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Comparison of Online and Offline Business: Positive and Negative Impact

   

Added on  2023-01-06

12 Pages3902 Words29 Views
ASSIGNMENT
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Compare and contrast the online and offline business and explain the positive and negative
impact..........................................................................................................................................3
2. Personal security and privacy when using internet.................................................................6
3. Track and Trace Apps for different mobile platform..............................................................6
REFERENCES................................................................................................................................9
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INTRODUCTION
The organisations are moving from the traditional sales to online sales where the use of
internet has become the most important factor for helping purchasers and the businesses (Joseph,
2019). They are communicating with each other and getting to understand the behaviour of
customers in the market. The m-commerce and e-commerce has made it convenient for
customers to make the decisions. Internet has made it easy for the buyers and sellers to contact
and m-commerce is giving them options to deliver the products. The report includes the
difference between different sources of the products sold and its impact the services provided by
the organisations which are important for the sales of the product, challenges faced by them and
the apps which are helping to monitor the performance of the organisation.
MAIN BODY
1. Compare and contrast the online and offline business and explain the positive and negative
impact
The online businesses have their customers and sales online where as the traditional
offline business will have the normal brick and motor where the customers are served in physical
locations and have operations in stores. The online businesses are getting the expansion in the
market where they are attracting customers across the world. There are many factors in trading
with online customers and offline customers. The difference between online and offline business
is based on different marketing plan and there are factors which are affecting it. The factors
should be identified and they should be measured to improve efficiency in operations.
Stores and overheads
Online
The low cost structure is the importance of online businesses (Cao and et.al., 2015). The
operating cost is reduced as the businesses do not have to invest in big stores and hiring
employees. It is flexible to operate as they have the inventory tracking systems which makes it
easy for them to operate. It will help the businesses to identify their capacity and the helps in
managing inventory. It reduces the overheads of the businesses and it helps them achieving the
goals of an organisation.
Positive impact- The stores are operating at less cost and the inventory is managed
which is helping the production and operations department when the products and services are
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online. For example, the overhead cost of Amazon is less so they are giving discounts to
customers.
Negative impact- The businesses should have an impact on customers when they have
attractive website. The customers do not want to purchase online when they want to have
products and services on the time. It affects the businesses when they are operating only online.
Offline
The in-store experience for customers is important and it is not there in online businesses.
The businesses are not able to make the long term relationships with customers and they have to
increase the cost of operations in store as they will invest in the store and have qualified
employees. The will have to give good experience to customers and can manage the inventory by
analysing the demand. The brands are focussing on attracting the customers to their stores by
providing services to increase the sales of products and it should be unique so that customers feel
that they are important to the businesses (Villa-Real, 2016).
Positive impact- The customers will get the experience which they enjoy, the employees
in the store provides guidance to customers for what they want and what will fit to them. The
employees are able to generate sales by making customers experience new products and they
expand their buying power.
Negative impact- The overheads are increasing in the offline business as they have to
maintain the stock of products and have to provide quality service to customers. The increasing
cost will have to be analysed and they have to make strategies to achieve profits.
Growth and expansion
Online
The online selling has made the businesses grow faster as they get to expand with many
customers. They have operations in many countries and the marketing strategy is focussing on
promotions to attract customers (Teixeira, 2017). The businesses should focus on competing with
businesses online and they should get the competitive advantage. The growth and expansion
should focus on reducing the cost which is easy in online business.
Positive impact- The businesses are growing and expanding its operations as the
behaviour of customers can be analysed and the businesses will be able to make strategies for
achieving profits.
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