Project On

E-Commerce Global-handiworks.com

Submitted To:
Prof. Ghulam Yasin

Submitted By:
M-Umar M-Wakas Umer Raza Awais Saeed Arslan Abbas 462 465 484 486 490

Class/semester:
B.com. (Hons.) 8th semester Section E (M)

Hailey College Of Commerce University of the Punjab

Globalhandiworks.com
Introduction of the company:
Global-handiworks are an online startup company positioning itself to become the market leader in offering online products of cottage industry to the local and global market. It aims at promoting culture of Pakistan worldwide. The company offers business to business solutions for non-perishable goods to international merchants of 7 countries that are: Canada Europe England U.A.E U.S.A Australia Sweden The Company also provides business to consumer solutions with in the geographical boundaries of Pakistan .Global-handiworks.com positions itself for rapid growth and intends to create entry barriers for possible future competition by creating a new service category in Pakistan and utilizing first mover advantage.

Vision statement:
To promote culture of Pakistan and reduce poverty in the country.

Mission statement:
To reduce poverty, we will provide a platform for creativity and benefit small producers at the back end. We could do so by providing them more profit that they earn from traditional brick and brick business. Furthermore, we could help preserve our rich culture with the cooperation of the local families by extending our operations to the international market.

Structure of Global-handiworks.com:

 Limited local business to consumer solution. Offers business to business solution in 7 countries internationally. We will place a catalogue list on our website. Some products have customization option for premium members. Upon trinkets there is limit on placing orders. Free delivery locally. Delivery charges globally. Transaction through. PayPal system. We will conduct market survey to find our labor force.

List of products offered by the company

Woolen items:

Carpets Shawls

 Scarf Khais

Jewelry items:
Stone jewelry
Earrings and pendants Dough jewelry

Rings Bracelets

Glass jewelry

The famous Hyderabad bangles Handmade bangles Glass bangles

Clothing:
Embroidery dresses

Needle work Mukesh Sheesha work Karoshia

tarkashi
sindhi embroidery

Fabric:

Khadar Chunri

 Boski Susi
Karandi

Jute ajrak

Interiors:

Ceramics pottery

Jute wall hanging Stone Jewelry boxes

Wooden items

 Wooden sculpture Wooden jewelry box Wooden frames Wooden toys Wooden stands for house hold items

Metallic:

 Jwellery boxes

Decoration pieces Frames hookah ash tray surahi

Glass:

Paintings Calligraphy History paintings

Rally

Leather Vases

House hold requirements:

Bed set

 Pot holder and oven gloves Table mats Tea trolley Cushions

Individual:

Kurtas

Bags Wallets Shoes

Mobile charms

Elements of Global-handiworks.com
1. Value proposition:
Uniqueness Saving of cognitive energy. Convenience. On hand inventory. Customization. Moderate prices. Online business of cottage industry offers uniqueness of products. It is the representation of the Pakistans culture and its promotion. Furthermore, it saves cognitive energy as the website serves both locally and globally. It is a source of convenience for customers as it is working online and inventory is on hand so it never runs out of stock. The business offers customization to premium members and the products are offered at affordable prices

1. Revenue model:
Our business generates its revenue through sales of these products in addition to sales there is subscription model for the premium members for exclusive styles. 2.

Market opportunities:
Business to business model Business to consumers model

Our business model is:

We are basically targeting female segments especially household wives and teenagers. In b2b we are offering our products to the companies such as those that organize some events relating to the culture of different countries and interior decorators.

1.

Competitive environment:

As there are other Asian countries whose culture is similar to ours and other internationally established cottage industry e-businesses which offer their cottage products online they can give us direct competition in this field. Most of these e-businesses have extended their operations to various major countries and also give information about their cottage industry products. They can affect our sales while dealing in international market.e.g. http://www.cottageindustries.co.in/products/index.php http://www.the-cottage-industry.com/#/products/big-bloom http://www.cottageindustries.biz/index.html

Some businesses though operating internationally can affect our future sales by offering standardized quality controlled industrial products which operate on the large scale and use latest technology. They take less production time and people are more likely to buy branded things. They offer indirect competition.

