The article will examine the technological applications of two major firms, BBC and TX MAXX. The paper will assess each firm's business model and business tactics. As a result, each company is given a brief.
TK Maxx is a well-known retailer in the United Kingdom. The retail industry sells high-quality clothing for both men and women. TK Maxx was founded in 1994 and is headquartered in Bristol. It currently has over 200 locations nationwide and employs over 14000 people. Recently, it was ranked as the #1433 position by fortune 500 best companies in the US. In 2006, TX Maxx made a profit of $17 billion in revenues.
BBC is the leading news channel in the UK and internationally. It operates in music and entrainment industry. BBC has its news broadcaster in more than 30 different languages. Currently, the firm has employed more than 20000 employees locally and internationally. It has different strategic business units which include BBC online, BBC mobile, and other radio stations. The main strategic business unit include the BBC world wide which essentially handles all commercial activities recently statistics indicates that in 2009, BBC world wide made profit of $179 million (Ahmadi and Akbarzadeh, 2009, p 1272).
This paper will therefore analyze the ecommerce and business technological application by the two firms which have already been mentioned. Strategic analysis will be made in reference to different business models that are being used by each company. Digital marketing which entail social media marketing will be analyzed and compared for the two firms. Finally, recommendation will be made based on the analysis made in the paper.
Theoretical framework
Resource based model or theory which advocated the need for internal resource enhancement. According to the model, a company is set to compete with the rivals effectively in case it has competitive advantage based on the resources the firm possess. For example, if a corporation has sound technology background, then it can develop different selling and advertising channels which can compete favorably in the market (Lewison et al., 2008, p 569).
Digital/e-Business background, digital strategy and business model analysis
Business models are designed to describe the manner in which a frim produces and delivers its product or services to the customers. Essentially, it describes the entire functions carried out by the company. For instance, business models will evaluate the manner in which a firm provides its services, products, revenue generation, as well as the need to create for new technologies with the aim of attracting more clients (Lewison et al., 2008, p 569). This part will extensively discuss business models and strategies used by BBC and TX Maxx. A comparison as well as a contrast will be made between technology application by the two companies.
BBC has a business model that is slightly complex compared to TX Maxx. For instance, its financed by the government through licenses paid on TV, nevertheless, it servers many other categories which include private, public and nonprofit making organizations. Over years, BBC corporation has been in a move to have its e-business enhanced through development of different ecommerce platforms and models (Froud et al 2009, p 252).
Consequently, through strategic partnerships and joint ventures with other firms in the industry, the leading UK broadcaster firm has developed several business models which are offered over the E-commerce platform, in a way that has seen the entire business revolutionized by the adoption of the sophisticated technology. Some of the e-businesses models and strategies developed by BBC are discussed below.
In 2009, BBC corporation management team entered into a strategic partnership with beeb.com to provide an e-commerce platform for the company (Lefebvre, 2009, p 490). The business model provides by ICL through its subsidiary beeb.com has the capacity to help BBC to effectively manage documentation of personalized information through ATG model (Tian and Stewart, 2005, p 289). The application of this strategic business model has allowed BBC to review through beeb.com to provide an overview of each user activities, personalizing content for different users, advertising, aiding in offering shopping experience, among many other preferences. The ecommerce platform has helped the firm to monitor consumer trading habits from time to time and thus putting the firm in a position to adequately respond to their needs (Tian and Stewart, 2005, p 289).
Additionally, BBC has developed another online ecommerce platform which is used to run its payment system by its BBC store. The payment system is being provided in partnership with the giant technology from known as Vindicia. The payment system is being used to enhance consumer direct relations with the company (Lewison et al., 2008, p 569).
The platform is known as Vindicia. cashbox. Through it, consumers are directly connected with the firm. Consequently, the business model allows consumers and clients to busy different products offered by BBC such as TV shows and make their payments online. Customers purchasing different TV shows and programs are also able to save and print their receipts for goods and services purchased (Tian and Stewart, 2005, p 289). The inline payment model has integrated BBC store with BBC worldwide to its BBC iplayer enabling consumers to search for music and TV shows, watch them online, purchase them and pay for the goods in one location in a one-step journey. CashBox allows customers to credit their e-wallet as well as viewing past purchases made (Croker et al., 2012, p 404).
Additionally, to enhance the supply of its videos, BBC has partnered with Drupal to offer quality content management in regard to BBC food and other top. The platform serves many clients including offering its services in different languages. the ecommerce platform provides consumers with pricing strategies, promotion, discounts, video editing and its privacy. Through the platform, clients are able to Watch different videos, and provide APIs with personalized personal content (Tian and Stewart, 2005, p 289).
