Project Report on Homeshop 18

PROJECT REPORT ON

“HOMESHOP 18” Submitted in partial fulfilment of the requirements requirements for the award of the degree of  MASTER OF BUSINESS ADMINISTRATION To Guru Gobind Sing Indr!"r!#$! Uni%&r#i$'( D&)i

BATCH* +,1-.+,1/

Under the Guidance of Dr.Susheel Chabra

Submitted by Mohit Kumar    Aditi Akshit sharma Palak gupta Sugandh Agarwal

PERI0AR MANAGEMENT AND COMPUTER COEGE “Periyar Centre”, C!"", Plot #o. $%&, 'nstitutional Area, (asola, #ew Delhi ! $$))&* $$))&*

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STUDENT2S UNDERTA3ING

+e hereby erti-y that this is our original work and it has neer been submitted elsewhere.

Pro/et 0uide1

Candidate2s signature

Dr.Susheel Dr.Susheel habra

Plae1 #ew Delhi Date1

2

STUDENT2S UNDERTA3ING

+e hereby erti-y that this is our original work and it has neer been submitted elsewhere.

Pro/et 0uide1

Candidate2s signature

Dr.Susheel Dr.Susheel habra

Plae1 #ew Delhi Date1

2

TABE OF CONTENTS

CHAPTER

PARTICUARS

 

PAGE NO.

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AC3NO4EDGEMENT

+e would like to take an opportunity to thank all the people who helped us in olleting neessary in-ormation and making the pro/et. +e are grate-ul to all o- them -or their time, energy and wisdom .0etting a pro/et ready reuires the work and e--ort o- many people. +e would like to thank all those who hae ontributed in ompleting this pro/et. Speially, +e would like to send our  sinere thanks to Dr.Susheel Chabra -or his help-ul hand in the ompletion o-  our pro/et.

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Abou$ Ho7&So"18*  9omeShop$: B9S$: is a new enture -rom the #etwork$:. 9S$: is a

nationally teleised home shopping serie, selling redible brands through interatie eletroni media, primarily through able 3= and internet.  't has a team o- oer "*)) people spread aross ") bureau loations B" o- whih

are oerseas. 't has established &&),))) s. -t. o- -ully integrated broadast % other in-rastruture, inluding state;o-;the;art hubs in Mumbai and Delhi.  9omeShop$: is the 0roup2s online % on;air retail marke ting and distribution

enture whih has launhed 'ndia2s -irst &> hour 9ome Shopping 3= hannel on April  E):.  9omeShop$: has partnered with the best brand owners, suh as Apple,

Motorola, Philips, Kaya, 0odre/, 6eebok and many moreFF  A &>;hour all entre also allows ustomers to all in and book orders as per

their oneniene. 't will delier produts to oer "))) ities -ree o- ost.  N&$5or618 is one o- 'ndia@s leading -ull play media onglomerate with interests

in teleision, print, internet, -ilmed entertainment, mobile ontent and allied  businesses.   #etwork$: operates 'ndia2s leading business news teleision hannels, C#
3=$: and C#
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  #etwork$: operates in the general news and entertainment spae with leading

general news hannels C##;'<# and '<#H and has launhed '<# 8okmat, a Marathi news hannel in partnership with the 8okmat group.  't also runs one o- 'ndia2s largest 'nternet players ; +eb$:, as well as one o-

'ndia2s leading real time -inanial in-ormation and news terminals ;  #ewswire$:

O%&r%i&5 o o7&#o" 18 #i$& *

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4!$ !r& $& $o" #&))ing "rodu9$# !$ Ho7&#o"18:

3hese are the broad ategories that are top selling1 •

Con#u7&r E)&9$roni9# 1 Camera I9omeshop$: laims that *J o- amera

sold in 'ndia are thru2 9S$: hannel, Mobile Phone and Mirowae 7ens. •

Ho7& A"")i!n9&#

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J&5&)r', and

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Ho7& ; 3i$9&n "rodu9$#

J&5&)r'*

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HOME APPIANCES*

4H0 BU0 FROM US :

 Anytime shopping1 espeially onenient to working ouples and the

working women who are short on time, and the eer growing number o
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 Armhair shopping1 deliered at doorstep aross ",))) ities with an

aerage time-rame o- H days -rom order to doorstep deliery.  5asy payment options.  ree home deliery.  $* Days Money
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PRODUCT INE *  5letronis % Computing  Cameras % Mobiles  Kids % 3oys  (ewellery  +athes  ashion % Aessories  9ealth % beauty  9ome % Kithen  9ouse 9old Applianes 
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 lowers

6&' #$!$i#$i9# r&g!rding Ho7&#o"182# u#&rb!#& •

1.3mn customers

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18% are repeat customers.

