>>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