POSTGRADUATE DIPLOMA IN BUSINESS

APMG 8119: DIGITAL ENTERPRISE

2014

Group: ISO

Truong Dinh Thanh Thu

Valaphone Sisouvong

Kounjairhtong Insiri

>>APMG 8119: DIGITAL ENTERPRISE

1. Discuss culture of real virtuality in context of online food retail

Countdown: largest grocery retail enter online grocery retailing in New Zealand which allows shopping from anywhere, anytime, guaranteed quality with instant shopping list with home delivery and pick up options.- Customer behavior: Many shoppers will still place a high value on the in-store experience

- bricks-and-mortar stores => Changing in customer mind, replace traditional shopping by online shopping.

- Competitive price: Encourage customers to purchasing only by offering lower prices than in-store shopping.

- Delivery: focus on providing high-quality service, whether delivery or pick up.- Co-operate online and in-store shopping => convenient for customers

Challenges:- Customers cannot choose the fresh foods as they always do in-store shopping: fresh vege

or fruits, or choosing long expire date.- Delivery: Can’t afford immediate need and fill-in. Poor produce and perishable quality,

which is the signature item for consumers- Competitive price: In a highly competitive and price sensitive market, paying delivery

fees will be unacceptable to many customer segments>>APMG 8119: DIGITAL ENTERPRISE

2. How is value created in marketspace and how is this different to the marketplace?

3 elements of value creation: content, context, and infrastructure

>>APMG 8119: DIGITAL ENTERPRISE

Single-layer strategy:

Content (information service-based, life-style fulfillment):

• 24 hours accessible on website and mobile application

• Shopping list

• Recipes: cost calculation, required ingredients

• Specials: my specials mailer, price lockdown

• Refundable: quality issue, wrong order or prices

• Check points on One Card

• Barcode scan

3. What are the competitive advantages and disadvantages of this type of retailing business model?

>>APMG 8119: DIGITAL ENTERPRISE

Advantages Disadvantages

Valuable:

• time saving• 24/7 accessibility• CSR

Costly to imitate:

• already does: gift card, fuel discount, score collection, better price, security

Rare:

• a content can be access in different context• Enhance marketspace by marketplace (location, facility)

Non Substitutable:

• New World• Pack n Save

Reference:

• Prahalad, C. K., & Ramaswamy, V. (2004). Co-creation experiences: The next practice in value creation. Journal of Interactive Marketing (John Wiley & Sons), 18(3), 5-14.

• Rayport, J. F., & Sviokla, J. J. (1994). Managing in the marketspace. Harvard Business Review, 72(6), 141-150.

• Alba, J., & Lynch, J. (1997). Interactive home shopping: Consumer, retailer, and manufacturer incentives to participate in electronic marketplaces. Journal of Marketing, 61(3), 38-53.

>>APMG 8119: DIGITAL ENTERPRISE