Pros
• Local – As the offline business is around the corner from a variety of those accustomed to the firm, it is directly near their home making ideal to buy items in a short amount of time without hassle.
• Business touch – When customers shop in the Cuckoo firm they will be getting a trusted service that is lost with online customers and can offer deals and bargains which is good for the community and increase of sales.
• Immediate transaction - Another advantage with store businesses is that they can offer automatic sales as soon as the customer is ready, with staff always working that allow you to purchase literally as soon as possible. The items purchased are also in new condition as they are efficiently ‘straight off the shelves’ and
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• Opportunity to view and feel – Cuckoo or instore customers that visit the store will be able to see items from their perspective that would not be available to online customers. This is highly important as people buying expensive items such as electronic devices, branded apparel, high value jewellery, home items, antiques and cars would regret decisions ordering items online if it doesn’t meet expectations or sizes.
Cons
• Utility bills – It is very costly operate building retail shops all utilities must run, producing high utility bills that can damper the profits the company produces.
• Competition in the local areas – As stores are in rows joined onto other businesses it is predictable that someone else in the area is selling the same or related product therefore it puts pressure on the business to overcome rivals and attract more customers.
• Long customers queues –When customers using convenience shops finally come to a decision and are ready to buy items, the store could be full of shoppers in a line for tills, as a result this may put some customers off in conclusion render buyers that will
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These online businesses are called ‘clicks’ and function using webpages to retail products without the use of buildings, staff members or electricity bills and are very successful. There are many examples of companies in a mixture of industries being online only including; ASOS (clothing), Amazon (online wholesaler) and Very (online wholesaler) that operate over the Internet online with over a billion of sales combined every day. Cuckoo should look at the advantages and disadvantages if they were to convert into an e-retailer for clocks and watches
Threat of new entrants: Retail industry has a higher barrier to entry. First, it is difficult to work out a good value chain as it involves a complex process. Second, it is difficult for new entrants to gain competitive advantage and earn above-average returns in such a highly competitive market. Besides,
Increasing competition from Scrambled merchandising from Canadian tire & dollar store chains. Increasing competition is putting a pressure on profit margins as well.
In this case, Blake Ives, the CEO of Upscale Markets, was at a crossroad of whether start to build an online store to seek further growing profit. Upscale Markets was a seven-store local grocery chain in Dallas, TX. Ives was inspired by the huge success of a virtual store project in subways running by Tesco named Home Plus in Korea. They showed the products visually by using monitor in
On the other hand, a online retail store in comparison to a retail store provide new values to their marketing system. Businesses like Scorptec offer values to their customers in different methods. The most simplistic value they offer is reduced prices of their products attracting customers. The reasoning behind reduced costs of goods is because the handling cost have reached minimal amounts in parallel to retail stores. Online retailers require only a storage warehouse to contain their products and dispatch them when they are required. This is managed by inventory control to ensure that products are available for sale when needed without overstocking on the product. The prime function of managing an online retail is that the business doesn’t require shipping products to independent intermediaries. This makes time and concentration more available on creating an improved product without the need to consistently dispatch products to outlets but simply
The internet helps Tesco to be efficient as they can collect orders in advance and prepare for them. They are able to continue business in-store and serve others at home. With a couple of extra staff (to be the ‘pickers’ and drivers to deliver) Tesco are able to maximise efficiency by adding extra orders from customers that aren’t in-store and this reduces the amount of people in the store which may block shelves if it gets too crowded. Time and money is
There are a lot of benefits the customers enjoy when they do their shopping online, such as:
Online shopping and in- store shopping are different in various ways. Online shopping has become an increasingly common staple of life in the 21st century. It is popularity can be credited to the fact that convenience highly valued in our world today. Online shopping is most convenient for individuals that don’t have time to go to the store. If you’re busy with an online job or online classes then online shopping can sometimes be more convenient. It’s also convenient since you don’t have to drive, catch the bus, wait in a long line, or deal with not being able to find item. All you have to do is type in the item you are looking for and it’s there. Once you find the item, you can order it anytime because online stores never close.
| Threats.Competition from local independents that can reduce price as owner operators lower than our staff-run stores..competition from national chains moving into the Brisbane market.A slump in the economy reducing customer’s disposable income spent on outdoor lifstyles.
Since Argos displays goods primarily through the form of a catalogue, customers make their selection by looking through the offerings, then they check the availability of the item through the advanced computerized inventory system, pay for the item(s) and then either collect the goods themselves or have them delivered by Argos. The Internet has played an important role in the company’s development. In 1995 the Argos website was launched, and has been continuously developing its online services ever since. Today it is the second most visited website in the UK, with 400M visits per year (8). Since December 1999, Argos customers have been able to use the “Click & Collect” service via the website, or similarly, as of 2008, the “Text & Take Home” mobile service allows ordering via smartphone (9). Theses methods of including the customers in the over-all service helps keep staff levels low (see Exhibit 4) as there are no products actually on display in the stores, which therefore do not require time-consuming maintenance, costly displays, restocking, security etc. Not only that, but because all of the stock is held in stockrooms to which only staff have access, the stores themselves don’t require huge floor space, which saves the company from spending exorbitant sums of cash on large expensive retail properties.
Smart phones are allowing customers to shop with their phones inside stores; credit cards are accepted via phones vs. cash registers. Technology brings online shopping vs. in store shopping. And, advertising is popping up on smart phones as electronic messages as customers shop based on their location. Service is defiantly the key to keep a customer coming into a department store.
Furthermore, they offer to the customer the experience to buy in a physical store, compared with Amazon that is one of the strongest competitor, there’s no doubt that the internet, and the mobile web in particular, have changed the way people shop, but there is strong evidence that consumers continue to value the experience of
Outlet stores and the constantly evolving fashion trends can make prices for last season significantly lower
Intuitively, the existence of such a phenomenon understood by many, but the words to describe the nature of the potentially low attendance stores in residential areas is difficult. However, no mystery in it, just use the standard marketing tools.
In an ideal situation, customers would not have to wait for the delivery of products and services. However, in the real world, organizations cannot always match exact capability and demand; therefore, waiting is frequently inevitable while purchasing, especially in service marketing, as service firms can barely inventory their “stock” for sale at a later date (Lovelock, 1992, p.154). In general, waiting in lines – known as “queuing”, happens when the number of customers arrive at a facility exceeds the capability of the system to serve them (Lovelock & Wirtz, 2011, p.260). Basically, this essay will state the relationship between queuing and customer satisfaction, as well as relationship between customer satisfaction and
Online shopping is a smart way to shop and buy things a person wants because online merchants will save a lot of time. Most people don’t enjoy spending endless hours shopping, whether in a store or online, and it is always nice to get these experiences over with as soon as possible. This is one of the main reasons why online shipping has become so popular, as it allows you to switch stores and products by clicking a button rather than traveling to another store. People don’t always have the time to go to the store and buy items. For example, people think that its quicker to just visit a store and pick up items or supplies the person needs then go back home, but it takes way more time that just sitting at home using a mouse and a computer to buy like clothes,food and so many other items. Sometimes people might be busy. They probably might have a job or school they have to go to then they won’t be able to go to the store and buy merchandise. Shopping online saves people time since they don’t have to drive to the store, fill their gas tank with gas, and they don’t have to deal with trying to catch the bus or wait in line while they are trying to just get the items they want and leave. Online shoppers usually make the right decision. All they have to do is search the item they are looking for and it’s there. Once shoppers find the item they want, they can order it whenever they choose to.