DIGITAL ECONOMY

Competing In Digital Economy

Competing In Digital Economy

Introduction

I have chosen retail supermarket for the assignment. The reason why I have selected retail supermarket is that in the last five to seven years the Information Technology (IT) has dramatically changed the dynamics of this industry. IT has made the supermarket market industry efficient. Through this assignment I would like to achieve the competitive advantage by using IT effectively in the retail supermarket industry. Let's assume the company name which I am working for the assignment is G-Mart stores. It is a startup company which is aiming to develop and compete in the retailing industry. The company has sufficient funds to compete in the industry. The company has acquired a large warehouse and substantial office space on a Greenfield site between Huddersfield and Brighouse, close to the M62. I will analyze the E-business model of G-Mart stores, Then I will do the PEST analysis, SWOT analysis, Porter's five forces model and 4 ps model to make the strategy of the company, after recommending the strategy I will address some IT related marketing tools such as social media, search engine optimization (SEO), and how the company can design its website and its content to attract and enhance the quality of services, after that I will enlighten some benefits of ERP. Then I will purposed some strategic plans for the future development of the company, in which I will be focusing on that how the company can enhance its IT to provide better services to its customer in this fiercely competitive environment. In the future the company can get the competitive advantage through its IT development. Information technology is widely used in the retailing supermarkets Barry J. Nalebuff, Adam M. Brandenburger, (1997) . It is used in various functions of the supermarkets for instance it is used in stock controlling and it is also used in change or maintain the temperature of the freezers. In the retail supermarket industry the computers are used to control the check outs of the inventory. Electronic point of sale (EPOS) till is used in checkouts. Every product is labeled by a code which is then printed on the packaging in the form of bar codes. Every sale is recorded in the system's database so it became easier to segmentation and to recognize the choice of the customers. The company has sufficient funds to compete in the industry. IT has introduced a new dynamics to the industry; it has changed the business model over the last decade. IT has made the business efficient and much easier to control.

E-Business Model

E-business is not similar to E-commerce transactions or selling and purchasing on the web but it is a new model of business which redefines the business with the help of technology to maximize efficiency and profit. Digital business design as 'transforming the way you do business by taking advantage of the new strategic options enabled by digital technologies'. Different retailers use different business model. Market portal model is used in G-MART which ...