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Elaine’s business markets a popular range of jewellery based on Australian wildlife - HSC - SSCE Business Studies - Question 26 - 2008 - Paper 1
Question 26
Elaine’s business markets a popular range of jewellery based on Australian wildlife. She sells her product to shops when then sell to consumers. She credits her succ... show full transcript
Worked Solution & Example Answer:Elaine’s business markets a popular range of jewellery based on Australian wildlife - HSC - SSCE Business Studies - Question 26 - 2008 - Paper 1
Step 1
Outline how e-commerce can assist Elaine to maintain relationships with overseas distributors
Answer
E-commerce can significantly enhance Elaine's ability to maintain strong relationships with overseas distributors. By utilizing e-commerce platforms, Elaine can ensure ongoing communication and accessibility, which is crucial in establishing trust and reliability. Facilitating real-time interactions through video calls, instant messaging, and email updates allows for immediate feedback and support.
Moreover, e-commerce enables automation of processes such as order tracking and inventory management. This transparency not only strengthens relationships but also aligns expectations between Elaine and her distributors. By offering user-friendly interfaces for placing orders and accessing information, e-commerce can reduce friction in the supply chain, making it easier for distributors to collaborate with Elaine. Ultimately, employing e-commerce tools enhances engagement and fosters long-term partnerships.
Step 2
Explain ONE distribution strategy for the overseas market
Answer
One effective distribution strategy for the overseas market is to adopt a direct distribution model. This involves Elaine selling her jewellery directly to consumers through an online store. By eliminating intermediaries, Elaine can maintain control over her brand image, pricing, and customer experience.
With direct distribution, Elaine can reach international customers through her e-commerce website, which can showcase her products effectively. This approach allows her to build a loyal customer base and gather insights on consumer behavior, leading to improved marketing strategies. Additionally, utilizing local delivery services can streamline the shipping process, thus enhancing satisfaction and efficiency.
Step 3
Evaluate ONE method which could be used to finance the expansion.
Answer
A viable method to finance the expansion is to seek equity financing through investors or crowdfunding platforms. By presenting her business plan to potential investors, Elaine can attract capital without the immediate burden of repayments that come with loans.
Equity financing allows Elaine to secure funds while sharing the risks associated with the expansion. If successful, this method also opens up opportunities for mentorship and networking through connections that investors bring. However, it is important for Elaine to carefully consider the implications of diluting ownership and ensuring clarity in her vision with her investors. Overall, equity financing presents a strategic way to access resources while building a supportive network.