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Friday, 15 March 2013

Analysis of Tesco & Amazon


Conclusion

From my research that I have obtained, I think that both Tesco & Amazon are eager to prosper in the technology department of today’s business world, but getting there is not going to be easy. I feel that Tesco are coming up with extremely good ideas for future development and are always looking for new features and qualities to add to their ever growing company. Also I consider Amazon to be a major threat to all e-commerce companies online and thus conclude my comparison of both businesses.

 Bibliography

Monday, 18 February 2013

The pressures of three businesses developing themselves online

Types of businesses that can be run through the Internet and the World Wide Web
 
The three types of businesses that I am going to focus on are Retail and Auction, Recruitment - Recruitment services and Leisure - Gambling.

Retail and Auction

There are plenty of websites that come under this category such as Amazon, E-bay, Bidtopia, Bidville, eCRATER etc. The one I am going to focus on is Amazon.

I believe that Amazon is the best online retail and auction site currently in today's world.

Have a look at how Amazon have been successful by clicking on the link below




The pressures that Amazon face are explained below

Competence: The e-commerce field has evolved rapidly and it is highly competitive, companies such as EBay is a constant danger to the company.

Inventory: In order to meet delivering times, amazon.com has to maintain an important inventory; this could be risky due to the fact that demand of products is constantly changing.

Performance: The company has to demonstrate and justify the high value that others have given to into the financial market.

Lack of confidence: From individuals to buy online, countries where use of internet is not as common as in developed countries, consumers may present a lack of confidence to process their bank details online, for example, in most of South American countries, EBay present serious problems with customer payments due to the fact that in various countries, there is no regulation for online payments (Individuals do not trust sells online).
 
 

Recruitment – Recruitment services

There are plenty of websites that come under this category such as totaljobs, jobsite, monster, jobserve, reed, jobsguardian etc.
 
If you want to look at the ten best recruitment sites that I think are the best then click on the link below



http://www.topsite.com/best/recruitment


I am focusing on monster.co.uk which has pioneered the nation people get more out of work by showing them that a better job was out there.

The main focus of monster is too base it online so that everyone has easy access to the website. For monster this is the best way to get people to use their company by having a website online. Their organisation's lifeblood is their customers. Without them, there is no monster.co.uk. They measure their satisfaction and loyality and treat their customers as though their lives depended on them.

A link to Monster.co.uk - http://www.monster.co.uk/

Monster innovate relentessly - As a technology- enabled enterprise, they must drive innovation in order to grow and to prevent others from copying our success. To that end, they will question the status quo, they will think big and will innovate through the lens of our customers and consumers. And they will be relentless in execution to make innovative thinking a reality.

The pressures that face monster are listed below

They realise that to grow by offering innovative services to the largest possible number and variety of consumers across the world, they must be representative of the greatest possible range of needs, cultures, desires and values.

The amount of competitors that could be a threat to monster are, in my opinion, increasing day by day, only because I believe that more and more companies want to rectruit extra staff for example, so recruitment, for me, is one of the biggest markets online in the world. Hence the huge competition of other recruitment companies.



Leisure - Gambling

There are many websites dedicated to betting such as Ladbrokes, Coral, Bet365, Betfred, William Hill, Betfair, Paddypower, Skybet etc. I am going to focus on the development of the website Ladbrokes and how it has used advertising to widen its customer base and to increase customer satisfaction.

I personally believe that betting in shops/online is increasing in today's world as more and more betting websites are being created and coming up with new ideas to get people to use their site. For example, Ladbrokes use an advert on the TV which involves the sky sports presenter Chris Kamara (Kammy) and a crazy Italian football commentator called Tiziano Crudeli when this happens, click on the link to find out if you haven't seen it already!

http://www.youtube.com/watch?v=HmdigLFduDk

Ladbrokes is the most recognised betting brand in the UK. They have begun the process of evolving the brand to make it more exciting, placing customer experience and insight right the heart of their offer.

 
Betting and gaming online or increasingly on mobile continues to grow. Ladbrokes are making good progress in acquiring and developing improved technology, expanding their range of Digital products and delivering a more compelling and competitive offer to their potential customers.
 
 
Ladbrokes net revenue is strong and is continually growing. 33% digital sportsbook using mobile increased from 12%.

