Electronic Commerce Strategy

Electronic Commerce Strategy
Paper instructions:
This is for my paper Electronic Commerce Strategy
And in this unit we have an online Discussion .The question for the Discussion will be: Using examples, discuss how e-tailing is currently being implemented by established “bricks and mortar” retailers (examples: Zara, Tescos, Woolworths, Walmart, Harvey Norman, Dick Smith) to compete with the “pure-play” players like Tao Bao, Amazon and eBay. What I need from the writer is to answer this question in one page.
Note: as m studying in Australia so the examples: Zara, Tescos, Woolworths, Walmart, Harvey Norman, Dick Smith. Are in Australia 1/ Answer the question (your personal opinion/ what do you think) in one page
2/Make a comment about two answers for my classmates. (There are 10 answers so make comment about two of them) in one page
This is for my paper Electronic Commerce Strategy
And in this unit we have an online Discussion .The question for the Discussion will be: Using examples, discuss how e-tailing is currently being implemented by established “bricks and mortar” retailers (examples: Zara, Tescos, Woolworths, Walmart, Harvey Norman, Dick Smith) to compete with the “pure-play” players like Tao Bao, Amazon and eBay. Note: as m studying in Australia so the examples: Zara, Tescos, Woolworths, Walmart, Harvey Norman, Dick Smith. Are in Australia
1/ Answer the question (your personal opinion/ what do you think) in one page
2/Make a comment about two answers for my classmates. (There are 10 answers so make comment about two of them) in one page I think the major advantage of “bricks and mortar” retailers is that their physical stores play an important role in the brand building sector, which will not be achieved by the e-commerce pure-player. Nowadays, many traditional retailers are adopting the e-tailing system to get the competitive advantage like cheaper price and better distribution. This is because customers today tend to do their own research of shopping to maximize the value of their purchases. Under such circumstance, e-tailing can provide them with the biggest decision-making power and reduce their search cost (mainly time and money) by displaying all the products online. Customers are able to access the entire category simply by a search engine, which is more convenient. However, the physical store still has a role to play. For the cloth and fashion industry(like zara), their physical store are functioning as a showing room in which customer may try the cloth on and have a vivid image of the fashion style. For hi-tech retailers like Apple, physical store itself is like an effective advertisement of the brand and a good place for product experience. That’s what people always do, tying the product in store and then using their phone to find it online for a better price.
Currently, the concept of reverse-showing room is becoming popular, which means those “bricks and mortar” retailers can use e-tailing to attract people searching product information online and purchasing in store. Thus, “bricks and mortar” retailers can leverage the e-tailing system as an important distribution channel for good price and keep the offline store as a showing room and an advertising media for the customer. This multi-channel strategy will work better than the pure-player.
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2/the brick and mortar store applies e-tailing to increase the sales through flexible trading hours and accessibility benefits offered by the e-tailing. it does have advantage over the pure-play on the terms of customer experience and interactivity. whereas, the customer can check the features, observe, touch, feel, and measure the item that they’re interested in physically. i.e., a pink dress would looks pink in real life, but depends on the monitor used the color pink on the screen might be slightly differs and if its a headphone, customer can check on how loud it would be, how detailed the sound it produces. while for the vacuum cleaner, customer can check on how powerful the air suction is, how light it would be to operate and to move around. in other words, in brick and mortar stores, customers can be assured that they got what they hold on.
however, in regards of e-tailing as a support sales method, once customer assured, they can continue the shopping for related items through on-line and have it delivered instead of having to physically visit the store and pick-up the item, for items that needs replacement/refill/ or items that comes from the same brand i.e shoes (sometimes, different brand has slightly different size to fit) another example is Domino’s pizza, once you bought it in store and satisfied, the next purchase would be as easy as order to deliver.
in certain high life-style shop such as boutique, personal touch and customer relationship are considered to be important for customer, a warm welcome from the sales representative and a custom made order with personal adjustment almost could not be done through on-line shopping. And as their preferences and measures are kept in the boutique, the next on-line order can be made based on those information.
in the brick and mortar stores, customer also able bargain directly (where its possible) i.e. “price check” challenge by taking advantage of the e-tailing. while for on-line shopping to do price check, it depends on whether the sales staff are on-line to handle such request.
for sure the pure-play player tries to increase the interactivity of their digital stores, however sometimes it become cost to customers, such as video or high content information of the product that would be high in data/bandwidth demanded.
……………………………………………………………………………………………………………………………………………….. 3/Nowadays, consumers has become the dominant role in the marketplace. It is said that consumers become more price-driven and savvy than the past. It is contributed to the blooming information technology. For instance, consumers can easily compare and analyze the product price and information through searching online, such as Tao Bao, Amazon and eBay whenever and wherever they are. In this case, it is easily for consumers to switch the product or brand. It is also known that online shopping is more time-saving and convenient.
