31 Oct 2010

Firebox:The Supply Side Workings of a Box on Fire

When exploring the supply side of the Firebox business there are certain aspects that can be improved upon. In order to maintain customers’ interest in their website and for them to continue to buy their products, it is necessary for Firebox to do continual research for unique and quirky products. However, to have Firebox staff physically travelling around the world looking for new items to add to their retail website is not a cost-effective solution. The problem is that a lot of time and effort will be spent looking for both products and manufacturers willing and able to supply without any guarantee that Firebox researchers will obtain their goals.

One possible solution is for Firebox to create a web based solution which focuses making it possible for potential suppliers to come in contact with Firebox. This interactivity can take place by encouraging suppliers to send updates on what new unique product that they may have or even send physical samples of those products. Another way for Firebox to get suppliers attention would be to advertise their company’s needs in the International and Regional Yellow Pages both on the internet and as a placement ad in the physical booklet.

Also, it might be a good idea to encourage customers to recommend new items that the company might be unaware of by creating incentives such as gift cards or similar rewards.

While over viewing the potential improvements that can be made with regards to the company’s supply side activities certain aspects such as cost of storage space, web redesign (to accommodate the company’s e-commerce element), ads in hardcopy and online yellow pages, Google adverts and magazines. Additionally, to increase efficiency within a company, a supplier management system can be put in place.

24 Oct 2010

Workshop exercise Oct 18 2010


Mission:

Bring the latest products, games and gift ideas to market ahead of mainstream retailers.

Vision:

1.Being the number one online gift retailer.
2.Diversification of products in order to attract a wide range of customers.

Recommended projects

Firebox could use lot of new options to improve their customer experience and market exposure of the company. Following are a few to name.

Wider Reach without loosing uniqueness: The main selling point of the Firebox is selling unique products. However, it will only attract fewer customers in the market as they tend to cost more. To tackle this, when a customer Identifies a product from firebox.com, company could show similar (less unique)products with a cheaper price. This will ensure prospective customers wont leave site only because of the price factor.

Involving customers : Firebox can provide a suggestion board or organize an annual competition for new product design (C2B).

Rating system for new products: As soon as firebox has a new unique product, they can publish pictures of product to loyal customers and collect feedback. This will help firebox to find which products are more attractive. It will also reduces the cost for producing more unappealing products.

RSS feeds & Search engine optimization: Firebox currently concentrate on search engine listing but search keywords usually used by prospective customers are not included in search optimization (eg: unique gifts, gift ideas, unusual gifts etc..).Really Simple Syndication feeds are very useful for companies like Firebox. Company could use its small news feeds to deliver new product details and updates to customers.

Visibility: They could sponsor prizes for sporting events or weekly news paper competitions to increase visibility.

New Markets: Firebox should open more localized websites to increase exposure in new markets.This also help customers to tackle language barrier.

Wider Reach without loosing uniqueness (A case analysis)

Technology:  Build a product database which will allow customers to quickly search similar products with a lower price. Ideal option will be showing cheaper products under the recommended products. Customers who are not willing to pay for the unique and quirky factor will have an option of buying cheaper product. Re designing of firebox website interface is required to add this new function.

Cost:
  • re-designing website:
  • supplier management system (A better supply management system will be required as number suppliers will increase substantially)
  • Warehouse (Storage) -  More storage space will be required to store cheaper fast moving items. Total items in inventory will also increase substantially.
  • marketing & promotion
Time: Re-designing time for website and associated technical requirements will be nominal. However a longer time period required for arranging supply, logistics and warehouse management details. Estimated minimum time required is 3 months.

Structure:


Effect to the Mission & Vision

1.Launching an updated site will help firefox to increase market share by diversifying more products and by being relevant to a larger audience. At the same time current core customers will be retained through the unique and quirky product offering which will get better visibility in website than general products.


Two factors from SLEPT
  1. Economic: lowing cost by creating economies of scale
  2. Technological: Providing  new way to trading, increasing the market share and adding value to business.

15 Oct 2010

E-business study - firebox

Background of this post:-

This is the first group assignment from BI5691 Network organization. As part of the assignment we were asked to select a company, discuss supply(buy) / sell side of the company, construct a map for it, evaluate advantages and make suggestions for improvement.

Background of Company:-
 
"Firebox.com was founded by Michael Smith and Tom Boardman in 1998 as http://hotbox.co.uk/, then in 1999 it moved to London and relaunched as http://firebox.com/". (Available: http://firebox.com/ Accessed 16:05,12-Oct-2010). 

Business model of firebox is an online shopping website like Ebay & argos with the selling point – Unique products. firebox head office and distribution centre located in South London and the staff grew from 2 to over 30 member separated into several teams (buying & merchandising, corporate Sales, Stock Control, Marketing, public Relations,Finance&Accounts,Technical,design and customer services

"At present firebox website attracts nearly 10 million visits and serves 48 million impressions annually, sent out a fortnightly to over 550,000 recipients, publish catalogue 's with an annual subscription exceeding 7 million copies and it supplies innovative gifts to several companies".  (Available: http://firebox.com/ Accessed 19:37, 14Oct2010 ).
 
