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You are required to write an e-business plan for an e-commerce site and specify the necessary system requirements to develop it.
Business Idea
A business starts with a good idea that answers the needs of a certain e-market segment. Once you find a good idea, you need to develop your e-business model. A business model is the method of doing business by which a company can sustain itself (that is, can generate revenue). Business models can take a number of different shapes. One of the simplest and most popular models is the virtual merchant model 1 (or e-tailer) which is a retail merchant that operates solely over the web. A company buys a good and sells it to customers. If all goes well, the revenues from sales exceed the cost of operation and the company realizes a profit. However, you are not limited to the virtual merchant model. Investigate other models (starting with the information listed in the footnote below) and select the model you prefer.
Business Analysis
To make sure that revenues from sales exceed the cost of operations, you are expected to thoroughly analyze your future business. Online research about your potential suppliers, buyers, competition, substitute to your product or service, and potential threat from new entries can help. Use Porter's Five Forces Model in Appendix A. If you find good potential in your future business, you work on improving its chance of success. If you don't find potential, then you look for another idea and start again. To improve the chance of success, make sure you select the correct strategy. Analyze your market, forecast sales, and measure revenue. Even though forecasts are never correct, it is recommended that you statistically evaluate your future revenue.
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