Workshop Questions – Week 4
1. Search the Web for a company that is purely Web based. Next, find the Web site of a competing company that is a hybrid (i.e., they have a traditional brick-and-mortar business plus a presence on the Web).
ASOS vs Westfield
(a) Explain the pros and cons of dealing with each type of company.
An example of a company that is purely Web based would be ASOS and an example of a competing company that is a hybrid would be Westfield.
One of the pros of ASOS being a click-only company is that they will have less overhead costs. This is because they do not need a building and thus, no property maintenance costs. That being the case, they can also sell their products at a greater discount. One of the cons of pure play companies is that customers might not be very confident in providing their credit card details online to purchase stuff. They are afraid that the online company might vanish overnight. However, to boost up customers’ confidence towards online shopping, they built up their reputation by responding to telephone calls and emails quickly and professionally. Other than that, another disadvantage of having a click-only business is that they would have to invest more money, time and effort in marketing because they do not have that traditional physical market.
On the other hand, one of the pros of Westfield being a click-and-brick company is that they can offer a more versatile service. This means that customers, who purchased their products online, do not need to face the hassle of delivering the product back to the company if they want to return the product. They can do so by going to the nearest Westfield store. Furthermore, having physical stores everywhere, Westfield has the ability to inspire customers’ confidence even if they would like to buy their products online. There is no need to do as much marketing as well because Westfield is already nationally recognized. However, there will be more overhead costs...
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