e-Business Strategies for Virtual Organizations

Boots Online is an example of a global SME employing the virtual face model. The company is the online shopfront of Stitching Horse Bootery, a small business established in 1977 as an authorized retailer of R.M. William brand of boots, leather-wear and travel accessories. The Melbourne-based company established the online shopfront in 1995 with a total investment of AU$3000. The company's strategic goal in going online was to market the best of Australian boots and leatherwear to a worldwide market. With a staff of only four people this company has transformed itself from a local agent of a renowned product to a global business with over 15% of total sales from online customers. Over 95% of its online customers are located overseas. Boots Online has reaped significant benefits from its online strategy. Within a year of establishing an online presence the company achieved huge increase in sales (15%) with six additional sales per week. It makes about AU$1500 worth of online sales per week and total company sales of AU$75 000 are projected to double in one year. Profit margins on online sales have increased due to reduced inventory costs. Also the company has seen an increase in customer satisfaction over the period www.bootsonline.com.au
Hawaiian Greenhouse, Inc. is a family owned business located in Pahoa on the island of Hawaii. The installation of an online infrastructure has resulted in a remarkable transformation of the business scope and led to...