Internet-based systems enable companies to simplify their information management process by removing complexity, which makes the organization more responsive and as a result, organization generates more profit through revenue and saving.
The process of doing business over the Internet or any other electronic medium is known as e-commerce. This paper analyzes two competing businesses that use their websites for electronic commerce. The two companies are Amazon and Chapters, with their websites being Amazon.ca and Chapters.Indigo.ca respectively; both serving Canadians people.
Both companies have been able to embrace e-commerce technology by offering their customers a wide range of products, including music, toys, electronics, software, books, and clothes. However, the differences between Amazon.ca and Capaters.Indigo.ca can be realized in terms of their functions, user friendliness, and ability to support the company’s business strategy. The criteria used in evaluating these websites are interactivity, integration, and e-market mechanism such as e-catalogue, search engine, and shopping cart.
Amazon.ca (2010) provides Canadian customers with many options of selecting products. The site organizes its products in form of books, music, movies & TV shows, electronics, home & garden, watches, software, video games, sports & outdoors, and boutiques and francophones. Amazon.ca allows customers to create their accounts with the aim of having personalized recommendations on purchasing.
The function of the site is to enable users to buy and sell their products online. The site is easy to navigate because user can access the products that they wish to buy. Within the home page, Amazon provides users with a shopping cart and the most sought products in the e-catalog. The shopping cart enables users to select and buy products that satisfy them. With better discounts, the company is able to attract many online customers to their products. Hence, the company integrates discounting operation as its online marketing strategy.
However, the site does not entirely interact with customers. There is no any chatting system which customers can use to communicate with customer service in real-time. Also, the site does not provide links to other sites that offer communication services. Despite the competition form other websites such as Cpaters.Indigo.ca, Amazon.ca website supports the companies business strategy by reaching many customers and cutting costs associated with business operations.
Through the implementation of e-commerce, the company minimizes its transaction costs. Laudon and Laudon (2006) assert that the costs incurred in trading goods or services, customer care, processing, and inventory can be reduced through e-commerce websites. For example, advertising a company’s products through Amazon enables it to reach many customers, therefore enhancing product awareness.
Chapters.Indigo.ca (2010) markets the same products as Amazon.ca. However, the site of this company is different from that of Amazon. Chapters.Indigo.ca does not consolidate its products in the home page. It uses the flash technology to enable users to preview one product at a time.
Its e-market is a good example of a virtual shop because it offers many products to customers. The company has a wide e-catalogue as compared to Amazon.ca. The presentations of products are dynamic and are entirely customized according to customers’ preferences. With so many capabilities, the company provides a user friendly website that suit customers from different levels. In addition, customers can select and shop for products with affordable shipping capabilities which are integrated with the shopping cart.
Similarly, Chapters.Indigo.ca does not provide a lot of interactive option for its users. This is a major concern that hinders the integration of customers with the company’s communication system. However, the company’s business strategy is to reach out to many customers who are unable to buy their products, especially books, from offline stores.
Through their website, Chapters is able to directly market their products to customers because many people use the Internet. This is also known as disintermediation, in which intermediaries such as suppliers, distributors, and retailers are reduced hence easy management of supply chain (Laudon & Laudon, 2006).
Price is one of the major components of marketing mix that customers look at. The prices of Chapters are a bit high as compared to those of Amazon, especially the prices of books. This poses a stiff competition because Amazon is an International company with different online branches (Mulholland, 2002).
Due to stiff competition, Chapters was forced to lower its free shipping cost to $25. Customers can now get free shipments for orders above $25 from the two sites (Anne, 2010). This shows how the two companies compete for the Canadian market share. To improve their market share, Chapters should consider reviewing their product prices because many customers prefer low priced products.
The two companies should opt to implement an interactive communication system within their website, either through chatting or through social sites such as Twitter and Facebook. Moreover, introducing download services for e-books with the aim of competing with traditional physical stores is important.
Most of the books offered at Amazon.ca and Chapters.Indigo.ca are not downloadable, but they can be shipped. This implies that it takes many days for the books to be shipped as compared to walking in a local book store to buy or read a book.
Electronic books are gaining popularity in today’s changing world; people are moving from paper-based operations to electronics operations. In addition, e-books are easy to process as compared to physical books which require a lot of raw materials, such as ink and paper, to produce. Therefore, Amazon and Chapters can reduce the cost associated with producing and supplying the books to customers.
References
Amazon.ca. (2010). Online Shopping for Canadians – books, electronics, music, DVDs, software, video games & more. Web.
Anne (2010). “Amazon.ca and Chapters Lowers Lower Free Shipping Threshold.” Vouchercodes.ca. Web.
Chapters.indigo.ca. (2010). Canada’s online bookstore – Books, Toys, Music, DVDs, Games. Web.
Laudon, K. C., & Laudon, J. P. (2006). Management information Systems: Managing the Digital Firm. (9th Ed).Upper Saddle River, NJ: Pearson Prentice Hall.
Mulholland, A. (2002). “Amazon.ca debuts in Canada.” CTV News. Web.