Introduction to Woolworths and Emerging Online Retailing Estate
Discuss About The Emerging Implications Online Retailing Estate.
Innovation is of absolute significance to react to the rising trends and have the capacity to achieve a maintained business execution. The level of danger increases with the level of rivalry in the particular industry. This specific examination is kept to the retail market business in Australia. The supermarket store industry in Australia is exceedingly aggressive because of a reality that there are giant market brands, for example, Coles. Furthermore, that the competition policy is very favorable to new business. The study is in reference to the rising threats for Woolworths in the form of Aldi and the upcoming entry of Amazon. There is a need for a model which could help to compete against Aldi and Amazon and also help to increase the profitability margin for Woolworths.
Woolworths has two problems, the one is its declining sales and the other being the changing pattern of shopping. The company has also struggled with its investment on online platforms. Hence, there is a need for a model that could repair the damages being done. The model must be capable to enhance the convenience level in stores and also the experience of shopping. This is needed because the setting of shopping formats is now getting changed (Thomsen, 2018). The ‘Brick and Mortar’ format of stores are currently observed as an obsolete alternative by numerous customers, in particular, the youths. This is because of the shopping interface and the simplicity of shopping which is second to ‘Shopping Online’ format. Youths used to have the packed schedules in their colleges, working environments and others. They scarcely have times to visit physical stores and buy the needful goods. A considerable number of them oversee it during their week offs while others wish to spend their week offs on other important works. What’s more, the youths are anticipated as to be the customers of future as they will do the maximum of shopping in the coming days (Omar, 2018).
The stated facts help to outline a few issues like Woolworths must find ways to cope with the ongoing completion of the market and also the upcoming competition from Amazon.
There is a need for a business model which could help to enhance the attracting capability of Woolworths, so that, it better manages its declining sales and also gives a firm competition to the upcoming Amazon service in Australia. Hence, it is recommended that Woolworths should consider the “Bricks and Clicks Business Model”. It means having a presence over both the offline and online. Woolworths has had offered to customers the online services; however, completely failed to make the significant investment to the service (Knox, 2015). Hence, the suggested model may not be a new concept but the ways of operation will be a lot different.
Challenges Faced by Woolworths
The model gives the chance to work both as physical stores and through the online format as well. It can be effectively beneficial for customers and for business also. Curiously, it doesn’t likewise hamper the conventional values of physical stores. It just requires incorporating the one or few of the stores with the online presence and offering the customers both methods of alternatives. For example, they can possibly visit stores as usual or they can also book it online. They can likewise collect their products after they have booked from the devoted physical store or can also get it conveyed to them at their postal address (Kim & Min, 2015).
For customers: It gives customers the truly necessary alternative which is they can either visit stores to get their goods or can also book it on through online service. Such framework might be constrained to one or few stores which totally rely upon the management decisions. Stores incorporated into the online framework will offer clients the numerous methods for shopping and accept of items (Jones & Livingstone, 2015). They can either be in stores or also book it from the online site. Furthermore, they can collect their items from stores or they can likewise get it conveyed to their home. Subsequently, the method of shopping will be significantly more advantageous. Customers will be able to shop even during their busy schedules. Psychologically, customers have this tendency to observe the product before purchasing it. This is also one of the drawbacks of online shopping (Pantano & Priporas, 2016).
For Woolworths: It is far less demanding for a reputed retailer to actualize the “Bricks and Clicks Business Model” than for a new company. This is likewise favorable concerning the aggregate expenses of creation. This can help to save on the wastage cost which is incurred due to the shipping of returned goods (Jones & Livingstone, 2015).
The recommended business model can have the number of critical success factors. It will be ready to take care of the demand of changing shopping behavior of customers. The recommended model will give both the conventional and the contemporary format of shopping. Customers will have options to visit the physical stores and buy the required goods. They will likewise have the alternative to booking it from the dedicated online site. Furthermore, it gives the added opportunities of convenience, for example, collecting it actually from the particular physical store or asking for a home delivery. Consequently, the shopping experience will be substantially more helpful. Customers might have the capacity to feel the differences too. Dissimilar to the internet shopping stages, customers will have the opportunity to watch the goods by being in the physical stores. The proposed model will enable customers to observe their product completely before purchasing it (Amin, Rezaei & Tavana, 2015).
