Evaluation of Internet Activities - SOGO - Dissertation Example

? work Report Table of Contents Introduction Organisation Background Evaluation of Internet Activities…………………………………………………………………..5 Future Strategies and Implementation…………………………………………………………….6 Conclusion and Recommendation………………………………………………………………...8 Works Cited……………………………………………………………………………………...10 Introduction The internet based activities of the departmental stores have changed the behaviour of customers over the years due to the facilities of the advanced software, technologies and web-based solution employed by the department stores. The online access of products offered by the departmental stores has brought the consumers closer to the industry. The internet activities in context to the Japanese department store SOGO is one such example. The Japanese style department store is a preferred destination of consumers for style oriented products that are desired by the customers (Wordie 183). SOGO is a preferred destination and one-stop shopping centre for customers who could have the pleasure of shopping in an ideal environment. Leveraging on its brand name built over the years and the quality of its goods and services, the company has introduced internet based activities which created a change in the behaviour of the customers. Based on the emerging demands of their customers, SOGO has designed future strategies for implementation. The future strategies are inclusion of a wide range of customers through its services like internet based marketing which enable e-commerce for the consumers and also allows the company to increase its customer base. Organisation Background SOGO is a Japanese style department store that includes Hong Kong and China as its major areas of operation. The company was founded by Japan’s SOGO. The style department store is currently owned by the Lifestyle International Holdings which is controlled by the billionaire brothers Joseph Lau and Thomas Lau of Hong Kong. Japan’s style department store SOGO started its operations in the Causeway Bay in 1985 but renovated its store to become JUMBO SOGO in 1993. The company increased its floor area and expanded its operations but in 2000, the company declared bankruptcy due to the burden of debt of $17bn. It was then that Japan’s SOGO was acquired by the Hong Kong based Lau brothers. The second department store was launched by the Hong Kong based group in 2005. Chow Tai Fook Enterprises which is owned by Cheng Yu-teng also has a controlling stake in the style department store. The SOGO Hong Kong departmental store is listed in the Hong Kong Stock Exchange since 2004. The products offered the style department store are customised to suit the style requirements of its customers. The products sold the department store includes men’ and women shoes of different styles and fashion, watches of different categories for men and women, branded watches of various style statements, cosmetics and fragrances for both men and women, lingerie and underwear, etc. The departmental store also sells several food items of different tastes. The food items include the flavors of different region. The food items include delicious and specialised Vietnamese dishes and Italian food items. SOGO also publishes a weekly new magazine in which its advertises its foods and accessory items, products of daily use, handbags, cosmetics and other necessary things of different styles required for daily use. The departmental store holds a comprehensive range of products and goods that are customised to meet the style of different segments of the customers. In order to advertise and promote its products and to spread its customer base, SOGO style departmental store has adopted several strategies for promotion and advertisement (Boland 87). Though SOGO is acquired by the Lifestyle international holding but the brand is only recognised by its name not the parent company. This shopping mall not only provides pleasant shopping experiences to the customers but also it offers a complete package shopping, foods and entertainment through the eye catching infrastructure and other facilities. The visitor attraction potential of this shopping mall is so high that the places where it located have become very popular and well recognised the by its presence. For this purpose, along with the local customers, the foreign tourists also contribute a good percentage in the total yearly visitors of this mall. SOGO has become one of the most popular shopping mall in Hong Kong mainly because of the ranges of products and services it offers to the customers. It is a one place destination to the customer in terms of shopping dining and entertainment. Evaluation of Internet Activities In order to evaluate the internet activities of the concerned company one of the main aspects that comes to mind is the advantage the customer posses from online shopping. It allows the customers to choose the right products from the available categories. The consumer sovereignty is thus attained. The customers do not have to visit the stores in order to buy a product rather enjoy the luxury at home and avail the products. As there are two sides of a coin, the internet shopping activities have some drawbacks as well. Some customers are not quite habituated in online purchasing. They tend to avoid that with the view that the products can be damaged and prefer to visit the shops to buy them. Again another group of consumers tend to avoid the online shopping activities as they are scared in using credit cards or using internet banking. The advantage of providing online purchasing opportunity for the consumers brings some advantage towards the company as well. Every year a major proportion of the generated revenue is spent on maintenance of stores and providing salary to the recruited staffs employed for the purpose. If the consumers avail the internet shopping activity they will tend to visit less frequently to the stores which means they company may recruit less number of persons in the stores. In this case the maintenance cost of the stores will fall down drastically and in turn contribute to the revenue of the company. The time required in business process will get reduced as well. The customers will pay instantly on purchases (Picken 265). Through the internet the company can reach towards a large base of consumers who cannot visit the stores due to some reason. They can easily avail the internet, make payment on their purchases and get their products. It can be said the internet activity is gaining popularity day by day. So the companies with increased competition take these kinds of strategies to remain competitive in the market. Future Strategies and Implementation Sogo Hong Kong is the largest department stores in Hong Kong. The store originally belonged the Japan based Sogo. The global departmental industry has become huge competitive and potential. The leading organisations around the globe are trying to capitalise on the opportunities that have been developed due to globalisation and advanced technology. After the Second World War several leading organisation