Online & Offline Retail Environment | Paper
Added on -2019-09-25
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ONLINE & OFFLINE RETAIL ENVIRONMENT
Table of ContentsIntroduction......................................................................................................................................2Online & offline retail environment................................................................................................3Online company to consumer supply chain.................................................................................4Offline Company to consumer supply chain................................................................................5Comparison between online & offline retail environment..............................................................6Ethical and regulatory practices and issues..................................................................................6Social and behavioral practices and issues..................................................................................8Innovation practice and issues...................................................................................................10Following are the general innovation practices towards online retail environment:.................10Following are the innovation practices issue:............................................................................12Analysis of E-business values creation..........................................................................................13Porte’s value chain.....................................................................................................................13Recommendations..........................................................................................................................15Conclusion.....................................................................................................................................17References......................................................................................................................................19
IntroductionIn this present paper, we will describe and differentiate company to consumer supply chain ofonline and the offline retail environment. We will evaluate on the basis of ethical and regulatorypractices, innovation practices, traditional and digital market practices and issues of all the three.We will also analyze the value creation by e-business through applying porter’s value chain. Therecommendations for the three significant improvements for increasing the sales of onlinepurchasing have been discussed ahead.The offline retail environment is the old traditional environment in which the consumer's visits tostores to buy the product and services according to their convenience and comfort. It is a veryimportant to touch point for the consumers who are willing to interact with the brand beforepurchase. However, the trend of offline retail is decreasing, and the digital retail system isexpanding.In today’s retail industry the two-third quarter sales growth is occurring from online channels.The steep growth of online store has created a new environment for the retailers from physicalstores to online retail stores. It is also contributing to the overall GDP growth of a country. Thenew life is breathing through online retailing stores. Consumers now prefer to buy productsthrough browsing websites rather than going to the stores. For example, the students prefer topurchasing laptops from the US and their choices of selection are based on the rating andfeedbacks by another consumer. The busy housewives also prefer to purchase their groceries andother items from the online store. The working people find it more comfortable and time savingwhich increases the online business rapidly.
The comparison of online and offline retail environment will be made on the basis of social andbehavioral practices in the context of old versus young in which we will differentiate the socialand behavioral practices of old and young Such as acceptance of online business by young onesbut not by old ones. The ethical and regulatory practice in the context of copyright issue includethe issues of content copied, and the issues faced in managing the ethical and regulatory practicesinclude managing brand image, a content management issue, and others. The innovationpractices include general practices used by a company in a product innovation and the issuesfaced by them in innovation of a product such as management issues, consumer's related issues,and others.Online & offline retail environmentThe online and offline retail environment are distinct from each other. In the offline retailenvironment, there is a direct channel of communication between the consumers and retailers.The direct contact is through one to one communication, emails, phone and others. The onlineretail environment is also known as multimedia retail environment because it can be accessedthrough e-channel (Acimovic et al., 2014). There is an indirect communication between theconsumers and retailers in which the contact can be through the third parties such as brokers,agents, and others. The pull strategies are used by the offline retailers in which the sales can beimproved through direct marketing and personal selling. The push strategy is used by onlineretailers mainly, but the companies are using both the strategies to maximize their output byoptimizing their availability.
Online company to consumer supply chainA supply chain is defined as the chain in which complex and dynamic supply and demand network arerepresented. The chain comprises of human resource, activities, information and the resources involved intransferring product and services to the end user.The supply chain of the online company is mainly connected with the internet. The Internet plays a mainrole in connection all the processing from suppliers to the end consumers. The e-commerce is rapidlyincreasing in the market, so the growth of the online business is increasing day by day (Richards et al.,2015). The supply chain of online retail business is connected with a warehouse where all the stock of abusiness is maintained. The purchasing department is connected with manufacturing department andanother department. All the departments of a company are connected through the internet with each other.The manufacturing department is connected with purchasing and sales department. The chain starts frompurchasing of raw material from purchasing department then it is delivered to the manufacturingdepartment, then the manufacturing goods transferred to the warehouse for keeping goods and finally thegoods are transferred to the sales department. When the order is placed, then the sales department
supplies goods to the end user and all the process is done electronically.Offline Company to consumer supply chainThe supply chain of an offline retailer is simpler than the online retailers. The offline retailers are having a manual track record of the supply chain process. The raw material is purchased by purchase department then the raw material is transferred to the manufacturing department for converting them into final goods (Yu et al., 2015). The manufacturer ended their goods to the wholesalers who distribute or sell their
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