>>APMG 8119: DIGITAL ENTERPRISE

REPORT PREPARED FOR: COUNTDOWN

CASE ANALYSIS

By Ha, Helen, Anton, Ksenia

POSTGRADUATE DIPLOMA IN BUSINESS APMG 8119: DIGITAL ENTERPRISE

2017

www.countdown.co.nz

>>APMG 8119: DIGITAL ENTERPRISE

Increasing demand

Unrestricted choice with growing diversity

High competition and low profit margin

Creation of independent business segment

MARKET

SOCIETY ORGANISATION

>>APMG 8119: DIGITAL ENTERPRISE

Routine week-to-week shopping

Online shopping credibility

Internet accessibility (Smartphone, Tablet, Laptop etc.)

Time-management

MARKET

SOCIETY ORGANISATION

>>APMG 8119: DIGITAL ENTERPRISE

:

- Virtualising of the real shopping experience

- Advanced interactions with customers

- Added value (information, ideas, suggestions, promotions)

MARKET

SOCIETY ORGANISATION

>>APMG 8119: DIGITAL ENTERPRISE

A combination of product or service, pricing, communication*

- Lower costing: no any physical boundaries exist

- Demand & Supply: decided by the numbers of online users

- Building relationships: seller and buyer

Unique characteristics in the consumer decision-making process that raise new issues related to consumer shopping behaviors**

Entertaining process Customer Engagement *Weinstein, A., & Johnson, W. C. (1999). Designing and delivering superior customer value: Concepts, cases, and applications. Boca Raton, FL: St. Lucie Press.

**Lee, M. Y., Kim, Y. K., & Fairhurst, A. (2009). Shopping value in online auctions: Their antecedents and outcomes. Journal of Retailing and Consumer Services, 16(1), 75-82. Retrieved from https://doi.org/10.1016/j.jretconser.2008.11.003

>>APMG 8119: DIGITAL ENTERPRISE

Product Service Pricing Communication

exclusive items click & collect reduced price online news blog

inspiration (eg. feed 4 for 15$)

door to door delivery

specials & promotions

feedback services

budget control social media (facebook, pinterest, linkedin etc.)

>>APMG 8119: DIGITAL ENTERPRISE

Countdown Content Cost/Invest Accessibility

marketspace Online shop, website layout

Lower cost (no physical location, just website, online money transfer)

Company & customer (pc, tablets, phone)

marketplace Physical Presence location, buyers & sellers, direct communication

Higher cost (construction, maintainance, labour)

Company

>>APMG 8119: DIGITAL ENTERPRISE

The cost of information search is lower

Collection of the customer information

Additional merchandise to sell

Alba J., Lynch J., Weitz B., Janiszewski C., Lutz R., Sawyer A., Wood S. (Jul., 1997). Interactive Home Shopping: Consumer, Retailer, and Manufacturer Incentives to Participate in Electronic Marketplaces. Journal of Marketing.

Vol. 61, №3, pp. 38-53

From floppy disks to fibre, Countdown online shopping celebrates 20 years... and beyond. Posted by Countdown press office on 20 Jul 2016. Retrieved from https://www.countdown.co.nz/news-and-media-

releases/2016/july/from-floppy-disks-to-fibre-countdown-online-shopping-celebrates-20-years-and-beyond

>>APMG 8119: DIGITAL ENTERPRISE

- Easier access

- Economy - time - fuel - money

- Vast selection and comparison

- Online deals and promotion

- Variety and availability

- Effective distribution

- Information processing

- Unique products

- Complementary merchandise

>>APMG 8119: DIGITAL ENTERPRISE

- Accuracy and reliability - tactile check - understanding of quality - physical comparison

- Shipping rates

- Refund policy

- Data security problems

- Restrictions on some shopping categories

>>APMG 8119: DIGITAL ENTERPRISE

- Online retail growth 15% pa*

- NZ online spending 7.4%**

- Groceries online 4.1% purchasing

- Countdown’ online orders 23k/week

- Countdown’ offline 2.8mln/w customers

*Chris Wilkinson, managing director of the First Retail Group, 2017

**Conor McElhinney, partner at McGrathNicol, 2017