Exploring AR/VR in Business: A Cost-Value Analysis and Strategy

This essay examines the characteristics and significance of Augmented Reality (AR) and Virtual Reality (VR) in business, highlighting their features and applications across different sectors. It presents a SWOT analysis of AR/VR, evaluating strengths, weaknesses, opportunities, and threats. The essay further provides an overview of a business, Easy Voyage, and proposes a cost-value evaluation framework for implementing AR within the Eurostar booking app. It suggests leveraging leadership and management strategies to enhance customer experience and analyzes interactive elements to promote positive business outcomes. The business strategy incorporates Porter's generic model to identify competitive advantages, such as offering unique AR experiences to customers, aiming to increase revenue and reduce food wastage. The essay concludes by emphasizing the importance of continuous improvement and adaptation to market trends to maintain a competitive edge.

AR/VR essay

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK-1............................................................................................................................................3
AR/VR.........................................................................................................................................3
Features of AR/VR......................................................................................................................3
TASK-2............................................................................................................................................4
SWOT Analysis...........................................................................................................................4
Opportunities and challenges.......................................................................................................5
TASK -3...........................................................................................................................................5
Overview of business...................................................................................................................5
Proposal to evaluate cost / value..................................................................................................6
Proposal for use of leadership and management.........................................................................6
Interactive elements.....................................................................................................................7
Business strategy.........................................................................................................................7
TASK -4...........................................................................................................................................8
CONCLUSION..............................................................................................................................10
REFRENCES.................................................................................................................................11

INTRODUCTION
AR (augmented reality) refers to digital elements to a view by using camera on a
smartphone. There are some examples of augmented reality such as, snapchat lenses and game
Pokémon go. VR (virtual reality) refers to complete immersion experience and refers to
computer generated simulations (Iatsyshyn and et.al., 2020). Virtual reality is more useful
because it provides better ways to gain competitive advantage. The essay examines,
characteristics and significance of AR/ VR, features of augmented and virtual reality in the
industry and different sectors. SWOT analysis of AR/VR is discussed. Further, overview of
business, proposal to evaluate cost and value exchange, interactive elements, business strategy
and analysis is done. Some theories are being used to gain competitive advantage and identify
positive and negative points.
TASK-1
AR/VR
Augmented reality refers to a technology which is computer generated image to provide a
composite view. It is modified version of real world which is achieved with the help of advanced
technology or digital visual elements such as, sound or sensory stimuli which can be delivered to
consumers using technology. Nowadays, this is a trend to involve in mobile computing and
provide good quality products to customers. Competition is increasing among companies
regarding this technology and all want to provide unique products to customers (Miller and et.al.,
2019). Augmented reality is an interactive 3D experience which combines real world with
computer based elements.
Virtual reality can be defined as computer generated simulation by which people can
experience with three dimensional environments by using electronic devices like, special googles
with a screen fitted with sensors. There are three types of virtual reality i.e., non- immersive,
semi- immersive and fully immersive simulations. The purpose of using virtual reality is to
entertain consumers by using new technology and this help in gaining competitive advantage
(Iatsyshyn and et.al., 2020).
Features of AR/VR
There are some features of augmented reality such as, it helps in increasing engagement and
provides a richer user experience to customers. Augmented reality increases perceived value of
products and brands. This is a technology which is providing 3D experience to customers and it