Similarly, TX Maxx has different businesses models and strategies which are used to serve both company and individual's needs. For instance, similar to BBC models which is used to manage consumer needs, TX Maxx has developed an online e-commerce platform known as I crossing. As one of the retail shop, it has offered different products online. Consequently, consumers are able to pay for their products online. Through the platform, the company can effectively monitor and manage consumers buying behavior, their trends, preferences and the time when consumers make their purchases (Lewison et al., 2008, p 569).
Furthermore, TX Maxx has opened up an online business model through its website to sell products directly to consumers. Through the platform, customers can get offers and discounts as well as making payment for products. Clients are advised to select products from online stores which have outlets near to them so that the products are delivered to them timely.
Digital Marketing and Social Media analysis
Internet has revolutionized the manner in which companies are advertising and selling their products. From traditional methods such as word of mouth, marketing techniques have evolved significantly causing a considerable paradigm shift in the various channel used to Market their products. Additionally, it may also refer to the process of attaining traffic attention through social media sites using different means such as websites, Facebook, twitter, Instagram, YouTube among many other social sites. The main aim of using social media techniques is to attract new customers and retaining the already existing clients. This part will analyze the usage of social media marketing by TX Maxx and BBC (Lewison et al., 2008, p 569).
BBC is one of the giant marketing company for its products. Social media marketing had widely been applied by the broadcaster. Many consumers have been reached both locally and internationally. Existing clients' relationship has also been argument through social media campaigns which is implemented through different online sites. For instance, recently the firm launched its online social site known as BBC Taster. The platform is tasked with carrying out market research and test if different products offered by BCC through its store. Accordingly, BBC Targeter is tasked with ensuring that different media products such as TV shows, radios and other online products offered to customers (Hastings and Saren, 2003 p 365). Additionally, the social platform also allows users to edit the content of the different programs. Furthermore, clients are permitted to give their views and opinions on what need to be included. Clients can also suggest directly what information they need to be advertised and which products needs to be marketed online (Lewison et al., 2008, p 569).
Another social media technique which has been used by BBC corporation include the famous and most renown advertising known as BBC StoryWorks. The technique is heavily used to test consumer emotional behavior in reference to the contents the company sell and distributes (Sigala, 2010, p 1269). Storyworks is highly agile platform which is used to enhance social marketing of the broadcaster's contents both copyright and other forms of products which range from editing of the context, distribution and consumption of the content. Among the contented advertised through StoryWorks include sponsored contents and advertisement of the products being offered by the organization (Hastings et al., 2004, p 961).
Moreover, BBC has used Facebook to market its contents and programs. For instance, the firm has placed some programs on Facebook which ensures that a large number of audience is reached internationally through its Facebook channel and Facebook page. Among the programmes which are run over this platform include BBC Breakfast, radio stations specifically radio 5 Live, Today Programme, as well as News night (Lewison et al., 2008, p 569). All these programmes are advertised and offered through Facebook page and has significantly, helped the company to increase its viewership, listenership and sales revenues greatly.
Twitter has not been ignored in marketing BBC contents. The firm has three main accounts which include @BBCBreaking that is used to deliver breaking news and other emergent stories cutting the headlines, news alerts, as well as briefing of developments of major stories. @BBCWorld that delivers stories special features updates, and other programmes intended for international audience. The last account that has been used for social marketing of BBC products include @BBCNews provides information, TV program and entrainment to international audience (Goworek et al., 2012, p 935).
Google+ has also been used to advertise different program, shows an entrainment. Among the program on Google + include BBC Spot and BBC World Service. Furthermore, Instagram has also been used to offer video program to different audience in different nations through their native languages. Spapchat is currently being experimented to run and advertise BBC World Subreddit and Reddit TV channels (Arthur et al., 2009, p 101).
Compared to BBC, TX Maxx has done little in terms of online social media marketing. Mostly the accompany has depended on Facebook and Twitter to market its products. It also has a social market website which is used to retail clothes and other garments. Nevertheless, the social marketing platform at TX Maxx is not well developed compared to what BBC has so far achieved in the market.
Web design, mobile commerce and business-to-business analysis
TX Maxx has some well-developed websites such as such as social marketing websites which is used to retail online its products (Prins and Verhoef, 2007, p 169). It has also developed mobile applications which runs different adds representing company's products and thus ensuring B2B relations with the clients. Through the mobile application the company is able to reach a lot of clients and sell different products to them. Similarly, BBC has developed one of the most interactive websites through its BBC worldwide and BBC stores ensures that clients are able to reach out to firm's products such as TV programs, documentaries and other many online programs (Lewison et al., 2008, p 569).
