StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Introduction to Digital Economics - Essay Example

Cite this document
Summary
The essay "Introduction to Digital Economics" focuses on the critical analysis of the major issues in the introduction to digital economics. Setting a business strategy is a more multifaceted task than simply managing a business. Strategies are generally long-term…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER98% of users find it useful
Introduction to Digital Economics
Read Text Preview

Extract of sample "Introduction to Digital Economics"

Running Head: Digital Economics Digital Economics Digital Economics Question 1: Evaluate the impact that Internet/mobile technologies have made on the business strategy and how can impact upon industry sector of both Zara and Expedia? Answer 1: Setting a business strategy is a more multifaceted task than simply managing a business. Strategies are generally long term, and sometimes they may even become a guiding and regulating force throughout an organisation. However, even long term strategies might have to be changed in order to adjust with the changing times. For example, business strategies prior to globalisation used to deal with a larger number of local issues. But after globalisation, business strategies are being reset or newly developed in order to explore the previously conservative or socialist countries and their markets. It is worthwhile to mention that Internet and mobile devices are two separate entities in this global environment of today. Internet is interconnecting the countries and cultures. On the other hand, mobile devices are providing ease of accessibility. Combining the two technologies is having a drastic effect on today’s business houses and their strategies. While developing a 21st century business strategy, strategists are now trying to focus on the nature and behaviour of target audiences or user groups. Today’s users or potential customers are far more agile, informed, and active across the social networks. Websites like Facebook, Top Ten Reviews, etc. have increased the scope of interaction between users and customers in a drastic manner. In such circumstances, a strategist must think in an innovative way, so that he/she can create a positive impression of his/her company all across the Internet. For example, a company can now develop its own app (a very concise form of software application). This kind of customised software utilities can be easily installed in mobile devices (e.g. a tab or a smartphone). Then, users can easily try or look into the commodities or facilities that are being provided by the company concerned. Besides, websites like Facebook allow business enterprises to create their dedicated pages for publicity. Now Zara is a big retailer of textile and fashion products, which appears to have diverted from the general course of Internet-based business application development and strategic adjustments. It does limited advertising and propaganda. This policy is maintained across the Internet too. Frequency of online advertisements is considerably controlled by Zara. However, this can be noted as a complex influence of Internet/mobile technologies. Since most of the fashion retailers are now overly emphasising on Internet and mobile technologies, Zara possibly wants to look different and reach its loyal customers rather through outlets instead of online stores. So Zara appears to be an exception in the fashion retailing industry, since other companies like Uniqlo in the same segment are highly dependent on both online and offline advertisements. This is the case with Expedia too, which operates in travel and tourism industry. Expedia not only depends on online and offline advertisements, but also its core operations are based on its travel website. Expedia’s business strategy continuously exploits old and new computing technologies since it is a primarily website based company. It not only provides online procurement facilities but also it helps in online bookings, reservations, etc. Question 2: Using both studies to illustrate key points, discuss a range of pricing issues/implications that are relevant with particular focus on how consumers might respond to price differences and how price discrimination can be achieved in an online environment. Answer 2: Zara is successful and currently it does not appear to be facing any strategic issues. However, Zara’s overall strategy depends on tactical pricing. Zara offers highly unique but low cost fashion collections. Since these products can be afforded by a large number of customers, Zara has sought to open a large number of stores as well. Zara’s international chain of retail stores practically exposes the company’s collections to the customers so that they can try the products at affordable prices. Expedia has a completely different policy. Expedia is mainly a travel website operating in the travel and tourism industry. Expedia must offer a large number of ticket reservation, hotel reservation, booking, and pricing options. However, the company has limited options in this regard. It cannot fix the prices of tickets for any airline service or ferry service. That means, if no airline company offers an inexpensive ticket for a given route, then Expedia too cannot allure potential customers by lowering or discounting any of the tickets available for that route. Expedia may strike only limited agreements with airlines, hotels, etc. to offer discounted prices. So Expedia has to disseminate proper and useful information about the tickets, hotel fairs, available discounts, etc. all the time. Consequently, it has to constantly gear up its available business channels and maintain its website flawlessly. If Expedia gives a slower price update, its competitors may allure the customers even within a short let up. But Zara has developed a fixed pricing policy. Zara believes in rapid production and lower prices. The company also aims at developing a widespread, complex, and international chain of numerous stores. The most probable pricing implication of this policy is that the company wants to create a group of its loyal customers. If a customer starts to favour a product line of the company, then he/she goes ahead to try more options as well. This happens because the customers can touch, feel, and smell the new apparels that appear in the Zara stores. In travel and tourism industry, pricing options may be less flexible. If hotel and travel expenses are raised for a certain holiday destination, then customers may altogether change their plans and start to look for newer, cheaper destinations. But Zara operates in fashion and textile industry. Here, strong sense of aesthetics and designing skills can be used to manufacture expensive, attractive, and hence, lucrative product lines. However, Zara’s attitude and approach towards online marketing and retailing cannot be fully justified. It can experiment with at least a portion of its stocks to go to online retailing. Only then the effects of online retailing in fashion and textile industry can be fully understood from Zara’s perspective. As far as Expedia is concerned, it will win more customers if it can make its website more efficient. Nevertheless, there are fewer options for quality checking in an online environment. Therefore, in a fully online environment, price competitions will remain the deciding factors and organisations offering lower prices will win more customers. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Digital Economic Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
Retrieved from https://studentshare.org/miscellaneous/1654450-digital-economic
(Digital Economic Essay Example | Topics and Well Written Essays - 1000 Words)
https://studentshare.org/miscellaneous/1654450-digital-economic.
“Digital Economic Essay Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/miscellaneous/1654450-digital-economic.
  • Cited: 0 times

