Virtual Reality in Retail: A Competitive Edge

This assignment delves into the transformative impact of virtual reality (VR) on the retail sector. It examines how VR technology can create unique and engaging customer experiences, enhance product visualization, and drive sales. The document emphasizes the competitive advantage retailers can gain by adopting VR strategies, exploring its applications in areas such as virtual showrooms, interactive product demos, and personalized shopping experiences.

Organisational Integrations
Assignment 3
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Subject Name: Subject ID:
Date Due: Professor Name:
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Table of Contents
1.0 Introduction................................................................................................................................3
2.0 Strategy......................................................................................................................................3
2.1 Short Term Strategy to launch the MVP and validate the product........................................4
2.1.1 Mission, vision, goals, objectives, strategies and tactics................................................4
2.1.2 Hypothesis.......................................................................................................................5
2.1.3 Cost Benefit Analysis......................................................................................................5
2.2 Longer Term Strategy to iterate the product with additional features and to develop a
viable business model..................................................................................................................6
2.2.1 Mission, Vision, Goals, Objectives, Strategies and Tactics............................................6
2.2.2 Hypothesis.......................................................................................................................7
2.2.3 Cost benefit analysis........................................................................................................7
3.0 Product Roadmap and minimal viable product for Virtual Reality and Augmented Reality....8
4.0 Integrations of Virtual Reality and Augmented Reality in the selected industry......................9
5.0 Recommendation & Conclusion..............................................................................................10
Reference Lists..............................................................................................................................11
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1.0 Introduction
Technology coupled with globalisation has led to tremendous completion and emergence of
opportunity. With growth and development of various industries around the world almost all
industries stands to benefit (Guidi, 2010). Virtual Reality and Augmented Reality development
has been the most prominent innovation of all time in technology. Fashion industry stands to
benefit from tremendous opportunities created by virtual reality and augmented reality. In
Australia innovations in this domain with their application has led to development of tremendous
opportunities with leading fashion retailers adopting such trends (Altberg, 2007). Large fashion
Companies are integrating various types of VR along with AR trends such as to extend core
competencies within their industry. These technologies are enabling competitive advantages for
these companies such that they are able to attract larger consumers towards their products. The
scope of this report deals with various strategies with variable and static product line (Spreer,
2014). It deals with short term along with variable business model along with certain
recommendations for the business plan.
2.0 Strategy
Strategy needs to be developed and accommodated for creation of product lines in the new
fashion business. Cost calculation and product road map is integral for understanding the success
of the business plan and its value creation (Castronova, 2008). VR and AR integration for a
Company needs to be strategized such that appropriate product development can be attained.
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2.1 Short Term Strategy to launch the MVP and validate the product
Success of a fashion firm while integration VR and AR has to be done in accordance to
developed strategic fit to generate greater customer attention. In order to launch a MVP for
validating and generating demands, a short term strategy needs to be created. The short term
strategy needs to be aimed at virtual commerce strategy (Dholakia, 2009). For each application a
differentiated personal customer experience needs to be created. The primary focus is to
advertise and attract people towards transformation of their experience.
2.1.1 Mission, vision, goals, objectives, strategies and tactics
Mission: The primary mission of the organisation will be catering to customer satisfaction
Vision: The vision of the Company is focused on rendering unique product interface.
Goals: Goals of the Company are focused on creation profitability, employee engagement and
customer engagement.
Objectives: Primary objective for the Company are focused on high quality product with AR and
VR technologies.
Strategies: All strategies of the Company will be focused in blending customer experience into
VR and AR technologies.
Tactics: There will be various tactics implemented by the Company for extending their
capabilities and core competencies.
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2.1.2 Hypothesis
In order to develop achieve goals for the study, it becomes critical to apply hypothesis for the
study. There will be two hypothesis that will be assumed for the study, one comprises of Null
Hypothesis (H0) and another is Alternate Hypothesis (H1). Null Hypothesis for this study
encompasses that AR and VR does not impact retail sales in fashion of the firm and Alternate
Hypothesis aims at establishing VR and AR impacts retail sales of fashion industry (Edeker,
2007).
2.1.3 Cost Benefit Analysis
For success of any product, it becomes essential to establish cost benefit analysis for the product.
The following includes cost benefit analysis for integrating AR and VR into fashion products of
the firm for short term activities (Gaos, 2008).
