Detailed Background and Analysis, business context Enron is one of the largest traders of commodities in United State; most of their business transactions were depended on regular phone calls. It was until 2000 that Enron?s management has decided to implement e-commerce in its business, it started out with the EnronOnline.
Ever since the EnronOnline has been launched, about 60% of Enron?s transactions pass through the website. Information flow was so efficient that enabled 30 transactions a time, comparing to 30-50 times a day before. Enron?s energy products were benefited most from the system, that it reached a considerable rose in profit.
Along with the success by trading gas and electricity through EnronOnline, Enron executives were ambitious in trading all their other products in the similar way in order to minimize cost as well as maximize benefit. By taking full advantage of the web, Enron expected to explore more new markets.
It had expended it product categories to paper products, plastics, metals, bandwidth, pollution emission credits, weather derivatives, and commercial credit. The nature of online markets though weakens Enron?s control of price with clearer price transparency; it brings massive sales volume with higher efficiency.
Enron believes that anything can be traded as commodity with the aid of Internet, so it has created Marketing Operating System (MOS). By applying this system together with their online infrastructure, Enron intended to replicate its business model to existing markets and new ones. It has gradually established various start up companies to develop new online markets.
SWOT Analysis of Enron?s Startup Market Strength - Starts up inside a large corporation with a well-built online system. - Easy access to customers and capital.
- Company?s capability to invest and support.
- Back up technical and professionals.
- Affordable to initial loss during start up and...