An Assessment Methodology for e-Commerce

An Assessment Methodology for e-Commerce

Oksana Kostiuk-Pukaliak No Comment
Crisis Management

Any diagnostics includes collecting information about the current status, i.e. data identification. If we are talking about e-commerce, it implies a collection of technical, marketing and financial indicators of the website performance. Having collected all initial data from different sources of information, the analysis of economic activity is carried out along with the audit of financial activity. Also, the state of the enterprise in a competitive environment is defined, the causes of the crisis situation are analyzed and the main factors that can improve the efficiency of the e-commerce enterprise are determined.

 

Assessment of business concept

Before the experts start assessing the technical and financial performance of e-commerce business, they have to become familiar with the very business concept – goods or services must be understandable, relevant and affordable for consumers. In addition, they should also have advantages over the similar goods or services offered by other enterprises.

It is very important to understand whether a product or service is really needed. This is especially true for electronic commerce focused on handcraft, i.e. handmade goods or souvenirs. Frequently, feeling the desire to realize themselves through creativity, entrepreneurs cannot find customers for their products, because they are valuable only to their developers and a close circle of friends.

The situation with the development of new products that would obviously improve the life of society is quite difficult too. It may happen that people are not ready to change their lives at the moment and therefore do not accept novelties. If a manager cannot determine the value of the product independently, it is necessary to conduct market research in the form of surveys. The surveys help clearly assess whether a given business model has a chance for development and whether it needs sanation measures.

If the goods or services are not marketable, then there is no reason in assessing the necessity of sanation, since the company will be able to improve its financial position exclusively due to a full diversification and changes of the area it operates in. If goods or services are necessary, understandable and affordable, then the problems of inefficient performance are solved by means of a rehabilitation audit . Identification of data is the first stage of a rehabilitation audit.

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