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New transaction every 13 seconds.

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Run-rate of Rs. 1 crore a day.

STRUCTURE OF HOMESHOP 18* 3he struture o- home shop $: starts -rom endors dealing with hannel promotion and -inally reahes to the ustomer.it uses it bakbone to support the arious atiities to be arried down

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MIS AT HOMESHOP18  3here is one CentraliGed database warehouse. 9oweer the M'S is

implemented on a departmental basis. 3here are some departments whih might need M'S based on their -untionality and their role.  Souring 3eam has to help themseles to analyse the historial data and

gather the miro in-ormation. 9ere departmental M'S ome in handy as eah department has di--erent in-ormation deision making tool.  4sing the M'S 6eports, rare in-ormation is generated.  'n-ormation is aessed by di--erent employees at arying -reueny.  Aess Control enabled to protet the priay o- the data.  Seeral important in-ormation like orders to be plaed, time;range, and

 plae et an be generated through the M'S.  3here is aess leel ontrol gien to the employees depending on need

 basis Bhourly, monthly and nature o- work so as to not oerload the system.   6eports ;on; demand an be also generated and passed on as reuested.

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  Speial one;o-- 6eports need to be reated. 3he reuirements and

ritiality are understood and the reports are pulled;o-- and send to the reuired team.   Managers are by;de-ault gien admin aess.   3here is a proision -or Custom !
Dashboards.   3here are two teams who look a-ter the maintenane o- the M'S !

untional '3 3eam and Central '3 3eam.  untional '3 3eam maintains the 'S pertaining to their -untionality and

the Central 3eam looks a-ter stu--s like aess;ontrol, onnetiity, serer et.   3he S8A -or proiding the reports is $.H Days.   3here is a stand;alone ustom build M'S tool that runs on 'ntranet. 3he

in-ormation is seurely transmitted through https protool.   M'S proides lot o- use-ul in-ormation like =endor Management,

 prourement o- the inentory, grading system and the -untioning o- the di--erent departments.

MIS MODUES *  M'S -or produt ! whih are ready to air.  M'S -or airing slots.  M'S -or Customers to hae the ustomer base.  M'S -or Contat Center ! how many people ontated and in-ormation

related to alls.

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 M'S related to delieryLdi--erent modes used were ash, adane

 payment and CC payment.  M'S -or Sales and Margin.  M'S -or Dashboard ! -or leadership and -oreasting.

ARCHITECTURA DIAGRAM OF HOMESHOP18 CONSISTING OF AN<4ANAUE CHAIN( 4EB BASED TOOS INCUDE IN 4EB SER>ER ; SOFT4ARE

Ar9i$&9$ur!) Di!gr!7 

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>PN Di!gr!7

A4S Ar9i$&9$ur& C&n$&r

3he A+S Arhiteture Center is designed to proide you with the neessary guidane and  best praties to build highly salable and reliable appliations in the A+S Cloud. 3hese resoures will help you understand the A+S plat-orm, its series and -eatures, and will  proide arhitetural guidane -or design and implementation o- systems that run on the A+S in-rastruture.

A4S R&&r&n9& Ar9i$&9$ur&#

3he -leibility o- A+S allows you to design your appliation arhitetures the way you like. A+S 6e-erene Arhiteture Datasheets proide you with the arhitetural guidane you need in order to build an appliation that takes -ull adantage o- the A+S loud. 5ah datasheet inludes a isual representation o- the arhiteture and basi desription o- how eah serie is used.

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E.Co77&r9& Mod&)# 1?BUSINESS MODES* Bu#in&##.$o.Bu#in&## @B+B Mod&)

 The B2B model involves electronic transactions for ordering, !rchasing, as "ell as other administrative tas#s $et"een ho!ses% &t incl!des trading goods, s!ch as $!siness s!$scritions, rofessional services, man!fact!ring, and "holesale dealings% 'ometimes in the B2B model, $!siness ma( e)ist $et"een virt!al comanies, neither of "hich ma( have an( h(sical e)istence% &n s!ch cases, $!siness is cond!cted onl( thro!gh the &nternet%

 The advantages of the B2B model are* + &t can ecientl( maintain the movement of the s!l( chain and the man!fact!ring and roc!ring rocesses%

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+ &t can a!tomate cororate rocesses to deliver the right rod!cts and services !ic#l( and cost-e.ectivel(% The B2B model is redicted to $ecome the largest val!e sector of the ind!str( "ithin a fe" (ears% This is said to $e the fastest gro"ing sector of e-commerce%

