To increase profits – having an online business enables you to target those people who you possibly couldn’t reach before by just having a store, this would just provide an easy access to those people e. g. disabled people. Being online attracts thousands of people to your website which would result in sales increasing rapidly and having global audience can also increase your profits. The other thing that Superdrug should do is to lower their current products prices in order to compete with their competitors and to attract their competitor’s customers to their online shopping website.
Online businesses pay less rent because they don’t need to be located in busy and expensive location e. g. High Street. Having a website for Superdrug would enable them to be worldwide recognised and their brand/logo will be much better known. Online businesses often buy straight from the producer/manufacture, meaning that they pay less for products. To increase sales – online websites targets a wider range of audience e. g. 52 million internet users. By having a website means that customers will be constantly shopping from Superdrug at any time and any day (24/7 shopping).
Customers are able to buy from home – no hassle such as traffic, finding parking, queuing, etc. Online businesses are cheap and effective form of advertising which will attract new customers. People from all over the world can buy form the business, not just people who live nearby. Online business provides an easy access to their customer’s with disabilities therefore its convenient for them as they don’t have to get through a lot of trouble to travel to the nearest store.
It also enables company’s brand/logo to be widely recognised worldwide. To grow in size – a local shop is only likely to sell to people who live nearby. Having an online presence enables small business to sell to everyone, regardless of they live. This means that the business’s sales are likely to increase, and with the extra money made, the owner could expand the business – either by buying new shops or by increasing the range of goods/services sold.
Having an online business also enables small business to be able to compete with their competitors e. g. by having an effective and helpful website you can steal your competitors customers. Customer’s judge the business on the appearance and usability of its website, not on its size. Small businesses can therefore compete with much larger ones by being an online business. Retail stores have limited space online companies such as Superdrug are able to offer huge range of products, stored in one warehouse.
By having online business you have lower capital/start up costs, much cheaper to offer additional services e. g. holiday insurance. Even offering variety of choices (products/services) to your customer can make you a lot more competitive which will definitely help you to grow in terms of targeting more customers, and making your existing customers permanent. To improve customer service – having a good customer service is essential to any business, but improving and maintaining your customer services all the time is crucial