Swot Analysis Archives

Swot Analysis of Apple

Apple, Opportnities, Strengths, Swot Analysis, Threats, Weaknesses

Pages:4

Apple incorporated is a multinational company that is jointly owned by Vanguard Group and BlackRock, both being institutional investors. It has become the largest technological giants of today (World Economic Forum). It was founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne. It’s an American-based company whose current CEO is Tim Cook since 2011. Apple products include Apple Watch, Apple TV, Apple iPad, and, the most famous, iPhone. Apple earned a total revenue of $260 Billion in 2019. Its subsidiaries include Beats Electronics, Apple Store, NextVR, FileMaker and many more. As of 2019, the company had more than 500 retail stores globally. The SWOT analysis of the company is significant in revealing where the company stands today and how it will go about in the coming years of the future.

Strengths

By identifying the strengths of the company, one can tell the company’s strong areas and how it has a monopoly over them and takes advantage of these to overcome its weaknesses. The company has internal as well as external advantages and strengths.

Apple’s Brand Image

One of its major strengths includes the fact that it has a sturdy brand image. The brand has been in the market for very long and has become a luxury good. Thus, many people with increased incomes prefer to buy Apple products, especially iPhones, because of the image it entails and displays wealth.

Self-sufficiency in Developing Parts

Another one of its strengths is that the company is self-sufficient in developing its own hardware, software, services and all other applications. Apple has designed its own ecosystem, and since it lacks Apple’s biggest competitor, Samsung, this is a really strong strength of Apple Inc.

Advanced Advertising and Marketing Expertise

Moreover, another important strength of the company is its advanced and attractive advertising and marketing abilities. Apple’s brand recognition is maintained via media giants and technology companies such as Forbes that acknowledges that the company is worth about 205.5 Billion US Dollars. Its reputation is maintained by quality advertisements such as “1984” and “Think Different” that guarantee superior marketing skills, promising to attract new customers by using advertisements as psychological tools. This enables the building of brand loyalty and confirms future customers.

Weaknesses

Apple’s weaknesses are not many but are sufficient enough to be mentioned.

Expensive Products

One of its most targeted weaknesses is that it has extremely expensive products. iPhone 7 cost $649 in 2016, and in about three years, its price increased by 54%. Apple is the first American company toreach the trillion-dollar mark. Even Switzerland’s GDP is lesser than Apple’s market cap in monetary terms. Since its logo has become a status symbol; the company is alleged to charge the “Apple Tax” for its branding. The prices are so high that brand sales are decreasing exponentially in India.

Exclusivity of Apple Products

One of the major criticisms of Apple is that the company’s software is incompatible with working with other any other software. This has given rise to the concept of Apple universe whereby the customers are propelled to buy supportive products to enhance their products that are already in use. The exclusivity of the Apple products faces criticism by customers that complain that not only are their products expensive but are compatible only with other Apple products.

Opportunities

The opportunities available for Apple Inc. are external factors that affect its supply. These opportunities also help in the strategic planning of the company by highlighting the areas it can potentially take advantage of to enable economic growth.

Digital Revolution

One of the major areas of opportunity is granted by the overall trend of increased dependency on technology in this subtle digital revolution that is underway. This entails the increased use of Apple computers, iPhones, Keyboards and the accessories attached in furthering the increased use of technology. Offices, schools and freelance places are all now more dependent on technology than they used to be, and this increased demand for technology does propel the supply to increase to meet the demand.

Globalization

Another opportunity provided to Apple Inc. is the very fact that globalization has successfully taken place. Globalization is the process whereby a company gains international scale and influence and expands its operational procedures. Globalization has boosted the company’s profit margins as consumers can easily request and purchase Apple products that are more readily available. This aspect increases sales, and thereby the profits also increase.

Product Diversification

Additionally, another strategy the Apple Inc. can take advantage of is the strategy of product diversification. This propagates that the company may increase the number of products it offers or may offer cheaper products to attract middle or low-income customers. Also, increasing their supply chains distribution centres, especially in developing countries, will help boost their sales that will, in turn, assist in earning more profits.

Threats

Apple Inc. also faces many threats, as any multinational company does.

