>>APMG 8119: DIGITAL ENTERPRISE

Marketplace vs MarketspaceCountdown Supermarket Chain – NZ

 BY Olga, Bharti & Udara

 POSTGRADUATE DIPLOMA IN BUSINESS

APMG 8119: DIGITAL ENTERPRISE2014

>>APMG 8119: DIGITAL ENTERPRISE

Culture of Real Virtuality: The Boundaries are

Blurred

The concept of «Real Virtuality»: (Castells, 2000)

- has been provoked by global informationalism and emergence of the network society

- is characterized by new forms of time and space: ▪ timeless time ▪ placeless space

- virtual experiences successfully imitate, replace, and, in many cases, enhance real activities and real opportunities

>>APMG 8119: DIGITAL ENTERPRISE

Market Society Organization

▪ Inclusiveness

▪ Diversity

▪ Accessibility

▪ Flexibility

▪ Range of products

▪ Quality

▪ Visibility

▪ Information Content

▪ Price

▪ Usability

▪ Competitive advantage

▪ Advanced CRM

▪ Increased customer base

▪ Sell-up opportunities

▪ Checkout & Payment

▪ Delivery & Pick-Up Arrangements

Culture of Real Virtuality: Online Food Retail

>>APMG 8119: DIGITAL ENTERPRISE

Market Environments

Marketplace

Marketspace

Place and Time utility

Possession utility

InteractivityDevelop customer relationships

Individuality

How value is created in Market Space...

>>APMG 8119: DIGITAL ENTERPRISE

Difference between Marketspace and Marketplace of

Marketplace Marketspace

The buyer and Countdown employees usually interact prior to the transaction

Purchases often occur without a direct conversation

People often step inside without a specific purchase motive in mind. They buy as they see

Buyers commonly do targeted searches when using Countdown website. They know exactly what they want.

Supply is plentiful. But the access of the buyers to a physical Countdown is limited

Supply is limited compared to the plentiful interested buyers

When the buyers are physically present in the shopping mall, they don’t worry about privacy concerns

Buyers tend to have more concerns about information privacy and the safety of making payments to unknown sellers

>>APMG 8119: DIGITAL ENTERPRISE

>>APMG 8119: DIGITAL ENTERPRISE

Source: www.pwc.com

>>APMG 8119: DIGITAL ENTERPRISE

Competitive advantages Alba et al (1997) discuss the concept of interactive home shopping

IHS• Retailer control• Few staff and staff issues• Information access of customer• No higher cost and competitive

advantage in compare to retails stores

• Inventory management• High volume of sales• Business Hours 24/7• Global location• Convenient Shopping

• Delivery times• Cost• Stocks Rotation (fruits & veg)• Selected brand• “One Card”-it provides the list

client bought in the past (convenient to customer )

• Recipes & Food tips (how we can make food attractively)

• Guarantee of the products issues

>>APMG 8119: DIGITAL ENTERPRISE

Competitive Disadvantages Alba et al (1997) discuss the concept of interactive home shopping

IHS• Technology-threat• Shipping times• Shipping Cost• Inability to Feel the Physical• Harmful Malicious Codes can steal

client important info• Lots of Information to make

puzzled• Not suited to all products

• Shipping Cost• Shipping Time• Lack of client awareness• Target Group for online shopping is

generation Y• Unclear infrastructure to retailers

>>APMG 8119: DIGITAL ENTERPRISE

Thank You!