ASSIGNMENT QUESTION
PURPOSE
This assignment is designed
to develop learners’ understanding and ability to compare and differentiate
between a brick and mortar company and a brick and click company, and to propose
improvements to the brick and mortar company.
REQUIREMENT
Select two companies
(one a brick and mortar company and another a brick and click company) from a
similar industry (example book retailing industry). Compare and differentiate
these two companies (based on the criteria below) and propose various
e-commerce based improvements (example web presence, mobile commerce etc) to
the brick and mortar company to enhance its competitive advantage.
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1.0 INTRODUCTION
This
time tasks require clarification about brick and mortar company and a brick and
click company. Description will be based on two types of this company and
includes the vision, mission, size of the company and the product being
marketed. Comparison of these two companies will be based on global reach,
ubiquitousness, personalization, real-time competitiveness. Recommendations
will be given to brick and mortar company so that they can enhance the progress
of the company.
For
these types of brick and click, the company selected is Azaliah Enterprise. Azaliah Enterprise use www.sutera-online.com website to market
their product sales.
While
the brick and mortar, the company selected is Syarifah 88. The two companies
selected conduct sales industry silk
batik cloth and clothing known as kaftans shirt. The two companies did not
have branches and employing less than 5 people. Azaliah Enterprise on-line in
full operation with www.sutera-online.com domain name and take stock of the
number of providers in the state. Sharifah 88 only manufacture and sell their
products at their own stores only. Sharifah 88 is a major distributor to
Azaliah Enterprise. Mission and vision of the two companies mentioned in table
1.0 and table 2.0 below.
Azaliah Enterprise.
|
Mision
|
Vision
|
|
Sell silk batik sarongs and kaftans
dress online.
|
To become a powerhouse of online
sellers influential batik silk kaftans products worldwide.
|
|
Selling unique silk batik products.
|
|
|
Sell silk batik products to the world.
|
Table
1.0
Sharifah 88.
|
Mision
|
Vision
|
|
Be a provider of products and clothes
with batik silk kaftans.
|
To become
a company known for its silk batik products and
kaftans with a
distinctive pattern across the
country.
|
|
Manufactures and distributes unique silk batik products to customers.
|
|
|
Become a major producer of silk batik and kaftans
in Malaysia.
|
Table
2.0
2.0 Six
Key elements of e-commerce
2.1 Global
Reach
Other basic features available
in e-commerce is global
reach. These features give an edge cover
all countries in the world, regardless of race and
culture of young and old. According to sta.uwi.edu,
they define global reach as “permitting commercial transactions to cross
cultural and national boundaries far more conveniently and cost effectively
than is true in traditional commerce”. No matter what language we use,
as long as they can be understood
by ourselves, the more we can get the information we
want our products. Power of the
customer to achieve
global product helps
the manufacturers to generate more profit.
At
present, the import and export is no longer a barrier for companies
and customers to conduct transactions. What you need is trust and confidence to perform
on-line transaction. Global reach also allows
even small companies to achieve target profit
greatly by having a well built website
and use effective
marketing techniques.
2.2 Ubiquitousness
One of the features available in e-commerce is ubiquity. This means that
products can be sold at any time and
wherever we are as long as there is internet access. This is the most
fantastic medium to explore space without border shoppers, time and space. This
way can save time and travel costs
for promoting a product, whether they are new or already existing. It can also save you time and travel buyers with only
the preferred ordering goods online.
Ubiquitous
commerce can be defined as “the use of
ubiquitous networks to support personalized and uninterrupted communications
and transactions between a firm and its various stakeholders to provide a level
of value, above, and beyond traditional commerce” (Watson, etal 2002). Most simple words
to define ubiquity is, there is always a 24 hour a day 365 days a
year even where you are. Among the advantages
gained by the customer are:
·
Gather information about items of interest.
·
Do a search of the product you purchased.
·
To compare products from several websites.
·
Ordered items anytime soon.
The
most significant advantage is customers
can view and buy products anywhere,
including at home, at work, or while on vacation using
a laptop and a smart phone internet access.
While for some people, they prefer shopping online
than wasting their
time and energy
to go out looking
for items they need.
2.3 Personalization
Personalize is one of the most important
marketing techniques and attractive for use in e-commerce. It gives pleasure to the online buyers by
understanding their needs and habits. Personalization is defined to as the “personalization
is about engaging customers using technology in ways that mimic how we would do
it if we were face to face” (Armando Roggio, February, 2012).
The main purpose of the seller or an
e-commerce website owners make personalize is to maintain existing buyers to order more products in the future. In other
words, the seller would like to maintain a long relationship with their
customers. Trends and requirements of site visitors is a priority to the
seller. For example, someone looking for gold ornaments with the keywords
"golden chain", when he comes to e-commerce websites through search
engines, the website will display as existing products. But if the same customers
come for the second time with the keywords "golden ring", the website
will display related items gold ring and a gold chain that was sought by the
same customer. Generally personalize is a very important tool for sellers to
maintain relationships with buyers, increase the capacity of buyers to keep
buying the next increase profits.
