Mr. Ali is running a retail store business for the past 10 years. His retail sto

Question

Mr. Ali is running a retail store business for the past 10 years. His retail store business was thriving with full boom and he was earning a lot of profit. In recent times, many other retail stores have joined the competition and are leaving his company behind. To solve this problem on urgent basis, Mr. All hired the services of a consultant to identify the areas where his business was lacking as compared to his competitors. The consultant found that Mr. Ali's competitors were applying various new concepts of E-Commerce in their businesses and strongly recommended that Mr. All should do the same by first launching a website for the retail store on immediate basis. Keeping in mind that by using E-Commerce, a growing number of companies are gaining competitive advantage, you are required to discuss what specific advantages will be acquired by Mr. All by launching a new website and applying other measures related to E-Commerce?

Explanation / Answer

Mr. Ali can gain the following advantages compared to other competitors:

1) Old is Gold. Since, Mr. Ali managed the store since 10 yrs, he already might have some loyal customers. By seeing the progress of Mr. Ali going online, the customers would really feel happy to do shopping without any second thought through his website, as they already have faith in his store which has been serving them since 10 long years.

2) Mr. Ali has to advertise his new website by displaying it on e-boards, TV adds, etc.

3) He can increase the customer base by giving them free home delivery for a minimum purchase of some amount that covers all the expenses and provides him a good profit.

4) He can advertise the latest products more efficiently with full explanation of its specification on his website. Thus, he need not explain each and every customer the features of the product.

5) By the introduction of paypal, the customer can directly tranfer the amount to Mr. Ali's account through a trusted third party. They need not pay him in cash which is very dangerous as burglaries are common these days. Neither Mr. Ali needs to pay them any change.

6) The maintenance and tracking of inventory/stock gets easy.

7) As customers these days look for good deals. The display of daily super saver deals on the website can be attracting a lot of new customers.

8) The demand for any product can be noticed easily online with the help of the hit count.

9) The handling of a number of customers becomes easy without the need for expansion of the store or the employment of new sales persons as everything goes online.

10) The website earns him the eco friendly stature and the maintenance is negligible when comapred to the store.

Hence, lot of advantages can be gained by going online. The evolution of an online shopping website will definitely gain him an upper hand over the other competitors.

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