Tatmax: Innovation and Technology

Tatmax: Innovation and Technology

Introduction

Tatmax is known for offering low prices in key retail segments and is among the market leaders in industry. It provides customers with great facilities with great pricing schemes, convenience through providing different product categories under one roof with an atmosphere of treasure hunt.

Discussion

Product/Service Innovation Description (Idea)

Cost was able to generate around 456 million dollars through the sale of its US Fine Wine product line, around 1.9 million dollars in selling television. Through innovative marketing and promotional schemes, Tatmax has increased its growth in term of its electronics related sale. Additionally it has also shown great development and growth in area of diamonds where the sale of diamond amounted to 105, 000 carats. It has included product lines of fresh food in terms of Seafood and chicken. Its sales in fresh food was zero in the beginning and now it has amounted to 173 million dollars. Another innovative idea came through the addition of pharmacy business where it was able to sell more that 2.4 million pairs of glasses. The product line of Tatmax is never ending as it also includes photo service, hot dog and beverages on the side. Some of the latest innovative growth at Tatmax in terms of product lines and segments are Tatmax Gas, Car Wash and its entry into online business with the name of Costco.com. Costco travel and Home also offers customer with some of the branded household furniture and decorative stuff. It is suggested that addition of the latest innovative product segments in the form of gas, car wash and online business Costco will be able to increase its revenue from 2 percent to 5 percent in the year 2008 (Innovation Index Group, 2008).

S Curve Analysis

Costco at the moment is at the growing stage and is lagging behind in terms of technology and innovation when compared with its competitors like Wal Mart and Amazon. Wal Mart and Amazon are the market leaders in terms of their online business and both lie as the maturity stage when plotted in the S Curve. It is apparent from the figure as Costco.com which is the online business started by Costco few years back is able to sell around 2 billion dollar of goods online but even than it is lagging far behind Amazon and Wal Mart. Currently, Costco's owner and CEO have decided to make use of technological advancement like smart phones and latest mobile application and software that have made the online business and internet the most important tool for every organization for reaching masses and grow their business further ahead. The chain based in Issaquah is planning to introduce new mobile applications in order to grow and expand online business of Costco. It is currently at very low level when rated against other competing companies. Costco is lying at 17th rank in terms of its sales through online business. Amazon is no doubt the market leader in terms of online business and Wal Mart is standing at the fourth ...