2.4 Real-Time Competitive Responsiveness
Real
time means
now, not tomorrow or the day after tomorrow. This means all activities
that occur in e-commerce is
the current activity that occurs between
the seller and the buyer. In the store there are
many e-commerce catalog is shown by type of product and the price offered. This
resulted in the company can
compare prices and marketing methods
used by their
competitors.
Purchasing online is usually
done through an e-commerce
website where it is done in real time, which means "real-time sales transactions occur as
a consumer purchases an item or service from an online store" (Cory
Janssen, 2010). This includes the use
of electronic payment transactions
online bank transfer and credit cards.
However, there are several factors that distinguish between viable company than
a company that simply copying other company's
progress. The Company has developed a shared innovation with their
customers in real-time. In addition, support by
email and phone 24 hours a day also helps buyers
who have problems with their orders.
The company is constantly working to increase buyer confidence and bid
to make changes
all the time.
2.5 Interactivity
In
the context of e-commerce, interactive is to allow virtual
relationship between the seller and buyer
as when face to
face relationship. Interactive
difference in e-commerce is it on a large scale
and more global.
Definition of interactivity described
as “the extent to which users can
participate in modifying the form or content of a website in real time”(Steuer,
1992).
To
be more exact, the buyer is free to create a product search, price
comparison and decide whether to buy or not. In e-commerce,
the seller can
form recommendations based on purchase
history or customer interest and offer
a good price to
attract buyers. This could increase further
sales gains. However, the seller can not control the users in finding, comparing
and determining their
purchasing power. Concepts embodied in one of its
e-commerce is the same as the traditional trade
use self-service techniques.
Users are free to choose and compare
products when making payment.
2.6 Technology
Based.
All
these features are available in e-commerce
is based
on the technology.
For example, building a website involves the
application server to the client computer
for access to
the website. After that, buyers start to see products
and order online.
Next, the buyer will be connected
by means of online payment to complete the
order. All this is done online using the internet and computer technology
that requires sophisticated network.
According
to sts.tu-harburg.de, they defined technology-based as "Electronic marketing and trading of goods and services over the
Internet". Interactions that occur are also
known as "screen-to-face".
It includes equipment such as computer
monitors, smart
phones, ATM screens, and various high-tech
communication tools.
3.0 Four comparison between the two
companies.
3.1 Global
Reach
If seen from a global reach, Azaliah Enterprise which is kind
of brick and click companies have greater
access. Market covers
the whole of peninsular Malaysia, including Sabah
and Sarawak. They
are also significant number of purchases
from countries like Brunei, Singapore, Australia and
the United Kingdom. This is because
they receive orders and payments on-line and send the
reservation is using Poslaju
Malaysia. Azaliah Enterprise also easily accessible
through their website. No matter where
you are, as long as there is access to the Internet, the sale of goods to be
seen and ordered according to the will. This shows the extent of the global
reach of the products marketed by Azaliah enterprise through their website.
Regarding the Sharifah 88, global reach
is very limited which only focused on the consumer market around the state. In
addition, some foreign tourists from the state. They consist of many customers
who come by chance. The rest are regular customers. In addition, the customer is
difficult to see products marketed by them having to take the car to the shops
or factories. Some boarding customers to view and purchase products offered by
Syarifah 88.
3.2 Ubiquitousness
Accessibility of products offered by
Azaliah Enterprise is 24 hours a day. The customers can view the products
available in the website using a computer with internet access. In addition, customers can also use other internet
devices like Ipad or Tab. The easiest tool to see the product they are
using a smartphone. In other words, customers can access the Azaliah Enterprise
products in few minutes via the Internet. For the customer, the most important
thing is they do not have to waste time driving to the store and choose batik
silk kaftans or clothes they like. This can save time and money.
Given Sharifah 88 run traditional
business, the accessibility to the products offered by them are very limited.
Business hours are also only held during daytime hours of 9 am to 6 pm. In
addition to time, customers will have to wait until tomorrow to deal with them.
This is because the company does not do business on-line that may relate to
their customers. This is very harmful and can cause the company to lose
customers.
3.3 Personalization
Brick and click companies are using
e-commerce to sell their products and implement modern marketing techniques. In
the e-commerce module, there are many ways or facilities for marketing
purposes. For example, if the Enterprise Azaliah want to promote a new product.
They can do so by sending an email to all registered customers. This email can
also be tailored to one based on age, interests, and customer purchase history.
In other words, Azaliah Enterprise can create a campaign in a very short time
with just a single click away.
While brick and mortar company, they can
only do promotion with traditional methods alone. Apart from installing the
banners, they can advertise their products via newspapers, magazines, radio and
television. All these methods are not specifically listed as being offered in
e-commerce. This method does not give the maximum target in a short time.
3.4 Real
Time Competitiveness
As mentioned earlier, the brick and
click using the Internet to promote and sell their products. All prices of
goods sold will be displayed in the website or use social media. This resulted
in the sale price competition between companies because competitors can see the
market price in the same industry. For example, Azaliah Enterprise able to
compare prices with other companies that sell similar products. In a short time
the company can reduce the price so that their products can be sold faster.
