3 Good Reasons to Start an e-Business in Puerto Rico Today
In this article, we will try to understand the concept of the e-business model and how to create it for the company. As it turns out, there are many such models, and due to the extremely fast and intensive development of the Internet, they are constantly changing and new ones are being created. Before we get down to that, however, a few words of explanation about the title concept, which is the currently very popular business model in Puerto Rico.
How to plan the business model in Puerto Rico?
The concept of the business model appeared in the area of strategic management quite recently, about 20 years ago in connection with the development of online business. As you can easily guess, due to the constant changes and rapid development of the Internet, the understanding of this term is also changing and is interpreted in different ways. However, for the purposes of our study, the most important is the practical approach to the discussed topic.
In the common understanding of this concept, it can be presented as an example. To the question: “ What is the business model of your company ? “, the owner of the online store with sports accessories replies: “ I make money as an intermediary. I buy sports equipment in large quantities from manufacturers and wholesalers in order to sell it to my clients – women and men with an active lifestyle – through I add a margin to the value of the products, which allows me to cover the costs of running a business and generate profit. As I have been doing this for years, on a very large scale, the store now brings a very large income “.
Thanks to this short history, we get a concrete idea of what the owner of this shop does and what he earns. Maybe that is why one of the authors dealing with the topic of business models, J. Magretta, already in 2002 described the business model as a story explaining how the company conducts its business.
In other words, the business model answers the question of what and how the company makes money.
How to create an e-business model for a company in Puerto Rico?
As we already know business model is a “story” about the entire enterprise, therefore – if you want to create an effective business model for your own business – you should take into account some of its components:
- What target group is the company’s offer addressed to? Puerto Ricans or tourists?
- The company’s offer – what is included, what is its scope, what do we sell, and how? Puerto Ricans might buy imported products from your e-commerce business
- How do we acquire customers?
- What benefits do we offer to customers?
- Price strategy – at what prices do we sell our goods or services, what income do we get from it?
- Know-how and strengths of the enterprise – what is the company’s level of competence?
- What is the company’s competition?
- How to protect yourself from competition – what we do to have an advantage over the competition or how we try to overtake it.
If you have read the previous ones carefully part of our e-business cycle, you are surely asking yourself whether the business model is not really the same as an e-business strategy. It also happens that both terms are used interchangeably because both of them touch the critical pillars of the functioning of a business organization.
However, the difference – although liquid – is significant. A strategy is an action plan, something that must be followed in order to achieve specific goals. The company may or may not have an established strategy. If you are looking for some help, Nomad Capitalist is a company that can assist in establishing a strategy while also educating you.
Advertising and promotion of the online store
Even the best online store with the most extensive offer and the lowest prices will not ensure high sales by itself. Buyers are the most important in this process – people who do not know about your store will not make purchases there. Conducting marketing activities can become the foundation of success in this business.
- How are you going to inform potential customers about your store?
- How do you get them to visit the store? How can you be sure this method will work?
- Do you plan to stand out in search engines or price comparison engines? What methods will you choose?
- Will you take care of positioning and promotion yourself or will you outsource this task to someone else?
- Do you know how much the promotion will cost you? Do the methods you choose to guarantee the visibility of your advertisement, or also the entry of Internet users into your store and their purchase? What if these activities do not bring the expected results?
- Maybe you will offer attractive discounts for recommending your store to friends?
- Will you provide customers with functionalities and tools that will make it easier for them to advertise your offer to their friends?
The model is a slightly simplified reflection of reality, but thanks to this it allows for a quick and practical insight into the processes taking place in the company and determining its condition. Each company has its own – better or worse – business model, but not every company has a specific operating strategy.
There are many more methods of earning money on the Internet than it seems possible. Therefore – for the purposes of running your own business – it is worth checking how others do it.