The gambling act in 2005, saw betting shop opening hours extended to between 7am and 10pm accompanied by the removal of restrictions on radio and television advertising. But within weeks, Ladbrokes launched a £5 million national TV advertising campaign: a 'first' for the company and for the bookmaking fraternity.

I think that Ladbrokes have developed themselves on the internet extremely well with the amount of competition they have received from other online betting shops. They have been under some pressure from other competitors such William Hill, Bet365 etc and to counteract this pressure they have made the following changes.

Further growth in machines from; Yield managment, tailoring games and product to the local demand. OddsOn to be extended onto machines in H2 to personalise the experience. New and exclusive content from multiple suppliers. Robust cost control and a renewed focus on local market competitiveness. Innovating customer experience at a lower cost per shop.

Also Ladbrokes have aimed for the following changes to try and stop the pressure from other competitors.

New improved Sportsbook launch scheduled for Q2. Further improvements in Sportsbook and wider gaming business in place for 2012. Growing Mobile further in 2012. Additional games in 2012 on mobile and tablet. More apps including bingo and Euro 2012. Agreements with Realistic and Probability to expand range of mobile gaming products. Agreement with SkyIQ to improve customer relationship management. New mobile platform on track for Q2 to optimise customer experience.

Ladbrokes retail estate, including the UK, Ireland, Belgium and Spain, encompasses 2,700 outlets, while Labrokes.com, with 800,000 active clients, offers betting on 13 tailored sites in nine different languages; supporting 17 currencies.

Monday, 4 February 2013

Study of Amazon



History of Amazon

Amazon.com was Incorporated in 1994. Sells first book in 1995. Launches its Associates program in 1996. Becomes publically listed company & Introduces 1-Click Shopping in 1997. Amazon Acquires iMBd.com, begins Selling Music, launches Amazon UK and Amazon Germany & begins selling movies in 1998.

Begins Selling Electronics, Toys, and Games & begins selling Software, Video Games and Gifts in 1999. Opens Camera and Photo Store & launches Amazon Marketplace in 2000. Introduces "Look Inside the Book" function in 2001.

Launched the Kindle in 2007. Introduced the Kindle 2 in 2009. Launches 'Price Check by Amazon' in 2010. Launches Amazon App Store for Android, John Locke becomes the first independent million selling author on Kindle & kindle Fire and the Kindle Touch was announced in 2011.


 Challenges that Amazon faced in the early years


Profound challenges have faced Amazon. Profits are stagnating, competition is blooming, and even people who are optimistic about Amazon are concerned about downward pressure on prices. Analysts, while crediting the company with growing from a money-losing electronic bookstore into a proiftable online mall with international reach, caution that the pressure on Amazon's profits shows no sign of letting up.

The major competitor of Amazon is EBay.

These are some other competitors:
Netflix
eMusic
Elastra
Inspire My Design Ltd

P.E.S.T Analysis on Amazon

Political
International policies: In particular countries these may interfere with the expected growth of the company.

Economical
Currency fluctuations: In various countries where currencies are highly devaluated in comparison with the dollar, it may bring additional costs to the company.
Economical tendencies: In most cases, individuals rather buy in their neighbourhood stores, than going online. Customers prefer doing the regular commercial process of going to the store, paying the product and getting it instantly than going online, processing their bank details and waiting for several days to obtain the item.

Social
Ethical and religious factors: In some cultures Internet use is not allowed due to the fact that at some point contents may damage their cultural, ethical and social believes.

Technological
Amazon.com is a company highly involved into the technologically field, and its success has been well achieved over the past six years, although many challenges face Amazon in the fast paced environment of the Internet hence, amazon.com has to face this challenge, finding innovative ways to stay ahead of their competitors.

SWOT Analysis - Strength, Weakness, Threat and Opportunities of Amazon

Strengths


Brand recognition: Amazon.com is very well-known.
The business model
Diversification: Have varied the products they sell
Business evolution: Amazon.com has continually reinvented their services, increasing their value.

Weaknesses

Strategies based on low prices attract more customers.
Growth.
Offering free delivery is expensive.

Opportunities

Pre-ordering: Increasing pre-ordering of products is a great business.
Various providers
Web services
Expand the brand to international markets.

