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Unit 33 - The Impact of Communications Technology on Business P5 M2
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Unit 33 - The Impact of Communications Technology on Business P5 M2 level 3 business extended diploma
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Farida begumPolliner
Unit 33
Task P5 and M2
In this assignment I will be explaining the competitive pressures on selected,
contrasting business organisation to develop their use of e-business. I will also explain
how the two selected business organisation have responded to competitive pressures to
develop their use of e-business. The two organisations I have chosen for this task are;
Asda and New Look.
The Four P’s Competitive Pressure Actions taken by the
faced while developing business to respond to
the use of e-business these competitive
(ASDA) pressures
Product The competitive pressure Asda have taken action by
ASDA is facing is pricing of lowering all their products
products. They need to prices, and compared to
make sure there prices are Tesco they have over 1000
much more reasonable more items cheaper at Asda
then competitors such as than Tesco. This gives them
Tesco. If Tesco are selling the advantage of gaining
there products at low more customers to shop
prices, Asda will need to with them as the pricing at
either have a similar price, Asda is more appealing.
or go cheaper or offer a Asda also sells items of
good promotion with the clothing such as school
product such a ‘buy one get which engages more
one free’. This will enable parents to shop with them.
Asda to gain more This also means that not
customers. Not only do only are they competing
they face the pressure of with other brands in the
changing their prices but ‘super market field’ but also
also updating their product. mainstream shops from the
If Tesco introduces a new ‘clothing market.’ This
item on the market Asda shows that Asda are
will have to counterattack making excellent strategic
by doing the same and decisions and are staying
doing it better. ahead of the markets.
Place/Physical Evidence The pressure Asda faces The way Asda has taken
when operating online is action is by promoting
drawing the customers special offers and deals on
attention onto there the homepage of Asda’s
homepage by making it as website. This means that as
attractive and appealing as soon as a customer visits
they can. They need to be the site there attention will
able to grabs the attention be captured by the bold
of the public before close graphics and promotion on
competitors like Tesco. If the page. This will make the
Asda’s homepage is more customer curious on what
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