Online And Offline Business Environment

2193 words (9 pages) Essay

27th Apr 2017 Marketing Reference this

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The online marketing can open 24 hrs and round the year but the offline business quite impossible to open 24/7 offline marketing. Online marketing quite easy to marketing than the offline marketing . Online product can be taken more time to receive the product but offline receive within minutes. In the electronic age, no one beyond the advantage and disadvantage itself so offline and online business have some advantage and disadvantage. In case of market extend, offline business needs more staff and location and need to invest more money. On the other hand, online business effect of proper lack of development of internet infrastructure. Apple is the most valuable company all over the world. Its products more sophisticated, innovative and durable. IPhone and iPad are the most popular product in the present. Apple iPad is a more innovative design which is not changeable from the other hardware company so its value is better than other. According to Amit and Zott (2001), any product or firms can be value created by the efficiency, compelimentries, lock-in the customers and novelty. So the researcher analysis the these element to create the apple iPad value creation.

Section 2: Comparison between online and offline business environment of apple products

Some customers use one channel to do all shopping activities within a product and services and on the other hand some others use different channels at different stages for shipping within a single product category. For example, this type of customer search the information through the internet (online) and buy the product in a retail store (offline store). Customers have displayed complex buying behaviour in the rising multichannel (online and offline) environment, which is including traditional physical stores (offline) and the Internet , (online) (Alba et al., 1997). According to Evans and Wurster (1997) predicted that virtual sellers (online selling) will not replace totally retailer’s store because some market analysts are realizing that the future market will be a mix of channels. Apple Inc. has used online and offline business channels. The problem of the combination of two ( online and offline) sales channels and it is applying a complementary pricing strategy is still an emerging question in the online and offline environment. The researcher is comparing the online and offline business environment of apple products through the marketing mix.

Products/services:

Nelson (2007), has discussed the transaction about the products and services and further discussed about the offline and online business. In the offline business customers can go to the store and choose and touch the product in real and buy the items in the store. But in online products only can see the product catalogue and choose it from the catalogue and buy it without knowing is it the product appears in reality and order it through the website. Customer can see this product when after receiving it. The website is the main source of online product and brand of online company. The buyer should become aware, develop their understanding and be sure to explore for the product before going to buy the product. In the physical world the strategic looking into the company’s detailed online offering. Apple also offers the online and offline store where customers can buy products through the online store and go physically to buy the Apple products in the apple store however Apple use offline store first and then update its online store so researcher can say apple uses mix channel (online and offline) in the simultaneously in present day. Some disadvantage of the online shopping in which breaking the trust between buyer and seller. Some cases report published on newspaper about the product selling on the internet such as online selling website, there was found some unethical activities of some people sell different, similar but low quality product send to the purchaser.

Price :

Price information available online, metering pricing, dynamic, customization and customer participating. The majority of commercial site functions as price lists of the company’s physical product variety. Moreover that, the Web site is supposed by the online display and customer as a cost factor due to opportunity cost and connectivity cost, transaction costs and time. Even though these costs will be in for the most part cases lower than the cost of performing these activities physically, the customer will compare these with the cost of finding other online competitors and doing business with them. Apple products generally same cost of offline and online purchasing however some cases, buying through the online need to pay shipping cost too.

Place:

Huizingh (1999) cited on Efthymios C. (2002)suggested that online business business emphasis to the customer retention, customer service strategic internet applications model and relationship of marketing whereas collective needs insertion much more differentiate. According to Lawrence E., et. al (1999), described that a customer changes their behaviour according to time and new generations, and shifting their behaviour pattern collective to individuals. This statement provides the researcher a key thing to shifting behaviour pattern of customer take place offline business to online business. However traditional marketing concept is not compatible in the present e-business/commerce concept and growing present e-business/commerce article’s emphasis more about the online transaction and online marketplace, real time processing of orders, Online order, online payment, involvement of other partner and online distribution product.

Promotion :

According to Aman. , et al (2010), The promotion refers to creating and understanding advertising for users to know about the products and services. Efthymios C. (2002)., Internet, in the business environment, is the major factor for attracting and retaining of the online customer. Traditionally developed strategies making them rapidly out of date, Oliver R.W., (2000). The product promotion through the online selling/marketing turns out to be a better than the offline selling. The online selling or marketing is more cost-effective than the offline marketing and online marketing is also faster than the offline marketing/ selling to a customer. According to Efthymios C. (2002)., the Web site is the online marketing medium as well as the promotional content. The web site is the main content for the online business environment of the any of the company. Promotions or good deals specifically for iPad or iPhone is not approved. Apple is not selling their product like the iPhone or iPad for promotional use nor offer has written consent for any company to give it away. Apple is using for sales promotion guarantees for money back, lower purchase price rate and return policy etc. The Apple stores are looking different and remarkable than the many other electronic stores because Apple exhibit all of its products for customers to understand practically. The apple major sales promotion surfing the web on any of their products like computers iPad, and iPhone etc.. Apple provides in hand-on in the stores in which the customers familiar with the Apple products in practical.