This condition can cause a negative effect on the market price of the product
will occur because the price war among sellers of the same goods. Profit of
course on the part of customers, but this will cause the manufacturer can not
meet the demand of distributors, causing the prices of goods increased
dramatically in a short time.
Compared with the brick and mortar, they
are safer display prices in shops or factories. Competitors in the same
industry takes a long time to get product and price information before they can
compare their products. In addition, the amendment to the sales price also took
a long time having to do it manually. Unlike brick and click only takes a few
minutes only to amend the prices offered.
4.0 Recommendations for brick and mortar
company.
4.1 Using
social media.
Today, practically everyone has a smart
phone that can access the internet. Almost all of them are always accessing the
internet have a facebook or twitter account to interact with family and
friends. So it is very important to the company's brick and mortar as Sharifah
88 have internet marketing network.
Opportunity to at least advertise a
product using social media should not be
missed. The company can create a facebook or twitter account and update the
current status of the completed stock. In this way, the customer more easily
plan a trip to visit the store and next choose and buy batik silk kaftans and
dresses. Via facebook or
twitter as well, the
company Sharifah 88
also can advertise
their goods directly upload
pictures of batik silk kaftans available
in stores. In this way, the company is able to add
customers and increase
online sales other
than sales of existing traditional.
With the same media,
Sharifah 88 can
interact with customers
who've been to their store. For example, customers who have visited the traditional stores can order the
same product only through the
media facebook or twitter. So, the
company is able to retain customers,
thus helping to provide an opportunity for buyers to make a
more permanent and repeat purchases in the future.
4.2 Set up a
website.
As meet the challenges of the modern era, brick and mortar companies have
to learn ways to improve their competitiveness on a global level. One of the
most effective ways is to provide a website that displays the services or products offered. It's okay if they do not
do on-line sales, but suffice to introduce their company to the world through
this method. Owning a website is not something that is impossible to do them. The company can build a website by hiring
outside consultants to charge less than RM500.
When a company has a website, they can update the latest products and
promoting products through their website. In addition, the search engines will
eventually detect the name of the website through this keyword and indirectly
the company will gain new customers through keyword searches made by Internet
users.
Here, the skills "search engine optimization" SEO is needed to
get a new customer. The company may
hire outside agencies
to increase search rankings such as google,
yahoo, ask, and so
on. All this can be done with just
a little investment and of course a lot of
promising clients thereby generating huge profits.
4.3 Introducing a website with
full features of
e-commerce.
Apart
from the above two proposals,, the company also
introduced a website that has full features
to implement on-line
business. In other words, Sharifah 88 will
make the promotion, marketing, sales and full
payment online. The last action should
the company have to do is send the product ordered by the buyer.
To provide a full website with
the e-commerce, Sharifah 88 need to make some
investment to buy
a domain name and webhosting for that
purpose. After that they need to
hire a consultant to build a
website they need. Starting from here, they
have to learn some
important things to manage
website with full
features as an e-commerce
website. Among them are:
a.
Sending emails in large quantities at a time to customers for
marketing purposes.
b.
Accept orders via e-commerce
website and issue
an invoice payments through the website.
c.
Enter a product into the website for
the purpose of sale.
d.
Make an offer in a specific time period.
e.
Produce and provide discount
coupons to selected clients.
f.
Learn online
marketing techniques such as
paid advertisements on other websites, or use
google adwords and yahoo advertising.
g.
Produce statistics based on the
products sold and the like.
If Sharifah 88
can build a
website with the features of e-commerce
and practice the techniques mentioned above well, then
it is possible in less than 6 months, they
will be able to push 100% profit. As we
know, the global reach of an advantage to companies that have been traditionally strong foothold. This is because they already have many
regular customers who want service and make reservations on-line.
5.0 Summary
In
general, the influence of e-commerce is
big business nowadays.
Judging from the current situation,
almost all companies
have a website, blog, or at least facebook to
market their products. Some of them
just introduce the
company through the internet
and make a traditional
sale. While some
who offer on-line sales service completely. All they can remain opaque business
to have customers all around the country and world.
While the company
does not use the internet as a marketing or sales,
they seem more backward
and it is possible they will not be able to expand their business
if still based
on the old way of
traditional business.
REFFERENCES
http://sta.uwi.edu
http://sutera-online.com
http://citeseerx.ist.psu.edu
http://journal-archieves17.webs.com/330-338.pdf
http://www.uky.edu/~dsianita/390/390wk1.html
http://www.sts.tu-harburg.de/~r.f.moeller/lectures/ec-ws-05-06/ECommerce01.pdf
http://www.practicalecommerce.com/articles/4053-Personalization-Letting-Shoppers-Decide
http://www.practicalecommerce.com/articles/3370-3-Ecommerce-Personalization-Strategies
http://www.exchangewire.com/blog/2013/04/18/25285/
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