Threats

Competence: The e-commerce field has evolved rapidly and it is highly competitive, companies such as EBay, Wal-Mart and Google are a constant danger to the company.
Inventory: Demand of products is constantly changing.

 Growth Strategies and the future plans for Amazon

Amazon has redefined e-commerce. Amazon makes everyone else look irrelevant, including giants like Walmart. Amazon also re-invented books with the Kindle, and you could argue they re-invented the Internet by introducing all sorts of cloud computing and cloud storage services.
Amazon brought in $57 billion in sales with operating income of $531 million.
Amazon’s profit margin is next to zero, and seemingly has way more upside (as they scale) compared to Apple. After all, Apple could face pressure from the onslaught of Android devices and from Amazon’s own Kindle Fire platform.
It is in their interests to quietly destroy the profitability of mobile computing hardware, harming their competitors (such as Apple) while building up their profits where others have a hard time competing.
Amazon.com has innovated along the years reaching highest levels of customer satisfaction which can assure their position into the market for future years.

Study of Tesco



Comparing two existing online businesses
For this assignment I will compare and contrast two online businesses, the businesses I have chosen are Tesco & Amazon.

History of Tesco

Jack Cohen began selling surplus groceries from a stall in the East End of London in 1919. The first own-brand product sold by Jack was Tesco Tea - before the company was called Tesco. The name comes from the initials of TE Stockwell, who was a partner in the firm of tea suppliers, and CO from Jack's surname. In the 1930s Jack Cohen grew the business by buying stores in the expanding London suburbs.

Computers for Schools was launched in 1992. The Every Little Helps strap line was launched in 1993. The first two Tesco Express stores opened in London in 1994. The Tesco Clubcard was launched and with the introduction of Clubcard, Tesco overtook Sainsbury's in market share in 1995.

Tesco.com, launched in 2000, has grown to serve over 500,000 customers weekly. A new 'Every Little Helps' campaign was launched in 2004. Tesco Direct, their catalogue business, launched in 2006. A new Clubcard app launched in the UK in 2010. Tesco launched the new Everyday Value range to replace Tesco Value in 2012.

Number of stores - 3,054 
Revenue for 2011/12 - £42,248m
Current share price – 360.55p


Challenges that Tesco faced in the early years

The following companies are the major competitors of Tesco PLC:

ASDA
ALDI
John Lewis
Marks and Spencer
Morrison’s
Sainsbury

These are all competitors of Tesco and have all been battling with Tesco in order to survive and show that they have to be taken seriously.

P.E.S.T Analysis on Tesco

Political

Politically, the recession is currently affecting all the countries which may lead to higher numbers of unemployment. As one of the fastest growing retailers more jobs will be available with Tesco therefore helping to reduce unemployment.

Economical

One of Tesco’s competitive advantages at present relates to their overwhelming physical presence, but there are issues about Tesco driving out the competition from other retailers.
The situation is in no way being assisted by the ever expanding chains of store.
Under EU law, there is presumption that an organisation with a large market share is dominant. The concerns with this are that quality of products and services will slip and there is a risk of paying higher prices.
Tesco to date has not been assessed as posing a risk of exploitation but should bear this in mind.

Social

This involves lifestyle trends, demographics consumer attitudes and opinions, consumer buying patterns major events and influences buying access and trends in the case of Tesco considerations such as the increase in immigration of Eastern Europeans or increase in young professionals.
Naturally there is therefore a demand for new goods for example; the career minded professional who is a single person.

Technological

Technological factors which have perhaps had the most impact on Tesco have been the growth in the use of the internet. Internet has given new shape to new day shopping.
They have capitalised on the use of online shopping forum Tesco direct and provide a delivery service through their website at www.Tesco.com which has aided the company to cater to a larger segment of people.
Tesco are also instrumental as a retailer in supporting carbon reductions and have created a £100 million Sustainable Technology Fund for this purpose.

SWOT Analysis - Strength, Weakness, Threat and Opportunities of Tesco

 

Strengths

One of the largest and renowned grocery retailers.
Diversified into different countries with about 1 million workforces from different backgrounds.
Won several retail awards for keeping up their standards and providing best retails services.
Continuously expanding with propositions of opening several stores on an international level.
Use its own-brand products, including the upmarket "Finest", mid-range Tesco brand and low-price "Value".
Offer loyalty card schemes to customers.

