International Business the Digital Landscape

Question 1

Online shopping has been on the rise for the last five years, and in a streak, many online stores have been mushrooming and embracing high tech techniques in their marketing as well as service delivery to their customers. It is evident that in one way or the other, the online shops may outdo the high street store, but ultimately, the high street shops may not be completely being beaten by the online stores.

The society is digitalizing rapidly, and everything in socio-economic aspects receives constant changes. The traditional way of doing things is far much gone, and people rely on technological solutions for their day to day activities.  The online shopping phenomenon is just overwhelming as compared to the physical stores represented by high street stores in this case (Fox Business, 2017). The shops receive unfavorable competitions, but they cannot end. Instead, they can amend their way of doing business and embrace technology that is on the rise to be able to cope with the current environment in a business that poses all the normal conditions in business as literal odds that are against them.

Online shops have gained undebatable popularity in the market that makes everyone have a dream to shop online and receive the incentive and amazing offers, their marketing strategies and how they present services is far much modernized (Fox Business). Services such as customer satisfaction, free shipping, frequent promotional products, and product reviews are some of the features that make online shops outstanding in shopping. This way, it is very obvious that the online shops will be taking over from the physical shops.

Online stores are increasing rapidly as many people opt to shop with them, a phenomenon instigated by the impeccable services in sales offered by the online stores. For both producers and consumers, it is somehow difficult to see how detrimental the rise of online shopping would be to them. A notable reason for online shopping is that, according to consumers, online shopping is more comprehensive in terms of experience. One has to shop around and identify the best prices and even the best commodities.

As much as the physical high street shops are on the decline, there are inevitable services that hold them back from either being eradicated of adopting digitalization. Services like bookshops and coffee houses are more common and need to retain their status in the market. In this case of observation, online shops can or will never completely take the position of high street shops; however much they may be declining. There are constant services and goods that cannot be incorporated into online shopping. These services will be maximized by high street shops, which will give them a reason to stay in business rather than walking out of it due to unfavorable competition in terms of technology and digitalization.

Not everyone is satisfied with online shopping. Similarly, some individuals do not see online shopping worth a trial; therefore, they may be obsessed with physical shops and purpose to be rigid on online shopping (Banks, 2004). However, these numbers are very few because the current rate in society digitalization is high, giving online shops an upper hand.

There are services that a contemporary comparison will term then as convenient as introduced by online shopping. With the introduction of online streaming services such as YouTube and Netflix, which are highly convenient to the user will see most of the physical movie stores shut because the odd for these online solutions have a higher probability of being chosen against the other high street stores. Another ideal example is online gaming, which is quickly replacing the bookmakers. They are increasing rapidly; hence there will be no room for the physical gaming shops.

The online shopping phenomenon is unbeatable, but it will not completely replace the high street shops because of the nature of some services that do not conform to online shopping and general convenience. Online shopping will not have a large stake in the market acquisition, therefore.

Question 2

As technology continues to overwhelm the societal modes of action, many custom affairs in the society have been disrupted by sophistication in the socio-economic dimension. The economic setup has been disrupted as well as commerce (Birtwistle et al., 2005). Many of the activities in business have been digitalized. Nevertheless, the versatile environment has instigated dichotomy in an inclusive business environment, which means that business upholds different models while conducting their activities. Furthermore, the models are meant for business strategy. The models include brick & click, Brick, Click, and Brick and click models that have distinct operational paradigms.

The dynamics in the current commerce sector no longer incorporated brick vs. click; instead, it is brick and clicks versus brick and clicks. As far as they try to remain competitive, they have a similarity of attempting to offer their customers the lowest prices and best services ever in the face of technological digital advances. The models in commerce will be discussed below.

Bricks

Bricks, sometimes referred to as brick & mortar, refers to the more traditional street-side firms that offer customers services directly or face to face with more physical entities, which includes offices and stores which are owned by the business or rented. Brick and mortar stores have more advantages because consumers are able to find out more substantive information from the employees, unlike the online stores which have less information, and most of the time is fixed in FAQs, which are not flexible in responding to emerging issues about products. Although brick models in business have a close interaction with the customers, the ever-changing business environment poses a challenge to brick and mortar models in that poor technology implementation makes them behind the whole game. Most consumers are wary of their credit card in physical shops than online stores with the rise in money laundering and credit card fraud (Ko & Roztocki, 2009). Most of the people may find it easy to transact freely with their credit cards at physical shops than online shops.

The U.S census bureau released retail sales figures on a monthly basis and retail e-commerce figures on a quarterly basis. In 2018, retail for general merchandise totaled over $ 714 billion compared to non-store retailing, which happens beyond the traditional mortar and brick stores totaled to almost $679 billion, which is relatively lower, but the deviation is not wide (Sharma & Krishnan, 2002). The brick model for business finds it difficult to compete with online stores because the latter is far much grounded in high-level strategies in retail.

Clicks

Clicks represent a business model that has an online basis only; in that, they do not have any physical shops or representation apart from the basic structures to accommodate officers executing a trade. These kinds of stores have their activities restricted to the web and have no relationship with their customers apart from the online experience, which might not fully satisfy the consumers (Gulati & Garino, 2000). The main advantage of this model is that are no extra costs in running the business premises because the space needed and small costs are very little compared to the brick model.

Clicks & Bricks model

Clicks and Bricks refer to a business model whereby business (online) have both offline and online stores, or with a physical location integrated into a single retail strategy. In this way, there is a distinction between the choice of retailers accessing and interacting with their customers in the traditional way and in the modern period (Kernaghan & Berardi, 2001). The business continues to grow as they apply various strategies in engaging with their customers as well as maximizing their sales and income as well.