Market for Products

One of the important areas of the threat the company faces is the potential market for phones and tablets might be on the fall as evidence show that the smartphone demand has fallen by 3%. Reasons for the fall might include the fact that when one has already purchased a phone or a tablet, he or she might not feel the need to buy that again when the older one is fully functional already. This argument suggests that sales might slow down.

Competitors

Additionally, another threat present for Apple Inc. may be the emergence of new companies that offer the same products. These competitors might provide the same product with more or less the same features. The product also might be less expensive, so it is attractive to the consumers. Apple Inc.’s competitors include Samsung, Google, Nokia, Sony and many more.

Fear of Imitation

Another threat to the company may be the fear that its products can be imitated. Imitation has been one of the biggest threats for recognized companies. The fear of having their software or any aspect of the technology stolen is big enough to take measures to cover for it.

All in all, it can be observed from the SWOT analysis that Apple Inc. has many strengths, weaknesses, opportunities and threats. Analyzing and assessing all of these will help the company, its customers, and its competitors alike to make a decision that benefits the respective parties.

Resources

Businessinsider.com (page 2)

Fobes.com (page 2)

Apple.com (page 1 and 2)

World Economic Forum (page 1)

Strategic International Business Management

IKEA, IKEA strategies, Swot Analysis

Pages:15

Introduction

Management performance tends to handle the operational process in organizations through regular feedback. The scope of business management is enhanced when a business model is invigorated. It is vital for a company’s success that several changes should be implemented (Korsgaard, Rask &Lauring, 2007). The process of strategic management is to implement a strategy in an organizational framework that allows the accomplishment of strategic goals. This kind of operation is to get more customers who spend more, so longer retention is made. (Lechehab&Kamassi, 2016) The monitoring and planning analysis in an organization need specific processes to meet the objectives. This report will discuss international strategic business management in IKEA regarding Malaysia. The report will discuss the mission, strategic goals, and SWOT analysis.

Company Overview

IKEA is a global brand that was found in 1943 by Ingvar Kamprad. The company is famous for its famous and modern stores. Its different kinds of products are eco-friendly and cost-effective. IKEA operates in 389 stores worth of 42.9 billion. It also has few branches across the world with such as KungensKurva, in Shen Zhen, and Texas. It has presented an example of trendiest with low-cost furniture. IKEA is considered a recognizable brand at the globe with best practices. The trademark of the company is well designed and functional regarding frugality experience. These practices are related to the principle that offers competitive advantage (Soh, Wong & Chong, 2015). The image, quality, and affordability of products is an asset for the company. The company has the opportunity to be streamlined about its customs, franchising, and popularity.

IKEA is successful in terms of its management operations. Its formulation processing is based on the right demographic framework. IKEA stores are customized to offer a better experience to customers in terms of fluid shopping (Hultman, Johnsen, Johnsen & Hertz, 2012). The living room and domestic style experience for customers are exciting. They need to take a code linked to the selected item when they buy furniture. The functional layout of products is seen as a mass service for a product offering that fulfills the basic needs of consumers. Some basic features of the firm are high quality, wide variety, the flexibility of products, less disruption, and easy supervision.

Mission

The mission of the company is to build a strong culture that will deploy crucial factors for the continued success of IKEA. The concept of sustainability is inherent because furniture is considered a necessary value for people’s lives (Korsgaard, Rask &Lauring, 2007). The recognizable brand name and concept are linked to low valued price and home furnishing products. The company has a wide range of its products and allow frugality practices for being the first choice of consumers as compared to other brands. The culture of IKEA is to work within everyone, create and develop it further, so people live with this vision. This concept is building a core competency of the company against others. IKEA has established its long going capacity in Malaysia with the science and technology concept and managerial practices. The developing economy of Malaysia is offering huge potential to the company to produce furniture due to newly identified competitive advantages (Garnier&Poncin, 2019).

SWOT Analysis

IKEA is a valuable furniture brand in the world, and in 2019, its worth is estimated at US$45.4 billion. The strengths of the company are its brand image and brand name. The reputation and awareness of the company are its key strengths (Johansson &Thelander, 2009). A most significant strength is its low-cost affordable furniture because it aims to sustain in the lives of people, so it is cost-conscious. The philosophy of IKEA is to keep costs low and incorporate new technologies, advances, and innovation to allow profit margins(Arrigo, 2005). This is associated with the profitability, efficiency solutions, and cost-effectiveness methods in handling products. In Malaysia, IKEA has a competitive advantage in producing products.

