Summary of the Topic
Chapter 10 dwells on the possibilities of expanding one’s business with the help of online technologies. The authors outline the benefits and limitations of online advertising as a means of promoting one’s goods or services. The major pros of such kind of promotion are the reasonable cost, the possibility to hit target markets, and the ability to track important data, such as the location of individuals clicking advertisements.
The cons of online promotion include the annoyance factor, the fear of spam, and the click fraud. The chapter also describes different types of online business: business-to-business, business-to-customer, and customer-to-customer. The role and functions of the chief information officer are identified. The chapter is rather helpful is understanding online business approaches.
Current Event
The intention of M&S to merge with Ocado with the aim of increasing the company’s online business was not surprising (Busby). The major retailer made such a decision to improve its reputation and to “make a big play” (Busby). It is expected that Ocado will deliver M&S’s groceries starting in September 2020. Before that date, Ocado will continue cooperating with Waitrose. By making this decision, M&S will be able to target its consumers better and enhance its online sales potential.
Recommendations and Suggestions
M&S has made a decisive step, which was both risky and effective. There is an opinion that the new merger will be detrimental for clients (Busby). The recommendation for the company is to keep analyzing the results of the merger and make sure that they do not lose their loyal customers. To eliminate the risk, it is suggested to create online advertising campaigns and attract people with their help. Ni particular, contextual advertising seems to be a rather effective approach.
Work Cited
Busby, Andrew. “M&S Turns to Investors to Buy into Online Grocery Market.” Forbes. 2019. Web.