Competitive Pressures of E- Business and how the
business has responded to these pressures.
The Two companies that I’ve chosen to Evaluate are Asda and GAP Clothing I will be looking
in to the development of their businesses online by following the modern marketing mix
and discussing how they’ve responded and adapted to pressures on the businesses and
finally I will be evaluating how successfully they have prepared use the internet to further
their businesses. this is because in terms of size both companies are better known for
different reasons but also there is quite a difference in the diversity of products sold by both
companies.
G.A.P.
Products:
Asda is much better fitted as a business than GAP when it comes to products as GAP is only
a clothes store meanwhile Asda sells; food, technology, groceries, and clothes so as will
make more sales per day than GAP just because it has such a wide variety of products which
will appeal to more customers. However, GAP has responded to these pressures by
diversifying the products that it sells to include furniture, which increases their appeal to
new markets and customers.
Place & Physical Evidence:
The competitive pressure which GAP faced with Physical Evidence and Place was with their
websites layout because it was restrictive of what products you could view and how you
could view them which really turned away a lot of potential customers. To counter this their
website was developed further to allow for better functionality and design so it was more
attractive to new customers while also more rewarding to loyal customers as it was easier
to navigate which will have boosted GAP’s sales.
Price:
GAP feels a lot of pressure when it comes to price as the general cost of their products are
significantly higher than that of their competitors for example Next sells comparable
products to GAP the problem with this however nine times out of ten GAP will be advertised
to have higher prices than that of Next’s comparable products which would mean that
logically consumers are likely to buy products from Next than GAP nine out of ten times. To
counter this GAP has developed a page on its website to feature clearance items which
means that certain items will be sold for significantly cheaper which benefits consumers
because their items will be cheaper and will be more likely to make a purchase.
People:
Competitive pressures surrounding GAP and its customers originate from its delivery
services as many E – Businesses don’t have many / if any stores to operate out of so all sales
and feedback will be made online which can cause tension between customers and the
business as it makes return policies and other gripes harder to solve but as E - businesses
have managed to flourish it proves the key is great customer service and delivery services in
order to retain customers and manager your profits. On method of maintaining customer
business has responded to these pressures.
The Two companies that I’ve chosen to Evaluate are Asda and GAP Clothing I will be looking
in to the development of their businesses online by following the modern marketing mix
and discussing how they’ve responded and adapted to pressures on the businesses and
finally I will be evaluating how successfully they have prepared use the internet to further
their businesses. this is because in terms of size both companies are better known for
different reasons but also there is quite a difference in the diversity of products sold by both
companies.
G.A.P.
Products:
Asda is much better fitted as a business than GAP when it comes to products as GAP is only
a clothes store meanwhile Asda sells; food, technology, groceries, and clothes so as will
make more sales per day than GAP just because it has such a wide variety of products which
will appeal to more customers. However, GAP has responded to these pressures by
diversifying the products that it sells to include furniture, which increases their appeal to
new markets and customers.
Place & Physical Evidence:
The competitive pressure which GAP faced with Physical Evidence and Place was with their
websites layout because it was restrictive of what products you could view and how you
could view them which really turned away a lot of potential customers. To counter this their
website was developed further to allow for better functionality and design so it was more
attractive to new customers while also more rewarding to loyal customers as it was easier
to navigate which will have boosted GAP’s sales.
Price:
GAP feels a lot of pressure when it comes to price as the general cost of their products are
significantly higher than that of their competitors for example Next sells comparable
products to GAP the problem with this however nine times out of ten GAP will be advertised
to have higher prices than that of Next’s comparable products which would mean that
logically consumers are likely to buy products from Next than GAP nine out of ten times. To
counter this GAP has developed a page on its website to feature clearance items which
means that certain items will be sold for significantly cheaper which benefits consumers
because their items will be cheaper and will be more likely to make a purchase.
People:
Competitive pressures surrounding GAP and its customers originate from its delivery
services as many E – Businesses don’t have many / if any stores to operate out of so all sales
and feedback will be made online which can cause tension between customers and the
business as it makes return policies and other gripes harder to solve but as E - businesses
have managed to flourish it proves the key is great customer service and delivery services in
order to retain customers and manager your profits. On method of maintaining customer
