Table of content

Table of content

Introduction

Business background

Website functions

Future Industry Developments

Payment system

Internet Security and Legal Concerns

Copyright

Trademark

Patents

Financial Plan

Conclusion

References

Introduction

In our days, time goes very fast, and people like to spend their weekends going to another world, movie world. Today, in Malaysia population consist of 24,425,000 people, all of them every weekend people stand in line for a cinema ticket but, since business to consumer e-Commerce on the Internet is an area of rapid development, the line become decrease. Today, in Malaysia, the most famous in cinema industry it is Golden Screen Cinema and it wishes to use e-commerce as a sales and promotional medium.

In this assignment, authors create own Cinema "Grand Record" and according to the Golden Screen Cinema authors design a website with electronic commerce enabled functions that is to be the main thrust of a business plan. And also authors try to explain:

The implications of E-Commerce approaches for Business Strategies.

Explain the ethical issues and legal implications of E-Commerce solutions.

Security issues from a business.

Discuss areas in which standards are emerging.

Business background

Grand Record (G. R) is the biggest cinema industry in Malaysia which has above 20 screen cinemas in a Pavilion shopping with the 3000 seats and another 50 screen in other Megamall in Malaysia.

Rely on grand Record Online facilities as a Web site; it has a Clear and Impressive design which described below in this work, many functions such as e-payment options via Internet, and effective Internet Security.

Grand record plans to build a strong Marketing position in the Cinema Industry. Their partner wills the biggest Banks in Malaysia such as Maybank and CIMB which represent sales, and finance areas respectively, these banks will allowed all types of visa card which help in e-payment options and Increase Company’s revenue. The partners will provide funding from their own savings, which will cover start up expenses and provide a financial cushion for the first few months of operation.

In a Service area Grand Record will provide their customers:

Grand Cinema-cafe

Grand-meal

GrandH20

Grand-cd

Moreover, Grand Records will produce fast online service.

Website design

LOGO

Main Page “About” Page

“Today” Page “Tomorrow" Page

“Contacts" Page

(All pages in real size are attached in Appendix)

Website functions

Website of Grand Record cinema is based on Golden Screen Cinema website (www.gsc.com. my). It includes 5 main pages which are “Home", “About", “Today", “Tomorrow" and “Contacts”, and also it has two direct accesses to Order Tickets Online and Download New Wallpapers.

“Home" page - consist of welcome note the Grand Record cinema, list of movies which already have been shown in cinema, and movies which are showing currently during one month. And of course all movies sorted by type, or genre: action, adventure, comedy, foreign, drama, family movie and so on. Below each part there is a link to a special page which included just that particular information which customer need at the moment. It means that main goal of this page is to show.

On the top of each page there is a search bar. It helps users to find any information about Grand Record products and services they are interested in.

“About” page - Web site users can find some necessary information about staff of the company, workers, information about Grand Record such as history, activities and service which is provided in Grand Record cinemas. Of course there is special offers link where internet users can see some offers which are providing on current day/week/month. It can be some promotions, gifts, discounts, or sale of new toys for children related to new movies or animations.

“Today” page - based on the title of this page it is clear that here is information about movies which are currently showing in cinema, also top movies or most popular and most viewed.

“Tomorrow" page-mostly new movies which or premiers or they are coming soon. Also there are located some new trailers with information about new coming movies and animations. Moreover the users can find on this page some news about authors, actors, film production, budgets and sponsors.

“Contacts" page - specified locations of Grand Record cinemas in different countries and cities, then the location and address of main office and contact information for communication between the company and customers. The “contact form” is given for users to ask any of their concerns on the service, and user should provide an e-mail address for receiving the specified answer on their particular question.

Therefore as it was mentioned above there are two buttons which will appear on each page allowing direct access to order tickets online and download new wallpapers with popular actors and favorites. For example in order to book or order ticket for any movie user should click on field “Order tickets now" and it will be transferred to new page with short form which is need to be filled up with personal information such as name, passport number/IC, address, and then customer just will choose the particular movie, date, places. Payment will be done by using credit or debit card, and then just need to print purchased ticket.

