MAC3703
Assignment 2
Semester 2
DUE: 30 September 2025
, ASSIGNMENT 02: COMPULSORY FOR YEAR MARK CONTRIBUTION
DUE DATE: 30 Sept. 2025
Question 1 - A. (i)
Identify and explain the roles of at least two business-ecosystem participants in
the current XYZF Ltd ecosystem, and two in the new ecosystem resulting from
the introduction of the online retail store. (6 marks)
Current ecosystem: two participants and their roles
1. ABCD Ltd - Materials supplier (upstream supplier)
o Role: supplies fabric and other raw materials to XYZF. As a supplier it
determines quality, lead times, and (often) a sizeable portion of X Z F’s
variable cost base. Reliable supply and favourable pricing from ABCD Ltd
directly affect cost of goods sold, production scheduling and product
quality.
o Why it matters in an ecosystem: suppliers are part of the network of
organizations that co-create value; their capabilities and reliability
influence XYZF’s ability to meet wholesaler demand and to scale if it
moves D2C. (Ecosystem theory: suppliers are one of the primary
“organisms” in a business ecosystem).
2. Wholesalers - distribution channel partners (downstream distributors)
o Role: buy finished clothing from XYZF and distribute it to physical retailers
(they are XYZF’s immediate customers). They handle warehousing, retail
relationships, and local logistics to retailers. They shape demand signals,
return policies and pricing at the retail level.
o Why it matters in an ecosystem: wholesalers are gatekeepers to retail
markets; their ordering patterns influence XYZF’s production planning,
, inventory policy and working capital needs. Distributors also affect end-
user value perception (e.g., how garments are merchandised).
New ecosystem (after launching the online retail store) two additional participants
and their roles
1. TNX - the software supplier / e-commerce platform provider
o Role: supplies the online store platform, implements features (catalogue,
shopping cart, payment integration, security, order management),
maintains uptime/hosting and performs technical support. TNX becomes a
critical partner because the online storefront depends on their software
architecture for UX, security and integrations (payments, inventory).
o Why it matters: the software supplier shifts the firm’s dependency from
purely physical logistics to digital capability; poor platform performance
would directly harm conversion, while a flexible platform enables
personalization, analytics and global reach. (E-commerce platforms are
core ecosystem enablers).
2. Payment gateways & logistics/fulfilment partners (including third-party
couriers for last-mile and international shippers)
o Role: payment gateways securely process card/mobile payments and
manage fraud/settlement; logistics/fulfilment partners handle picking,
packing, warehousing (third-party logistics) and last-mile delivery
domestically and internationally. For global D2C sales, reliable fulfilment +
cross-border shipping partners are essential.
o Why it matters: they enable the transactional part of value creation
(payment + delivery). If payments are unreliable or delivery is
slow/expensive, customer satisfaction and repeat purchases suffer;
conversely efficient fulfilment improves customer experience and creates
competitive advantage.
A. (ii)
Assignment 2
Semester 2
DUE: 30 September 2025
, ASSIGNMENT 02: COMPULSORY FOR YEAR MARK CONTRIBUTION
DUE DATE: 30 Sept. 2025
Question 1 - A. (i)
Identify and explain the roles of at least two business-ecosystem participants in
the current XYZF Ltd ecosystem, and two in the new ecosystem resulting from
the introduction of the online retail store. (6 marks)
Current ecosystem: two participants and their roles
1. ABCD Ltd - Materials supplier (upstream supplier)
o Role: supplies fabric and other raw materials to XYZF. As a supplier it
determines quality, lead times, and (often) a sizeable portion of X Z F’s
variable cost base. Reliable supply and favourable pricing from ABCD Ltd
directly affect cost of goods sold, production scheduling and product
quality.
o Why it matters in an ecosystem: suppliers are part of the network of
organizations that co-create value; their capabilities and reliability
influence XYZF’s ability to meet wholesaler demand and to scale if it
moves D2C. (Ecosystem theory: suppliers are one of the primary
“organisms” in a business ecosystem).
2. Wholesalers - distribution channel partners (downstream distributors)
o Role: buy finished clothing from XYZF and distribute it to physical retailers
(they are XYZF’s immediate customers). They handle warehousing, retail
relationships, and local logistics to retailers. They shape demand signals,
return policies and pricing at the retail level.
o Why it matters in an ecosystem: wholesalers are gatekeepers to retail
markets; their ordering patterns influence XYZF’s production planning,
, inventory policy and working capital needs. Distributors also affect end-
user value perception (e.g., how garments are merchandised).
New ecosystem (after launching the online retail store) two additional participants
and their roles
1. TNX - the software supplier / e-commerce platform provider
o Role: supplies the online store platform, implements features (catalogue,
shopping cart, payment integration, security, order management),
maintains uptime/hosting and performs technical support. TNX becomes a
critical partner because the online storefront depends on their software
architecture for UX, security and integrations (payments, inventory).
o Why it matters: the software supplier shifts the firm’s dependency from
purely physical logistics to digital capability; poor platform performance
would directly harm conversion, while a flexible platform enables
personalization, analytics and global reach. (E-commerce platforms are
core ecosystem enablers).
2. Payment gateways & logistics/fulfilment partners (including third-party
couriers for last-mile and international shippers)
o Role: payment gateways securely process card/mobile payments and
manage fraud/settlement; logistics/fulfilment partners handle picking,
packing, warehousing (third-party logistics) and last-mile delivery
domestically and internationally. For global D2C sales, reliable fulfilment +
cross-border shipping partners are essential.
o Why it matters: they enable the transactional part of value creation
(payment + delivery). If payments are unreliable or delivery is
slow/expensive, customer satisfaction and repeat purchases suffer;
conversely efficient fulfilment improves customer experience and creates
competitive advantage.
A. (ii)