Although, ”pure-play” players have several advantages to get into the marketplace, it is possible for ” Bricks and mortar” retailers to compete with ”pure-play”players.
It is important for traditional retailers to retain and extend their consumers database. Consumers database is able for the retailer to understand what is customer need and the trend of consumers. For instance, Woolworths establishes a membership system, once the membership card is activated, the system will collect the data from the consumers. Woolworths is able to sent the related massage such as every day special and bundling products to their consumers through email or application.
Moreover, it is also important for the traditional retailers to manage the post-purchase experience. For instance, Zara establishes the Facebook community, which aims to interact with consumers. Zara now is also able to monitor the trend and better understand consumer needs from the comments they left on the Facebook. ………………………………………………………………………………………………………………………………………………..
4/’Bricks and mortar’ retailers usually have own brand and they have both online and physical stores, which enable consumers to have a look at the product first in the physical store and make a cheaper purchase online.
To compete with ‘pure-player’ players, pricing strategy is a step most ‘bricks and mortar’ retailers would take. As we all known, low price, which is the strength of ‘pure-play’ players, is always attractive to consumers. To some extent, give consumers some discount could be a good action. For example, Woolworth online shop provides various kinds of special products, which are often half discount everyday.
Secondly, ‘bricks and mortar’ retailers keep developing online system to improve business effectiveness and efficiency. Only with effective system, the business can communicate with consumers in time. In addition, business can analyze what the consumer may like to achieve personalization, which means send the information of the similar type of product to attract the consumers. For instance, after I shopping at Zara online shop, there were some items called ‘you may like’ took place in my account.
However, ‘pure-player’ players usually have only online store without own brand. To increase their competitiveness, they often have lower price compared with ‘bricks and mortar’ retailers. For example, ‘pure-play’ player tmall in China may have free shipping policy to reduce consumers’ purchase cost.
Overall, if ‘bricks and mortar’ retailers keep doing well in e-retailing, I believe they can take full advantage. After all, they already have their own brands, which can be predicted that they have particular customers already.
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5/This is my personal opinion for the Week 2 topic.
According to Andrew J. Nelson, the distinction between ‘bricks and mortar’ retailers and ‘pure-play’ players is crucial due to ‘showrooming’: when consumers use stores to evaluate goods in person, and then go online to purchase for a better price. With the advent of smart phones, laptops etc. shoppers increasingly buy online while still in a store. It is now widely recognized that the Internet’s power, scope and interactivity provide retailers with the potential to transform their customers’ shopping experience. Therefore, a growing number of ‘bricks and mortar’ retailers are conducting their online shops to compete with the ‘pure-play’ players.
Firstly, an action of price competition is implementing by a lot of bricks-and-mortar retailers. For example, Zara Online China applied the policy of Shopping RMB 299 to enjoy free delivery service and free returns while TaoBao did not enforce this kind of policy to every registered seller. Therefore, customers may prefer to shop on the ‘bricks and mortar’ retailers to reduce the online shopping costs.
Secondly, to encourage more customers to buy products through their brand websites, ‘bricks and mortar’ retailers had established effective communication systems and make continuous improvement in pre-sales and after-sales services. For instance, an well-known Australian accessories retailer Lovisa established its unique communication system with professional support staffs and send e-mail regularly to each member.
At present, of the top 25 online retailers as compiled by internetretailer.com, 17 have significant store networks. Aside from three that offer products not typically sold in stores, only five are pure-play internet retailers (Dell, Netflix etc.). Subject to more focused study, traditional retailers seem to be holding their own in the battle for e-commerce sales for now.
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6/Dear all:
This is my responses to the week 2 activities on the compare of “bricks and mortar” retailers with e-tailing and “pure-play” players.
A traditional “street-side” business offers face-to-face customers experiences in a physical store that the business owns or rents is a “bricks and mortar” retailer. In contract, “pure-play” players only have online shops. Web-based business has the advantages of lower operating costs and greater effectiveness. A physical location is restricted by size and it’s limited to those customers who can get there, while an online store has a global marketplace with customers and information seekers already waiting in line.
However, it is increasingly common for “brick and mortar retailers to also have an online presence or other e-retailing model. For example, Tesco creates virtual stores and displays the virtual commodities which are exactly the same as actual stores in the subway stations. People can use smart phones to shop through scanning the QR code with their phones and the products will automatically lands in their online card. When the online purchases are done, commodities will be delivered to customers’ door, right after people get home.
Although “pure-play” business may benefits a lot from the low transaction costs and start-up costs, it may lacks effective communication between buyers and sellers. I prefer the “bricks and mortar” business with e-tailing as it has both physical and online shops which satisfies the different needs of various kinds of customers.