Month Cost Benefit
January 50,000 450,000
February 80,000 500,000
March 90,000 290,000
April 110,000 330,000
May 95,000 310,000
June 120,000 410,000
July 105,000 340,000
August 130,000 350,000
September 60,000 210,000
October 70,000 260,000
November 80,000 310,000
December 130,000 510,000
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2.2 Longer Term Strategy to iterate the product with additional features
and to develop a viable business model
The longer-term strategy for the firm will be to iterate products with features that become trends
in the industry. Including new features with functionalities will allow greater customer attraction
(Guven, 2009). There is tremendous amount of competition in the fashion industry with VR
along with its sister technology AR offering opportunities for shoppers in their retail experience.
It might offer application with technologies, which have capacities to reduce elimination of
customer’s pain and increasing customer service for a greater personalized experience. Long
term strategic fit will be focused on changing retailers towards the future (Mackenzie, 2009). The
business model will aim at deciding on a technology application.
2.2.1 Mission, Vision, Goals, Objectives, Strategies and Tactics
Mission: The mission of the organisation will be to incorporate long-term sustainable strategic
product innovations.
Vision: The vision of the Company is focused on creation of fast fashion trends augmented with
AR and VR.
Goals: Goal for the Company will be focused on developing consistently innovative products
that cater to market tastes of customer segment.
Objectives: Objective of the Company will be multifarious that will include divergent product
creating opportunities. Another objective will be to attract significant shareholder investments
into innovation as well as product development.
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Strategies: Strategic endeavors for the Company will be aimed at keeping pace with integrated
technologies along with market demands which are key focus of competitors.
Tactics: Tactics deployed by the Company will be focused at enhancing speed and efficiency
across all its operational processes.
2.2.2 Hypothesis
In order to accomplish long term strategic fit, the hypothesis will be developed for the study.
Null Hypothesis (H0) will aim at establishing technological integration as mobile devices cannot
create a customer satisfaction platform. On the other hand, alternate hypothesis will aim at
establishing mobile technological integration casing an impact of ease of customer service
(Glazer, 2010).
2.2.3 Cost benefit analysis
In order to establish cost benefit approach for the study with a long-term focus there will be
integration of extensive analysis. The following is the cost benefit analysis for the long term
strategic fit accordance to deliverables in month wise data (Ciptawilangga, 2009).
Month Cost Benefit
January 60,000 250,000
February 90,000 650,000
March 40,000 310,000
April 80,000 450,000
May 100,000 330,000
June 95,000 120,000
July 65,000 170,000
August 70,000 230,000
September 50,000 280,000
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October 40,000 310,000
November 30,000 290,000
December 150,000 400,000
3.0 Product Roadmap and minimal viable product for Virtual Reality and
Augmented Reality
With advent and integration of AR and VR with that of technological trends a product roadmap
for retail products is designed (Kinateder, 2014). This product roadmap includes several features
and functionalities that are integrated into making of the product. The firm will aim at
developing products for home décor, utensils, other decorative furniture and fixtures that
consumers can easily purchase while sitting in comfort of their homes. The product roadmap in
this case has been divided into four quarters in the year where a step will be achieved in each
quarter. Initially the firm will be focusing of short term strategies and then later there will be a
focus in regards to long term strategies.
Short
Term
Strat
egy
Long
Term
Strat
egy
2018 Q1 Q2 Q3 Q4
Jan Feb Mar Apr
M
a
y June July
Aug
ust
Se
pt
e
m
be
r
Oct
obe
r
No
ve
m
be
r
Dece
mber
Prod
uct
Devel
Idea
Launch
Produ
ct
Devel
Integr
ation
with
Integ
ratio
n
Prod
uct
Deli
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opme
nt
opme
nt VR
with
AR very
Mark
eting
Compet
itive
Strategi
c
Inputs
Cust
omer
Anal
ysis
Marketi
ng and
Idea
Buildin
g
Adv
ertis
ing
Tech
nolog
y
AR
Integr
ation
VR
Integrat
ion
Techn
ologic
al
Updat
ion
At every step of product development, a integration effort will be made in order that the products
can be presented in VR and AR arrangements. Technological fit for the products such that
customer can have an unique experience from various products can easily be determined. VR
and AR technologies which can easily adapt to and be responsive in mobiles can deliver
significant competitive advantages for the Company.
