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MNE2601 Assignment 4 2024
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MNE2601 Assignment 4 2024
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MNE2601 Assessment 41. Draw up an industry and market feasibility for your chosen
business/envisaged business.
You need to include the following in your answer. Use section 3.3 in your
prescribed textbook as your guideline.
Type of industry - 1 mark
Why it is attractive - 1 mark
Nature of competition - 3marks
Profitability of the industry - 10 marks
Market factors - 5 marks
Remember this is an application question and you will not get full marks if you
simply give the theory in your study material.
Type of Industry:
E-commerce industry
The e-commerce industry is growing fast all around the world. More and more people
are using the internet to buy things, and it's changing the way we shop. E-commerce
includes a lot of different businesses, like online stores, subscription services, and
places to get digital stuff. Among all these, there's a special area for products that are
good for the environment, called sustainable products. These are things like clothes
made from organic materials, household items that are eco-friendly, and things we can
use over and over again instead of throwing away. People who care about the
environment really like these kinds of products. We are focusing on selling sustainable
products, our business is tapping into a growing trend of people who want to shop in a
way that's good for the planet. This helps us stay relevant and successful in the long
run.
Why it is Attractive:
Well, the e-commerce industry, particularly the niche of sustainable products, presents
numerous attractive opportunities for entrepreneurs.
Firstly, the exponential growth of online retail offers access to a vast and diverse
customer base, transcending geographical limitations and traditional barriers to entry.
With the convenience of online shopping and the ability to reach global audiences, e-
commerce businesses can scale rapidly and achieve widespread brand recognition.
And the increasing awareness of environmental issues and the shift towards
sustainable living have created a sizable market for eco-friendly products. Consumers
are actively seeking alternatives that minimize environmental impact and promote
ethical sourcing and production practices.
Not to mention catering to this demand, the chosen business can capitalize on a
lucrative and growing market segment, driving sales and fostering brand loyalty among
environmentally conscious consumers. Also, the digital nature of e-commerce enables
, cost-effective operations, streamlined supply chain management, and targeted
marketing strategies, enhancing profitability and competitiveness.
Nature of Competition
Despite the promising prospects, the e-commerce industry is characterized by intense
competition, with numerous players vying for market share. Direct competitors include
established e-commerce platforms specializing in sustainable products, such as eco-
friendly marketplaces and dedicated online retailers. Additionally, traditional brick-and-
mortar stores are increasingly expanding their online presence to compete in the digital
landscape. These competitors leverage various strategies to differentiate themselves,
including product differentiation, pricing strategies, customer service excellence, and
strategic partnerships. More to that, the e-commerce ecosystem is dynamic and
evolving, with new entrants constantly disrupting the market with innovative business
models and technologies. To succeed in such a competitive landscape, the chosen
business must differentiate itself through unique value propositions, superior product
offerings, compelling branding, and exceptional customer experiences.
Profitability of the Industry
The e-commerce industry has demonstrated remarkable profitability and resilience,
fueled by shifting consumer behaviors and technological advancements. Sustainable
products, in particular, represent a lucrative segment within the broader e-commerce
landscape. Consumers are increasingly willing to pay premium prices for
environmentally friendly alternatives, driven by concerns about climate change,
resource depletion, and social responsibility. As a result, businesses specializing in
sustainable products can achieve healthy profit margins while also contributing to
positive social and environmental outcomes. So, the digital nature of e-commerce
enables efficient cost management, scalability, and data-driven decision-making,
enhancing profitability and sustainability in the long run. However, profitability in the e-
commerce industry is contingent upon various factors, including effective marketing
strategies, robust supply chain management, competitive pricing, and adaptability to
market trends and consumer preferences.
Market Factors
Several key market factors influence the success and viability of the chosen business
within the e-commerce industry. Firstly, consumer awareness and interest in
sustainability play a pivotal role in driving demand for eco-friendly products. As
environmental consciousness continues to rise, consumers are actively seeking
products that align with their values and contribute to positive social and environmental
impacts. Moreover, the purchasing power of the target demographic, including
millennials and Generation Z, significantly influences market dynamics. These
consumer segments prioritize sustainability and ethical consumption, making them
ideal targets for sustainable product offerings. Also, technological advancements, such
as mobile commerce, augmented reality, and artificial intelligence, are reshaping the e-
commerce landscape, providing new opportunities for customer engagement and
personalized shopping experiences. Further, regulatory support for sustainability
initiatives, such as carbon offsetting programs and eco-labeling requirements, can
impact market dynamics and consumer behavior. The market factors and leveraging
them to its advantage, the chosen business can position itself for success and
sustainability in the competitive e-commerce landscape.
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