Regards,
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7/“Bricks and mortar” with e-tailing retailers are those stores allows their customers to order products either online or physically in one of their stores, also allowing them to either pick-up their order directly at a local branch of the store or get it delivered to their home (For example, Woolworth) . When shopping in the real world, customers can touch, taste, and try on their goodies instead of read the product description before they actually see it.
What is more, some stores selling electronic products like JB-HiFi often have different customers types requiring alternative shopping options. Some customers may wish to see the goods directly before purchase and like the convenience of quickly shopping on-the-fly, while another group may require a different convenience of shopping online and getting the order delivered when it suits them.
The “Brick and Mortar” retailers with online selling is quite competitive in the market. Part of the reason for its succeed that it is far easier for a traditional retailer to establish an online presence than it is for a start-up company to employ a successful purely online one. It is hard for a shop open online in Taobao to build a strong and well recognized brand in the market, without having a large marketing budget.
From my point of view, the bricks and mortar shops which implemented with e-tailing may be more successful than “pure-play” players in the future. This is not only to sell more stuff to consumers to make money, but offer more available time to the consumer (24/7) and to create a positive and convenient purchasing experience for the customers. ……………………………………………………………………………………………………………………………………………….. 8/The quick development of the e-business has brought a series of the changes in the modern commerce society, which makes the shopping way to be more diverse, and the customers have more channels to obtain and compare information, so that they can make more appropriate choice. Compared with the “pure-play” players like Tao Bao, Amazon and eBay, “bricks and mortar” retailers such as Zara, Tescos, Woolworths who are equipped with e-tailing should have more advantages in terms of satisfying the customers’ requirements. To be more specific, “bricks and mortar” retailers can promote their products through stores and online stores, the advantages include that customers have the direct chance see and touch the products, which is the most obvious way to test the quality of the product, and can find out the small differences such as colour, size and hand feeling. Once customers have approached the product, they will have a clear understanding related to the products and start to do shopping online, because it can greatly save their time and energy. Therefore, the dual system makes businesses more conducive to retain customers.
But the pure-play players lack of perfect pre-sale and after-sale processes, which will bring some uncertainties to the customers, because customer might not sure about the real situation of the products. In addition, currently plenty of “pure-play” players have produced innumerable commodity information; however there is not an authority to determine the truth of information. Although some people might argue that the customer evaluation system existing in “pure-play” players can help the following customers to distinguish the products, while the recent situation is the seller will hire professionals to provide false evaluation to mislead consumers. Therefore, people prefer to see the products in real shop and then shopping online, which is a typical method in the “bricks and mortar” retailers. ……………………………………………………………………………………………………………………………………………….. 9/In contemporary society, e-tailing is being used by established “bricks and mortar” retailers. We can call it “click-and-mortar” retailers. That is to say, companies would sell in multiple marketing channels, both physical and online stores. For example, Apple Inc, a high-tech company in the United States. You can buy the products from Apple Inc though Apple online store or physical retail outlet. Generally speaking, young people like to search information and buy electronic products via Internet. Middle-aged people prefer physical stores, because they can get useful information from the shop assistants. As for “pure- play” players, like Taobao, Amazon and eBay, they just sell products via Internet. Nowadays, there are numerous advantages and Benefits of shopping online. More and more people prefer online shopping over conventional shopping. First of all, online shopping is very convenience. To be specific, people could do shopping at every time of a day and do not have to wait in a line or wait till the shop assistants’ help. Moreover, online shopping provides a platform with comparison of prices. It makes comparison and research of products and prices possible. In conclude, “click-and-mortar” retailers have more advantages, because they can sell in multiple marketing channels simultaneously. ………………………………………………………………………………………………………………………………………………..
10/With the coming of information age, there have been many changes in lots of traditional industries such as Walmart, Zara and etc. They become to use e-tailing instead of traditional tailing. This is a new concept we call O2O now.
The characteristics of this e-tailing included online shop and offline shop. It is more convenient for online users with more durable vitality.
The perfect combination of both will offer a good shopping experience for consumers. One is online mall store has longer operating time, open 24 hours, 365 days;Second, the online mall can save money, save the rent, water and electricity, the human cost, etc.;In addition, the e-tailing avoid the regional restriction, expanding the scope of the customer, making users coverage more widely.
But for e-commerce, they don’t have a certain offline shop. They have to built the warehouse and the logistics system just like Amazon. And they cannot identify the precision users.
In 2011, Walmart launched a Pick up service. It allow customers to order online and take goods at stores. This is a typical O2O model. This advantage for Walmart is the offline shop. Users can check the goods in store. But for e-commerce like Tao Bao, it always exist the information asymmetry for users. ………………………………………………………………………………………………………………………………………………..

 

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