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Australian E-Commerce Marketing Assignment Help
The online population in the Australian e-commerce market is stand on the second position of Asia Pacific region. As per the market report the e-commerce market will rise up to 25 million dollars that is 21% in the period 2018. It is observed that around past five years e-commerce industry has become the most important part of the retail trade of Australia. The opportunities are attracting the retailers to move their business into the online platform due to the low initial cost and high traffic. Currently 18bn dollars are generated from the e-commerce industry in Australia. Online transactions are also growing in the Australian market by the use of credit and debit cards that is around 85%. Around 66, 000 employments have been generated from the online platform of selling products (Ibis world, 2016). From the market research it has been observed that internet penetration and the presence of the digital platform around the people across the world has increased and subsequently in the nation Australia. In comparison to the e-commerce market of the world, Australia is on the 10th position which shows favourable indications for the e-commerce industry. The changing habits of the consumers of Australia, internet usage ratio, convenience shopping, advancement in the technology in the business practices are the factors which influence the business towards online presence.
In the context of the e-business, JB Hi-Fi can be the appropriate example which can able to relate the current e-business platform in Australia. The head office of this company is located in Melbourne. Currently they are operating 112 brick and mortar stores across Australia with an added online platform that has become popular. They have started their business from a brick and mortar stores and later they transforms their business in to the online medium by developing a website named as “www. Jbhifi.com.au”. They are mainly in to the consumer electronics business who are specialised in selling the video games, DVDs, Blue-rays, home appliances and other consumer durables like cameras, mp3 players, musical instruments, mobile phones etc. It is remarkable for the company to achieve increased revenue by 13.9% that is 75 million dollars from the online platform. The revenue from the online medium is accounted for 2.2% of the aggregate sales. With an average 1.3 million people are visiting their website which shows an increase around 9.9% at the end of the year 2015. The investment on the online platform shows an increase around 5% in order to design their websites and e-transaction process more effectively for the customers who prefer online shopping (Smart Company, 2015. They have 7,800 staffs that are responsible to manage the company’s operation across Australia and New Zealand. The negative side in the context of JB Hi-Fi is the high competition which can be observed in the e-commerce industry in Australia. The specialised e-commerce giant Amazon has planned to increase their investment in order to beat the companies JB Hi-Fi and Harvey Norman. As per the reports of the researchers, it is claimed that the electronic segment of Amazon can create a negative impact on the FMCD sales of JB Hi-Fi around 6% and this is only due to the late decision of JB Hi-Fi towards online presence.
Advantages of E-commerce sites
On the ground of the easiness to use the e-commerce site of JB Hi-Fi, the consumers can search the required items by comparing the price and features of the available brands at any time they want. They will not be hesitate to leave the website of JB Hi-Fi if they do not find that required item but in this circumstance consumers can get irritated in case of brick and mortar stores. There is also a negative side on this ground if the design and structure of the website opposed the convenience factor of the online users. It is recommended to design the websites which can display the products of JB Hi-fi within a matter of seconds based on the search of the online customers. The infrastructure cost is much less than the brick and mortar due to the high taxes and compliances associated in comparison with the online environment. This can help the company to achieve the economies of scale by reducing the cost of capital (Lee, 2011).
The most important e-business application that is used in company JB Hi-Fi is the online payment gateway. Without this application the business houses cannot make their transactions via online. They are the software that enables the transaction between the banks. It creates a communication chain with the acquiring bank and issuing bank (Tan, 2014). The functions like real time transaction, conversion of the currencies are associated with this application. The credit card and debit card numbers of the consumers are protected from the fraudulent parties by maintaining high standards as per the Payment Card Industry Data Security Standard. The orders which are submitted for JB Hi-Fi is completed by using the protocols of HTTP designed by the payment gateways companies like PayPal, Secure pay etc. The demerits associated with this application are the attacks of the malware which unsecured the transaction process of the users as well as the companies. From the market research it is observed that around 44% of the companies in Australia are facing these complications that are hampering their business.
