Explain how two selected, contrasting business organisations have responded to competitive pressures to develop their use of e-business. Care should be taken in the selection of these organisations so that learners can obtain information to attempt M2, for which they need to have built on the descriptions of competitive forces and linked these to the actions taken by organisations in response to competitive pressures. Introduction
The two businesses I have chosen for this assignment are Asos and Tesco. I have chosen Asos because they don’t have any stores, they do all their business online, and Tesco have thousands of stores and they use online shopping services to compete with their competitors. Asos – are a total e-commerce business, originated from innovation to differentiate themselves from competitors in the retail industry such as; Primark, Next, Top Shop who all had a small market share meaning revenues were relatively small in comparison to what was available in e-retail. Tesco – Tesco started off as a national supermarket, but in recent years they have been losing market shares meaning they would have to find a solution to get back their market shares. To do this Tesco wanted to go into a market that was relatively untouched at the time; online shopping. Their intentions were to go into it and become the monopoly of the online market meaning that if other competitors will find it hard to enter the online market and compete with them. Ansoff Matrix
The Ansoff Growth matrix is a tool that helps businesses decides their product and market growth strategy. Ansoff’s product/market growth matrix suggests that a business’ attempts to grow depend on whether it markets new or existing products in new or existing markets. The output from the Ansoff product/market matrix is a series of suggested growth strategies that set the direction for the business strategy. These are described below: Market penetration
Market penetration is the name...
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