Pure play business benefits s from minimizing the start up cost like rental fee, utilities fee, and other maintenance cost. Internet is a global reach network, doing business through Internet is able to help us to expand our business into global market easier. Our website Is named Funfair. Com (YMMV. Funfair. Com) and selling customized T-shirt which allow customer to design their own unique T-shirt that other website may not able to do. This unique feature helps our business to stand out among all competitors. One of the reasons we choose to selling customized T-shirt Is because customized clothing still lack of popular in Malaysia.
Refer back to other country, there are many successes cases of selling customized clothing through Internet for example like thesis. Com. We see the opportunities and the potential of this business, we believe this customization services can attract people come and visit our website and also able to convert them into our customer. Our website is targeted on the young generation and teenagers who looking for something really unique and customized. We believe that young generations are one of the most gradable customer groups.
They are the most active Internet user amperes to other age group, and they are willing to spend money on something they like. Teenagers Like to be unique and stand out from other. To attract them, we need to provide products can differentiate us with other. And this is the second reason why we chosen to sell customized T-shirt. The vision of Funfair. Com is to become one of the largest, success, and popular customized clothing website in Malaysia. In term of this, our mission is provides a safety, and conveniences shopping platform for customer.
We are using secure payment system like papal, e-banking, credit card as payment method. And also lid a well functioned website as the business interface to interact with our target customer. 2. 0) Environmental factors PEST analysis Is a measurement tool uses to measure market potential and situation, particularly indicating market growth and decline, and thereby the market marketing tools that help to examining the many differences of external factor that effect an organization. 2. 1) Economic factor Textile and Apparel Industry Textile and Apparel Industry of Malaysia is growing rapidly these years.
According to the research, Textile and apparel industry anticipate double-digit growth in the year 2010. Along with the lines of International financial recuperation, International Trade and Industry Minister Dates Sir Mustang Mohamed believed that the textile and apparel sector can boost to double-digit growth. Textile and Apparel Industry Associations president also said that trailing behind the previous year’s exports would render positive results for current years. The minister are ready to work out to the industry minored to attract more investor enter to the industry.
In year 2011, Malaysian retailers sold ARMS. 2 billion worth of items ranging from clothing, food to souvenirs, and the retail sales had grew 8. % higher than the anticipate. The data had proved Textile and Apparel market are not Just remain its business optimistic but also growing rapidly. Funfair. Com is selling customized clothing to the end user. As the retail sale is growing rapidly, it is good news for Funfair. Com to increase our products sales. Malaysia Retail Industry Report 2011 stated out the projected retail sales growth in year 2012 will be remaining at 6% which translating into ARMS. 2 billion.
The research report showed the market potential is will be increase in year 2012, and it is rises Funfair. Coma’s confident to start our business and ready to pile up the stocks in the future, because the market size is big enough and have huge growing potential. And now Funfair. Com is ready to work out to retain our market competitive edge. Malaysia GAP growth rate According to September 2011 World Economic Outlook Report, MIFF has lowered its GAP forecast for 2012 global growth to 4% down from 5. 1%. In year 2011, Malaysian economy was resilient, slower growth rate compare to previous years which grew 5. % year-on-year, down from 7. 2% in 2010. It will be challenges for new start up business to survive in such environment because the purchasing power is lower. The MIFF update in January 2012, projected global output to expand in 3. 25% in 2012 which are downward revision of about 0. 75% point from September 2011 WOE. MIFF said the unsolved Euro zone sovereign debt crisis is the reason to slow down the rate of recovery of global economy in 2012. It has hurting Malaysia economy growth outlook and weigh down on the economic expand in 2012.
In the graph above, has show the exports of goods and services is 5. 9% in 2012, drop down from 6. 2% in 2011. A country growth is depends on its domestic demand, decrease in exports could be slower Malaysia continue expand economies. It may affect Funfair. Com to export our product in to global market because MEIER executive than 2011. The demand of export’s goods will be affected by the European debt crisis. In term of this, Funfair. Com need to concern on the local market rather than exports to other countries. Funfair. Com will be focus on the local demand in the first few years.
And we believe that Funfair. Com may not be affected by the rezone crisis since the World Bank has assuming that the global economic will be recover in the following years, and forecast of 5. 1% GAP grow in 2013. 2. 2) Legal and Regulatory factor Internet Privacy and Ethics Nowadays, Internet usage usually is comprises with the use of social networking, email facilities, wed browsing, and online shopping. Therefore, privacy has become a major concern of the Internet user. Privacy issue has growing rapidly to the forefront of e-commerce policy and Internet-use consideration.
Because of the proliferation of electronic business transaction, most of the Internet user will scare their information been used in inappropriate ways. Forrester Research of Cambridge has reported 41% of Internet users are taken off their database from the website as they think the Bessie is using their information unwisely. Another 40% of Internet shoppers were very concern on their personal information. Clean has argued that Privacy is the critical issues that stop them to buying through Internet. Internet privacy becomes an important issue when website is required Internet user to giving out their personal detail and private information.