4.0 Integrations of Virtual Reality and Augmented Reality in the selected
industry
In Australia there has been significant incorporation of VR and AR technologies with that of
various products across the retail industry (Vrechopoulos, 2009). While the firm’s products may
be deemed to be attracting customers and highly profitable in nature it will not be able to extend
core competency associated with that of the firm. The firm has to first decide technology that it
will adapt for each of its application. VR makes consumers experience a simulated world which
can be made use of by way of headsets and controller. Easier technologies are more popular
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amongst consumers compared to others which are not (Pantano, 2012). The firm has to realize
that consumers in retail Australian segment purchasing home décor items are not very familiar
with VR integrated platforms. The firm has to decide if it will offer its products across mobile
telephony devices and such platform will be available within the stores or out-of-store usage
(Ruppert, 2011). This will allow the firm recognize greater challenges and identify the
environment in which it might be facing diversified constraints. Budget and time related
constraints is another aspect which the firm has to realize while integrating in VR and AR related
technologies. All application integration needs to be centered around resolving customer related
challenges such that they are able to understand value proposition (McGray, 2008). The product
offered and launched by the Company needs to be different from available category of products
such that it is able to curve a niche and competitive advantage for the Company. Then integrating
in VR and AR might be a value addition for further extension of product related scopes.
5.0 Recommendation & Conclusion
In order that the firm is able to develop its product and extend technological application
successfully it needs to adopt various steps. The following recommendations will allow the firm
to overcome its pertinent challenges and grow in the future.
 The firm needs to identify products that have high demand in the market and are retail
once. Retail products offered by the firm have to be highly differentiated from various
products available in the market.
 The firm needs to price its products at an attractive levels such that it is able to attract
significant number of customers. Often pricing strategy of the firm decides its capability
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to emerge as successful or as a failure. In this case selecting a highly priced product for
launch can lead to tremendous losses for the Company hence, it should adopt a
competitive product.
 With technological adaptation as well as with various developments, the firm needs to
aim at setting concrete financial goals. Financial engagement goals or engagement can
help create value as well as opportunity for the current business.
 Financial goals of the Company coupled with AR and VR technologies has to be
evaluated frequently in order to achieve targeted outcomes.
 AR and VR technologies into retailing have to match business model for generating
greater revenues or profitability. At every point a match has to be made such as to
establish a fit between business models and developments in this field.
 The firm should aim at attracting equity financing for its technologies. Investment in this
sector is growing at a rapid rate, hence making investments in this domain will help
retailers establish competitive advantage within the industry.
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Reference Lists
Altberg, E. F. 2007. U.S. Patent Application No. 11/738. 170.
Castronova, E. 2008. Exodus to the virtual world: How online fun is changing reality. Palgrave
Macmillan.
Ciptawilangga, Y. 2009. U.S. Patent Application No. 12/474 . 202.
Dholakia, R. R. 2009. Retail web site interactivity. . International Journal of Retail &
Distribution Management, 821.
Edeker, A. M. 2007. U.S. Patent No. 7,269,632. Washington, DC: U.S. Patent and Trademark
Office.
Gaos, M. 2008. U.S. Patent No. 7,319,992. Washington, DC: U.S. Patent and Trademark Office.
Glazer, E. H. 2010. U.S. Patent No. 7,680,694. Washington, DC: U.S. Patent and Trademark
Office.
Guidi, G. M. 2010. Virtual reality for retail. In Virtual Systems and Multimedia (VSMM), 2010
16th International Conference on . IEEE, 285-288.
Guven, S. O. 2009. Social mobile augmented reality for retail. In Pervasive Computing and
Communications, 2009. PerCom 2009. IEEE International Conference on. IEEE, 1-3.
Kinateder, M. R. 2014. Virtual reality for fire evacuation research. In Computer Science and
Information Systems (FedCSIS), 2014 Federated Conference on (pp. 313-321). IEEE, 313-321.
Mackenzie, K. B. 2009. A framework for evaluating business lead users’ virtual reality
innovations in Second Life. Electronic Commerce Research, 183-202.
McGray, F. A. 2008. McGray, F., Adorable, A. T., Yabot, J. T., & Pestelos, C. P. 926.
Pantano, E. &. 2012. Innovation in retail process: from consumers’ experience to immersive
store design. Journal of technology management & innovation, 198-206.
Ruppert, B. 2011. New directions in the use of virtual reality for food shopping: marketing and
education perspectives.
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Spreer, P. &. 2014. Augmented reality in retail: assessing the acceptance and potential for
multimedia product presentation at the PoS. Transactions on Marketing Research, 20-35.
Vrechopoulos, A. A. 2009. Virtual reality retailing on the web: emerging consumer behavioural
patterns. The International Review of Retail, Distribution and Consumer Research, 469-482.
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