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Unit 33 - The Impact of Communications Technology on Business P5 M2

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level 3 business extended diploma Unit 33 - The Impact of Communications Technology on Business P5 M2

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Sowbaan Mohammad Hassan
Unit 33
P5


Introduction

In this assignment, I shall choose two contrastng bbsinesses that are trying to develop the bse of e-
bbsiness.

The Four P’s Competitive Pressure faced Actions taken by the business
while developing the use of e- to respond to these
business (Tesco) competitive pressures
Product The compettve pressbre Tesco With bpdatng their prodbcts,
face is prices. They need to Tesco are ahead and have
change their prices with close taken acton, by having their
compettors sbch as, ssda. own clothing brand. This is
With ssda selling their prodbcts something that compettors do
for cheap, Tesco wobld need to not have. They do sell clothing
change their prices in order to items bbt it is not with their
take over with getng more own brand. Tesco have
cbstomers. Not only do they competed with the pricing
face the pressbre of changing range, making sbre that their
the prices, bbt bpdatng their compettors do not overcome
prodbcts. If ssda introdbce a them. Tesco have clearly done
new prodbct, Tesco have to this by ofering special ofers.
cobnteratack this by doing
something new.
Place/Phy sical Evidence Tesco faces pressbre when On Tesco’s website, they sell
operatng online, by making and say what they are. With
their site more atractve then Tesco being trbthfbl, it wins
close rivals sbch as ssda. cbstomers trbst which benefts
Informaton Tesco have, have Tesco becabse it bbilds a close
to be relevant to what they say relatonship. However, this
they are, otherwise they are takes the pressbre of Tesco
statng false facts which will knowing that they are doing
then annoy cbstomers, who will everything right and saying the
go to other stores sbch as ssda right things instead of saying
false statements. With their
online site, the main colobr is
blbe. Soon as yob go onto the
site, yob see prodbcts
everywhere, so they are
already catching cbstomers
atenton.
Price Pricing is what makes proft ss I have mentoned before,
come into the bbsiness. If Tesco Tesco have been smart with
have a high price range for a their prices and dropped them
certain prodbct and a close down which they are able to
compettor like, ssda or compete with. If Tesco kept the
Sainsbbrys sell the same prices the same, at a high price,
prodbct bbt for less, it wobld cbstomers wobld not bby the
pbt immense pressbre on prodbct, bbt they wobld bby
Tesco. The reason why is the prodbct somewhere else

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