Photo AI
Elaine's business markets a popular range of jewellery based on Australian wildlife - HSC - SSCE Business Studies - Question 26 - 2008 - Paper 1
Question 26
Elaine's business markets a popular range of jewellery based on Australian wildlife. She sells her product to shops when they sell to consumers. She credits her succ... show full transcript
Worked Solution & Example Answer:Elaine's business markets a popular range of jewellery based on Australian wildlife - HSC - SSCE Business Studies - Question 26 - 2008 - Paper 1
Step 1
Outline how e-commerce can assist Elaine to maintain relationships with overseas distributors
Answer
E-commerce plays a vital role in helping Elaine maintain relationships with overseas distributors. By utilizing online platforms, Elaine can provide real-time updates on product availability, pricing, and promotional offers. This immediacy enhances communication and fosters trust, allowing distributors to make informed decisions quickly.
Furthermore, e-commerce enables Elaine to gather feedback and data on distributor preferences, which she can use to tailor her marketing strategies. Regular updates via newsletters and interactive portals can also enhance engagement, ensuring that her overseas partners feel valued and informed.
Step 2
Explain ONE distribution strategy for the overseas market
Answer
One effective distribution strategy for the overseas market is the use of a direct-to-retail model. This involves Elaine selling her jewellery directly to retailers in the target markets rather than going through intermediaries. By maintaining direct relationships with retail partners, she can ensure optimal pricing and brand presentation.
This strategy lessens reliance on third-party distributors, which can facilitate better control over the brand image and product distribution. Additionally, direct engagement with retailers allows for quicker response times to market trends and consumer preferences, further enhancing her competitive edge in the market.
Step 3
Evaluate ONE method which could be used to finance the expansion
Answer
One method to finance the expansion is through crowdfunding. This approach involves raising small amounts of money from a large number of people, typically via online platforms. Crowdfunding not only provides the necessary capital for expansion without incurring debt, but it also generates market interest and customer engagement before the actual launch.
However, it is essential for Elaine to present a compelling business plan to attract potential investors. She must clearly outline how the funds will be used, the projected return on investment, and the unique aspects of her jewellery that differentiate it in the market. While crowdfunding has its challenges, including the need for robust marketing efforts to achieve funding goals, it can effectively empower Elaine's expansion ambitions.