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Applied Channel Systems
Assessment 3
Individual Case Study – Online
Due Week 9
Submit softcopy via Turnitin Link (in Assessments folder) and hard copy with signed cover sheet to lecturer in class on due date
Your task
In view of the case for online shopping outlined in the above media stories ,you are required to select an Australian retail or wholesale company currently not utilising the online distribution as a major channel. Use companies whose online sales turnover is currently less than 25% of total turnover.
Question
Provide background information on the general and online activity in your chosen industry sector and company.
Using concepts covered in your unit and from insights from the above media stories identify the key issues and challenges that your selected company will/is face(ing) in their current online operation.
Address these issues & challenges in the formulation and implementation of an online channel systems strategy.
Notes
You have better chances of getting information on public listed companies that publish their sales turnover in their annual reports unlike private companies.
Story 1
ONLINE SHOPPING GROWING IN POPULARITY IN AUSTRALIA: REPORT
Asia Pulse [Rhodes] 16 Nov 2011.
Consumers are becoming more confident shopping online and continue to be attracted by the cheaper prices and convenience internet transaction offer, a new report says. Around 62 per cent of adult internet users bought a good or service online during the six months to April 2011, the Australian Communications and Media Authority (ACMA) report released on Wednesday showed. “The adoption of online shopping among the general population is fairly widespread, it is not something that is on the margins,” ACMA manager communication analysis Joseph di Gregorio told reporters. The ACMA report, E-Commerce Market Place in Australia: Online Shopping, found 59 per cent of adults went online several times a day for non-work purposes, up from 53 per cent in November 2009. Mr di Gregorio said convenience (cited by 67 per cent of people buying online) and price (47 per cent) were the main drivers.
Australians were buying mainly from local websites, although the share of local online purchases was down to 53 per cent, from 68 per cent in April 2010. However, the share of overseas purchases was rising and was up to 19 per cent, from 12 per cent a year earlier.
The appreciation of the Australian dollar had also increased interest in overseas websites, Mr di Gregorio said. The most popular goods bought online included travel goods (60 per cent), clothing (53 per cent), and books and magazines (46 per cent). Most online shopping was still computer based, despite the rise in mobile phone technologies. “We note the growth of mobile commerce, but if you are thinking about preferences and the devices people use to shop online, it is pretty much around the computer,” Mr di Gregorio said. But Australians were becoming more comfortable using their mobiles and smartphones for banking or bill payments. People aged between 35 and 44 years had the highest rate of buying goods online, with 73 per cent of internet users in that age group making such purchases. Internet users living in rural and remote areas also had a high rate of online shopping, 70 per cent, compared with their metropolitan counterparts on 63 per cent.
Copyright Asia Pulse Pty Ltd Nov 16, 2011
Source:
http://search.proquest.com/abicomplete/docview/904025010/13695438C783A5413D6/7?accountid=36155 viewed 3 May
Story 2
Aussie consumers more confident about online shopping
Asia Pulse [Rhodes] 16 Nov 2011.
CANBERRA, Nov 16 Asia in Focus – Australian consumers are becoming more confident shopping online and continue to be attracted by the cheaper prices and convenience internet transaction offer, a new report says. Around 62 per cent of adult internet users bought a good or service online during the six months to April 2011, the Australian Communications and Media Authority (ACMA) report released on Wednesday showed.
* “The adoption of online shopping among the general population is fairly widespread; it is not something that is on the margins,” ACMA manager communication analysis Joseph di Gregorio told reporters.
* The ACMA report, E-Commerce Market Place in Australia: Online Shopping, found 59 per cent of adults went online several times a day for non-work purposes, up from 53 per cent in November 2009.
Source
http://search.proquest.com/abicomplete/docview/904025007/1369529222B2952BC64/4?accountid=36155 viewed 03 May 2012
Story 3
Australian retailers cry foul as shoppers go online
Walker, Frank .McClatchy – Tribune Business News [Washington] 19 Dec 2010.
Dec. 19–SYDNEY — The Australian government has launched an inquiry into online shopping as Australia”s big retailers claim they are losing billions of dollars to international websites.
Retailers say they are suffering as shoppers spend their Christmas dollars online ordering cheaper goods directly from overseas which avoid sales tax and customs duty.
Online shopping has grown as the Australian dollar has soared to near parity with the US dollar. A report by think tank Access Econmics found up to 24 billion dollars a year is now spent buying goods online from overseas.
The chief executive of the giant Myers department store, Bernie Brookes, said the government was losing 2 billion dollars a year in sales taxes as goods bought online from overseas for under 1,000 dollars are tax free.
“That”s unfair to Australian retailers, that”s unfair to online Australian sellers and it”s not a level playing field,” Brookes told Australian Broadcasting Corporation radio.
Australian Retailers” Association executive director Russell Zimmerman said 2010 had been tough.
“I have been in the industry for 30 years and I honestly can never remember it being so bad,” Mr Zimmerman said.
Consumers are holding back as living costs soar and the economic future seems uncertain. Official figures show retail sales fell 1.1 per cent in October.
Christmas shopping is so slow many stores have started their traditional Boxing Day sales a week early slashing prices by up to 40 per cent.
After a concerted campaign by the big retailers, the government ordered the Productivity Commission to examine the online tax-free arrangement as well as the economic impact of online shopping.
Assistant Treasurer Bill Shorten said there were no plans to drop the tax-free threshold, but there needed to be an analysis of the future of the entire 242-billion-dollar retail industry in Australia.
Consumers advocate Nick Stace of Choice said online shopping was providing real competition to the big retailers and it was up to them to provide cheaper prices and better services to win back shoppers.
Source
http://search.proquest.com/abicomplete/docview/821560620/13695438C783A5413D6/6?accountid=36155 viewed 3May 2012
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