<p>Electronic Commerce in Hong Kong Reference Case: RoomServiceNet Background of Company  Market penetration and reach: with the global reach of the</p><p>Internet that operates round-the-clock, RSN has the vision of</p><p> The RoomServiceNet (RSN) – previously known as K.P.H. extending its services to cover other places in Hong Kong.</p><p>Food Delivery & Restaurant, located at Tai Po, was  Reducing operation cost: RSN's alliance restaurants enjoy the</p><p> established in 1992 to provide Chinese cuisine and delivery advantage of sharing the investment on the system setup and</p><p> service to customers through telephone. In 1998, RSN started the ongoing operation cost of the delivery team. RSN acts as</p><p> using Internet to extend its business by providing on-line an agent between restaurants and their clients, resulting in a</p><p> information to its customers on the web and accepting on-line "triple-win" scenario.</p><p> orders. </p><p> Most of the RSN's customers are from the Tai Po area. In</p><p> order to expand its business, RSN has formed an alliance with Challenges Encountered</p><p> nearby restaurants of different styles to enrich the choice of</p><p> food for its customers.  By running its own web server, RSN can update its website as</p><p> At present, RSN is working in alliance with a total of seven frequent as the business requires, especially with the joining</p><p> restaurants. RSN is centrally responsible for the delivery of new restaurants and offering of new promotional packages</p><p> service operation, marketing and promotion. by its partners. It is much more flexible and efficient to update</p><p> its website directly than through an Internet Service Provider</p><p>(ISP). In addition, many ISPs have a storage size limitation on</p><p>Electronic Commerce (E-commerce) Activities each hosting website. As hardware and software prices</p><p> becomes lower, it becomes more cost effective to own a web</p><p> RSN launched its RoomServiceNet.com website in Hong server in the long run. More importantly, RSN considers data</p><p>Kong in August 1998. The website was designed and in the server as the most important asset of its company. There</p><p> maintained by RSN and was hosted on its own webserver. is no guarantee for web-hosting companies to take good care</p><p>RSN's IT consultant performed the programming part. of its data from illegal access, loss, or damage. </p><p> The website carries more than ten categories of food in  Using credit cards for online purchase through SET or SSL</p><p> different styles. There are wide varieties of food and drinks system is becoming more and more popular. However, in</p><p> available for its customers' choice. Hong Kong, people are very concerned about the Internet</p><p> When the customers visit the website, they can choose their security and they are hesitant about exposing their credit card</p><p> favourite food category and browse through lists of food and information on the Internet. Besides, the cost of setting up the</p><p> drink items. The operation flow is as follows: SET and SSL systems is relatively high for small enterprises.</p><p> Customer has to register delivery information on the Due to the nature of its business that requires physical contact</p><p> website (for 1st time customer only); with the customers, RSN can collect cash upon delivery of</p><p> Customer can then choose food and drink items from one food or drinks. Nevertheless, RSN will consider providing</p><p> or more restaurant menu(s) on the website; online payment as one of its service options in the future when</p><p> Customer can preview the ordered items before people show more confidence with this mode of payment.</p><p> submitting the order form;</p><p> Order form will be printed out automatically at the RSN's</p><p> operation centre; Outlook  RSN sends order to the relevant restaurant through</p><p> telephone or fax;  RSN is at the initial stage of its operations. In order to become</p><p> RSN's delivery agent goes to the relevant restaurant to a more successful enterprise, RSN will continue to refine its</p><p> pick up the ordered food; and organization strategy and operation management. RSN will</p><p> Delivery agent delivers the food to the customer and extend its service to a few other districts in the near future and</p><p> collects payment in cash. it expects to bring its service to cover the entire Hong Kong</p><p> RSN virtually carries no stock. The food and drinks are territory within the next 2 years. A more long-term goal is to</p><p> provided by its alliance restaurants. expand its business operations outside Hong Kong.</p><p>Benefit of E-commerce Hints and Tips</p><p> Lower investment cost on advertisement and promotion:  Registration of Website Domain Name in Search Engines: It is</p><p>Internet makes it easier for RSN to update its restaurant’s important to get known in the cyber world in order to get in</p><p> information such as menu, price, sales and special promotion touch with more customers. Therefore, RSN registered its</p><p> attractions. In the past, it was impossible to release all such domain name in several famous search engines in order to</p><p> information to the customers without spending a considerable promote the website.</p><p> sum of money. Internet becomes the most cost-effective and  Draw attention from the Media: As RSN's operation is a</p><p> powerful tool for RSN to promote its products and services. newly developed concept, getting exposure to media, such as</p><p> Effective order handling: Internet operation allows many magazine interview can help to promote its image. Increasing</p><p> customers to make orders at the same time. It requires much its exposure will attract more restaurants to join its alliance</p><p> less time and human effort to take orders than using a and eventually more customers to use its services. </p><p> telephone, especially during the peak occasions when there</p><p> are a lot of orders.</p>