Digital Business Strategy Report: Analysis of Poundland's Website

This report provides a comprehensive analysis of Poundland's digital business strategy, focusing on its website, online revenue model, and electronic customer relationship management (E-CRM). The report begins by defining strategy and examining Poundland's digital approach, emphasizing its reliance on online mediums to attract customers and share information. It contrasts digital and traditional strategies, highlighting the efficiency and cost-effectiveness of the former. The report then explores Poundland's online value proposition, digital products business model, and online revenue model, discussing how these elements contribute to customer satisfaction and competitive advantage. It also identifies weaknesses in Poundland's website, such as language limitations and a lack of feedback mechanisms, and offers recommendations for improvement. The report concludes by defining E-CRM and evaluating its effectiveness within Poundland, examining factors like attraction, maintenance, and improvement in customer relationships, as well as the use of technological tools and customer service strategies. It also discusses the different levels of E-CRM employed by Poundland, emphasizing foundational, customer-centered, and value-added services.

DIGITAL BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
Q1 DIGITAL BUSINESS STRATEGY OF WEBSITE.................................................................1
Meaning of strategy.....................................................................................................................1
Digital strategy of company.........................................................................................................1
Difference in normal and digital strategy....................................................................................1
Online value proposition..............................................................................................................2
Weakness of website....................................................................................................................3
Recommendation to improve website.........................................................................................4
Q2 ELECTRONIC CUSTOMER RELATIONSHIP MANAGEMENT........................................4
Meaning of E-CRM.....................................................................................................................4
Effectiveness of E-CRM within company...................................................................................4
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
In the modern era with the motive to operate efficiently every business has started to
employ online tools with the help of which it is possible to attract target market. Further, the
digital business strategy undertaken is regarded as quite effective through which information
sharing with customers become easy and in turn it allows company to accomplish its desired
goals and objectives (Smith, 2012). Every organization has developed its own website with the
motive to build healthier relationship with its target market. So, this acts as development tool for
the company and assist in gaining competitive advantage. Considering the present study the
website chosen is www.poundland.co.uk. Organization deals in variety of products and it is one
of the major source of attraction. Further, the report covers various areas such as online revenue
model, digital business strategy etc.
Q1 DIGITAL BUSINESS STRATEGY OF WEBSITE
Meaning of strategy
Strategy is regarded as the plan or course of action through which it becomes easy for
organization to accomplish its desired aims and objectives. It provides proper direction to the
business and in turn enhances overall efficiency.
Digital strategy of company
Pouland’s business strategy is based on online mediums where business strongly relies on
advanced tools for promoting its products. Further, organization offers large number of products
to its target market and by considering online sources business is being able to retain its loyal
customers. At present the strategy employed by business is low cost where entire ranges of
products are offered to customers at lower price along with other type of additional benefits.
Through website of business crucial information is shared with target market such as discount
and other form of schemes. So, this directly influences purchase behavior of customers and
provides long term benefits to the company.
Difference in normal and digital strategy
The digital business strategy being undertaken by Pouland is quite unique as compared
with normal strategy. As per view of Weber (2011) through this strategy all the key benefits
which can be delivered to target market are highlighted along with the range of products
delivered to them. Apart from this, it is efficient enough in influencing purchase behavior of
target market and is assisting enterprise in gaining competitive advantage also. Normal strategy
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focuses on some limited objectives of the enterprise but digital one allows to focus on different
areas such as attracting customers, increasing market share and profitability etc. Digital strategy
consume very less time and saves cost of the company but normal one is time consuming where
consumers take large time to respond back. Pounland’s product portfolio is quite wide and
information regarding each and every product range is shared by company through its website
which saves time and in turn customers can take quick decisions (Weber, 2011). Moreover,
digital business strategy of Pounland is quite innovative and this has lead to enhanced sales
volume of the enterprise. Organization is able to satisfy overall need and requirement of its target
market through this strategy and it is fruitful for business in every possible manner. Apart from
this, in case of other strategies it may not be possible for companies to attract customers and due
to this reason employing digital business strategy has assisted Pounland in performing better.
According to Coupey (2005) for any business in order to operate efficiently in the market
it is necessary to consider factors which can assist in influencing purchase behavior of
customers. Apart from this, digital business as a strategy has assisted in accomplishing long term
goals along with objectives of the company and has increased profit margin also (Coupey, 2005).
Information regarding promotion and offers, health and beauty, food and drink, leisure and
entertainment, gardening, stationary and crafts, party and celebrations is shared with customers
and on the basis of same their requirement is fulfilled.