Bu#in&##.$o.Con#u7&r @B+C Mod&)  The B2/ model involves transactions $et"een $!siness organiations and cons!mers% &t alies to an( $!siness organiation that sells its rod!cts or services to cons!mers over the &nternet% These sites disla( rod!ct information in an online catalog and store it in a data$ase% The B2/ model also incl!des services online $an#ing, travel services, and health information%

S$or&ron$ Mod&)* 17

S$or&ron$ 7od&) &n!b)&# 7&r9!n$# $o #&)) "rodu9$# on $& 4&b An &.9o77&r9& #$or&ron$ #ou)d in9)ud&* Con%&ni&n9& !nd Si7")ii&d Pro9&## On)in& 9!$!)og o "rodu9$# Ord&r "ro9&##ing S&9ur& "!'7&n$

So""ing C!r$ T&9no)og' So""ing C!r$ An ord&r."ro9&##ing $&9no)og' !))o5ing 9u#$o7&r# $o !99u7u)!$& )i#$# o i$&7# $&' 5i# $o bu' !# $&' 9on$inu& $o #o" So""ing 9!r$ i# #u""or$&d b'

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Produ9$ 9!$!)og M&r9!n$ #&r%&r D!$!b!#& $&9no)og' Co7bin& ! nu7b&r o "ur9!#ing 7&$od# $o gi%& 9u#$o7&r# ! 5id& !rr!' o o"$ion#

+? R&%&nu& 7od&)# * R&%&nu& 7od&) is a desription o- how the organiGation will earn reenue, produe pro-its,

and produe a superior return on inested apital. 3he ma/or reenue models are1 S!)&# r&%&nu& 7od&)*  A ompany gets the reenue by selling goods, in-ormation or series.

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Sub#9ri"$ion r&%&nu& 7od&)*  A ompany harges a subsription -ee -or the users that aess

to the ontent and series o--ered.

Tr!n#!9$ion && r&%&nu& 7od&)*  A ompany reeies a ommission -or enabling or

eeuting a transation. 't is based on the olume o- transations made. Ad%&r$i#ing r&%&nu& 7od&)*  A ompany proides a -orum -or adertisements and reeies

-ees -rom the ompanies that adertise their produts.

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AD>ERTISEMENT RE>ENUE MODE

EECTRONIC PA0MENT S0STEM INFRASTRUCTURE AND MECHANISM E)&9$roni9 P!'7&n$

5letroni Payment is a -inanial ehange that takes plae online between buyers and sellers. 3he ontent o- this ehange is usually some -orm o- digital -inanial instrument Bsuh as enrypted redit ard numbers, eletroni heues or digital ash that is baked by a  bank or an intermediary, or by a legal tender. 3he arious -ators that hae leaded the -inanial institutions to make use o- eletroni  payments are1  D&9r&!#ing $&9no)og' 9o#$. 3he tehnology used in the networks is dereasing day by day,

whih is eident -rom the -at that omputers are now dirt;heap and 'nternet is beoming -ree almost eerywhere in the world.  R&du9&d o"&r!$ion!) !nd "ro9&##ing 9o#$. Due to redued tehnology ost the proessing ost o- arious ommere atiities beomes ery less. A ery simple reason to proe this is the -at that in eletroni transations we sae both paper and time.  In9r&!#ing on)in& 9o77&r9&. 3he aboe two -ators hae lead many institutions to go online and many others are -ollowing them.

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$. +e began 5;Commere with 5D'N this was primarily -or large business houses not -or the ommon man. Many new tehnologies, innoations hae lead to use o- 5;Commere -or the ommon man also. +e will now brie-ly enumerate these innoations based on whom they •

a--eted1 A&9$ing $& 9on#u7&r#* Credit ards, Debit Cards, A3Ms BAutomated 3eller Mahines,

•

stored alue ards, 5;
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enrypted Credit ards. A&9$ing Co7"!ni&#* 3he payment mehanisms that a bank proides to a ompany hae hanged drastially. 3he Company an now diretly deposit money into its employee2s bank aount. 3hese trans-ers are done through Automated 3rans-er 9ouses.

