POSTGRADUATE DIPLOMA IN BUSINESS APMG 8119: DIGITAL ENTERPRISE 2014 Group: ISO Truong Dinh Thanh Thu Valaphone Sisouvong Kounjairhtong Insiri >>APMG 8119: DIGITAL ENTERPRISE

1. Discuss culture of real virtuality in context of online food retail Countdown : largest grocery retail enter online grocery retailing in New Zealand which allows shopping from anywhere, anytime, guaranteed quality with instant shopping list with home delivery and pick up options. -Customer behavior: Many shoppers will still place a high value on the in-store experience - bricks-and-mortar stores => Changing in customer mind, replace traditional shopping by online shopping. - Competitive price: Encourage customers to purchasing only by offering lower prices than in-store shopping. - Delivery: focus on providing high-quality service, whether delivery or pick up. -Co-operate online and in-store shopping => convenient for customers Challenges: -Customers cannot choose the fresh foods as they always do in-store shopping: fresh vege or fruits, or choosing long expire date. -Delivery: Can’t afford immediate need and fill-in. Poor produce and perishable quality, which is the signature item for consumers - Competitive price: In a highly competitive and price sensitive market, paying delivery fees will be unacceptable to many customer segments >>APMG 8119: DIGITAL ENTERPRISE

2. How is value created in marketspace and how is this different to the marketplace? 3 elements of value creation: content, context, and infrastructure >>APMG 8119: DIGITAL ENTERPRISE Single-layer strategy: Content (information service-based, life-style fulfillment): 24 hours accessible on website and mobile application Shopping list Recipes: cost calculation, required ingredients Specials: my specials mailer, price lockdown Refundable: quality issue, wrong order or prices Check points on One Card Barcode scan

3. What are the competitive advantages and disadvantages of this type of retailing business model? >>APMG 8119: DIGITAL ENTERPRISE AdvantagesDisadvantages Valuable: time saving 24/7 accessibility CSR Costly to imitate: already does: gift card, fuel discount, score collection, better price, security Rare: a content can be access in different context Enhance marketspace by marketplace (location, facility) Non Substitutable: New World Pack n Save

Reference: Prahalad, C. K., & Ramaswamy, V. (2004). Co-creation experiences: The next practice in value creation. Journal of Interactive Marketing (John Wiley & Sons), 18(3), Rayport, J. F., & Sviokla, J. J. (1994). Managing in the marketspace. Harvard Business Review, 72(6), Alba, J., & Lynch, J. (1997). Interactive home shopping: Consumer, retailer, and manufacturer incentives to participate in electronic marketplaces. Journal of Marketing, 61(3), >>APMG 8119: DIGITAL ENTERPRISE