Website was made with using Adobe Flash Player for being more attractive and simple graphics and design in order to make it available and easy to use for users of any age, occupation and educational background.

Advantages of using this website for company and customers

For customer: The main point is that use of this website helps to make process of choosing a movie and buying ticket much faster than in simple counter when people have to stand in long queues.

Here is small list why people are using online ticketing:

Because they can buy it any time they want

Because they can buy it from their own house

Because special offers are so easy to find

Because of the support they receive

Because it is really comfortable

Because they can book any seats they want free of charge

Because it is safe

Because of the extra services they can enjoy

Because they can get more information

For company: As it saves time when people use such online service, company can easily get more customers. As notice, sometimes it can be that there are cinemas are empty or not all seats are used. It can be because people:

Did not heard about the film,

People did not want to stay long queues to buy a ticket

People did not know what it is about so they didn’t want to spend money for something unknown.

So when people will use online system on Grand Record website they can read the description about the movie, the can know the price, they can buy it just when they are at home. Of course it will increase the amount of customers what will be profitable for the company.

Future Industry Developments

The increase in other entertainment options, for instance computer games, pubs, home cinemas and the ever shrinking window between the release of a movie in the cinema and then onto DVD means that the future of the cinema industry is uncertain. The trend towards consolidation will no doubt continue, but it is interesting to note that the number of multiplexes opening has platitude, with an average of 25 a year opening between 2007 and 2008, only 6 were opened in 2009. This perhaps signals that the multiplex market has reached its full potential and that the marketplace is stabilizing.

However, the stabilization of the market at the top end does not as yet seem to have filtered down to the smaller cinemas and as such, many continue having trouble turning a profit. It is the owners' belief that the current market is ideal for the development of a new concept which gives movie patrons an entirely unique cinema experience - Grand Record.

Payment system

“Skip waiting in line to purchase your movie tickets. Purchase your movie tickets online, pick them up when you want to and go directly into your movie. Choose from several services offering online movie ticket sales or buy directly from the theatre online. ” - This is Grand Record’s offer to its customers.

There are a few steps to make online payment:

Visit the corporate website for the theatre showing your movie Find a movie, location and show time that fits your schedule.

Choose a location, click on its name and see if online ticketing is available for the preferable movie. Confirm the selection by reviewing the movie, theatre and show time on the computer screen.

Click on a show time to purchase tickets. Select a ticket type and quantity making sure to note the service charge and ticket price. Enter promotional codes (if any) at this time.

Create an account to finalize the ticket purchase. Fill in name, email address, gender and date of birth. Create a password. Click on "Create an Account" and finalize the order.

Enter a credit card number in the box provided. Include the type of credit card that has been used for purchasing a ticket, its expiration date and billing zip code. Keep the credit card available. (Customer may need to present it at the theatre when they pick up their tickets)

Confirm ticket purchase and watch an email for a purchase confirmation notification. Print out the confirmation and bring it to the movie theatre. Present any necessary identification. In some cinemas of Grand Record, it is no need a confirmation. Just slip the credit card into a kiosk, like an ATM, and the machine prints out tickets.

Tickets bought for friends can be directly emailed to them. There is also a toll-free customer service line if a user needs assistance

Internet Security and Legal Concerns

Since development of internet using and e-commerce, the growth of internet crimes brings a huge risk for websites.computer crimes are very dangerous as for website holders and users as well. They are criminal activities, which involve the use of information technology to gain an illegal or an unauthorized access to a computer system with intent of damaging, deleting or altering computer data.computer crimes also include the activities such as electronic frauds, misuse of devices, identity theft and data as well as system interference.computer crimes may not necessarily involve damage to physical property. Websites developers should be protected from such a danger as internet crime, by creating the security tools. Any information interchanging with users should be safe. For these enhancing the security and privacy website must include the security option under the Site map, which provides to users the guarantee of safety of personal information given to the site. To protect the information about user, account data, transactions data, website administration should control any possible hacking activities, by updating the passwords, using uncrackable soft wares for security and so on.

a. Property Rights

Property rights include copyrights and trademarks of “Grand Records" which cannot be used by other subjects.

