Business

Overview
ASRS or the automated storage and retrieval systems refers to inventory management systems used in warehouses and distribution centers consisting of machines moving down and up or in several storage aisles that are parallel and they are used for retrieving and storing materials and products for dissemination to both external and internal destinations (Kirsch, n. d).

Reasons why Cango Internet Company should invest ASRS
One of the major reasons as to why Cango needs to invest in ASRS is that this systems offer users increased control and tracking of inventory. Internet or online communications industry is very competitive hence the company needs to increase the value of users by increasing their speed of tracking and controlling inventories. Also, this industry is very dynamic and requires high flexibility for a business to be productive and competitive. ASRS is a major avenue that would offer Cango the flexibility it needs to adapt to changing conditions of the internet business hence it should invest in the systems. Actually, ASRS systems are made up of modular subsystems that are easily replaceable thus allowing for minimization of downtime and the extension of the overall systems service life (Kator, 2007). This would not only save time and allow flexibility but it would also save Cango Company some operating costs.

Being a start-up company, Cango has a weak financial base and thus it needs to cut down its labor costs so as to maximize its returns and increase the customers value. ASRS systems have the capability of reducing the cost of labor, a reason why Cango should invest in them. These systems lowers workforce requirements, leads to increased safety in workforce and helps in moving employees form working conditions that are difficult since the systems are automated and supported by technology. This would help in reducing cost for the company and increase savings on costs associated with inventory storage due to an improvement of space utilization in the warehouse, that is, both horizontally and vertically which creates a greater density for storage (LivePerson, n. d).

Despite the fact that the start up cost of implementing the ASRS systems in Cango would be greater, the overall long term savings and efficiency brought about by these systems justifies the need for their implementation.

Strategies that Cango Company should employ to improve its communication with its online customers

Most of the businesses have gone online today with most of the transactions being started and deals struck using online services. As most companies go online, competition for online purchasers or customers has increased especially for companies in the internet and communications business. One of the ways that Cango should use to communicate to the online customers is by simplifying its website. Simplicity is the key to attracting customers to a website. The company should make its website easy to navigate, easier to locate the products being offered, to give in-depth information of products being offered and make it easier for customers to purchase the products. Simplifying the website is the first step in attracting online purchasers to a website and to beat competition (MarketingFind Inc., 2005).

Feedback forms are other tools that Cango can employ in its endeavors to increase communication with online customers regardless of the high competition in this business. Customers feel appreciated when their feelings and opinions pertaining to a product or service are appreciated. By offering feedback forms on the website, the company will be in a position to solicit information on what the consumers want pertaining to the website or the products. Feedback forms show that the business is interested in the opinions of the customers and this is very essential. It also helps in building up business relationships with them and soliciting their trust and loyalty (Digiblogger, n. d).

Bookmarking options is another effective way that Cango Company should employ in encouraging online customers to make regular visits to its website. This entails asking the customers to bookmark the website for easier access. Content is another effective communication tool for online customers. It refers to a strong driver that encourages customer to repeatedly visit a website especially whet it is timely, fresh and if it offers customers a good reason to revisit the site (MarketingFind Inc., 2005). Cango should aim at providing content for its online customers and this would increase their interactive time with them hence beating competition.

Coupons, contests and daily give-away are other strategies that Cango can increase its communication with their online customers. Regular promotions such as coupons and give-way form a solid foundation for capturing the audience of the customers. While they help in attracting customers to a web, they also give a company a showcasing opportunity for its new services and products and helps in delivering news that are important concerning the company (Digiblogger, n. d). Other means of improving communication that can be employed by Cango include online chat options, testimonials and awards, tours options and surveys. The major avenue of improving communication with online customers is by offering them attractive terms and services that have the capability of drawing their attention to a website.

SWOT Analysis for Cango Company
While deciding on the best approach to employ in attracting the company, it is essential to look at the internal and external environment in which the company operates in.

Strengths
Strong and innovative management team. This would ensure that the web designing process is both efficient and effective.

E-commerce services would enable the company gain footage in this industry. With online services, it is difficult for consumers to compare the sizes of companies which may influence their purchasing decision. E-commerce services would also enable the company market its products and services.
Technological advancement. Having entered this industry lately, the company is endowed with the most recent technology as well as services that are being sought by most consumers.

Weaknesses
Weak financial base that would make implementation of ASRS systems difficult.
Lack of business experience in this industry by Cango managers.

Opportunities
Growth opportunities. Internet business is growing very fast.
Gaming business is growing very fast and only a few companies have entered the market.
Changing consumer needs poses a major opportunity for Cango Company.

Threats
Competition from already established firms in this industry.
Lack funds to keep track with changing technological advancement.
Government regulations changes that may take place in the future owing to an increase in cyber terrorism and cyber crime.

Recommendations
For Cango to be able to implement and manage ASRS, it should consider looking for investors to fund this project.

The company should also hire web design experts to enable it increase its communication with its online customers and beat competition.

Cango Company should also consider entering into a partnership with a web designing company so as to reduce costs and improve its online advertisement and sales.