You are an e-commerce consultant who has been approached by an independent local music retailer who sells music on behalf of local indie bands. They are a very small business and are known locally as “Top Tunes”. They are a small organisation whose primary business goals revolve around identifying good quality up and coming music artists. They currently have three bands for which they sell music exclusively

Assignment scenario

You are an e-commerce consultant who has been approached by an independent local music retailer who sells music on behalf of local indie bands. They are a very small business and are known locally as “Top Tunes”. They are a small organisation whose primary business goals revolve around identifying good quality up and coming music artists. They currently have three bands for which they sell music exclusively.

They have requested that you help them to modernise their online Business to make use of the e-commerce environment in a more effective and efficient manner. Top Tunes currently specialises in the following:

  • Eclectic Vinyl and CD’s.
  • Music editing
  • CD/Vinyl Cover Design
  • Online Music promotion
  • Online Music sales

Your Job is to help the company move its primary core business into the online environment. Therefore your number one objective is to help the organisation in developing a satisfactory pricing strategy, revenue model and business model. You will have to spend some time giving consideration to the best music selling platforms which will supplement your website for sales of the above products. You will need to think about how the services can be packaged for efficiency and ease of use.

The current pricing strategy is based on a flat rate 20% fee on all music sold; this fee covers music promotion, music sales and cover design. There is no upfront charge; the 20% is only applied after a product has been sold, hence no upfront costs for the bands. Music editing as a service is also provided but this is an additional 10% surcharge on each item sold. Your Vinyl sales are sold at £12.99 per item. Top tunes is not sure if these pricing mechanisms are valid and needs your guidance in creating a sustainable pricing strategy for the online environment. You will need to factor this into your report.

Assignment Task

Your job therefore is to develop an online business case of 3,000 words for the Top Tunes with a website output. Your assignment should have covered the following areas:

  • Clear Understanding and explanation of the online music business environment illustrated by analysis through SWOT with a PEST or Porters five forces to highlight business areas of growth and efficiency. In addition to this you will need to justify your decision-making on the chosen Music selling platform(s). You will be expected to critically compare and contrast multiple platforms and define the best one(s) for the business.

 

  • Clear analysis of expected e-business improvements to the business. Focus on profitability and efficiency based on business model generation. As part of this you will need to develop a pricing strategy and revenue model underpinned by a clear Business model. Use the Business model Canvas to help you define your ideas in this section.
  • Construct a fully functioning HTML e-commerce website using a development tool such as Dreamweaver. Your website should contain at least 7 pages of your choosing and should encompass in detail all the aspects discussed in your report.

 

  • Critically analyse and discuss how you will take payment for products sold through the website. In addition to this you will need to define the advantages and risks involved in undertaking the changes for the business, with particular attention to security issues.

 

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