Global Business Expansion
Introduction
Light Electrica is a medium sized business that deals with selling of electrical and electronic equipment. The business has three main shareholders. It is located in the United Arabs Emirates in the Middle East. . We are seeking to expand the operations globally. Currently, the business has physical stores where interested clients visit and purchase the products they need. However, to expand the company and the customer base, there is need to have an online market.
Background
The idea of starting the electrical and electronics business was born when we noted there was a gap in the market where people needed to purchase the products at a cheaper price, which can be available all under one roof. Thus, this made it easier for clients to buy what they needed easily. It is possible to expand the business as it has performed well in the Middle East. However, the business has faced several challenges due the emergence of fake and cheaper products that greatly affect the sales. Nevertheless, our customers always come back and refer more people to us hence ensuring growth due to our quality products.
Discussion
As indicated earlier, the company operates physical stores in several locations in the Middle East. Under these stores, the customers are able to visit, view, and purchase the products they need. Nonetheless, the business goal is to expand its operations globally. Therefore, it is important for the business to have an online platform to reach more clients. The online business commonly known as the e-business is faced with several challenges, especially securing of the company and the customer’s data. Still, there are several business models, which the business can employ and achieve its goals, including brick and mortar, e-business, and e-commerce.
- Brick and Mortar
This type of business model refers to businesses or organizations that operate in physical building and structures. The business has retail stores or warehouses in which they operate. In this type of business, the customers have the ability to come face-to-face with the business and they are able to see, touch, and feel the product they wish to purchase (Agnihotri, 2015). Under this type of business the risk of loss of customer data is not high. Nonetheless, to keep the customer’s data safe it is important to set policies and enforce them. Additionally, it is important not to store any customer data, just verify from their documents, especially the payment details (Arabnia and Akhgar, 2013). Lastly, it is crucial to stay updated with the recent threats and ensure you have the latest cyber security feature.
- E-business
E-business is also known as online business where trade between individuals, organizations, and groups takes place on an online platform. The e-business can be is a mixture of both brick and mortar and e-commerce. The online trade takes advantage of the internet and advertises goods and services on the internet where potential customers view and purchase them (Guo, 2010). However, in this type of business model, there is a high risk of customer data being stolen as the business is online based. To protect the client information, it is important to employ strong security layers and carry out regular intrusion tests. It is crucial to have a safe web hosting that is highly encrypted, thus ensuring data security (Arabnia and Akhgar, 2013). In addition, it is crucial to avoid storing any customer billing information.
- E-commerce
E-commerce and e-business have been confused in most cases and people use them interchangeably. However, e-commerce is a narrower approach compared to e-business since it involves only selling and buying of products. E-commerce is conducted online and it involves business to customers (B2C). Customers purchase goods and the businesssell them from one end. This model does not involve business to business exchanging goods as seen in e-business (Meng, 2010). However, given that one has to register in order to carry out any transaction online, there is usually a high risk of losing the client’s information. However, to avert this vice, it is important to use secure website hosting, use multiple security layers, and limit the number of employees who have access to customer’s data. It is also advisable to update regularly the passwords, especially if an employee leaves the company. It is crucial to hire an expert who has experience in information technology security (Arabnia and Akhgar, 2013). Lastly, in case of breach of data, it is important to inform the customer so that they may take the necessary actions to protect themselves.
The Best Model for Global Expansion
Expansion of business is crucial as it will ensure a wider market, thus an increase I revenue and profits. To expand the operations, business may employ several models to reach a wider market. However, these models should ensure that the business and customer’s information is secure in order to make sure that clients feel comfortable and safe while making any transaction. For the expansion of Light Electrica, the best model to adopt would be an e-business. Given that the enterprise targets individual customers and businesses, an e-business model would work well for the company. Electronic business will reach more clients as the growth of technology has made it easier for people to access and buy goods online. Although the business is under the risk of losing crucial data, the company would use the steps stated earlier to ensure that our information and client’s data remain safe.
Conclusion
Light Elecrica seeks to expand its operations and become a global company that supplies, electrical and electronic equipment all over the world. Given the several business models that is brick and mortar, which it currently operates on, the e-business and e-commerce, we have selected the e-business model in order to reach the global markets. Despite the cyber security threats involved, we are going to use the necessary security features to ensure data safety. Using the right security measures will ensure customer confidence in using our services and this will play a significant role in the growth of the business.