One of the important functions of the business is the revenue generation and it is only possible with the help of effective marketing strategy. The marketing strategies adopted by JB Hi-Fi are the use of email and social media platforms like Face book, Twitter, YouTube etc. The online consumers whose email ids are registered with JB Hi-Fi are informed about the offers and new products via email. Apart from that videos are posted about the new products and features in face book and YouTube for creating interest among the online users. For example, sales promotion in JB Hi-Fi is conducted via Face book where the offers related to the Dell XPS Laptop are provided in details by adding the picture. Based on this offer the users in Face book have shared their views or demands that can be easily observed by the PR personnel of JB Hi-Fi. The interest creation should be the ultimate aim for the marketing techniques of the e-commerce business (Spaulding, 2010). It is necessary to conduct a market research in order to determine the demand of the products of JB Hi-Fi and accordingly content marketing is to be focused in order to appeal the online customers by an attractive content. Optimisation of the website is required which includes headings, titles and images in order to start the external SEO. Secondly, Google Ad words are an effective ways which can attract the targeted audience of JB Hi-Fi by displaying the advertisements in a low cost and high conversion ratio (Hennig-Thurau et al, 2010). Brand awareness is needed by effectively utilising the social media platforms like Face book, Google+ for communicating the values of JB Hi-Fi.
Supply Chain strategies
Supply chain is the process which ensures distribution process of the business. In the perspective of e-commerce business, Hub and Spoke principle is mainly followed. Hub is the central point which is surrounded by the spokes that serves the delivery process of the items to the prospective customers (Christopher and Ryals, 2015). In case of JB Hi-Fi, the Hub is the central warehouse where all the products are being stored from the manufacturing companies and the spokes are the delivery centres which are located to the several areas in Australia. All the products in the central warehouse of JB Hi-Fi are transferred to the local delivery centres for processing the delivery process.
The products which are ordered online directly hits the central warehouse of JB Hi-fi and based on the location of the customers, the product is being transferred to the concerned locations or delivery centres. This strategy of the supply chain will make the delivery fast and reduce the cost. The cost will be saved as the delivery centres do not require the front location of any main roads or junctions.
IT structure is the development process of the technological application aligning with the functions of the business. The IT structure for JB Hi-Fi considers nine steps which are shown in the below figure:
Specific IT structure is needed in the business in order to avoid the complications. Expansion of the business, modification of the products, easy payment system requires a sound IT architecture. Lack of flexibility in the structure can affect the business to accept the modifications or changes. Thus a team of technical expert must be there to develop the structure or architecture continuously in order to match the demand of the customers (Shneiderman, 2010).
For improving the internet technologies, a team of IT expert is needed to be there in the company for a full time basis. Hyperlinks should be there in the websites in order to guide the users to select their product. Search Engine Optimisation should be high in order to attract more customers. This can only be done with the help of the key words which can give maximum chance to list at the top of the search engine results. Blogs can be written in order to create interest among the internet users and along with that inviting them to share their reviews is also needed to be done for increasing the brand involvement. The word of mouth marketing should be given importance in order to create positive brand awareness among the internet users and customers. Lastly, secured payment application should be given high priority for creating customer loyalty and customer’s convenience towards JB Hi-Fi online version of the business.
In order to conclude, this report has given the detailed analysis of the utilisation of Information Technology in the business. The globalisation in the trade and affairs, changing taste and preference and high competition in the market influence the business organisation to develop online medium for the managing the operation of the business. The factors like high usage in the internet, 24*7 shopping advantage, sound comparison, time saving and the development of the technology are persuading the people to move towards the online platform for considering their purchase. In this context, the report has been prepared by relating an Australian based consumer electronics company JB Hi-Fi has also moved towards the e-commerce operation by retaining their brick and mortar stores in Australia in order to attract more customers towards their business.
Christopher, M. and Ryals, L., 2015. Supply chain strategy: Its impact on shareholder value. The International Journal of Logistics Management, 10(1), pp.1-10.
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Ibis world. 2016. Online Shopping in Australia: Market Research Report. [Online] Available: http://www.ibisworld.com.au/industry/default.aspx?indid=1837, Accessed as on 26.9.16
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