lead to their entertainment. Nowadays, more companies are involved in this because it is one of
the fastest growing area and people are attracted towards it. Augmented reality conveys
innovation because customers want new and unique products.
Some features of virtual reality are, it is immersive, believable virtual world, feedback can
be collected, interactive and responsive (de Souza Cardoso, Mariano and et.al., 2020). This
technology involves computing device such as smartphones and people can experience three
dimensional environments. Virtual reality has less risk and it is safe for people. This helps in
customer retention and it can be done from remote area also. Virtual reality is time saving and
less investment is required. It increases innovation and best way to entertain people. It is
appropriate for different learning styles and helps in solving complex situation or problems.
TASK-2
SWOT Analysis
SWOT analysis of AR/VR is being done, strengths weakness, opportunity and threats of
augmented and virtual reality so that companies can take necessary steps before implementing
this technology and improvements can be done so that better products and services can be
provided to customers. It is important for an organisation to identify positive and negative points
of augmented and virtual reality so that plans or strategies can be made accordingly (GURL,
2017). For growth of company it is essential to determine opportunities in market and threats
which may affect performance of company.
Strengths – It refers to the positive point which helps in gaining competitive advantage and
better products can be provided to customers. Positive points of augmented and virtual reality
are, it is an interactive experience, accurate depiction of real and physical world or scenarios. It
helps in improving knowledge retention and reduce dependence on field visits. This is the latest
technology which matches life style of new generation people and they are attracted.
Weakness – it means negative points of augmented and virtual reality which should be improved
so that better products and services can be provided to customers. Some weak points of
augmented and virtual reality are, it is immature technology, high cost, motion sickness,
reliability issues, undercutting bids and offers (Vlados, 2019). Augmented/ virtual reality is very
expensive and it is difficult for companies to afford this technology. The main weakness is lack
of privacy. Augmented reality devices have low performance which may arise during testing

phase. It is important to improve these weak points so that better services can be delivered and
satisfy needs of customers.
Opportunity – It means to identify opportunities in market so that business can be expanded and
better plans can be made for accomplishing goals and objectives. It is important to determine
opportunities of augmented and virtual reality so that improvements can be made and help in
gaining competitive advantage. Opportunity of AR/VR technology is that it is latest trend in
market and effective platform in this digital world. There are many employment opportunities in
this field and it is fastest growing area. Augmented/ virtual reality is appropriate for education as
well as training. It helps in encouraging active learning and in the field of entertainment it is
beneficial because there are many opportunities (Abdel-Basset, Mohamed and Smarandache,
2018). More companies are involved in this business and good products will be provided to
customers.
Threats – Threats refer to factors that may affect working of company and performance also.
Competition is increasing day by day in technology field so it is an issue. In the medical sector,
threat is the use of unlicensed, unproven or non- medically approve technology, increasing
evidence of start-up failures. Choice of people is changing and they want new products and
services so to satisfy their need technology is used. This increases competition among
companies.
Opportunities and challenges
Opportunities are the ways by which an organisation can expand their business by satisfying
needs of customers and providing better products to people. It is essential to identify
opportunities and make plans according to that to enhance customer satisfaction. There are some
challenges which companies has to face and better strategies can be made. For growth of
company it is essential to determine opportunities and try to solve issues or face challenges so
that better services can be provided.
TASK -3
Overview of business
The company Easy Voyage will sale food and drinks on board the train for Eurostar
customers. They will also sale e- tickets for attracting more people, public transportation facility
is provided and taxi for 4 destinations which are, Paris, Belgium, London and Amsterdam. The
organisation will offer augmented reality URL link into Eurostar booking app which is easy for

customers. 48 H pre order option with 10% off discount online with options to click and collect,
food is being delivered to seat of customers. The company will give excellent customer
experience to order food and main attraction is augmented reality from home. Customers will
enjoy this experience and they will like this service which is being provided because it is new
and unique. Customers will enjoy AR experience from their train seat during their journey. This
augmented reality is good and customers will like services provided by company. This helps
company in gaining competitive advantage and more revenue can be generated.
There are some SMART goals which is made by company are:
- To generate 20% revenue by attracting people through online sales by AR link by December
2021.
- To reduce food wastage by 25% from online orders.
- To generate 15% profit by March 2022.
Mission
To move business forward using digital technology to attract more people.
Vision
To be the first innovative organisation in our specific sector using AR experience to customers.
Proposal to evaluate cost / value
Basic items Price
Food cost £4.90
Admin panel £5.40
Employee salary £3.00
Another engagement feature £2.50
It is important to evaluate cost or value so that plans or strategies can be made accordingly. This
helps manager of company in identifying cost to make plans on the basis of that, it is essential to
accomplish gaols and objectives of organisation. For gaining competitive advantage better plans
should be made by managers and make changes or improvements so that there will be no
confusion and work can be done properly. For earning more profit, it is essential to make good
plans or strategies and attract customers. For accomplishing targets it is important to determine
cost and on the basis of that strategies should be implemented.