CHECK THESE SAMPLES OF Introduction to Digital Economics

How Marketing And the Communications Industry Transformed to the Digital Marketing Era

The group provides media services, traditional and digital advertising, marketing services and consulting services to the clients.... This paper stresses that marketing and the communications industry has transformed to the digital marketing era from the traditional marketing.... Till 2006 there were no digital shops in the top ten spots so the group has acquired Digitas.... Digitas is an integrated digital advertising agency....
15 Pages (3750 words) Research Paper

Digital Advertising Methods against Traditional Advertising

In this study of digital economics, the focal point is to highlight the economic activity that can be achieved through digital advertising and to distinguish the reliability, effectiveness, and cost factors in traditional advertising from that of digital advertising.... dvertising can be made for other purposes in addition to business and economics; however, in this study advertising is only discussed from the perspective of economics and commerce....
13 Pages (3250 words) Essay

Media Economics and Digital Revolution

The paper "Media economics and Digital Revolution" explains that media economics and the digital revolution are explanatory terms.... Before discussing the effects and impacts of the digital revolution on media economics, it is important to know the scope and meaning of these terms.... Media economics is not going to be affected by digital diffusion.... Social relations need to be changed to herald the Internet as a democratic medium of change in media economics....
4 Pages (1000 words) Essay

Introduction of New Technology Into a Society

he technologies that are tagged with cyberculture, for example, have increasingly become tools for economics, politics and education and those who raise questions in regard to access, knowledge, and the use surrounding new media technology is important in considering who will have power, and who will be powerless, in our increasingly smaller and technological society.... It is the concept of exclusion that demonstrates the impact of the digital divide socially and economically....
5 Pages (1250 words) Essay

Media Economics and Technological Revolution

From the paper "Media economics and Technological Revolution" it is clear that cultural industry can be defined as that industry that incorporates different types of medium including television, music, print media along with art and architecture.... In order to understand the impact of technology on media economics in cultural industries, it is essential to understand the concept of cultural industry (Albarran & Dimmick, 1996, 48).... The developments and growth of mass media in the cultural industry created foundations for media economics....
8 Pages (2000 words) Coursework

What Is the Digital Divide

Since the digital divide is something that is relatively known to sociologists and economics alike, this paper will concentrate on presenting an introduction to the digital divide.... We agree that unless the divide is resolved, individuals, businesses, and countries have a lot to lose in terms of economics.... From the paper "What Is the digital Divide" it is clear that although the problems preventing the narrowing of the digital divide seems insurmountable, the reality of the situation is that there are still options out there that can help ease the divide if not help solve the problem....
9 Pages (2250 words) Essay

Digital Divides: Inequality and Democratization

"digital Divides Inequality and Democratization" paper discusses the digital divide experienced in modern societies and its relationship with social exclusion and inequality.... It covers the connection between stratification and information access and the digital divide and democratization.... Technological developments have created another form of inequality in society called the digital divide.... The digital divide is the type of inequality where some people can have access to and use new media while others cannot....
16 Pages (4000 words) Essay

Digital Literacy on Productivity

The paper "digital Literacy on Productivity" discusses that most of the technical work in many organizations and businesses is being replaced by machines that ease the task thus the youths are embracing digital literacy to ensure they are able to operate the modern machines.... Technological changes and embracement by the current global community indicate that digital literacy is a basic component to improve the lives of the entire population....
7 Pages (1750 words) Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us