The combination of effective packaging and low price furniture startup in Malaysia is a big strength for the company. The products of the company are new, different, and allow extraordinary shopping experience to people, so consumers are engaged in decision making (Soh, Wong & Chong, 2015). It is different from other brands because of the wide variety, selection, and offering a chronological order. Just as its competitors are working in Malaysia, IKEA aims to maintain long term relationships with customers, so optimizing its cost and transport timing.

Its weaknesses are less focused on improvement policies while working in less developed countries like Malaysia. It also has inadequate support policy as well as limited visibility regarding marketing and promotion. The sparsely located few stores in Malaysia can be less responsive to increased demand of the population (Minkes&Minkes, 2005). It has to employ more staff to enhance the buying experience of customers by attracting them. The packaged furniture and its technical nature is different and needs more focus on assemblage. It depends on the third party to assemble and assist in purchasing products that can be a weak point for IKEA. There is an absence of detailed instructions that can accompany products and retain consumers when they go for detailing.

There are some opportunities for IKEA to further develop and boost its concept in Malaysia. It can increase its clientele by educating people more about environmental waste and pollution. If wastes are reduced regarding furniture usage, it can develop a strong concept as an opportunity in corporate social responsibility (Hultman, Johnsen, Johnsen & Hertz, 2012). With Malaysia and other less developed counties like India and Indonesia, IKEA can fully develop its network of furniture supply. It has the advantage of working on broader concepts by developing effective solutions for business. This will provide solutions to reduce environmental pollution, so a sustainable life at home will be easy. In Malaysia, the potential exists regarding natural resources and others like advanced technology and science, so it can promote a technical friendly product (Garnier&Poncin, 2019).

Some external factors can work as threats to the company in Malaysia. There are many low-cost retailers in Malaysia that can share market value and specialty of furniture with IKEA; there is a need to produce more economical and consumer-friendly products to compete with the rivals. The financial conditions of a country are other luring threats for IKEA. Any financial crisis and economic downturn in the economy can cause threats to IKEA (Lechehab&Kamassi, 2016). The size and scale of the company is also a threat because it has to focus on the operating economy where experts believe watering down of innovation due to less targeted consumers in Malaysia. The company is steadily acquiring a household place in masses, so it has to improve quality and standard with its expansion (Fröding& Lawrence, 2017).

IKEA strategies and its associated plans

IKEA’s marketing strategy through which the organization searched out cultural and advanced customers and also searched a sufficient market to sell its products. IKEA sends its designs to concern professional people to its homes and provide them feedback(Arrigo, 2005). This strategy allows the ministers to make the market decisions that are based on people’s life’s experience; this experience might be collected from survey and data collection. IKES Strategies considered all elements that are involving around product and price into mixed marketing. IKES tries to present its best product on the lowest market rate, and it is also called the 7Ps of marketing, in which position, development, methods, characters, and material elements are taking place (Hultman, Johnsen, Johnsen & Hertz, 2012). IKEA was established by Kamprad in 1943; this term developed when the home furnishing stores are used for monetary purposes around the world. All IKEA retailers are running their own franchise business.

IKEA of Sweden concerns all product ranges, which are associated with IKEA; the entire production differentiated with tags, designs, and quality. To start IKEA’s strategies, find the solution to various questions. IKEA knows about consumer satisfaction and how much it is important. Consumer relations influence the business significantly (Stanciu, Zlati, Antohi&Bichescu, 2019).

Different research objectives also take place in this term, like investigating the consumer demand theory. Establish a referencing and suggestion system for company development. The basic purpose of this theory is to satisfy the consumer at any cost, either the consumer belongs to any category of life. In those days’ customers have awareness about the brand and its worth; at first, the consumer judges the product, and its services afterward estimate his personal experience and, at last, make a decision whether the product is appropriate and meets its exceptional level or not. After using the product, if the product fulfills its requirements, then the customer will purchase it again. Otherwise, he contacts any other commodity. In this fast business establishment affairs, customer relations are critical to managing. Customer satisfaction shows that he will purchase the commodity afterward to satisfy the demand that would be a long-term relationship to company and customer till then the other product may not facilitate its needs. An efficient marketing program consisted of all terms and conditions to evaluate the mix marketing concerning the market objectives which a company has to occupy to compete for the other rivals (Fröding& Lawrence, 2017).