1. Competitive advantage
Our sources of competitive advantages are differentiation and moderate prices. Our products are purely hand made and they depict our rich Pakistani culture. Further there are products which are the specialties of cities e.g. Khaddar, Ajar, Changairian, Hookahs est. furthermore, we also have first mover advantage as their in no such Pakistan based e-tailor dealing in cottage industry products. 2.

Market strategy:

We have adopted several market strategies for the promotion of our business: P.P.C: It is known as pay per click campaign through which we are able to promote our business through advertisement and banners. Benefits of this strategy are: Increased revenue Instant result

We can only pay when someone clicks on any website.

Email marketing It is a form of strategy through which we promote our products by sending emails. Email marketing is often referred to as a form of direct marketing since it does not involve traditional marketing channels such as television and print media. Email marketing is usually initiated to enhance the

relationship with current customer to make immediate sales to them To acquire potential customers.

Advertising on social networking:

In order to promote our products we display our advertisements on social networks

We can create page on face book, my space, twitter e.t.c to promote our cottage industry website We can make blogs We can place advertisement on news papers, poster, and magazines. On commencement we could offer different discount packages on special occasions such as weddings, Eid etc.

1.

Organizational development:
there would be separate departments dealing with the sales delivery of products, procurement of the products, insurance of the product ,marketing ,finance and other functional areas, quality department would also be established

Once our business is established and our customer base has increased then:

They would be an increase in number of our retail stores. Numbers of producers can be increased.

1.

Management teams:

We have a team of experienced professionals. We hire the people who like the people. Teams are established who work on the implementation of market strategy. Our management team has the ability to handle the new situation. We have both knowledgeable and experienced employees who provide the true and dense information and serve the customer in a pleasant way Globalhandiworks.com will have a staff of four personnel:

Operational manger Marketing manager Website manager

Administrative staff

Financial analysis

Projected profit and loss: Sales Operating expenses: Website development staff Capital expenditures Other expenses: Electricity Consulting expenses Computers e.tc marketing Total operating expenses Operating income Non operating income Profit before taxes Taxes (10%) Net profit 10,000 881,000 349,000 26,100 322,900 32,290 290,610 185000 346,000 190,000 150,000 1230000

Projected ASSETS Current Assets Cash in bank Account receivable Prepaid expenses Total Current Assets fixed Assets Caporal expenditure Total fixed Assets Total Assets LIABILITIES AND CAPITAL Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities bank loan payable Total Liabilities Owners equity Retained earnings beginning Retained Earnings-current Total owners equity Total Liabilities and Capital YEAR1 Rs.1012710 14040 1500 1028250 810,000 0 810,000 Rs.1,838,250 YEAR 1 Rs.40,140 0 0 Rs.40,140 100,000 1,040, 140 507,500 290,610 798,110 1,838,250 balance sheet for 1 year:

Swot Analysis
Strengths:

Minimum capital is required to start cottage industry business. Benefits to the producer/manufacturers. Uniqueness of the products. First mover advantage of starting online business in Pakistan. Direct delivery to end customer. Skilled workforce. Creativity in the products. Customization. Vast operation of business. Moderate prices. Promotion of culture. Offering special packages. No physical barriers.

Weaknesses:

Heavy advertising. Amateur administrative staff. Limited budget. No quality control. No standardization. Lack of experience in serving global market. Power failure.

Opportunities:

Advancement of business. Producers can increase easily. Can attract any market. Business could prove profitable over the long run. Capability of providing employment. Business could reduce poverty. Business could get government support.
The manual skills of older generations can be utilized. Global brand name can be established.

Threats: Political effects.(change of government) Change in the trading policy. Packaging cost could increase. Terrorism. High tax rates. Unfortunate events (change in weather, natural disasters)