Discuss about the Evidence That The Proposed Initiative Will Be Viable For Foleo Retailing NZ.
Foleo Fones had to deal with Telecom Australia that acted as a gateway between the users and distributors. The new way of selling phones over a longer period "plans' was beneficial for Foleo business expansion (Fell n.d.).
The research illustrates that operating multiple channels results in a positive impact on the financial performance, including, low-cost market access, increased customer satisfaction and creating strategic advantage. Adding non-store channels enables the retailers to gain economies of scope without the need of building new stores (Zhang et al. 2010).
Virgin Mobile Australia growth initiative
An example of mobile phones retail expansion is Virgin Mobile Australia. It consists of mobile phones, mobile networks and broadband 3G services. It is considered as a leading provider in the telecommunications market. It has more than one million broadband and mobile subscribers. It has about 900 employees across Australia and a call center in the Philippines. The company faced the problem of increasing demand for data communication while seeing a slowing demand in the voice communication which represents its traditional source of revenue. The company depends on the social media as a primary market channel but unfortunately, the customer inquiries were overcapacity for the number of staff. The management at Virgin Mobile had to find an alternative way to overcome this obstacle. It did not hire a call center associate, instead, it decided to develop a social customer community that could decrease the costs of the call center, enhance the customer service and sustain Virgin business. The online platform enabled the company to effectively communicate with the customers, answer their inquiries and provide solutions to their questions (lithium 2018).
Apple Australia growth initiative
The mobile market reached its saturation level in 2011/2012, the major changes were driven by the rapid expansion of the smartphones and tablets. Apple could respond to the market changes and meet the customer demand with 8.67 million smartphones and 4.37 million tablets in Australia in May 2012 (Australian Communications and Media Authority 2013). Apple has introduced the iPhone in 2007 that required certain changes, the smartphone usage increases the usage of internet data. It also requires upgrade in the mobile networks to support the 4G services and enables the WiFi networks in Australia. More extensions took place, including, the mobile payments and cloud computing and location-based services (Australian Communications and Media Authority 2013).
Moreover, Apple has inaugurated a new generation of software developers worldwide. It has opened the App Store in 2008 that enabled the iOS developers to develop mobile applications that could function with the iPhone. This represents the basis of the global App economy, the App developers develop applications for billions of users (Mandel & Long 2017).
The Apple Pay App was introduced in Australia in 2016 and it did not attract many customers. Only 9% of Australians pay by using their mobile or purchase through the mobile browser. Apple faces the challenge of influencing the customers towards more use of Apple Pay. On the other hand, the Australian market is reaching its peak in using the smartphones which provide an indicator for the future probability of more customer dependency on the Apple App (Deloitte 2016).
Australian Communications and Media Authority 2013, 'Communications report 2011–12 series- Report 3—Smartphones and tablets: Take-up and use in Australia', Commonwealth of Australia, Australia.
Deloitte 2016, 'Mobile consumer survey 2016 - The Australian cut - Hyper connectivity: Clever consumption', Deloitte, Australia.
Fell, J, 'Foleo Fones', Macquarie University, Australia.
lithium 2018, Case study: Virgin mobile Australia leverages Lithium to decrease costs and improve customer service, viewed 17 May 2018, <https://www.lithium.com/resources/case-studies/virgin-mobile-australia>.
Mandel, M & Long, E 2017, 'The Rise of the Australian app economy', Progressive Policy Institute, Washington.
Zhang, J, Farris, P, Irvin, J, Kushwaha, T, Steenburgh, T & Weitz, B 2010, 'Crafting integrated multichannel retailing strategies', Journal of Interactive Marketing, vol 24, pp. 168-180.