With some of the website who conduct business, user need to giving out their credit card number, online banking information and personal details. In case of this, there is an ethical issue whether the website should be or allowed to store the customer information. Internet allow website to rapidly accumulate and transfer customer database with others, website can easily collecting, brokering, transferring, and publishing their customer information. Therefore, Funfair. Com is not allowed to publish or share customer’s information with other without customer’s permission.
Under the Consumer Internet Privacy Enhancement Act, website is required to inform consumers before disclosing any nonpublic personal information to the third parties. For example like Doublethink, Inc. , a large online advertisement firm who was sued in California for accumulating ND using web user personal information such as name, address, and contact number. Another ethical issue of privacy is the used of Cookies by the e-businesses. A website that using cookies as their customer tracking tools may catch into an ethic issues.
Most of the website is uses cookies to keep track Internet user information, shopping pattern, and pattern of information search. For example like which sites they had visit, how long they stay at the site and the different pages within the sites they access. Cookies are able to store the visitor’s information and track the result of o identify customer preferences and used it to customize their products, and services. But there always an ethic concern whether it is legal or right to track customer information. Some of the company think is reasonable for company to identify customer preferences.
However there is a new type cookies who called Flash cookies which is more persistent. Flash cookies will not affect by the normal erasing data procedures. They cannot be deleted by any anti-spy;are or Edward removal program. In 2010, there are three companies were filed against with the lawsuit by sing flash cookies. These companies are alleged to have knowingly tracked users in a way that was not adequately disclosed in their privacy policies. Cookies issues have affected customer buying willingness and it become a challenges of Funfair. Com to build customer buying confident.
Most of the people comprise Internet with e-mail facilities. Most of company will track and store their employee’s email indeed to check their employee’s behavior. There are ethical issues about whether or not the third parties allowed to store or read the email without the permission of sender. The deader Electronic Communication Privacy Act (CPA) makes an unlawful under certain circumstances for someone to read or disclose the content of an electronic communication. For example, a California courts recently held that companies cannot track employee internet use unless a specific written policy explains to that the monitoring may occur.
Some of the companies were storing and reading employees email to tracking them. The behavior of company is against the law of CPA which third parties have no right to store or read people email without their permission. Intellectual and Data Protection To protect company data and avoid invalid use of customer data by third parties, the protection of customer data has become very important. Compliance with legal responsibility, and increasing in Internet privacy concern, means that Website need to protect individual’s personal information from the outside threats.
Most of the legal issues on data privacy issue in Malaysia were resolve with the introduction of Personal Data Protection Act (PDA) in 2010. PDA is one of the cyber legislation aimed to regulate the processing of personal data in commercial transactions and provide for matters connected. PDA functions in the commercial environmental, abuse of Internet network or other channels through violations of personals data are closely associated with the Communications and Multimedia Act (CAM) 1998. For example, under S. 34 of the CAM, if a person who retrieve and use other personal data through Internet without permission of informer, he can be Jailed up to one year or fined up to ARMS,OHO or both. Under the law PDA, user should not use any automated and computerized system to process another user’s personal data without permission, and users also need to ensure the data will not store longer than the period it needed. Besides this, customer must be given access to their own personal data and allowed to update the data. Funfair. Com is a website whose conduct business purpose. We are required to Therefore, under the art of PDA, Funfair. Mom has responsibility to ensure the customer data is secured, under protection. Funfair. Com can use these data for specify purpose like customer segmentation and Funfair. Com need to dispose it safely when finish with it. Besides that, there are variety data protections problems need to be concern by the Funfair. Com. One of the problems is most of the website are failed o protect its own sensitive data appropriate to its value. Business manager should have sense of what data is valuable or worth to company. With these data, they can correctly evaluate and fund different levels of protection. . 3) Social cultural and global influence factors New fashion trend Today, there is a whole a new fashion trend appealing to the youngster and teenagers. Custom made T-shirt are precisely stand out all other fashion statement. Teenagers are able to create their individual unique shirt and express their emotions through the statements or words written on the T-shirt. With the design software, they are free to use their hidden creativity through customized T-shirt which they are able to conceptualize ideas to select variety of image, phrases, color to design their own unique clothing.
People can choose the shirt they want to customize and select different elements to create their own style. They can get hold of the creativeness from select every factor of their shirt from the size, clothing, and the pattern. They can make a shirt that is based on their creativity and own preferences that suit their mind-set, style and individuality. This fashion trend has help Funfair. Mom to success because the custom made T-shirt is popular among teenagers. Fashion role model Not Just the teenagers like custom made T-shirt, this fashion trend also very popular among celebrities in US countries.
We can see a lot of celebrities are wearing T-shirt with a custom design, unique statement or images. This is the other reason why custom made shirt are so popular in teenagers because they always turn to these celebrities for style inspiration. According to the research, celebrities always have great impact on teenagers’ behavior including dressing norms, buying norms, and other. Teenagers perceive these celebrities as their fashion role model, and follow the style how they dress up. In case of custom made clothing is popular among celebrities, it is benefits for Funfair. Com to attract these teenagers purchase our products..