Weaknesses

Due to the current economic conditions Tesco may suffer from the rising cost of living and lower incomes available to the public resulting in less demand for the non essential and mid to high priced items.
Due to the ongoing recession Tesco’s Finance profit levels were impacted through bad debt, credit card arrears and household insurance claims. This could continue if the market doesn’t see change soon.
Retained its position as a price leader in UK markets.


Opportunities

The third largest global grocer which indicates a level of buying power to ensure mainstream economies of scale.
Tesco Direct has been one of the recent achievements which have been seen as one of the important tools in increasing the sales margins.
The online and catalogue shopping will grow the use of technology.
Tesco mobile have grown ¼ million customers in 2008 and moved into profitable status suggesting further growth and development within this technological area can be developed.

Threats

Loss of employment and lower income available will impact and strategic focus may need to change to lower priced basic products with less focus on higher priced brands and luxury products suggesting a change in pricing structure due to the recession.
Rising raw material costs from both food and non food will impact profit margins.
Has always feared the threat of takeover from the market leader Wal-Mart who has both means and motive to pursue such action. With its alliance with ASDA in the UK they are one of the nearest competitors.

Growth Strategies and the future plans for Tesco

To be the most successful international retailer.
Tesco has products that will be suitable for different geographical areas, population or age.
Tesco has a well-established and consistent strategy for growth.
Tesco aim to be as strong in non-food as in food.
Tesco emphasis on providing value services and to earn life time loyalty.
Have close connections with charitable organizations like cancer research, race for life etc.
The expansion of Tesco relies on retaining existing customers and acquiring new ones.
Tesco's structured approach to training and developing its existing and new employees provides a strong foundation for its continuing growth.

Wednesday, 30 January 2013

Advantages/Disadvantages and potential problems of technologies


Benefits and problems with different types of technologies

Wi-Fi

Advantages:

Allows flexible computing, is a low cost of implementation and is efficient.

One of the most obvious advantages of Wi-Fi is the flexibility that it offers. Everyone can just meet in a conference room, connect to the wireless network and get productive.

Wireless networks, of course, do not require network wiring. It is also easier and less expensive to grow a wireless network.

Ad hoc networking, a function of wireless networking, allows the construction and deconstruction of a network within a few minutes. This ability to quickly connect allows for collaboration, which would be difficult to achieve without Wi-Fi technology. Students working on projects, engineers constructing buildings or health professionals saving lives all can connect and collaborate quickly and efficiently using Wi-Fi technology.

Disadvantages:

Has weak security, interference occurs and there can be a limited range.

One big disadvantage of Wi-Fi involves security. By definition, free Wi-Fi hotspots are not secured. These open networks attract hackers who are broadcasting their own network id, very similar to that of the particular establishment. Many times customers connect to the hacker's network ID and become victims of identity theft. Wireless network can be secured for homes and offices, but it does take some work and some expertise, but you should never conduct confidential business on a free Wi-Fi network.

Wi-Fi operates in the 2.4GHz frequency, along with cordless phones, microwaves and even baby monitors. Many times these devices interfere with the wireless signal and cause problems with the network. The actual damage may be noticed immediately with degraded network performance or much later when you discover that a file has been corrupted.

Wi-Fi networks have limited range, especially in buildings. In an office building or home the signal has a range of about a hundred and fifty feet. Outside, where there are no walls, the signal may travel as far as several hundred feet. You must place the wireless access point in a location that is central so that all computers can attach to the network.


3 and 4G

Advantages of 3G:

High bandwidth, the measure of transmission capacity, is one of the selling points of 3G. This allows you quick and easy access to all of your favourite on-line multimedia and Internet tools, just like you were at home on a computer. You can pay your bills, book dinner reservations, update social networking pages and check e-mails, all on-the-go. While the maximum bandwidth for a stationary 3G device, according to Silicon Press, is 2.05 megabytes (MB), when you are moving slowly (such as walking), this drops to 384 kilobytes (KB). When you and your device are moving at high speeds (such as in a car), the maximum bandwidth drops to 128 KB. However, Silicon Press notes that this is still 10 times faster than the maximum bandwidth of moving 2G devices.