&. 3here are also many problems with the traditional payment systems that are leading to its •

-ade out. Some o- them are enumerated below1 !96 o Con%&ni&n9&*  3raditional payment systems reuire the onsumer to either send  paper heues by snail;mail or reuire himOher to physially ome oer and sign papers

•

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 be-ore per-orming a transation. 3his may lead to annoying irumstanes sometimes. !96 o S&9uri$'*  3his is beause the onsumer has to send all on-idential data on a paper, whih is not enrypted, that too by post where it may be read by anyone. !96 o Co%&r!g&*  +hen we talk in terms o- urrent businesses, they span many ountries or  states. 3hese business houses need -aster transations eerywhere. 3his is not possible without the bank haing branh near all o- the ompanies o--ies. 3his statement is sel-;

• •

eplanatory. !96 o E)igibi)i$'* #ot all potential buyers may hae a bank aount. !96 o #u""or$ or 7i9ro.$r!n#!9$ion#*  Many transations done on the 'nternet are o- ery low ost though they inole data -low between two entities in two ountries. 3he same idone on paper may not be -easible at all.

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E.P!'7&n$ S'#$&7

T'"&# o E.P!'7&n$ S'#$&7 •

E)&9$roni9 To6&n#.  An eletroni token is a digital analog o- arious -orms o- payment

•

 baked by a bank or -inanial institution. 3here are two types o- tokens1 R&!) Ti7&* @or Pr&."!id $o6&n#.  3hese are ehanged between buyer and seller, their users pre;pay -or tokens that sere as urreny. 3ransations are settled with the ehange

•

o- these tokens. 5amples o- these are DigiCash, Debit Cards, 5letroni purse et. Po#$ P!id To6&n#  are used with -und trans-er instrutions between the buyer and seller.

•

5amples ! 5letroni heues, Credit ard data et. E)&9$roni9 or Digi$!) C!# ; 3his ombines omputeriGed oneniene with seurity and  priay that improe upon paper ash. Cash is still the dominant -orm o- payment as1 3he onsumer still mistrusts the banks. 3he non;ash transations are ine--iiently leared. 'n addition, due to negatie real interests rates on bank deposits. #ow we will enumerate

     •

some ualities o- ash1 Cash is a legal tender i.e. payee is obligatory to take it. 't is negotiable i.e. an be gien or traded to someone else. 't is a bearer instrument i.e. possession is proo- o- ownership. 't an be held % used by anyone, een those without a bank erti-iate. 't plaes no risk on part o- aeptor. E)&9$roni9 C&u&#. 3he eletroni heues are modeled on paper heks, eept that they are initiated eletronially. 3hey use digital signatures -or signing and endorsing and 23

reuire the use o- digital erti-iates to authentiate the payer, the payer2s bank and bank aount. 3hey are deliered either by diret transmission using telephone lines or by  publi networks suh as the 'nternet. C!rd. Card;based suh as •  Credit and harge ards; 't means buy now, pay later.  Debit ards; 't means buy now, pay now  Cash ards, stored;alued, e;ash; 't means buy now, prepaid or pay be-ore E.4!))&$. 3he 5;wallet is another payment sheme that operates like a arrier o- e;ash and other in-ormation. 3he aim is to gie shoppers a single, simple, and seure way oarrying urreny eletronially. 3rust is the basis o- the e;wallet as a -orm o- eletroni  payment.

S&9ur&d P!'7&n$ G!$&5!' Di!gr!7

PA?M5#3 7P3'7#S '# 97M5S97P$:1

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PORTERS FI>E COMPETITI>E FORCES MODE Aording to Porter B$:), $:* and Porter and Millar B$:*, a -irm deelops its business strategies in order to obtain ompetitie adantage Bi.e., inrease pro-its oer its ompetitors. 't does this by responding to -ie primary -ores1 B$ 3he threat o- new entrants, B& 6ialry among eisting -irms within an industry, B" 3he threat o- substitute produtsOseries, B> 3he bargaining power o- suppliers, and B* 3he bargaining power o- buyers. A ompany assesses these -ie ompetitie -ores in a gien industry, then tries to deelop the market at those points where the -ores are weak BPorter $H. or eample, i- the ompany is a low;ost produer, it may hoose power-ul buyers and sell them only produts not ulnerable -rom substitutes. 3he ompany positions itsel- so as to be least ulnerable to ompetitie -ores while eploiting its uniue adantage Bost leadership. A ompany an also ahiee ompetitie adantage by altering the ompetitie -ores. or eample, -irms establish barriers to deter new entrants -rom oming into an industry by ultiating uniue or  apital;intensie resoures that new -irms annot easily dupliate. irms also inrease  bargaining power oer their ustomers and suppliers by inreasing their ustomers@ swithing

