Courtney Lowes
Unit 12
P6
Globalisation
Low customer confidence in payment security Customers would have low confidence in
paying for things online using their cards as
they may not feel like it is secure enough and
that there bank details could be used. ASDA
would face this challenge and would need to
ensure that their system was much protected
and that their customers knew that their
money was safe whilst paying through their
website. They would need to ensure that they
could not get hacked and would need to install
a very good firewall so that nobody could steal
their customer’s information. If this was too
occur then it would damage their reputation
as a business and they would lose trust with
their customers which would result in a
decrease of profit.
Problems of managing overload of market A business like ASDA would receive a lot of
feedback feedback from their customers that they would
have to go through. They would have to ensure
that they have members of staff that are suited
to the role of being able to handle feedback
from customers; they must be able to keep up
a high level of customer service so that their
customers feel happy and satisfied with their
response so they would keep shopping there. If
ASDA did not have a trained member of staff
dealing with feedback forms then it may lead to
a bad reputation for the business if they are not
dealing with customer service right.
Problems of channel conflict and ASDA may face channel conflict if they are
disintermediation selling their products online as they would find
it hard to be able to maintain a physical
distribution network over the internet. ASDA
would look into removing the middleman in the
supply chain and then would sell the products
straight to the customers as it would be more
cost effective for the business to do.
Volume of individual/group customer profiles Having an online store would mean that
customers would be able to send feedback to
the business, this could be a problem for a
business such as ASDA as they might get high
volumes of feedback which they would have to
try to find space to store and they would need
to have staff go through the feedback which
would be time consuming, as well as ensuring
that all of the data is being kept safe.
Unit 12
P6
Globalisation
Low customer confidence in payment security Customers would have low confidence in
paying for things online using their cards as
they may not feel like it is secure enough and
that there bank details could be used. ASDA
would face this challenge and would need to
ensure that their system was much protected
and that their customers knew that their
money was safe whilst paying through their
website. They would need to ensure that they
could not get hacked and would need to install
a very good firewall so that nobody could steal
their customer’s information. If this was too
occur then it would damage their reputation
as a business and they would lose trust with
their customers which would result in a
decrease of profit.
Problems of managing overload of market A business like ASDA would receive a lot of
feedback feedback from their customers that they would
have to go through. They would have to ensure
that they have members of staff that are suited
to the role of being able to handle feedback
from customers; they must be able to keep up
a high level of customer service so that their
customers feel happy and satisfied with their
response so they would keep shopping there. If
ASDA did not have a trained member of staff
dealing with feedback forms then it may lead to
a bad reputation for the business if they are not
dealing with customer service right.
Problems of channel conflict and ASDA may face channel conflict if they are
disintermediation selling their products online as they would find
it hard to be able to maintain a physical
distribution network over the internet. ASDA
would look into removing the middleman in the
supply chain and then would sell the products
straight to the customers as it would be more
cost effective for the business to do.
Volume of individual/group customer profiles Having an online store would mean that
customers would be able to send feedback to
the business, this could be a problem for a
business such as ASDA as they might get high
volumes of feedback which they would have to
try to find space to store and they would need
to have staff go through the feedback which
would be time consuming, as well as ensuring
that all of the data is being kept safe.
