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Qrt 2 E-Business Task 1

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QRT 2 E-Business Task 1
Online Business Expansion Proposal
Western Governors University
This paper received passing marks with no revisions

Introduction
The Children’s Hour is an upscale fashion boutique specializing in unique women and children’s clothing, accessories, shoes and gifts. It has been in business for 30 years and in 2008, growth prompted a move to a larger location. The store has been very successful without a strong online presence, making online expansion an attractive and low-cost way to increase sales of its already popular merchandise. This online expansion proposal outlines the viability of the boutique market, online competition, marketing strategies, and social media integration.
Viability of Product or Service
Fashion boutiques, which are typically single store enterprises, have much to gain from online expansion, particularly now, as the following statistics indicate. In the United States in 2013, apparel (not including items such as jewelry and handbags) accounted for 18% of all online retail sales, and that number is expected to grow. Also, the compound annual growth rate for global online retail sales since 2007 is 17% (Ben-Shabat, Moriarty, & Nilforoushan, 2014). The market for luxury items, such as designer clothing and handbags, is directly correlated with the financial stability and confidence of the consumer. With unemployment reaching a 5-year low at the end of 2013, it is expected that consumers in 2014 will increase online spending in all areas of retail sales, including luxury items. (Kurtzleben, 2013). Additionally, BizReport (2013) notes that e-commerce has increased every quarter for 15 consecutive quarters. It is clear that online shopping is an important venue for today’s technologically sophisticated consumers, and boutiques can increase sales by providing that venue for their selective customers.
In the past,...

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