The problem
The internet has resulted in immense development in business and many enterprises have taken advantage of the online space to get their products and services across the world. Amazon is such a business and one cannot deny that it is a leading multinational in its industry. To achieve success as that of Amazon, any online business needs to plan and develop business strategies that would help it stand out. Such strategies would be geared towards ensuring that the new organization can maximize on financial performance while ensuring that customers are well-satisfied. Working strategies for business aspects such as structuring the backward flow of products, provision of information and capital would make significant difference in the business’s financial performance and customer service. Effective planning in the aspects would mean that the organization can achieve its profits and maintain organizational practices that would improve customer satisfaction.
Analysis of Relevant Information
The backward flow of products also identified as reverse logistics refers to how a business manages to move its goods or services beyond their intended destination ( Rubio & Jiménez-Parra, 2014) . This means that a business would be well-prepared for processes in production that go beyond the product or service reaching the customer as this is often the final destination for any product or service. such aspects of the business would include proper disposal practices for the customer and organization, capturing value and re-use ( Rubio & Jiménez-Parra, 2014) . For online businesses like Amazon, planning for these parts of the product or service process may not be as easy because the business is conducted online. Nonetheless, the current online business environment makes it easy for any organization to identify ways through which products and services can be re-used, disposed off properly and ensuring that the product or service value is captured as expected.
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Capital is a strong determinant in a business building a strong foundation and picking up as expected. Capital includes all financial assets and resources at the organization’s disposal which would help ensure that the business begins ( Fourati & Affes, 2013) . It would be correct to conclude that without capital, a business may not come to fruition. Also, it would be critical that a new organization invests its capital well to ensure that all important aspects are covered as expected. Without proper planning, capital would be wasted and the business would not pick up as expected.
Information is also critical for the success of any new organization. Customers need to be well-informed about the business and the products and services offered to ensure that pro-business decisions are made. Customers need to know how the product or service would be beneficial to them, or how it is better than what is currently provided in the market. Such aspects of the organization would be well-articulated in the information provided by the organization; which is also made public to ensure that is reaches customers.
Potential Solution
When focusing on the issue of the backward flow of products, the new online retailer may consider solutions such as the provision of steps on the proper disposal of waste material. They should be guided on how organic wastes can be disposed off and how non-biodegradable waste products can be re-used. Another option may also include the development of stations where consumers can drop off waste products that can be recycled by the organization. For issue with capital, the new online retailer needs to identify potential sources of financial funding to ensure the business takes off as expected. Some solutions for this issue would include personal savings, sponsors and loans from financial institutions. Being an online retailer. The business would need to ensure that its online presence is felt. Information would need to be available online to ensure that users are well-aware of the company and what it provides. The company may opt for options line online marketing, traditional marketing strategies such as newspapers or the radio.
Specific actions to take
For the new online retailer, financial performance and customer service would be promoted through implementing the most suited options from those identified above. For the backward flow of products, providing stations for non-biodegradables and rewards for dropping off these wastes would encourage recycling and re-use. Exploring all capital avenues such as personal savings, investors and loans would help the business succeed. Nonetheless, it would be wise for the owners to ensure that they have initial capital to get the business going before attracting other potential investments. For information, online advertisement provision of important information would work best to help educate the public. Word of mouth would also work well but this would be dependent on the quality provided to customers
References
Fourati, H., & Affes, H. (2013). The Capital Structure of Business Start-Up: Is There a Pecking Order Theory or a Reversed Pecking Order? Evidence from the Panel Study of Entrepreneurial Dynamics. Technology and Investment , 4 (04), 244.
Rubio, S., & Jiménez-Parra, B. (2014). Reverse logistics: Overview and challenges for supply chain management. International Journal of Engineering Business Management , 6 , 12.
