Value Chain

Launching an internet business by buying and selling music CDs, investing a lot of fund is not necessary in the beginning. Without using the expense as much as possible, I do not rent an office or warehouse first 3 months or more.

1. Raw materials --- Used Music CD

2. Inbound logistics ---- CD cases, boxes for shipping In order to sell Music CD, I have to collect many different kinds of music CD. Collecting good quality and less cost music CDs in the beginning, it takes time and makes effort to reach used music CD sellers. *Searching and buying used music CD from e-bay or other auction site. * Ask friends or classmates by E-mail or social network if they want to sell any music CDs. *After contacting to used music CD sellers or closed music stores, get estimate of purchase amount. *Notice an assessment by E-mail and if it is OK, do bank transfer to the customer’s bank account immediately. * A courier service will go to seller’s houses or closed stores and pick up used CDs.

3. Warehouse and storage --- Using a basement or a garage as storage * Checking the quality of each CD and manage inventory by using the Microsoft excel. * Using special application and pick value of product information instantly.

4. Production --- clean up CDs and use new CD cases if it is necessary. * distinguish by music genre, year of CD released.

5. Finished product storage --- make sure inventory

6. Outbound logistics --- Use courier service such as FedEx.

7. Marketing and sales --- Website, Blog and social net works such as Facebook and Twitter *Making and using website efficiently. When customers search used music CD on search engine, make sure that name of the company appear on the top of a search engine result. 8. Customer service--- Polite and prompt customer service by using telephone and e-mail.