Section 3: How Value Creation Of Apple iPad

“The performance of actions that increase the worth of goods, services or even a business. Many business operators now focus on value creation both in the context of creating better value for customers purchasing its products and services, as well as for shareholders in the business who want to see their stake to appreciate in value.” Businessdictionary.com

Amit and Zott’s model of the sources of value creation in e-business technology. They discuss about the four dimensions of value creation in which efficiency, complementaries, locks-in and novelty which are given in the below in the figure.

C:UsersTaraDesktopvalue crating.jpg

Sources : Value Creation in E-Business

How to create value through the e-business of apple iPad

Amit and Zott’s (2001)business model based on the e-business. This model particularly used in the firm but it can be extent firm boundaries. This model includes all the representative and outside the industry who does not involve the company because of the open networks based internet infrastructure of a particular transaction. Furthermore, virtual markets offer possibilities to expand products and services to integrate complementary products and enhance access to the resources and potentialities , cooperation of innovative forms can be the value created effectively. Amit and Zott’s identified the four dimensions of value creation in which efficiency, complementaries, lock-in and novelty.

Amit and Zott(2001) has shown many ways in which customer preservation can be superior, and firms provide loyalty programs and rewarding regular customers with particular bonus systems, and firms can develop a leading design according to its trademarks from business planning and trustful relationships build up to customers. According to Canada, A.(2012), Apple created the desirable offering and features to create customer lock-in and switching costs. Apple Apple iPad is also a new leading design device which has strong positive perception of the customers and through the e_business iPad locks its customers in its innovative design and function. Furthermore, e-business make possible to increase lock-in the customers through the modify products, services and according to the interest of the customers’ needs. Apple has locked their customers into its expanding ecosystem of products and services, as well as its content, (Canada, A. (2012).

According to Amit and Zott (2001) suggests that in e-business is the high potential power for value creation, offering the package of complementary services to the customers. Apple creates its the ecosystem in which Apple iPad sales with free apps which access with other Apple devices. However apple do not sale their product in bundles. According to (Canada, A. (2012), generally iPhone and iPad users benefit from ecosystem integration of Apple devices like iPod, Apple TV, and the Mac PC. and Icloud allows clients to effortlessly share media between the devices. Apple TV’s Airplay permits music and videos from the iPhone or iPad to be easily shared over WiFi. This service creates the value of Apple products also however, the Apple does not sell their product at bundle price and sells in separately.

In the e-business, efficiency can be increased value of the products and services. According to AppleInsider Staff (2011), many hardware companies struggle to compete with the iPad in terms of sales and innovative design, they cannot match with apple’s iPad design efficiency so the Apple still sells its iPad in lower price into the market. E-business provide the cuts in cost transactions which gains the greater efficiency of lower cost transactions and make the product valuable. However Apple iPad is struggling with a google table in terms of price.

Amit and Zott(2001) explain about the novelty. Innovation is broadly advertised as the key to long-term economic prosperity,and concerns have been raised as investing enough in innovation to drive future growth (Hamm 2009). Novelty dimension, through which value can be created, is to connect previously unconnected parties. Apple does the business it online and offline stores and it is not doing the business unconnected third parties. If Apple does the business with unconnected parities its value should be increased. E-businesses can be innovated in the method they are doing business in structuring transactions. For example, eBay set up customer-to-customer sale structure in which customer sales and buys their product on a large scale, and many unconnected firms create their value using the new innovative transaction systems and can enter the new markets through the e-business.

Innovation is broadly advertised as the key to long-term economic prosperity,and concerns have been raised as investing enough in innovation to drive future growth (Hamm 2009).

Conclusion and recommendations

Apple should do their business with unconnected parities and create the value. For example, is one of the new company which given a new translation platform which is given a customer to customer buying and selling product, researcher has believed that if Apple iPad go to sell in a new transaction or unconnected parts, its value would be better than now.

Apple does not sell their product at a bundle price according to Amit and Zott (2001), e-business is the great platform to sell the product. If the product sells in bundles or in package it can be create the value of the product so apple should be used for more value creation of Apple iPad and other products.

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