have tried to implement different strategies in order to increase the core competencies within the competitive market place (Reiber 23). The Hong Kong market is a potential place for the departmental organisations. Hong Kong is one of the leading developed cities around the globe. Day by day, the economic condition of the country is developing significantly. Moreover, the increasing per capita income of people and high disposable income of middle class people has influenced the buying behaviour of Chinese people. The implementation advanced technology has played a significant role in the growth of the organisation (Terry 203). Now-a-days, people are looking for effective customer service rather than consuming a branded product with in-adequate customer service. There are several potential organisations that are actually focusing on the better customer service in order to increase the brand image in the mind of the target customers. The organisation has implemented e-marketing strategy and has targeted the middle class people by implementing reasonable pricing strategy of products. The organisation has provided online order placing and delivery facility that has eased the purchase process of the organisation. However, delivering the products within a quick time period is a critical issue that is affecting the business performance of the organisation (Bailey 76). It is evident that, the organisation can deliver the products if a consumer buys a product over 500 HK dollars. The organisation needs to be more loyal to the customers. As it is clear that, the Hong Kong market is highly competitive due to the presence of several potential foreign and domestic competitors (Ortolani 64). The international organisations like Zara have already implemented advanced technology in their marketing process. It has helped them to ease the purchasing activities of the customers. Now-a-days, people are tending to consume products and services through minimum purchasing activities due to their daily busy work schedule. Several organisations have shown respect to the current trends of the customers (Wong 82). Therefore, it is very much important for Sogo to modify their e-marketing activities in order to increase its customer base in Hong Kong. The organisation needs to implement information communication technology in their business process. It will help them to bring pace in their business process (Hu 81). Creating a website with the help of advanced ICT will help the organisation to provide information and price level of all products. These strategies will help the customers to find their desired product according o their desire and choice. Moreover, implementing navigation system will help the delivery crews to find the specific delivery destination. Innovative PDA service and effective logistic navigation system will help the organisation to deliver the orders within a quick period of time. Moreover, the organisation should promote a platinum or gold membership card for the potential customers through several popular social media networking sites, such as Facebook and twitter. The number of social media users is increasing rapidly these days. Generally, social media promotional activities will help the organisation to create huge brand awareness. The organisation should create a Facebook page and an account in YouTube. In these social sites they can promote their recent events and information about new products. This mass marketing strategy will help the organisation to increase the group of target customers (Needle, 172). The organisation needs to hire an external web developer consultant to maintain necessary changes on the webpage so that the consumers can get new and important updates about the products. As the organisation is tending to provide the traditional Japanese products, therefore, it is important for the organisation to maintain the Japanese style statement. It is evident that, several people in Hong Kong are trying to adopt the online purchasing activities, but due to some security issues regarding the online transaction several people are hesitating to undertake online purchasing facilities. Conclusion and Recommendation Sogo Hong Kong is the largest department stores in Hong Kong. The store originally belonged the Japan based Sogo. The global departmental industry has become huge competitive and potential. The leading organisations around the globe are trying to capitalise on the opportunities that have been developed due to globalisation and advanced technology. Day by day, the economic condition of the country is developing significantly. Moreover, the increasing per capita income of people and high disposable income of middle class people has influenced the buying behaviour of Chinese people. The implementation advanced technology has played a significant role in the growth of the organisation. It is identical that, the website of the organisation is not attractive enough and has failed to provide effective information about the products. Sogo is one of the popular departmental stores in Hong Kong. The organisation generally sells several traditional products of Japanese style such as handbags, clothes, watches, footwear and watches. It is clear that, the organisation needs to implement some changes in their technology and e-marketing strategy. Few recommendation plans have been provided below improve the online activities of Sogo. The organisation should hire an external web development consultancy in order to increase the attractiveness of the web site. Implementation of ICT will help them to provide all the information about the products and price range. Implementation of social media promotional strategy will help the organisation to increase the brand awareness of their products and services. Adoption of PDA service and navigation system in the delivery process will help the organisation to deliver the products to the end customers within a quick period of time. Last but not the least, it is recommended that, the organisation should implement high online security system to avoid the issue like online hacking of bank accounts. This strategy will help Sogo to create trust about the online purchasing activities. Work Cited Bailey, Steven. Exploring Hong Kong: A Visitor’s Guide to Hong Kong Islands. Hong Kong: Things Asian Press, 2009. Print. Boland, Rory. Moon Living Abroad in Hong Kong. New York: Avalon Travel, 2011. Print. Hu, Bingxin. Breaking Grounds. London: Homa & Sekey Books, 2003. Print. Needle, David. Business in Context. Stamford: Cengage Learning, 2004. Print. Ortolani, Alex. Frommer’s Hong Kong Day by Day. New Jersey: John Wiley & Sons, 2008. Print. Picken, Stuart. The A to Z to Japanese Business. London: Rowman & Littlefield, 2009. Print. Reiber, Beth. Frommer’s Hong Kong. New Jersey: John Wiley & Sons, 2011. Print. Terry, Edith. How Asia Got Rich: Japan, China and Asian Miracle. New York: M.E. Sharpe, 2002. Print. Wong, Heung. Japanese Business, Chinese Workers. New York: Springer, 1999. Print. Wordie, Jason. Exploring Hong Kong Island. Hong Kong: Hong Kong University Press, 2002. Print. Read More