve the degree of satisfaction of cyberconsumers, a diversified offer of goods and services and attention to all market segments that by legal provision are oriented in Cuba and incorporate after-sales services and claims to consumer complaints, together with the prestige in Cuba of Unit 5ta and 42, as a retail marketer of goods and services that since its inception serves the Diplomatic Corps, foreign firms based in the country and international organizations.
Electronic Commerce is a highly profitable business concept since the investment of own resources is limited, since it is based on achieving strategic alliances with specialized companies, which minimize our expenses and maximize our profits, taking advantage of our own installed infrastructure and the affiliates.
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