2017
Global E-Commerce
James Rasch
Jake’s Unlocked Phones
5/2/2017
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Jake’s Unlocked Phones
Not everyone wants to limit themselves to just the phones that are provided by the phone
service companies that they use. Jake’s Unlocked Phones provides a way for people to buy
phones that are not limited to any service provider. This means that you can buy a Google Pixel
phone, which normally is only sold by Verizon, and use it on an AT&T account. We pride
ourselves in providing the best and cheapest way to buy unlocked cell phones to use for any
telephone service provider. To better understand how we tried to become the best business
possible, we will discuss the Business Model, Porter’s Generic Strategy, Value Proposition, Egg
Diagram, Resource, Revenue Model, and Cultural Considerations.
Business Model
When developing a business model in the networked economy you need to use the four
key choices, which are Value Cluster, Marketspace Offering, Resource System, and Financial
Model. The first part of the business model is the Value Cluster, which specifies the value
proposition or the value cluster for
the business. The next part of the
business model is the Marketspace
Offering, which articulates the online
product, service and information
offer. The third part of the business
model is the resource system, this defines how the company needs to align its resources to
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deliver the value proposition. The last part of the business model is the Financial Model, which
defines and selects the most appropriate revenue model to pursue.
Value Proposition
When trying to become a successful company it is important to understand the Value
Proposition/Cluster formula. Which is the result of a combination of choices about the
customers, the benefits offered and the unique capabilities of the firm.
The first part of the formula is Target Segments, where we let anybody buy from the site, and
that everyone needs a telephone. So why not buy one from us where it will be cheaper, and there
will be no strings attached, like there would be if you bought a phone from a service provider.
The next part of the formula which is the Key Benefits Offered, and the benefits offered are
pretty clear here, you can buy all the newest phones without having to buy them from the cell
phone service provider. So if you want to have a phone that is only provided on one of the
companies, you can buy it from here and use it on whatever telecommunication company you
currently are using. The last part of the formula that ties it all together is the Unique Capabilities,
and the main capability that we provide is that we have all of the latest and newest phones on the
market, whereas other unlocked sellers are only going to have the older models in stock. All of
the components come together to form the Value Proposition formula, which is that “Jake’s
Unlocked Phones provides a way to buy unlocked cell phones to use for any telecommunications
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company with and easy are cheaper way to pay, while providing free shipping, free returns, and
international purchases.
Resource System
For the next part we will look at Schwab’s resource system, which is centered around
Schwab’s three main benefits: low price, innovative products, and superior services.
Our business provides some of the cheapest prices for unlocked phones in the department of
unlocked phones. Other businesses don’t compare when it comes to the prices that we provide
for some of the top brands of cell phones. We clearly have innovative products which are the
newest and greatest phones that are on the market. Cell phones are getting bought and used more
and more every day, which makes this field of business a good one to get into, especially
because there are not that many companies selling unlocked versions of the newest cell phones,
so compared to the competition we are the best around. The last part of the Schwab’s’ resource
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system is the superior services, which we do provide at the fullest. Our website has ways to view
it in plain English, Spanish, and Swedish, while providing full shipping to most of North
America, and some of the United Kingdom, including all of Sweden. When all of the factors
come together, they make a great model to show how our company is and will continue to
succeed in the marketplace.
Revenue Model
While other firms choose to pursue different revenue models, we have found that
Advertising, Product, Service, Information, Transaction, and Subscription, work the best when
figuring out where the revenue will come from.
Advertising is done very mildly on the main webpage, where if a company wants to put their
business to be advertised on our website, then advertisement spaces will be sold to them
accordingly. Currently there are no advisements shown on any of the pages because we have yet
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to decide which companies are good enough to be advised on our website. The main revenue
will obviously be the selling of the products, where we do sell all of the newest cell phones to be
used for any telecommunications company. All of the phones shown on the product page are the
current ones that we sell, but we do plan to add more later. For a transaction fee we do charge a
small fee so that the we do make some money out of selling the phones, although the prices
shown are very close to what the market price is, which is why we do have the best prices. While
we do charge the small transaction fee, all of the shipping and returns are all free, even for the
transactions that happen to Mexico and overseas. We currently do not have any kind of
subscription service, but later we plan to add a warranty where you will be able to send the
phone back and we will fix any problems that might have happened to the phones. This will be a
yearly cost where if you want to continue having these options then you will have to pay a yearly
fee.
Porter’s Generic Strategy
One of the best ways to be successful as a company is to use the Porter’s Generic
Strategy chart, where you pick one of the quadrants to focus on and stick with it to keep to what
your goal is a business. To be effective with the chart, organization goals, objectives, culture,
and activities must be consistent with organization strategy.
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The diagram is described in four quadrants, the upper left quadrant is the focus on cost and
industry-wide, and this is where a business would have the lowest cost in all of the industry of
whatever they are selling. The upper right quadrant is the focus on differentiation and industrywide, instead of focusing on the cost of the products, you would focus on the best products and
services possible across the industry. Moving on to the lower left quadrant, this is focus and cost,
where a business would have the lowest cost within an industry segment. The last quadrant
which is in the lower right is focus and differentiation, where you would focus on better products
and services within an industry segment. Our company has decided to choose the focus and cost
quadrant where we would try to have the best and lowest prices in the industry segment. This is
our main attraction, where we have the newest and latest products while still having the lowest
prices around. We decided to pick this quadrant because the other ones did not meet our needs in
what we were looking for as a business. The other ones had to do with the product itself, which
in general is going to be the same product everywhere else, but we have decided to provide those
same products but at a lower price.
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Egg Diagram
The Egg Diagram is a good way for deciding how you will go about selling the products
that you are offering, and whether or not your products are good enough for the average person
to buy. This is essentially a four step process where the customer decides whether they need the
product or not, what are their alternatives to your products, when they decide to actually buy the
product, and post-sale support.
When looking at whether or not someone needs a cell phone or not that is a pretty obvious
answer because almost everywhere you are going to need a cell phone. Now not everyone needs
an unlocked cell phone which is where the evaluation of alternatives begins, you can always be
forced into a phone you don’t necessarily want by your telecommunications provider, or you can
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buy one from our business and you can choose any phone that you want from our selection. The
next step is the actually purchase itself, and we help the person through this by providing an easy
and safe way to buy our products with no strings attached. The last step is the post-sale of the
product and customer feedback, and we pride ourselves in this by providing free returns if you
don’t want to phone. There isn’t much more you can ask for if you are not happy with the
product you chose to purchase.
Cultural Considerations
The last feature that we have provided for the user is that we have put cultural
considerations into the making of our website. We have provided a way for you to change the
language of the product page to three different languages. It is inherently English, but you can
change it at the bottom of the page to two other languages including Spanish and Swedish. The
Spanish language change has a Mexican flag because the other changes that were done culturally
are done in a Mexican culture. The changes that have been made include the product pages for
both of the cultures look and feel like as if you were on a webpage in that country, and when
making the purchase the checkout page includes the different states for both Mexico and
Swedish so that we can easily tell which country you are buy our products from. The only page
that has not been changed according to the culture is the home page, and we decided to keep that
as an American culture because that is where we are from and that is where we would like to
represent ourselves from.