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In this assignment I'll be explaining the competitive pressures on two businesses to develop their use of e-business.

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Introduction

Introduction In this assignment I'll be explaining the competitive pressures on two businesses to develop their use of e-business. Secondly I'll be explaining how two businesses have responded to competitive pressures to develop their use of e-business. Lastly I'll be evaluating how successful my selected business has been in preparing for the growing use of e-business. The Five P?s Competitive Pressure faced while developing the use of e-business (ASDA) Actions taken by the business to respond to these competitive pressures Product The competitive pressure ASDA is facing is pricing of products. They need to make sure their prices are much more reasonable than competitors such as Tesco. If Tesco are selling their products at low prices, ASDA will need to either have a similar price, or go cheaper or offer a good promotion with the product such a ?buy one get one free?. This will enable ASDA to gain more customers. Not only do they face the pressure of changing their prices but also updating their product. If Tesco introduces a new item on the market ASDA will have to counterattack by doing the same and doing it better. ASDA have taken action by lowering all their products prices, and compared to Tesco they have over 1000 more items cheaper at ASDA than Tesco. This gives them the advantage of gaining more customers to shop with them as the pricing at ASDA is more appealing. A also sells items of clothing such as school which engages more parents to shop with them. This also means that not only are they competing with other brands in the ?Supermarket field? but also mainstream shops from the ?clothing market.? This shows that ASDA are making excellent strategic decisions and are staying ahead of the markets. Place/Physical Evidence The pressure ASDA faces when operating online is drawing the customer?s attention onto their homepage by making it as attractive and appealing as they can. ...read more.

Middle

The face the pressure of creating low prices from competitors such as H&M and Primark. As the clothing sold in these stores are different not only does New look have to capture their audience with the style of the clothing but also with the pricing. New look will feel the pressure of making sure that the prices they put up are enough for them to make a profit however it also needs to be better compared to competing stores. New look have taken action by making their prices as affordable as they can. Compared to other stores there quality of clothing is worth the money. Although clothing is cheap at Primark the quality of the product is not as good as New look therefore customers will not mind paying an extra £5 knowing that it will last them much longer. In addition they take their customers and target audience into consideration. A lot of young teens like to shop at New look therefore they have made a strategic decision of offering 10% of two students. People New look faces the pressure of delivering excellent customers service. As New look has a lot of products similar to Primark both companies will be competing for customers. This can be done through here customer service. When a customer goes into any of these online supermarket websites they will always compare the prices of each product, moreover they would also like to see the review on the online services. So as a result of this New look provides better customers service than Primark because New look always respond to the customers through social media and their website. The consumers will want to shop again online due to the online experience and also the friendly service and customer service. New look has responded to this action by making sure that their customers are being treated well online by answering the questions with any queries about their product sized, material and shipping. ...read more.

Conclusion

Another disadvantage is that ASDA online does the online service for the UK, if ASDA expands into other distant markets in Europe this can increase their sales and recognition across Europe and this will make ASDA much more successful and known. ASDA has a lot of competitions with competitors such as Tesco and Morrison’s. The competition that ASDA faces with the businesses such as Tesco is the, Price, customers, and many other factors. First of all I’d like to compare the prices of both businesses which are ASDA and Tesco. According to the many reviews and websites it has evidently said that ASDA is much cheaper than Tesco because of the prices of nearly all of the products. For example ASDA sells 550g chicken fillet for £3.57, whereas Tesco sells it for £4.00 and clearly you can tell that ASDA has a cheaper price. The evidence for this is this website http://www.mysupermarket.co.uk/shopping/findproducts.aspx?query=chicken&store=asda, and the evidence for the cheaper products on the whole is this website, http://www.thegrocer.co.uk/home/topics/christmas/asda-christmas-shopping-basket-nearly-10-cheaper-than-tescos/510882.article. Secondly I’d like to compare the customer base for both of the business, and I’d gladly say that ASDA is doing much better than Tesco with the customer base online because they have more customers by the result of the social media following, in Twitter ASDA has more than 300 thousand followers whereas Tesco has more than 200 thousand followers so there’s a huge difference between customer base online. Furthermore Click & Collect continues to drive e-commerce growth with more than 20,000 customers per week for ASDA which is a terrific result, and this shows that how customers are fonder with ASDA online services. Print screens and Evidence: 1) 2) http://i.guim.co.uk/static/w-620/h--/q-95/sys-images/Guardian/About/General/2013/11/29/1385736595197/Asdas-Twitter-page-reques-009.jpg 3) 4) http://your.asda.com/media/BAhbB1sHOgZmIiwyMDE0LzA0LzE3LzE2XzM3XzIwXzM2M19waGlsaWxwcGFfMS5qcGdbCDoGcDoKdGh1bWIiCTU0MHg/phililppa_1.jpg 5) http://www.retailtechnology.co.uk/news/5018/study:-asda-builds-up-e-commerce-success/ This talks about the evolvement of ASDA online business. 6) https://twitter.com/asda ASDA has more than 300k followers on twitter which they can answer any questions that the customers tend to ask, and this is a good way for ASDA to stay in contact with their online customers and this can build a good relationship between them, as sometimes ASDA give out free deliveries or shopping vouchers. 7) ...read more.

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