The E-Retail market and the business environment
Target focuses on the impact they have on the stakeholders especially on their employees whom they call as team members. It is important to know how their policies affect their team members at work and otherwise. Therefore, they have a policy to pay 5 percent of their profits to their employees. Furthermore, they keep on working on the ways in which they can make things better for the community. (Target Corporation, n. d. ). Environmental
Target believes that although they cannot fully work out on the environmental issues arising in the world but they can at least lessen them and give it a try to improve the issues by promoting new ideas through innovation. Economic It also focuses on giving quite a handsome return to their shareholders and this further encourages them to make investments in the company. This part consists of the e-retail business and the environment the two competitors are operating in.
In this era, the consumers’ place more significance on value and the retailers who succeed in this are more profitable than others. All customers want to make the most from the value that they are willing to pay in order to buy something. Therefore, they want easy access, high quality and full satisfaction with minimum or at least at a reasonable price. Other than that, the consumers require innovation. People usually get bored with the same thing for long. Therefore, the product should always be kept up-to-date in order to fulfill the growing demands of the existing and the prospective customers.
Not doing so could do no good but would harm the firm as they would lose customers due to the existing competitors. Other than that, supply chain management is also very important. The inventory system has to be managed very well and a track should be kept on the level of inventory available to avoid any delay in delivery. In this way they can also reduce their distribution as well as inventory costs. This would reduce the cost and thus will increase profits and so they can also reduce the price of the product available to the customer.
The accuracy of inventory can be increased by the use of wireless technology. It can also reduce fraud. Nowadays, retailers use radio frequency identification to keep track to inventory. This tells them about the products present on shelves of the stores, goods available in the warehouse and about the suppliers. Radio frequency identification technology uses radio waves for the transfer of information from a reader device and an item. Although e-commerce has many advantages, it has drawbacks too.
Although more and more people now know and are learning to use this technology, still people resist providing their financial information such as credit card numbers on the Internet. Other than online catalogs, the company can also mail the catalogs to the prospective customers at their homes or work place. For this purpose, companies should also develop tracking systems so that hackers can’t take any negative advantage of this technology. (Bahmanziari, 2003) Another way of increasing sales is the trend of e-mails and faxes.
Some people themselves subscribe to online newsletters but some may also get mails from companies advertising about their product without any subscription. Companies send mails about any particular product they want to sell via mails to the people. This is also one of the easiest and cheapest sources of advertising. Advertisements are also placed on websites that are commonly viewed by consumers but the people advertising should also take care where they are placing their ad. Do the prospective consumers of that particular product visit that website? And how often do they visit, etc.