Online value proposition
This concept is associated with delivering proper value to the customers through online
sources (Bilton, 2015). Further, through presence of online medium Pounland is providing
remarkable experience to its target market in the field of retail. In order to better understand the
benefits obtained by company through e-business model it is possible to undertake the digital
products business model (Ménard, 2014). This model is based on the belief that products and
services offered by business through online source provides long term benefits to company.
Further, digital products business model relies on efficiency of business in delivering products to
the target market as per their requirement and in turn their satisfaction level is enhanced easily.
As per view of Eshun (2009) key to successful information in relation with the products
lies in determining what the actual requirement of customers and offering them products as per
their needs. This directly supports in delivering remarkable experience to the customers in any
field and they can easily purchase the products as per their requirement. This model has been
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used by Pounland for meeting with the expectations of its customers and they are offered
commodities only through online sources (Eshun, 2009).
Further, model of digital products business is quite useful for business where it provides
large number of benefits to business such as stronger customer base, rise in profitability level,
improved brand image, wide market coverage and proper sharing of information. So, this is
advantageous for organization and in turn survival in the market for longer period of time is
possible for business (Rowley, 2002). Moreover, revenue model of each company can differ
from one another and due to this reason it is necessary to practices of organization in delivering
services to its target also varies. According to Piercy and Lane (2006) online revenue model
supports in raising revenue of the business where profitability along with sales level of the
organization can be enhanced easily and it directly contributes in the success of the enterprise.
Apart from this, online value proposition framework is present which takes into consideration
series of stages such as assessing what online customers regard as useful is the first stage where
business identifies requirement of its customers and same has to be met in specific period of time
(Piercy and Lane, 2006). Next stage is providing benefits to business which is useful to
customers and through this satisfaction level of target market can be enhanced easily. Moreover,
expressing online value proposition is the last stage which is the main driving force for the
business. Through all these stages proper value is delivered to target market on the basis of their
expectations and this enhances performance of business in the market.
Apart from this, value proposition takes place in the form of product comparison,
providing them instant services, performing better as compared with competitors etc. So, this is
also fruitful for Pounland where business has enhanced its performance by undertaking this
model. Benefits obtained through e-business model to Pounland involves unique way of
presenting products in front of customers, highlighting key benefits, separating category of every
product, building strong relationship with target market etc (Parnell, 2006). So, all these
advantages are different which competitors of business are not able to obtain as they are not
indulged into practices of online offering. Therefore, in this way the website design along with
innovative practices of Pounland is supporting business to enhance sales volume and in turn
products are offered to customers keeping in view their requirement.
Weakness of website
The main weaknesses of the website of Pounland are:
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 Information is not available in all the languages due to which customers have to face
difficulties
 Content overload
 Focuses only on attractive offers and discounts
 No provision for providing feedback in relation with complaints etc
Recommendation to improve website
 Company must develop separate section through which complaints of customers can be
entertained easily.
 Very small amount of content must be published on the website so that each and every
type of information can be accessed by customer.
Q2 ELECTRONIC CUSTOMER RELATIONSHIP MANAGEMENT
Meaning of E-CRM
E-CRM is referred as electronic customer relationship management that allows business
organisations to build strong relationship with customers so that business can have impressive
level of success. As per the assessment of Poundland website, electronic CRM focuses on
effective management of diverse factors that can balance relationship with customers and use
significant information in appropriate through information technology (Kim, 2008). Management
of Poundland focuses on effective use of IT to have integrated working and fulfil customers
needs. In addition to this, the organisation uses number of tools that are classified as intranet,
extranet and internet. With an assistance of E-CRM the business organisation is communicating
with its customers in effective manner.
Effectiveness of E-CRM within company
As per the view of Kimiloglu (2009), there are number of factors that management of
Poundland considers in its E-CRM in order to lead business to impressive level of success.
Classification of factors can be as attraction, maintenance, improvement in customer
relationship. Company also ensures that they are communicating meaningful dialogue on its
website so that customers can have easy access to the business (Kimiloglu, 2009). It provides
better opportunities to the organisation and leads various developments in form of success.
Technological tools are used in effective way to improve customer relationship management
within organisation. In addition to this, the business organisation also make sure that they are
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implementing RM strategies in its process so that customer satisfaction level can be
accomplished.
Moreover, Harrigan (2011) has asserted that the organisation allows customers to share
their views and problems with the management through proper use of its E-CRM system.