Proposal for use of leadership and management
It is important to take feedback from customers so that improvements can be made and it
help in providing good services to customers. This help in attracting more people and profit can
be earned. It is essential to take reviews from customers and make changes in plans so that good
quality products can be provided to people and helps in building positive image in minds of
customers. For growth and development of a firm, plans or strategies should be made by
managers after determining choice of people (Moktadir and et.al., 2020). It is important to gather
information from customers and identify weak points so that changes can be made and it help in
satisfying need of people. For growth of company it is important to gather information from
customers, this will be useful for management and employees as they can make better plans or
strategies. User experience should be collected by taking reviews from them and give
instructions to employees accordingly. Leadership style should be applied so that work can be
done in systematic way and goals can be accomplished. Leaders should be made who will give
instructions to team members for how to complete work on time and it reduces chances of
conflicts and misunderstanding among employees.
Interactive elements
Interactive elements (UI) that encourage exploration and promote positive business
outcomes are, input controls which includes, checkboxes, radio buttons, text fields and many
other elements. Navigational components are also interactive element which help in encouraging
exploration and promote positive business outcomes. There are some principles of design such
as, contrast, balance, proportion, hierarchy, repetition, pattern, movement, unity and many other.
It is important to promote positive business outcomes so that more people can be attracted and it
help in gaining competitive advantage in market. Elements (UI) that encourage exploration are,
structure of project should be good so that there will be no problem and goals can be
accomplished properly. The project should be simple so that it can be easily understandable by
people and help in attracting more people. Feedback should be collected by customers and
improvements must be made. It helps in generating more revenue and better services can be
provided to customers.
Business strategy
Business strategy refers to making plans or strategies which help in gaining competitive
advantage in market and more revenue can be generated. Managers of Easy Voyage has applied

Porter’s generic model to identify market situation and better plans can be made to attract people.
Competitive advantage of Easy Voyage company is it is the first company using augmented
reality for products and providing unique services to customers (Yuan and et.al., 2020). They are
offering unique experience to customers and it is beneficial in growth of company. Porter’s
generic model includes five forces such as, competitive rivalry, bargaining power of buyer,
supplier power, threat of new entrants and threat of close substitutes. Competitive rivalry for
Easy Voyage is that they are providing unique services to customers which help in attracting
more people. Bargaining power of supplier is low because there are many suppliers available in
the market who can supply raw material. It is easy to switch suppliers as there are many suppliers
and there is no problem. Threat of new entrant is also low because there is only one competitor
in the market, company is having ISO food hygiene certificates, providing unique products to
customers to gain competitive advantage. It is easy to access products and services; good quality
products are being delivered to people.
Another force of Porter is bargaining power of buyer, it is at medium level because no
substitutes on board is available, while travelling people want some snacks to eat (Farrukh and
et.al., 2020). Consumers want new and innovative products at reasonable price, Easy Voyage
company is providing good services to customers. Threat of close substitute is medium because
shop of Easy Voyage is located at station and tickets are available in several place. There are less
competitors so managers of Easy Voyage company should make good quality products and
deliver to customers so that positive image can be created in minds of customers and more
revenue can be generated.
Value chain model is also used which includes two types of activities i.e., primary and
support activities to gain competitive advantage in market and attract more customers. In the
primary activity it involves, firm infrastructure, human resource department, technology
development and procurement area. Human resource department is responsible for providing
training to employees, hiring and selecting appropriate candidate. Support activities includes,
inbound logistics, operations, outbound logistics, sales and marketing. It is important to apply
this value chain model so that better products can be made and there will be no issue in providing
products to customers (Ali and Anwar, 2021). For accomplishing goals and objectives, it is
important to make strategies and implement it so that profit can be earned.