Bricks and Clicks Business Model: A Solution for Woolworths
This is challenging to remain cost-effective while managing the range of stocks. Woolworths has struggled to reduce the cost of production as di by Aldi. Unlike Aldi, the range of products is bigger in Woolworths. Additionally, the everyday discounted offers are the additional burden. Managing of inventories has proved to be problematic for Woolworths. They will be tested to reduce the total cost of production. The online service is manageable through effective investments and management strategies (Wang, Chiang & Wang, 2015). It is additionally less demanding for traditional retailers to actualize the recommended business model. It is nearly trying for new companies. Established traditional retailers, for example, Woolworths will discover this nearly easier to manage the costs associated with the online service (Pappas et al., 2016). Effective marketing strategies such as the online advertisement, PR and others can be used to promote the newly launched business model (Jackson et al., 2014).
Conclusion
Therefore, the proposed “Bricks and Clicks Business Model” is especially attainable and gainful for Woolworths. Woolworths ought to consider the model keeping in mind the end goal to create a solid battle with Amazon which is set to enter the Australian retail market. Additionally, Woolworths, if possible need to follow the strategies of a similar kind as used by Aldi to reduce the expenses from physical stores. If it happens, the possibility of success with this model will be high.
Developing a business thought is never a simple undertaking. It requires an exhaustive investigation of the concerned business before advancing with the thoughts. Sometimes it is problematic for a person to think of a point and create something deserving. Detecting the most extreme difficulties, the other group individuals have demonstrated the required collaboration which was additionally apparent in the conceptualizing thoughts. We as a group were concentrated on the diverse thoughts and attempted to recognize the best feasible one. We did it by examining the advantages and disadvantages of every idea from the group individuals. The brainstorming technique had helped us to reach to a convincing segment and we were able to identify the most feasible and suitable model “Bricks and Clicks Business Model”.
It is without a doubt hard to reach to the group consensus. We also confronted a ton of challenges at the underlying stages. The conceptualizing procedure had created a list of model and we had disarray for the best practical one. The genuine test was to choose the best model as each individual from the group had trusted their model as the most suitable one. Nonetheless, we never let our collaboration get hampered by such difficulties. We as a group could conquer the issue by making the examination of the whole models based on their pros and cons. The practicality of the model was additionally checked and henceforth, we finally settled with the “Bricks and Clicks Business Model”.
Such activities require a portfolio development of the materials that are required. It is important to work as a unit and maintain a strategic distance from any contentions and perplexity during the project. Everyone including the learner also has contributed in building up the arrangement of materials. We as a group had developed the portfolio such that it contains all the fundamental components of a project. The portfolio had the diverse business thoughts from various group individuals. It also had the pros and cons of the different models. Moreover, the portfolio development along these lines had helped us to reach to a one most possible business model.
References
Amin, M., Rezaei, S., & Tavana, F. S. (2015). Gender differences and consumer’s repurchase intention: the impact of trust propensity, usefulness and ease of use for implication of innovative online retail. International Journal of Innovation and Learning, 17(2), 217-233.
Jackson, M., Harrison, P., Swinburn, B., & Lawrence, M. (2014). Unhealthy food, integrated marketing communication and power: a critical analysis. Critical public health, 24(4), 489-505.
Jones, C., & Livingstone, N. (2015). Emerging implications of online retailing for real estate: Twenty-first century clicks and bricks. Journal of Corporate Real Estate, 17(3), 226-239.
Kim, S. K., & Min, S. (2015). Business model innovation performance: When does adding a new business model benefit an incumbent?. Conclusion;Strategic Entrepreneurship Journal, 9(1), 34-57.
Knox, M. (2015). Supermarket monsters: The price of Coles and Woolworths’ dominance (Vol. 6). Black Inc..
Omar, P. D. O. E. (2018). UK CONSUMERS’ADOPTION OF THE INTERNET FOR GROCERY SHOPPING. AU Journal of Management, 3(1), 11-18.
Pantano, E., & Priporas, C. V. (2016). The effect of mobile retailing on consumers’ purchasing experiences: A dynamic perspective. Computers in Human Behavior, 61, 548-555.
Pappas, I. O., Kourouthanassis, P. E., Giannakos, M. N., & Chrissikopoulos, V. (2016). Explaining online shopping behavior with fsQCA: The role of cognitive and affective perceptions. Journal of Business Research, 69(2), 794-803.
Thomsen, S. (2018). CHART: Here’s how big Aldi now is in Australia. [online] Business Insider Australia. Available at: https://www.businessinsider.com.au/chart-heres-how-big-aldi-now-is-in-australia-2017-5 [Accessed 8 May 2018].
Wang, C. H., Chiang, Y. C., & Wang, M. J. (2015). Evaluation of an augmented reality embedded on-line shopping system. Procedia Manufacturing, 3, 5624-5630.
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