report prepared for: countdown case analysis by ha, … · 2017. 11. 6. · >>apmg 8119:...

>>APMG 8119: DIGITAL ENTERPRISE

REPORT PREPARED FOR: COUNTDOWN

CASE ANALYSIS

By Ha, Helen, Anton, Ksenia

POSTGRADUATE DIPLOMA IN BUSINESS APMG 8119: DIGITAL ENTERPRISE

2017

www.countdown.co.nz


Increasing demand

Unrestricted choice with growing diversity

High competition and low profit margin

Creation of independent business segment

MARKET

SOCIETY ORGANISATION


Routine week-to-week shopping

Online shopping credibility

Internet accessibility (Smartphone, Tablet, Laptop etc.)

Time-management

MARKET



:

- Virtualising of the real shopping experience

- Advanced interactions with customers

- Added value (information, ideas, suggestions, promotions)

MARKET



A combination of product or service, pricing, communication*

- Lower costing: no any physical boundaries exist

- Demand & Supply: decided by the numbers of online users

- Building relationships: seller and buyer

Unique characteristics in the consumer decision-making process that raise new issues related to consumer shopping behaviors**

Entertaining process Customer Engagement *Weinstein, A., & Johnson, W. C. (1999). Designing and delivering superior customer value: Concepts, cases, and applications. Boca Raton, FL: St. Lucie Press.

**Lee, M. Y., Kim, Y. K., & Fairhurst, A. (2009). Shopping value in online auctions: Their antecedents and outcomes. Journal of Retailing and Consumer Services, 16(1), 75-82. Retrieved from https://doi.org/10.1016/j.jretconser.2008.11.003

https://doi.org/10.1016/j.jretconser.2008.11.003


















Product Service Pricing Communication

exclusive items click & collect reduced price online news blog

inspiration (eg. feed 4 for 15$)

door to door delivery

specials & promotions

feedback services

budget control social media (facebook, pinterest, linkedin etc.)


Countdown Content Cost/Invest Accessibility

marketspace Online shop, website layout

Lower cost (no physical location, just website, online money transfer)

Company & customer (pc, tablets, phone)

marketplace Physical Presence location, buyers & sellers, direct communication

Higher cost (construction, maintainance, labour)

Company


The cost of information search is lower

Collection of the customer information

Additional merchandise to sell

Alba J., Lynch J., Weitz B., Janiszewski C., Lutz R., Sawyer A., Wood S. (Jul., 1997). Interactive Home Shopping: Consumer, Retailer, and Manufacturer Incentives to Participate in Electronic Marketplaces. Journal of Marketing.

Vol. 61, №3, pp. 38-53

From floppy disks to fibre, Countdown online shopping celebrates 20 years... and beyond. Posted by Countdown press office on 20 Jul 2016. Retrieved from https://www.countdown.co.nz/news-and-media-

releases/2016/july/from-floppy-disks-to-fibre-countdown-online-shopping-celebrates-20-years-and-beyond


- Easier access

- Economy - time - fuel - money

- Vast selection and comparison

- Online deals and promotion

- Variety and availability

- Effective distribution

- Information processing

- Unique products

- Complementary merchandise


- Accuracy and reliability - tactile check - understanding of quality - physical comparison

- Shipping rates

- Refund policy

- Data security problems

- Restrictions on some shopping categories


- Online retail growth 15% pa*

- NZ online spending 7.4%**

- Groceries online 4.1% purchasing

- Countdown’ online orders 23k/week

- Countdown’ offline 2.8mln/w customers

*Chris Wilkinson, managing director of the First Retail Group, 2017

**Conor McElhinney, partner at McGrathNicol, 2017

report prepared for: countdown case analysis by ha, … · 2017. 11. 6. · >>apmg 8119:...

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