Copyright

Logo of Grand Records is a property, which protected by law under copyright issues. Also the name Grand Records is protected under copyright, as well as a website special design, includes red and black colors.

Trademark

As a trademark for Grand Records are presented Grand Cinema-cafe, Grand-meal, GrandH20, and Grand-cd. All these could not be repeated by other companies.

Patents

Grand records has patented the special users card, with microchip which gives an opportunity to holder to have some advantages, for instance to have free shows, to be served in faster or to get discounts in all Grand Records branches, inclusively GR-cafe, and for production of Grand-cd.

b.computer Crime

A computer crime in Grand Records business is an unauthorized access to the accounts information of customers. They rather include the manipulation of confidential data and critical information. Сomputer crimes involve activities of software theft, wherein the privacy of the users is hampered. These criminal activities involve the breach of human and information privacy, as also the theft and illegal alteration of system critical information. The different types of computer crimes have necessitated the introduction and use of newer and more effective security measures.

For protecting from hackers, who would like to get log ins of users, their passwords and bank account information given for e-payment options, Grand Records uses the security software, and periodically changes the method of encoding and decoding information between partners and customers.

Privacy

GR web site developers are strictly working on improving the level of security, and increase trust of customers to the site, and transaction making. GR is glad to inform that information given to the site is private and no one has access to them.

Software help to protect the site from hackers and crackers and any case of unauthorized or illegal access can be noticed and problems solved. GR uses a special automatizaed notification service for customers which will inform users about any “unusual” transactions by email, and for more security they automatically block User account, and just after confirmation letter from customer, it should be open for use.

Financial Plan

Financial Plan is a critical for any business. The first step in running a successful business is to develop a sound business plan and strategy.

A large marketing budget would not necessary as the focus would be on offering promotions such as half price tickets during the day and/or two for the price of one deals can be offered in conjunction with various local business/newspapers reducing marketing costs substantially. As the Grand Record cinema experience is unique, and marketed as an indulgence, it is suggested that many local businesses would be willing to be involved in such promotional activities.

While actual advertising costs will be low, printing and distribution costs will still need to be considered. In Appendix (Table 1, Table 2) shows Summary for Web Site and Profit and Loss table. Grand Record`s Projected Profit & Loss shows in a first and second table a net loss in the 1^st year not only due to consultancy, set up and development fees in the website, and also promotional Company expenses and advertising cost. According to this Financial Plan, Grand Record has built strong, stable income and will be the most successful company in Cinema industry.

Conclusion

The cinema industry as a whole is facing challenges from many sides. The larger cinemas are better placed to meet the challenges of a quickly changing marketplace. Unfortunately, the losers in this consolidation of the marketplace and the emerging challenges to the cinema have been the small, family run cinemas.

Taking a broader view of the market in which cinemas compete, the market would be the entertainment market generally. People have a limited amount of disposable income and a limited amount of time which can be spent on entertainment. As such, cinemas are also competing with bars, sporting events, home cinemas, travel and restaurants. It is submitted that Grand Record cinemas would be a strong competitor in the general entertainment market at a niche level.

The intention would be to choose high headline price points but at the same time offer promotional offers which would ensure that most customers never pay the full rate. The media and promotion strategy would focus on teaming up with local businesses and newspapers to offer special promotional packages (for example, the local florist could offer a two for one deal with each bunch of roses sold)

As noted above, it is the prospective owners' view that cinemas can no longer focus on the narrow definition of the market. Some guidance can be taken from the multiplexes which offer patrons an experience. Often these cinemas are attached to shopping centers and as such going to the cinema is simply part of a person’s shopping day. Multiplexes, like the shopping centers to which they are appended, rely on the principle that if something is large and loud, no one will dare to think that it is anything but the best and it must be said that they do this well. Teenagers are particularly impressed by this logic.

