E-commerce

Project
Ecommerce website - Tibetan Handicraft
Cooperative Society

Project By:
Abhishek Kumar
Anmol Jain
Sahil Pandir
D.F.T Sem V (2014)

E-Commerce :
Electronic commerce, commonly known as ecommerce or E-comm, is the buying and selling
of products or services over electronic systems
such as the Internet and other computer
networks.
Electronic commerce draws on such technologies
as electronic funds transfer, supply chain
management, Internet marketing, online
transaction processing, Electronic data exchange
(EDI), inventory management systems, and
automated data collection systems.

Online Retailing :
Online marketing (or online ecommerce) refers to
a type of ecommerce site where product and
inventory information is provided by multiple third
parties, whereas transactions are processes by
the marketplace operator.
Online marketing have become a driver of new
business for online merchants that leverage them
as channels for increased sales. Online
marketplaces are the primary type of
multichannel ecommerce.

Advantages:
Able to quickly seek out deals for items or
services with many different vendors (though
some local search engines).
Shipping costs (if applicable) reduced
Shipping a small number from another country, is
much more expensive than making the larger
retailers order.
Some retailers (especially those selling small,
high-value items like electronics) offer free
shipping on sufficiently large orders.
Ability to rapidly switch suppliers and vendors
without disrupting users' shopping experience

E Commerce Website
Development :
Main areas to make decisions in building a site
include:
Human resources and organizational capabilities
creating a team that has the skill set to build and
manage a successful site
Hardware
Software
Telecommunications
Site design

Web Site Systems

Development Life
Cycle :

Tools of E-Commerce &

Website Building
Required
:
ASP (Active Server Pages): Used to build dynamic

pages with Microsofts IIS

Java: Used to create interactivity and active
content on client computer
JSP (Java Server Pages): Similar to CGI and ASP;
allows developers to use HTML, JSP scripts, and
Java to dynamically generate Web pages
JavaScript: Used to control objects on a Web page
and handle interactions with browser
ActiveX: Invented by Microsoft to compete with
Java

 VBScript: Invented by Microsoft to compete with

JavaScript
Personalization: Ability to treat people based on
their personal qualities and prior history with your
site
Customization: Ability to change the product to
better fit the needs of the customer
Cookies: Primary method for achieving
personalization and customization
Privacy policy: Set of public statements declaring
how site will treat customers personal
information that is gathered by site
Accessibility rules: Set of design objectives that
ensure disabled users can affectively access site

Payment Gateway:

Tibetan Handicraft Co
operative Society Ltd :
Tibetan Handicraft Co-operative Society Ltd. has
trained many Tibetans in the weaving and has
provided employment to thousands.
To preserve and promote Tibetan arts and culture
they train young and unemployed Tibetans in
handicraft weaving.
As these type of products are only available in this
part of world, there availability to various
customer across the world could be increased by
introducing there retail market online.

Products :
Rugs for Sleeping
Rugs are used primarily for sleeping and sitting. The
most common type, khaden, placed on top of divans
or platforms, they serve as seating during the day
and bedding at night.
Seating Rugs for Lamas and Special Occasions
Tibetan tradition involves greeting special guests by
offering them a square mat to sit upon.
Door Rugs
Tibetans cover their doors with textiles. Simply
decorated, often with a flower motif symbolizing
fertility.
Pillar carpets
The cavernous halls inside the monasteries of Tibet
are supported by huge pillars around which large
pillar rugs are occasionally wrapped.

Business Analysis :
Tibetan Handicraft Co-operative Society Ltd. has
trained many Tibetans in the weaving and has
provided employment to thousands.
The firm already have both foreign and domestic
buyers.
The main purpose of forming the online content of
the website is to promote sales and Tibetan
Culture.
The firm is co-operative in nature.
It has only one physical retail outlet.

Business Plan :
The organization can use multiple business
models for its website.
Business to consumer model for conducting online
sale directly to its local as well as foreign
customers.
Business to business model for procurement of
raw material as well as for dealing with the
resellers who place bulk orders.

Components Of
Business Model :
Value Proposition:
Personalization/customization of the product by
choosing or making own designs
Reduction of product search costs
Reduction of price discover costs
Promoting the cultural heritage
Facilitation of transactions by managing product
delivery
For corporate social responsibility, the
organizations profit is well utilized for social
welfare of its employees and providing share of its
profit to TGIE.

Revenue model:
The organization will work on sales revenue model as
it derives revenue by selling goods, information, or
services to customers.
Market opportunity:
The organization has both local as well as foreign
market and it has a potential to increase.
Competitive environment:
Pakistan and Spain also manufacture traditional
carpets and also have e-commerce websites.
Competitive advantage:
The organization is selling high quality traditional
products which are a competitive edge for the
organization to attract customers.
Market Strategy:
Promotion of the products through the site: The
organization can use the pull strategy to attract more
customers by providing feedback forms in order to
identify the potential customers around the globe.