Besides that, to make a custom made T-shirt is not expensive and affordable for teenagers. Funfair. Com is aimed to provide customized services with affordable price range for customer to create their own shirt. Therefore, Teenager can get this service for cheap by surfing our online retail website and does not need physically go to real store. Funfair. Mom is using a computer program that allowed customer to create their shirt design without a hitch. The customized services are another reason why this trend is popular in young generation, because they can be fashionable, trendy, show their characteristic.
Change in consumer buying behavior Internet has had a great impact on the ways how consumer research and purchase products, and also how businesses conduct their business model. For example in the early and mid-sass, it was uncommon for customers to consider cross-border purchases and now consumers are becoming common in purchase via services such s Amazon. In the past ten years, consumer used to prefer bought with physical touch, people want to feel the product before they decide to buy the products. But now people are more tend to prefer shop convenience Just with a single click through Internet. The buying pattern is changing.
Most of the people are busy in working, and lack of time to shop therefore consumer want make things fast and conveniences. The initiative of e-commerce is providing a convenience alternative for consumers and they are easier to compare prices over Internet which translates into better savings. People buy anything from movie tickets to flight ticket. This is result that even small businesses can now serve the global market. According to the research of DC Malaysia telecommunication research manager Lincoln Lee said, he expect Malaysia Internet BBC market which include purchase of goods and services and bill payment to reach RMI 15. Billion this years. Mr.. Lee said reduce in spending power are turning consumer to online media for more affordable products compare with traditional shopping. Therefore he expects the market is set to grow in a big way in Malaysia. Mr.. Lee said that Malaysia is one of the fast growing in online business in Asia, and pretty potential to grow bigger in the next few years. A survey conducted by The Nielsen Company which involved 500 Malaysian Internet users about online shopping habits has state out that about 30% of Malaysian internet users have experience online purchase.
And more than 32% is involved in buying fashion related products. Nielsen Malaysia’s director said that Internet no longer a niche technology but a media and utterly integral part of buying channel. In the Malaysia Demographic profile 2012 has sated Malaysia population is proxy 8,728,607 in year 2011. 29. 6% is ranging from 0-14 years old; 65. 4% is ranging from 15-64 years old; and 5% is ranging from 65 years old and above. The profile has show there are 9,539,972 male and 9,253,574 female in year 2011 and according to Nielsen research, more than 30% of them has experienced online shopping.
Funfair. Com is targeted on these teenagers and youngsters with purchasing power. Teenagers are one of the most potential Internet customer compare to other age group. It is not Just they are the most active Internet user, Internet has given an affordable alternative hopping platform for them as they has lower purchasing power. Nielsen research also said that the Internet sale will be continue growing in the next few years since Malaysia’s economy is hurting by Euro zone crisis therefore more and more people will turn to buying through Internet.
Internet is global reach network that allowed business to expand their business into in e-commerce compare with U. S. Countries. E-commerce sales in China are expected lead global growth with a forecasted 94. 2% annual rate from 2012 to 201 5, and US is forecast to grow 12%in the same period. Emerging markets with huge populations eke China, India helps Asia accounts for nearly 44. 8% of all Internet users in the world. From the report, we can find out that Asia has huge potential for online business since Asian is active in online purchases. Therefore Funfair. Mom considers China as one of the target export countries within Asia. 2. 4) Technology factor Mobile commerce is means as buying and selling of goods and services through wireless handheld devices like cell phone, personal digital assistants, and smart phone. M-commerce is a new generation of e-commerce which allowed user to access into internet without devices plug-in. The emerging technology behind m- commerce is reliance on Wireless Application Protocol. M-commerce has given a convenience alternative for customer as they can access to internet anytime, anywhere and shop all the time.
As the content delivery over wireless becoming faster, more secure, and scalable, there is a speculation that m-commerce will surpass hireling e-commerce as the method of choice for digital commerce transactions. M-commerce has affected the website who conducts financial services which included mobile banking. Customer can use their handheld devices to access their accounts and pay their bills. It is more convenience for customer as they can make payment without boundary of time and places. Customers also able to check their services charges, bill payments and account reviews by using their handheld devices.
It is also benefit the retails stores, as customer are given ability to access to view product, price comparison, make order and pay for order. Market leader as Amazon. Com are using mobile-commerce attract customer which offering discount to customer on any products that purchase via its Precipices Mobile app. Customer can walk in physical store and use the app to scan on the product barded, and access to Amazon’s price for that product. Mobile devices become one of the important technologies of commerce in the future. Even though mobile commerce makes our life easier, but the data consumption is exploding.
E-commerce is conducting of business communication and transaction over networks and through digital devices such as computer. E-commerce also defined as buying and selling of goods and services, and transfer funds through digital communication. There always involved privacy and security issues when there are involved money and business transaction. To reduce these issues, most of the website use digital artifice to authenticate to prevent their private information being stolen by third parties. Certificate authorities such as Version, act as trusted third parties to issue digital certificate to website.