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osts and dereasing their own osts -or swithing suppliers. 3he -ie ompetitie -ores model proides a solid base -or deeloping business strategies that generate strategi opportunities. Sine the 'nternet dramatially a--ets these ompetitie -ores, 'nternet ompanies should take these -ores into aount when -ormulating their strategies. 'n his reent study, Porter B&))$ reemphasiGed the importane o- analyGing the -ie ompetitie -ores in deeloping strategies -or ompetitie adantage1 “Although some hae argued that today2s rapid pae o- tehnologial hange makes industry analysis less aluable, the opposite is true. AnalyGing the -ores illuminates an industry2s -undamental attratieness, eposes the underlying driers o- aerage industry pro-itability, and proides insight into how pro-itability will eole in the -uture. 3he -ie ompetitie -ores still determine pro-itability een i- suppliers, hannels, substitutes, or ompetitors hange.

Por$&r# Fi%& Co7"&$i$i%& For9&# Mod&)

'# C7#353 37 97M5S97P$:1 27

An epansion into related produt lines an also be a good strategy. Aording to Porter  B$:H, the epansion into related produt lines an eploit trans-er o- skills or sharing o-  atiities suh as promotion and distribution, whih will lead to ompetitie adantage. Sharing an lower osts by ahieing eonomies o- sale and e--etiely utiliGing ompany resoures suh as market in-ormation, managerial or tehnial epertise, and knowledge. " 8ike traditional ompanies, 'nternet ompanies an also epand their produt line into areas related to their eisting produt lines. or eample homeshop$:.om reently started selling  personal omputers in addition to its eisting line o- eletroni produts suh as disk dries and memory B9ansell &))$.homeshop$:.om holds no omputer inentory and has omputers shipped diretly -rom a omputer distributor to its ustomers. 3his allows homeshop$:.om to sae inentory;holding osts. 9oweer, suh epansion annot bring inreased pro-its to homeshop$:.om without e--etie utiliGation o- its eisting ustomer   base and in-ormation, and managerial or tehnial knowledge o- e;business.

HOMESHOP182# >AUE CHAIN 97M5S97P $: deeloped a alue hain o- itsel- to internal it an operationally best add alue and maintain a ompetitie adantage. 3hey used the alue hain model -rom Mihael Porter@s book, QCompetitie Adantage1 Creating and Sustaining Superior Per-ormane.Q

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Ho7&#o"18 >!)u& C!in

Pri7!r' A9$i%i$i&# !nd Su""or$ A9$i%i$i&#

Primary atiities are those needed to produe a produt or series -or the end ustomers. 3hese atiities typially inlude1 •

Inbound ogi#$i9#1 reeiing goods -rom suppliers, and storing and moing those

good •

O"&r!$ion#1 Manu-aturing or assembling the produt

•

Ou$bound ogi#$i9#1 Sending the goods to wholesalers, retailers or diretly to the

end ustomer  •

M!r6&$ing !nd S!)&# 1 Marketing inoles understanding ustomer needs,

ommuniating those needs, and promoting the end produts. •

S&r%i9&1 'noles a-ter;sales support Be.g., handling, omplaints, installation, training

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Support atiities help to -ailitate or assist the primary atiities o- produing produt. 5amples inlude1 •

Pro9ur&7&n$ 1 purhasing raw material and other items used in operations

•

Hu7!n R&#our9& M!n!g&7&n$ 1 reruiting, hiring, -iring, training, deeloping,

ompensating •

T&9no)ogi9!) D&%&)o"7&n$1 researh and deelopment, proess automation,

so-tware, hardware, euipment, et., to support operations •

Inr!#$ru9$ur& 1 May inlude aounting, legal, -inane, planning, publi a--airs,

goernment relations, uality assurane and general management.

Ad%!n$!g&# ro7 ! >!)u& C!in P&r#"&9$i%&

Some o- ompetitie adantages -rom a alue hain perspetie inlude1 • •

• • • • •

Strong tehnologial in-rastruture with a single plat-orm 9igh inestments in tehnology deelopment Be.g., Kindle to best leerage digital  produts 0reat produt -oreasting system Print on demand Constantly soliiting suggestions on new produts 5asy and -ast payment system &> hour operations

Con$ribu$&d $o $& Su99&## o o7&#o"18

3he management, organiGation and tehnology -ators that hae ontributed to the suess oAmaGon1 1? Con%&ni&n9& !nd &!#& o u#& 8arge seletion1 publisher relations, wholesale relations, unlimited irtual shel- spae • +? Hig P&ror7!n9& S&r%i9& +ebsite is -ast, reliable, and easy to use • Shipping is prompt • Customer is kept in-ormed • 30