UNIT 33 (P5 & M2 & D1)
Introduction:
In this task I shall be explain the competitive pressure on two selected contrasting business
organisations to develop their use of e-business. I will be also discussing how these two
businesses have responded to competitive pressures to develop their use of e – business.
The two organisations that I have chosen are Gap and Asda. I shall also be evaluating how
successful a selected business organisation has been in preparing for the growth use of E- business.
Product:
Competitive pressure faced while developing the use of e – business:
The competitive pressures which gap face are the wide range of products which they sell to
the public. For instance Asda sell a wide range of items from clothing to food and
technology and other varieties. However gap only sells clothing items for females/ males
and children. So this shows that Asda are making more profit then gap because they selling
a different range of items but gap only sells clothing
Actions taken by the business to respond to these competitive pressures:
Gap has responded to this competitive pressure by selling a different form of product Such
as furniture and etc. However as gap do not sell certain products such as food products like
Asda they have made improvements and have started selling a different range of products.
Place & Physical Evidence:
Competitive pressure faced while developing the use of e – business:
The competitive pressure which gap face with place and physical evidence is with their
current website layout. For instance a main challenge which gap has competition with is
next as they demonstrate their product on their homepage. So this allows the customer to
view the item and see what brand it is.
Actions taken by the business to respond to these competitive pressures:
The action which gap have taken is to respond to these competitive pressures is by
representing a wide range of products on their website as well as adding different types of
colours to their site. By gap taking this step they have grabbed their future customer’s
attention by making the site more engaging and it will be more eye catchy which will attract
an eye from a loyal customer. By doing this it can also improve on sales.
, Price:
Competitive pressure faced while developing the use of e – business:
Gap face a very competitive pressure as their pricing of their product is a lot more expensive
than their main competitors. Next sell comparable products to gap on the other hand even
though both these brands sell items of which have great quality gap are advertised for
having a slightly higher prices to next. The disadvantage could be that the customers may
prefer to purchase items from next rather than gap because they can get the same
product/similar product for cheaper.
Actions taken by the business to respond to these competitive pressures:
Gap has taken an action and they have responded by introducing a page on their site called
clearance. These are items which have not been sold from previous term; the items from
these pages are sold for cheaper. This can be valuable to the consumer as they wouldn’t
have to spend a huge amount of money and they can get it for cheap.
People:
Competitive pressure faced while developing the use of e – business:
Competitive pressures which gap face are delivery services as well as their customers. Now
many e businesses do not provide any physical stores to assist or to sell their products for
instance one e business can be very they do not sell products physically in stores. This
indicates they must provide great customer and delivery service in order to keep the
customers coming back from this they can make a profit.
Actions taken by the business to respond to these competitive pressures:
The actions which gap have taken to respond to these competitive pressure is simply by
creating a fantastic customers relationship so it keeps the customers from purchasing items
from their store. One method which they use to keep building their customer relationship is
sending their customers e-mails on any promotions and vouchers. When the customers
have brought an item from gap, gap will send an email confirming the order and the
estimate delivery date. So this will help the customer to know when their product will be
delivered.
Promotion:
Competitive pressure faced while developing the use of e – business:
Gap faces competitive pressure by advertising their new products in store especially if other
competitors are selling the same products. Like for example if gap started to sell ties for
men it will be quite difficult for them because their competitors are selling ties already so
they have to have a competitive price so the tie can get sold.
Introduction:
In this task I shall be explain the competitive pressure on two selected contrasting business
organisations to develop their use of e-business. I will be also discussing how these two
businesses have responded to competitive pressures to develop their use of e – business.
The two organisations that I have chosen are Gap and Asda. I shall also be evaluating how
successful a selected business organisation has been in preparing for the growth use of E- business.
Product:
Competitive pressure faced while developing the use of e – business:
The competitive pressures which gap face are the wide range of products which they sell to
the public. For instance Asda sell a wide range of items from clothing to food and
technology and other varieties. However gap only sells clothing items for females/ males
and children. So this shows that Asda are making more profit then gap because they selling
a different range of items but gap only sells clothing
Actions taken by the business to respond to these competitive pressures:
Gap has responded to this competitive pressure by selling a different form of product Such
as furniture and etc. However as gap do not sell certain products such as food products like
Asda they have made improvements and have started selling a different range of products.
Place & Physical Evidence:
Competitive pressure faced while developing the use of e – business:
The competitive pressure which gap face with place and physical evidence is with their
current website layout. For instance a main challenge which gap has competition with is
next as they demonstrate their product on their homepage. So this allows the customer to
view the item and see what brand it is.
Actions taken by the business to respond to these competitive pressures:
The action which gap have taken is to respond to these competitive pressures is by
representing a wide range of products on their website as well as adding different types of
colours to their site. By gap taking this step they have grabbed their future customer’s
attention by making the site more engaging and it will be more eye catchy which will attract
an eye from a loyal customer. By doing this it can also improve on sales.
, Price:
Competitive pressure faced while developing the use of e – business:
Gap face a very competitive pressure as their pricing of their product is a lot more expensive
than their main competitors. Next sell comparable products to gap on the other hand even
though both these brands sell items of which have great quality gap are advertised for
having a slightly higher prices to next. The disadvantage could be that the customers may
prefer to purchase items from next rather than gap because they can get the same
product/similar product for cheaper.
Actions taken by the business to respond to these competitive pressures:
Gap has taken an action and they have responded by introducing a page on their site called
clearance. These are items which have not been sold from previous term; the items from
these pages are sold for cheaper. This can be valuable to the consumer as they wouldn’t
have to spend a huge amount of money and they can get it for cheap.
People:
Competitive pressure faced while developing the use of e – business:
Competitive pressures which gap face are delivery services as well as their customers. Now
many e businesses do not provide any physical stores to assist or to sell their products for
instance one e business can be very they do not sell products physically in stores. This
indicates they must provide great customer and delivery service in order to keep the
customers coming back from this they can make a profit.
Actions taken by the business to respond to these competitive pressures:
The actions which gap have taken to respond to these competitive pressure is simply by
creating a fantastic customers relationship so it keeps the customers from purchasing items
from their store. One method which they use to keep building their customer relationship is
sending their customers e-mails on any promotions and vouchers. When the customers
have brought an item from gap, gap will send an email confirming the order and the
estimate delivery date. So this will help the customer to know when their product will be
delivered.
Promotion:
Competitive pressure faced while developing the use of e – business:
Gap faces competitive pressure by advertising their new products in store especially if other
competitors are selling the same products. Like for example if gap started to sell ties for
men it will be quite difficult for them because their competitors are selling ties already so
they have to have a competitive price so the tie can get sold.