TASK -4
Managers of Easy Voyage are providing unique products to customers and they excellent
customer experience to order food. The company is offering augmented reality URL link into
Eurostar booking app. Customers will have excellent experience because they have not used this
technology earlier and it is unique. Mission of company is to expand business by using digital
technology for best customer experience. Vision of company is to become most wanted on board
company in UK railway market. It is important to focus on satisfying needs of customers so that
better plans can be made.
This will help in accomplishing goals and objectives of company and more profit can be
earned. It is essential to focus on providing good quality products to customers and services so
that more revenue can be generated. The company is first and only niche market and providing
unique experience to customers. Managers of organisation should apply some strategies so that
they can perform better than others and profit can be earned. When plans or strategies are made
then it helps in attracting more customers and provide them good services (Grebenshchikova and
Yakushev, 2017). Easy Voyage company is offering food and drinks on board the train for
customers. They can place an order by using Eurostar app and they will get food in train on their
seat.
Porter’s generic model is used by managers of Easy Voyage company to identify threats in
market. They are entering in new market, so managers should conduct market research and make
changes in plans to gain competitive advantage in market. There are five forces of Porter i.e.,
competitive rivalry, bargaining power of buyer and supplier, threat of new entry, threat of close
substitute goods. These are forces which help managers of Easy Voyage to identify that whether
people will like their product or not. Competitive rivalry for company is that they are providing
unique products unique products to customers and this is beneficial for them to enter into new
market (Bruijl, 2018). For accomplishing targets it is important to focus on satisfying needs of
customers and determine threats in market.
Another force of Porter is bargaining power of supplier, means to identify that whether there
are suppliers available in market or not. It is essential to identify several suppliers so that there
will be no issue in purchasing raw material. Managers of Easy Voyage identify availability of
supplier so that there will be no issue in future. There are many suppliers of raw material so there
is no problem and business can be done smoothly. Another force is threat of new entry means

when new companies enter into market. For growth of company managers has to identify new
companies which is entering into market. Next is bargaining power of customers, it is important
to determine that whether consumers can buy products or not. Before deciding price of product,
managers should identify need of customers and how much they can spend. This model helps in
determining competitor’s strategy and better plans were made to attract customers (Pezzutto and
et.al., 2018).
Value chain model is also applied because it helps in determining primary activities and
support activities. Primary activities include, firm infrastructure, human resource management,
technology development and procurement. HR department is responsible for providing training
to employees, selecting best candidate for organisation, giving rewards to employees. AR
application was applied for improving customer experience. Support activities include, inbound
logistics, outbound logistics, operations. Marketing and sales, service. This model helps
managers of Easy Voyage in identifying inbound logistics i.e., receiving customer orders and
information (Bhargava, Bafna and Shabarisha, 2018).
Outbound logistics refers to delivering food products to customers, operation in support
activities means sending orders to suppliers for food products. Marketing and sales means
organising campaigns, giving advertisement on social networking sites so that more people can
be attracted and it help in generating more profit. Service activities are, taking feedback or
reviews from customers about product and service provided. Improvements should be made
according to the need of customer so that better products can be provided next time (Rawlins, De
Lange and Fraser, 2018).
CONCLUSION
From the above discussion it can be concluded that, augmented and virtual reality is a digital
technology which helps in attracting people. AR is digital element to a view by using camera in
smartphone has been discussed. Features of AR/VR has been described such as, increase
perceived value of products and brands, 3D experience, low cost, entertainment of customers.
SWOT analysis of AR/VR has been done, opportunities and challenges has been discussed.
Further, overview of business, cost evaluation, interactive elements that encourage exploration

has been discussed. Business strategy which include, Porter’s generic model and value chain
model which help in gaining competitive advantage in market has been described.

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