ABSTRACT
This study discusses factors affecting the customer value, and the performance of the online-jewelry business model. In our case, the biggest trading company in our country developed an online-jewelry business model to be taken into use in its supermarkets. The time was not yet right to implement the online-jewelry, but useful knowledge was gained as for the internal and external factors to be taken into account when planning online- jewelry. The company developed its strategies and the full range of its information systems to get to the retail business front line to enable achieving customer value and profitable business in the future.
ORGANIZATION
OF WORK
This
project work is primarily designed to give an insight into online jewelry
business.
Chapter one
talks about introduction to online jewelry business, study of problem and
objectives as well as definition of the scope.
Chapter two
comprises the literature review. Chapter three gives the detailed information
about the existing (old) system, while chapter four and five deals with the
design and implantation of new system.
Chapter six
documents the project work, while chapter seven summaries, conclusion and
suggestions were made.
TABLE OF CONTENTS
Title page i
Certification ii
Dedication iii
Acknowledgement iv
Abstract v
Table of contents vii
CHAPTER
ONE
INTRODUCTION 1
1.1 Background
of the study 1
1.2 State of the
problem 2
1.3 Purpose of
the study 3
1.4 Aims and
objectives 3
1.5 Scope of
study 5
1.6 Limitations
of study 5
1.7 Assumptions 6
1.8 Definition
of terms 7
CHAPTER
TWO
LITERATURE REVIEW 8
CHAPTER
THREE
- Description
and analysis of existing system 15
- Fact
finding method used 17
- Organization
structure 19
- Objectives
of Existing system 21
- Input,
Process and Output Analysis 22
- Information
Flow Diagrams 26
- Problems
of the Existing System 27
- Justification
of the New System 28
CHAPTER
FOUR
- Design
of the New System 30
- Input
Specification and design 30
- Output
specification and design 32
CHAPTER
FIVE
- Implementation 42
- Source
Program: Test Run 59
CHAPTER
SIX
Documentation 60
CHAPTER
SEVEN
Bibliography 65
1.0 CHAPTER ONE
INTRODUCTION
Jewelries are different from many other products,
such as music and books that are commonly purchased online. Many jewelry
products are expensive and therefore time-sensitive in terms of their delivery
needs. In addition, jewelries are a replacement product, i.e., the same basket
of products is more-or-less purchased on a regular basis. Finally, groceries
are high-touch items, meaning that consumers like to inspect the quality of
items they are purchasing.
As the preceding data indicate,
there are some shortcomings apparent with regard to e-jewelry business models
(Keh and Shieh, 2001). One major shortcoming of these models is that they limit
on sensory perceptions of the product, i.e., consumers cannot touch and smell the
products shown on the monitor. Also, for consumers to be convinced that
delivery of products to their front door is convenient, the delivery time must
be relatively short. Technology must also improve so that graphic displays do
not require a long time to download. Additionally, online security is always a
concern and is the main reason why consumers are reluctant to buy online.
Finally, the issue of consumer privacy and how online stores will handle the
large database of consumer preferences must be addressed.
Concerns still abound with regard to the pure-play e-jewelry business model
(Partch, 2001). The distribution centers required for this concept require a
large amount of capital. Even with distribution centers in place, pure plays
often must often be operating at full capacity to make them pay for themselves.
With a startup operation and limited brand identification, it is difficult to
achieve this efficiency, particularly in the short term. These concerns are
warranted in light of the failure of many pureplay e-grocers, notably Webvan,
Streamline, Homegrocer and Shoplink (Tanskanen, Yrjola and Holmstrom, 2002).
Peapod USA is one of the few surviving companies that started off as a pure
play. However, this survival is largely attributable to its acquisition by the
traditional jewelry retailer Royal Ahold. This gave Peapod access to Ahold’s
cost- effective supply chain. It also formed a hybrid order fulfillment
comprised of stores and distribution centers. This was more efficient and
scalable.
Traditional jewelry retailers that have ventured online have been more successful than pure plays. For example, Teco decided to grow one step at a time. They spent five years fine-tuning and developing their online order and delivery system. Currently, Tesco provides e-jewelry service through one-third of their 690 British outlets. This allows Tesco to be within a half-hour of 91 percent of the British population.
The comparative success of bricks-and-mortar stores that expand into an
Internet environment is attributable to a the following factors:
Existing stores have brand recognition and an established reputation;
There are economies of scale, especially for the larger chains; and,
Traditional stores are further along on the experience curve in this industry.
On a smaller scale, MyWebGrocer provides Internet services for 160
supermarkets in twenty states. This is a turnkey method to establish online
stores. MyWebGrocer maintains the database used by the store and includes
private label items as well as perishables. MyWebGrocer also maintains weekly
prices and item additions or deletions. By offering this valuable service to
the smaller jewelry stores, MyWebGrocer believes they have a valuable business
model. To make this business model successful, Mike Spindler, President of
MyWebGrocer, makes the following suggestions:
Leverage your reputation and current marketing by including existing store name in the Web address;
Prominently feature the online site in all advertising and in-store activities;
Show pictures of all products being sold;
Have a sign-in sheet right in the store so customers can leave their e-mail address;
Contact the local media when launching a site;
Contact the media again with “human interest” story ideas, providing the list of customers who are happy with the service;
Develop partnerships with local corporations to offer online shopping from the office;
Team with local Internet Service Providers (ISPs); and,
Contact local daycare centers to target busy parents.
DESIGN AND IMPLEMENTATION OF ONLINE JEWELRY BUSINESS