Customers can use feedback options available on the website to share views and publish
complaints (Harrigan, 2011). Management of Poundland has also established specific department
for the customers service handling. Customers can contact customer service department at any
time through various processes such as email, telecommunication, etc. In other aspect, company
is focusing on effective communication with customers so that employees can understand their
needs in appropriate manner and accomplish them. It also facilitates in building better
relationship with clients in order to meet organisational objectives (Zandi, 2011).
E-CRM in Poundland works with a motive to manage relationship with all types of
clients and set up effective communication system to ensure that management is interacting with
all customers on an individual basis. It facilitates business to understand behaviour, desire and
responsiveness of users so that organisation can design activities in appropriate way to lead
business to impressive level of success (Sivaraks, 2011). It also allows business to collect
information about customers into an integrated way so that sales and profit can be enhanced. It
also provides a strength to the management of Poundland which is beneficial for providing better
response in accurate form of success. It is also advantageous for building customer loyalty and
accomplish organisational goals.
There are different levels of E-CRM that management of Poundland considers for
sustainable development. Classification of levels can be as foundational services, customer
centred services and value added services. In foundational services the company focuses on
minimum essential services to build better relationship with customers Mahdavi (2011).
Organisation ensures that its website is designed in appropriate manner which renders
effectiveness and responsiveness in order to fulfil customer satisfaction level. In addition to this,
Achuama (2010) has said that customer centred services are activities that provides a support to
CRM and helps in building strong relationship with clients. In this, management focuses on order
tacking, product configuration, customization and security. It has been identified that the
Poundland is one of online shopping retail firm that provides number of products on its online
portal. It means it is essential for management to ensure that the order tracking system is well
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maintained so that customers can gather information about order that they have placed
(Achuama, 2010). For example, the customer has placed an order but the website does not
provide an option of order tracking. It will influence the perception of customers in negative
manner and impact relationship between customer and management.
According to Mahdavi (2011), number of customers also faces issues in regard to security
so it is also necessary for management to provide better protection. In this respect, management
of Poundland has established few frameworks that can provide better protection to customers
information so that their personal information can not be leaked. It also enhances the service
users motivation level and build strong relationship with management (Mahdavi (2011). It also
accomplishes the key motive of E-CRM and leads business to impressive level of success. Other
than this, value added services is considered as additional activities that provides a support to E-
CRM. In this, management of Poundland provides a training to employees regarding use of
online portal so that they can provide better assistance to clients. For example, the customer is
facing issues in placement of order but the employees are not having proper information about
use of online portal (Sivaraks, 2011)). In this situation the employee will not able to provide
assistance in appropriate manner which will influence working in negative manner. It means it is
essential for management of Poundland to ensure that the employee are well trained about online
use.
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Moreover, there are few stages that management of Poundland considers in effective
management of E-CRM. Classification of activities can be as development of customer centric
strategies, redesign of system, re-engineering of process and provide support with technological
use. It is essential for organisation to ensure that the strategies are designed according to
customer needs so that goals can be accomplished in appropriate manner. In addition to this,
management also needs to perform activities that can enhance the customer satisfaction level.
Moreover, E-CRM Model is also beneficial for the organisation because it provides better
opportunity to build relationship with customers (Zandi, 2011). It is consisted of four key factors
that are classified as selection, acquisition, retention and extension. As per the view of Harrigan
(2011), the management needs to decide that to whom they are going to target so that better
value can be provide to objectives. Improper selection of customers can also influence business
in negative manner. Customer acquisition helps in focusing on the right segments and target
them in appropriate manner (Harrigan, 2011). Kimiloglu (2009) has also asserted that
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Illustration 1: E-CRM Model

organisation also needs to focus on activities that can reduce overall most of E-CRM activities. It
is one of key motive of organisation to make customer relationship and service quality to support
it. Company offer value continuously in order to retain online interest and improve customer
relationship. It is also essential to ensure that the channels are selected in appropriate manner to
meet goals (Kimiloglu, 2009). At last, extension means management needs to focus on effective
recognition of customers so that better relationship can be maintained.
CONCLUSION
As per the above statements, it can be concluded that the E-CRM is one of significant
aspect for every business organization. It has been spotted that there are number of factors that
needs to be consider by management of Poundland to maintain strong relationship with
customers. There are different levels of E-CRM that management of Poundland considers for
sustainable development. Such as foundational services, customer centred services and value
added services.
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REFERENCES
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