Supply (buy) / Sell Side Diagram

Following is a visual representation of current state of firebox (Portrayed as a supply (buy) / sell diagram - Firebox).



                                                                   *Please click on the image to maximize


Summary of Supply (buy) / Sell

Supply (buy) Side: Company has direct contracts with some contract suppliers. Also firebox has a product search team which travels around the world to find “gifts with a twist” which is unavoidable due to nature of the products they sell. In firebox words “Products that are inspirational, quirky, bizarre and downright fun”. As a result of this unique product strategy it is difficult to stick with limited number of suppliers and a constant search for unique products is unavoidable.

Sell Side: Firebox has different sales channels for reaching customers.

Online: Sales through their main UK website http://firebox.com/ 

Mail Order: Company distributes a large number of brochures and catalogues to existing and prospective customers and they call mail order these items from firebox. 

Wholesale: Firebox offers its branded products to several retailers in order to increase its reach. It provides whole sale rates to these independent retailers and they set price for the product and sell through their channels.

Corporate Channel: Firebox offers its branded and corporate branded products to variety of companies which they use for gifts and rewards. Based on the requirements and specification of its corporate customers firefox find unique products with a touch of their corporate customers. 

How can hotbox improve either side (buy/sell)

Firebox could use lot of new options to improve their customer experience and market exposure of the company. Following are a few to name.

Wider Reach without loosing uniqueness: The main selling point of the Firebox Company is selling unique products. However, it will only attract fewer customers in the market as they tend to cost more. To tackle this, when a customer identifies a product from firebox.com company could show similar (less unique)products with a cheaper price. This will ensure prospective customers wont leave site only because of the price factor.


Involving customers : Firebox can provide a suggestion board or organize an annual competition for new product design (C2B).


Rating system for new products: As soon as firebox has a new unique product, they can publish pictures of product to loyal customers and collect feedback. This will help firebox to find which products are more attractive. It will also reduces the cost for producing more unappealing products.


RSS feeds & Search engine optimization: Firebox currently concentrate on search engine listing but search keywords usually used by prospective customers are not included in search optimization (eg: unique gifts, gift ideas, unusual gifts etc..).Really Simple Syndication feeds are very useful for companies like Firebox. Company could use its small news feeds to deliver new product details and updates to customers.


Visibility: They could sponsor prizes for sporting events or weekly news paper competitions to increase visibility.


New Markets: Firebox should open more localized websites to increase exposure in new markets.This also help customers to tackle language barrier.

Summary of relevant findings:

firebox fits in a variety of e-business models within Chaffey. Buy side fits in to B2B model as company receives most of its services from business service providers. Sell side fits in to B2B and B2C models. Customer rating may help company to add value by avoiding unpopular products and thus increasing profits.Search keyword optimization is highly recommended.  
  


Appendix: How we did it

Day 1: Individuals had been randomly assigned to groups. Our group consists of Aida, Shao Hau, Chen and Santosh. We were encouraged to discuss a company and eventually it was decided that the company Zopa would be the focus of our discussions. Zopa is website dedicated to match money lenders with borrowers. It was agreed that we individually were to research this company and come up with suggestion on how the company’s business model could be improved upon and also find out what weaknesses it may have.

Day 2: After some initial discussion about Zopa, we determined that the business model was flawed in the way that it essentially alienated a great portion of an age demographic, that would be most likely to use the website. We also determined that the business model provided a greater advantage and value to the borrower as opposed to the lender. Despite getting matched with a suitable borrower that had been through a vetting process, the lender was still at greater risk of losing money through this transaction.

The group felt after the assessment of Zopa that attention should be directed at a different company. The company Firebox was chosen. Firebox is an online retailer of quirky and unusual products. It is based in the UK where it has its main following.

During this meeting it was agreed that each of us would choose an aspect of the company, do research on it and write a section describing weaknesses and suggest possible improvements. These individual parts would be written into a cohesive piece intended for the group blog. Group blog was created on day 2 and access details were shared within the group.

Day 3: Group had a meeting after Wednesday morning lecture to discuss all findings, noted relevant points from each other and entered individual parts to the blog.

Day 4: Blog had additional entries made after some more discussion involving how to maximize the selection of products by bridging the gap between what products Firebox should stock and what the customers actually would like to buy. Also methods for encouraging innovation and serving customer preferences and importance of encouraging website loyalty was brought up.

Posting was kept as a draft until final consensus reached.

12 Oct 2010

Welcome Everyone^^

Welcome to our Blog

We are four plants from Msc BIS 2010. We will use this blog to talk about our group and activities...

After reading our progress please leave some comments to us.