Another advantage of 3G technology is that is can utilise packet-based Internet protocol connectivity. This means your mobile device will always be on-line and ready for Internet access. However, you will not actually pay for the connection until you start sending or receiving data packets, such as sending an e-mail or looking a a webpage. Some 3G devices are also designed to automatically pick up the closest, free-to-access WI-FI signals, in which case, you won't have to pay anything for the Internet. 

Advantages of 4G:

The most obvious advantage of the 4G mobile network is its amazing speed. Increased bandwidth leads to much faster data transfer speed, which is especially advantageous for mobile devices. Users of the 4G network get the advantage of superior, uninterrupted connectivity, especially for advanced tasks such as video chats and conferences. Considering the younger generation of mobile device users, they can stream music, videos and movies at a much faster rate than ever before and can also easily share information on-line.
4G networks offer much more coverage than other systems such as WI-FI, which forces users to depend upon hotspots in each area you visit. Since 4G offers a coverage of 30 miles and more, as also overlapping network ranges, users would be assured of complete connectivity at all times.

One of the biggest problems with WiFi networks is that of on-line security. This is especially true for mobile devices. 4G networks offer complete privacy, security and safety. This is especially beneficial for corporate establishments and business persons, who hold sensitive information on their respective mobile devices.

4G networks are quite affordable these days, what with pricing schemes being considerably slashed to fit users’ budgets. Of course, this type of connectivity is more expensive than traditional WiFi networks, but it also has a lot more advantages to offer to users.

Disadvantages of 3G:

To support 3G technology, updates needs to be made to the current cellular infrastructure. According to 3G Internet, this means installing new 3G equipment at, ideally, every current cellular base station and acquiring new frequencies for 3G transmissions. Both of these undertakings are extremely expensive and could take a long time to complete fully. In addition, in order to utilise all of the features 3G technology has to offer, customers must purchase 3G-compatible handsets, which are generally more expensive than their 2G counterparts.

In addition to being more expensive, 3G handsets also require more power than most 2G models. According to Silcon Press, this extra power requirement can translate to larger batteries, shortage usage periods between recharging and more bulky handsets overall.

Disadvantages of 4G:


Though the concept of 4G mobile networks is steadily gaining popularity, connectivity is still limited to certain specified carriers and regions. Of course, the number of cities that have 4G coverage is increasing by the day. However, it would take its own time for this network to be available in all the major cities of the world.

Though the hardware compatible with 4G networks is available at much cheaper rates today than earlier, the fact remains that this new equipment would necessarily have to be installed in order to supply these services. This would prove to be a cumbersome process for most mobile carries planning to launch these services.

Since 4G mobile technology is still fairly new, it will most likely have its initial glitches and bugs, which could be quite annoying for the user. Needless to say, these teething troubles would be sorted out in due course of time, as well as with increase in network coverage.

4G mobile networks use multiple antennae and transmitters and hence, users would experience much poorer battery life on their mobile devices, while on this network. This would mean that they would have to use larger mobile devices with more battery power, in order to be able to stay on-line for longer periods of time.

Users would be forced to make do with 3G or Wi-Fi connectivity in the areas that do not yet have 4G mobile network coverage. While this is a problem in itself, the worse issue is that they would still have to pay the same amount as specified by the 4G network plan. This loophole has already resulted in many disgruntled customers. This situation can only be resolved once mobile carriers expand their 4G network coverage to include more regions.

Smart phones

Advantages:

Has personal connection and endless information

Smartphone's allow the consumer to always be connected to her circle of friends. The Internet capabilities allows her to update her Facebook page, check her e-mail account, and take advantage of the many social networking programs that keep us connected. However, this can add to social stresses, depending on ho connected the consumer really wants to be. Always being able to be contacted sounds ideal for some but sounds like a nightmare for others. Of course, you can limit your availability by simply turning your Smartphone off, or leaving it at home when you venture out.

The Smartphone allows the consumer to have all of the information the Internet supplies in the palm of his hand. This is a great advantage to have, especially if you are visiting a place you've never been before. For example, if you've just arrived in Santa Barbara, California, you can use your Smartphone to locate the restaurants, attractions and hotels in the area. Since the Smartphone is also a phone, you can make reservations while driving up. However, this can also lead to a lack of adventuring on the trip. While some wish to know everything about a location before they arrive, others still prefer the element of surprise.