In the bricks and clicks model, there are online commerce activities that are helped by the existence of permanent physical locations of these stores to ensure that there are high customer experience and interaction. The sellers who embrace this model are more likely to have a higher number of customers compared to those who have single-stream models.

Clicks and bricks model introduces the phenomenon of complementation as the online stores are complemented by the physical locations that encourage the sellers and the buyers to interact in a more elaborate manner. An analysis of the stock market collapse in 2000 suggests that business models that rely on both clicks and bricks, both internet and physical presences may be most successful (Browne, Durett & Wetherbe, 2004). Additionally, Prasarnphanich & Gillenson (2003) say that internet business problems include the need to structure internal and external business processes to serve the customers more appropriately, the need to provide adequate technological and physical infrastructures, and need to understand customer consumption processes in both physical and ‘virtual’ environments.

Brick and Click

Brick and click refer to a model whereby there exists a physical entity of the business with an online aspect of it as a supplement. In the business context, this kind of model has physical shops as their main aim but try to integrate online aspects to make the strategy on top. This model receives results as the click and brick, but they are more into getting higher outcomes.

The business models are both in the contemporary business world where competition is stiff, and the odds that are against a given model are very direct and clear (Kacen, Hess, & Chiang, 2013). Brick and click in particular is more sustainable because it incorporates the traditional way of conducting business as well as integrating Hi-Tech features in their business strategy, which makes it more sustainable. Most of the reasons as to why one cannot shop online are eradicated by this model. According to Griffiths & Howard (2008), the current business environment poses a challenge to the traditional models that which, in any case, there are cases of technology and digitalization are introduced, the sales maximize in turn.

Question 3

Omnichannel retailing refers to an approach to sales which seeks to provide customers with seamless shopping regardless of the shopping store, either online, on the phone, desktop, telephone or mortar and brick stores (Verhoef, Kannan & Inman, 2015). Omnichannel retailing is grounded much on multiple methods or distributing and marketing products such as mobile apps, online stores, websites, web chat, and social media.

Omnichannel commerce combines both online and physical retailing in one common place of ensuring there is effectiveness in marketing. Omnichannel marketing is an approach whereby customers are provided with a seamless and integrated shopping experience, which is sustained throughout the channels (Beck & Rygl, 2015). The customers get relevant information that is customized through different media. There are several means through which the information is conveyed. Similarly, the business firms use their inventory information to be able to come up with seamless content that is customized to suit the customers. Some of the criteria used include; economic class of the people, demographic information, and previous shopping experience, among others. In a highly competitive era, omnichannel commerce is an ideal marketing strategy (Brynjolfsson & Rahman, 2013)

Businesses can take advantage of omnichannel commerce by engaging with their customers using the diverse touchpoints availed by the ever-advancing technology and the entire society, which keeps on digitalizing (Hübner, Holzapfel & Kuhn, 2016). The main advantage of omnichannel commerce is that customers are provided with a seamless user experience that improves customer loyalty. Omnichannel retailing mostly has the on standing the fact that the information should not be distorted, misappropriated, or lost regardless of the medium chosen and that which is available to customers.

Businesses can take advantage of this phenomenon and exploit it as they conduct their day to day activities in business. Digital collaboration between departments of an organization is a notable activity and design that be upheld in taking advantage of omnichannel marketing and retailing. Various departments in an organization play different roles, and in one way or the other, they are responsible for dealing with clients. As a result, they have something to offer in improving the strategy of providing seamless user experience to promote their business.

The mobile effect is very significant due to the rise in smartphones, which will be replacing computers within a short span of time in the future. Resultantly, there are possible suggestions for businesses to take part in mobile optimization, as 60% of internet traffic is accounted for by mobile phones (Galipoglu et al., 2018). An organization that will accrue more information a6 the consumer’s fingertips will have more opportunities in attracting and retaining the customers.

Channel switching is very basic to improving sales and seamless customer experience. Recent research conducted revealed that 67% of people who purchase items either online or offline use more than ten sources in making a purchase decision (Seibt et al., 2008). Therefore, having diversified channels will earn a business more opportunities in getting customers as well as retaining them (Frazer & Stiehler, 2014).

Question 4

Online travel services have become popular on the internet through advanced systems of bringing seamless content to consumers as well as social media (Hüseyinoğlu, Galipoğlu & Kotzab, 2017). These services are very popular and have been common because of the characteristic marketing activities associated with them. Many of the people who try to search or have ever used these services may receive invites and even have advertisements at the disposal of their phones because of the omnichannel concept that businesses embrace (Frazer & Stiehler, 2014).

Secondly, websites provide free travel information as a marketing strategy. The information provided online has really transformed how people choose their flights as well as hotel bookings. This information on travel comes simultaneously with a company’s offers, sometimes offering one-tap booking options online. Instead of one going to the agents, they prefer to get the services online (Munar & Jacobsen, 2013).

The reason why online travel services have become popular is that there is more information provided through mobiles and computers, which have enticing offers leading to an increased usage of these services, which can also be referred to an as a sophisticated strategy that is mentioned by Rey-Moreno & Medina-Molina (2016).

Question 5

Digitizable products, either physically or digitally, have had almost similar popularity because the notion of online dreaming and fantasy is no longer the case to date. Digital products refer to those whose experience if facilitated by digital tools such as the internet and mobile gadgets such as phones, just to mention a few. Digital products are more common nowadays and sometimes can be transformed into physical ones. On the other hand, physical products refer to that can be shopped either online or offline but are physical. Selling digital goods is associated with wide range advantages, including infinite stock, a wide range of customers, immediate access, no postage charges. On the other hand, physical goods have advantages which include convenience and satisfaction. The advantages that online or digital goods provide derive the disadvantages of physical goods which require more space, time and more capital to start.

References

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