Total of words: 2292

References

http://www.rbs2.com/ccrime. htm [Accessed 10 December 2009]

http://www.firewallguide.com/overview. htm [Accessed 10 December 2009]

http://www.buzzle.com/articles/types-of-computer-crimes.html [Accessed 8 December 2009]

http://fuyichin. blogspot.com/2006/10/gsc-e-payment.html [Accessed 8 December 2009]

http://ezinearticles.com/? Buying-Movie-Tickets-Online&id=2793207 [Accessed 8 December 2009]

Books:

Feature Films on a Low Budget. John Randall. Focal Press, 1991

Film Finance and Distribution - A Dictionary of Terms. John W. Cones. Silman-James Press, 1992.

Friedlob, G. T. & Plewa, F. J. 1996, Understanding Balance Sheets, John Wiley & Sons, New York

Wilinsky, B. 2001, Sure Seaters: The Emergence of Art House Cinema, University of Minnesota Press, Minneapolis

Jenster, P. V., Hayes, H. M. & Smith, D. E. 2005, Managing Business Marketing & Sales: An International Perspective, Copenhagen Business School Press, Denmark

Entertainment and Media, The Encyclopaedia of Forms and Precedents (1998), 5th ed., vol.15 (1), Butterworths, London

Janice Reynolds 2000, The Complete E-Commerce Book, Group West Canada

Charles Trepper 2000, E-Commerce Strategies, Redmond, Washington

Jeffrey F. Rayport and Bernard J. Jarowski Introduction to E-Commerce Second Edition 2003 McGraw Hill/Irwin Appendix.

Table 1

GRAND RECORD SUMMARY FOR AN E-COMMERCE SITE

Budget Description	Per Year Cost	Total	Percentage (%)
PHASE I: $50,000 BUDGET
(A) Consultancy, set-up and development fees:
Consultancy, creative design, development fee, including
project review (industry estimate of 15-20% of $50,000)	9,000.00
1. Web hosting fees (up to 50 products, static web pages)	3,800.00
2a. First year on-line fee	3, 200.00
2b. Site maintenance (static web pages)	3,000.00	19,000.00	12%
(B) Advertising and Promotion:
Printing & stationery BFD logo and URL address	700.00
3. Search engine ("Gold subscription includes up to 200 search engines and directories using keywords	100.00
And keyword phrases.
4. Radio advertisement	49,000.00
Launch party discounts, giveaways, contest prizes	3,000.00	52,800.00	69%
5. Banner advertisement (3 months)		9,000.00	19%
TOTAL		80,800.00
PHASE II: ADDITIONAL BUDGET OF $30,000
2c. Site maintenance (dynamic web pages)	7,500.00		15%
6. SSL-enabled web hosting fee	2,000.00		10%
7. Customer Service Representative	30,000.00		67%
SUB-TOTAL		39,500.00
TOTAL FOR PHASE I & PHASE II		120,300.00

Table 2. Profit And Loss

PARTICULARS	YEAR 1 (RM)	YEAR 2 (RM)	YEAR 3 (RM)
SALES:
General Operation	540,000	648,000	666,000
Service Catering	300,000	364,000	388,000
Total revenue	840,000	1,012,000	1,054,000
Less: Cost of Ticket Sold	(252,000)	(303,600)	(316, 200)
GROSS PROFIT	588,000	708,400	737,800
Less: Expenses
Consultancy, set up & development fee (Note 1)	9,000	0	0
Salaries expenses	300,000	330,000	363,000
Rent expenses	182,000	182,000	182,000
Advertising & promotion expenses (Note 2)	68,000	68,000	55,000
General expenses	40,000	45,000	47,000
Net Profit / (Loss)	(11,000.00)	83,400	90,800

Home page with Welcome note

Second page – ABOUTэ

Third page – TODAY

Fourth page – TOMORROW

Fifth page – CONTACTS