Organizational Development:
As the market will go electronic an IT and
packaging department is required who will handle
all the transactions and communicate with the
buyers. With the introduction of new departments
more employment will be generated.
Management Team:
The team will be responsible for making the
business model work. It will manage all the orders
and coordinate with the other departments of the
organization.

SWOT ANALYSIS :

Strength
Large, diversified, potential market
Cheap labour rates
Setup needs low capital investments
Very less competition nearby
Rich cultural heritage gives inspiration to weavers
Wide market, both local and foreign
Social cause
Providing employment to many Tibetan weavers
and welfare to their families.

 Weaknesses
Lack of infrastructure and communication
facilities
Unawareness about international requirements
and markets
Lack of co ordination between governments and
producers.
No information on new technologies
Inadequate information of current market trends
Still confined to rural areas
Lack of promotion

Opportunities
Rising demand in developed countries I.e. France ,
Australia , Switzerland , Italy and Germany etc.
Developing fashion industry needs handicraft
products.
Development of sectors like retail and real estate
Preference of custom made goods
Increasing awareness about handicrafts
Development of domestic and international
tourism sector
Threats
Competition among different weavers
Pakistan and Spain which also manufacture
traditional carpets.

Marketing mix :
PRODUCT:
Main sale comprises of carefully woven Tibetan carpets.
Types of rugs which they produce include sleeping rugs,
door rugs, seating rugs for lamas and pillar carpets.
Carpets are handmade as well as loom made using high
quality wools including New Zealand wool.
Products are sold under the brand name of Tibetan
handicrafts co-operative society ltd.
There is a range of sizes and design from which the
customer can choose.
The organisation takes full responsibility of the product
till it reaches the customer.
PLACE:
Location: Mcleodganj , Himachal Pradesh
No other outlets available, only in Mcleodganj

PROMOTION:
Advertising done through TV and newspapers so
as to fetch more customers.
Direct marketing done through shop
PRICE:
The loom used for making the smallest rug costs
Rs.3000
The bigger loom cost Rs.4000 Rs.5000
The looms which can be used from both the sides
costs Rs.10000
The biggest loom used for making special carpets
costs Rs.80000
No discounts offered

PESTEL analysis :
Political Factors
The political environment of the country is not the
favoured of the sector of handicraft and
handlooms.
Politicians take least interest in these sectors as
the focus is to make India an industrial nation.
Rural development is still the least discussed
issue.
Economic Factors
Income source : Both domestic and foreign buyers
Very less import cost
Presently Indias share in global market is only 2
percent
15 percent annual growth in this sector over the
last ten years
Estimated growth of 42 percent over the next 5

Social Factors:
The firm is manufacturing traditional carpets and other
products due to which the product is highly accepted
and in demand in the area.
The labour cost is also low.
The firm is providing accommodation, assistance in
children education, pension plans for the retired
workers and medicare facilities to the employees.
The firm solely works for the upliftment of its weavers
as it gives a major share of profit to the workers.
Technological Factors:
The firm is not technologically advanced as the work is
done on handlooms.
No Research and Development department is there.
Environmental Factors:
The firm is located at a tourist place, so the sale
depends on the tourists.
The season of sale is from April to October as there are
maximum tourists during these months.

Porter`s five forces

analysis:

Threat of new competition

The firm is a cooperative and so there is no threat of new
competition in the market. The firm is one of its own.
Threat of substitute products or services
There are some local manufacturers who are making substitute
products of low quality at lower price in the market which can
affect the market of the firm.
Bargaining power of customers
With foreign customers there are less chances of bargaining due to
lack of knowledge about other substitute products in the market.
The firm doesnt entertain any bargaining on its products and the
prices are fixed and same for both Indian and foreign buyers.
Bargaining power of suppliers
The firm has been importing raw materials from particular suppliers
from years so there are less chances of bargaining by the suppliers.
Intensity of competitive rivalry
As there is lack of competition so the firm has no competitive
strategy as such.

Transition To E
Commerce
:
The four stages involved in this process are:
Objectives: to promote the craft and to give a
major share of profit to the weavers.
Service offering: Online availability of products
Customer experience: User friendly interface for
website.
Credibility: The weavers and the corporation for
the effort

Recommendations :
The organization should increase its promotion in
order to increase its sales and market and to
attract more customers.
Enough Payment modes should be available for
the ease of foreign and domestic customers.
The organisation should have an active B2B
exchange in shipping bulk production and
sourcing raw materials for itself.
Online tracking facility should be available.
They could advertise their website on o