Cell phones have become just about indispensable, with many people using them on a daily basis. Personal digital assistants have also grown in prominence, especially with professionals in need of a tool to help them organise, message and manage on the go. And of course, who doesn't like bringing their MP3 player with them so they can have their favourite tunes any time? But carrying three gadgets around is a hassle, not to mention a real cramp on pocket-space. Enter the Smartphone. Smartphone’s act as the all-in-one, offering cell phone service with the tools, applications and even games of the average PDA. Throw in that almost all Smartphone’s also function as portable media players, and you can kiss those crammed pockets goodbye.

Disadvantages:

Can be too useful at work (Distraction) and the battery charge.

Business minded people can always stay in touch with their clients, bosses and employees with the use of a Smartphone. These devices have the ability to store personal documents, contact lists, e-mail addresses and more. In short, the Smartphone can double as a mini-workspace, or office, in the palm of your hand. Of course, this will make getting away from work more difficult. Those who wish to leave their office, and their work duties, behind when they travel or go home may find the Smartphone more of a problem than a solution.


Smartphone’s are battery operated, and as soon as that battery runs out the phone itself needs to be recharged. The life of the battery depends on the type of phone you purchase, and how often it is used. Those who use their Smartphone’s in abundance will need to recharge the battery every few hours. Those who use it on a moderate level can have battery power throughout the day. However, if the user is not near a power outlet when the battery dies, the Smartphone is rendered useless.



VOIP (Voice over IP)

Advantages:

The main advantage of VoIP broadband phone service is the cost.  VoIP broadband phone providers charge you a much lower monthly fee for local, long distance and international than traditional phone service.

VoIP service is usually bundled with free features (such as caller ID with name, call waiting, conference calls, call forwarding) which are charged for additional cost by traditional phone companies. Even if you already have a regular phone line, VoIP is a good low cost alternative to add an additional phone line with extra features and low long distance and international rates. 

Mobility and portability. You can use the VoIP service anywhere with broadband connection. All you need are a laptop and a headset or just a VoIP phone adaptor. Even if you are travelling, you can still enjoy the cheap calling rates of VoIP service.



Disadvantages:

Some VoIP services do not work during power outages or when the internet connection is down. It is a good idea to install a backup power supply or have a mobile phone as a backup.
Call quality is affected by the quality of broadband connection and the performance of your PC.

So make sure you have good internet connection and both your computer hardware and software are running properly.

Cloud Services

Advantages:

It’s important to look at the benefits of Cloud computing against the security concerns before deciding if it is something you want to use for your company.

Cloud computing allows users to store files instead of on a hard drive or server at the office, in turn this means; no system failure, no office dependency and no extra IT infrastructure. There is nothing worse than coming into the office on a Monday morning and not being able to access your files because the server has gone down.

Cloud computing has also shown to be cost effective for companies that use it because there is no need to buy and install expensive software as it is already installed on-line  There is also the added benefit of no longer needing specialist IT staff to maintain and upgrade software. It is now possible for companies to access their own private cloud which can be tailored to include specific services and only accessible to the staff of that company. However, problems come with this private cloud that we will discuss later.

Cloud computing is especially beneficial to International companies as it offers the flexibility for its staff to gain access to company files wherever they are; they do not need to have access to the server.

The problem is that there are still some worrying security issues with Cloud computing; many companies have noticed Clouds benefits but are still reluctant to put secure data onto Cloud, especially a public Cloud, can we really blame them?

Disadvantages:

With the media highlighting all the security issues over the last few years it is no wonder people are reluctant, an example of a security breach that was highlighted was the attack on Sony PlayStation’s Cloud network, where many gaming user’s card details were stolen.
There are security concerns over the loss of control over sensitive data and the complexity of security is greatly increased when data is spread over a large number of devices and resources being shared by unrelated users. Not knowing where your data sits is also a continuing worry and if you want to take data back or destroy it, how do you know that it has been erased?
If a Cloud system is breached the amount of information lost will be far greater than if it is on a single computer and although it may have better defences if it is attacked more data will be lost.