The frim has also developed mobile commerce platform through the establishments of their BBC app which is used to deliver its contents to different users. Business to business model to business has been achieved through its famous Vindicia's CashBox which craters a direct relationship with the consumers. Conclusively, it can be applauded that both BBC and TX Maxx have fully embraced sophisticated technology which is evident through their web designs. Additionally, both companies are well established in term of mobile commerce through the use of their respective mobile apps which has traversed the market through mobile adds; a condition which has increased revenue collected.
Conclusions and Recommendations
The cardinal objective of this analysis was to develop a comparative analysis in terms of technology used by two campaniles namely BBC and TX Maxx. Consequently, a comparative and contrast evaluation has been made by keenly analysis E-business platforms applied by each firm. Social media marketing analysis of the two companies was made and lastly the paper reviewed web design, ecommerce platform like mobile for the two corporation. Subsequently, after a keen analysis of the two firms in reference to E- business, the following recommendations are made.
First, TX Maxx has to ensure that it enhance its marketing activities through the establishment of different marketing channels. For instance, the firm should come up with different social media sites and platforms which will reach a large market as opposed to current situations.
Secondly, TX Maxx has to come up with new and personalized business-to-business models. Currently, the company has weak relationship with consumers as the aspect of direct interaction between consumers and the business is very poor.
Concerning BBC, its recommended that more native languages have to be included to meet their distinct needs. Furthermore, new products for purchases and lastly; all the social media platforms are supposed to contain consumer feedback section for evaluating the attractiveness of the products being offered.
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APPENDEX 1
TX MAXX SWOT analysis
Strengths
Reputable brand
Strong financial background
Technological established Opportunities
Advancement in technology
Emerging markets
state support
Weakness
Formed through joint ventures
Changes in economic conditions
Limited access to foreign market Threats
Stiff competition
Innovation disruption
BBC SWOT ANALYSIS
Strengths
Largest broadcaster in UK
Many foreign news bureaus
World largest broadcaster Opportunities
Advancement in technology
Unbiased information
state support
Weakness
Controversial global issues reporting
Biased information Threats
Stiff competition
Innovation disruption
Appendix 2. Porters Five Forces Analysis FOR TX Maxx and BBC
Threat of new entrants
BBC AND TX MAXX faces high threats of new entrants into the market. As one of the biggest indemnification firm in the US, it enjoys high threat from new firms joining the industry. Many companies are running as underwriters. Consequently, due to its size, the company is able to neutralize such that's from. Additionally, many financial companies are featuring; a condition which threatens the existence and future of BBC AND TX MAXX. Fee differentiation among the products which are being offered by BBC AND TX MAXX poses a challenge to its performance as many other companies provide similar products to the consumers thereby increasing making the threat of new entrants very high. Almost every firm try to use similar strategies to reach consumers a move that negatively affects BBC AND TX MAXX in serving customers due to similarly in products and services.
Supplier Power
BBC AND TX MAXX depends purely on premiums paid by those who are insured for its operational; cost and profits. The suppliers are the insured and no any other sources of funds. Supplier power is very high as customers have the option of choosing other agencies (Cumminset al., 2010 p1525). Nevertheless, the firm cannot reduce the premium paid to attract more customers and thus increase the supplier barging.
Bargaining power of buyers
BBC AND TX MAXX faces high consumers barraging power owing to different types of consumers. Currently, there are two types of consumers namely corporate clients. Axiomatically, consumers who are likely to pay minions of money to BBC AND TX MAXX are certainly to have greater bargaining power compared to individual's clients (Grundy, 2006, p 213).
Threat of substitutes
BBC AND TX MAXX's products are facing close substitutes. Different financial companies and other underwriters are offering same products which BBC AND TX MAXX offers. Currently, consumers are opting for other products and saving platforms such as pension funds and shying away from products being offered by BBC AND TX MAXX. Currently, consumers face low switching cost to other product and thus threatening the sustainability of the firm
Rival among Competitors
BBC AND TX MAXX faces strong rivalry from competitors. Due to numerous players which constantly lowers premiums has made BBC AND TX MAXX struggle and thus weakening its position in the market. Several fund sachems have been established and thus increasing competition other players (Grundy, 2006, p 213).
Appendix 3 Business model canvas