IKEA base the business success on superior marketing strategies that must be the same around the world, which consisted of the description list it must be in written form in 17 languages and color should be blue and yellow, the color of the Swedish flag. This technique applied to the customer that they are free to purchase any commodity. The price also is shorter than other brands because the consumers, first of all, focused on the price (Johansson &Thelander, 2009). To understand the IKEA business strategy, it is necessary to be based on business conception and formulation prepared by IKEA 12th January 2009. It also provides a wide variety of sketches, functional, and other home decorating products at a low price thus can purchase every kind of class. The main objective must be centralized the objectives and purposes of IKEA’s business strategy. It also provides a guideline on work; these rules implement all sectors of the strategy, whether they belong to the country or around the world. IKEA focused that the environmental designs are presented into its home decor items; for this purpose, it launched a plan in 2015(Arrigo, 2005). This plan will combine the cultural, environmental, and financial and commercial crises. IKEA follows SWOT analysis to gain its objectives (Carter, 2009). This is a developmental business tool. It also assists the business to focus on its fundamental issues. SWOT is a planning stage and focuses on strengthening and weakening and also deals with the internal and external aspects of the business, and also face all threats that are affecting the company matter and associated with other business merchants. The SWOT business plan also concerns retailing, production departments. It also can deal with economic situations, social variations, and technological advancements. IKEA also emphasizes that every business holder has to sense its strengthening aspects to overcome its future challenges. IKEA also focuses on attracting the fundamental group of customers to establish a brand in a world community. It also provides different business techniques at a low price (Alänge, Clancy &Marmgren, 2016).

To maximize the profit, the brand has to establish a trustful relation to the supplier, retailer, and customers. It also embraces several strategic techniques to create customer trust and gain worth in a market. Long term relations to customers or retailers also provide a profitable sense to the business. IKEA emphasizes making good relations with customers by fulfilling their expectations and trying to find out how the new customers ties in a long-term relationship (Baxter & Landry, 2017).

Successful Strategic Goals

The world economy is booming, so the furniture market is also going up with rapid development. 70% of the global market is acquired by traditional furniture companies. The scenario is easy to understand due to increased production capacity, technical advancement, and strategic management. IKEA has also managed to enter in China, Indonesia, and Malaysia by focusing on the key significant strengths and its strategic goals. In many less developed countries, it has developed its concept of competitive advantage and working to show greater potential. Its production is increasingly focused on matching quality standards in Malaysia and beat its competitors. The clear mission of the company is to sell a wide range of furniture with reasonable prices that allow people to buy and get involve (Baxter & Landry, 2017). The wide range offering is a keyword in functionality because consumers, in this way find a place where everything is present. The strategic goals that IKEA has considered to enter in Malaysia are creating high efficient sales department, offering best ideas for home furnishing and serving customers with the best shop of furnishing ideas.

The aim of IKEA at Malaysia to offer them successful appearances and a perfect shopping experience for whole family (Carter, 2009). The people and environment is always a concern for IKEA so its management try to manage every day’s life with a better notion of commitment. It has also responded any rising public concern regarding sustainability, choice of the communication and product range. In Malaysia, effective focus on transportation and raw material was easily maintained due to easy access and prevalence of raw material. This situation helped company get its green targets and spread impact. In Malaysia, it is working on the original approach of dealing customers, i.e. self-serving method. The catalog allow people select whatever they want so they choose their products and put and assemble at home. The centralized strategic direction at IKEA is increased with its expansion (Alänge, Clancy &Marmgren, 2016).

The rapid internationalization has enhanced the challenges for company in a broader scenario so there is also increasing difficulty of managing and responding needs. It is considering cultural and social factors while operating in new premises so emerging demographic trends are easy to tackle with a focused strategy(Arrigo, 2005). IKEA is also focusing on varied level consumer groups by implementing its strategies. The power of strategic management is significant under the organizational structure. It is focusing on maintaining a balance between autonomy and country-level centralized intervention, which will be attributable to franchisee autonomy and subsidiaries. Its suppliers are located in low-cost countries that are an advantage for Malaysia based IKEA (Stanciu, Zlati, Antohi&Bichescu, 2019). They can access raw materials so effectively reach out to distribution channels. The suppliers are selling standard products with broader dealing at the same time.

IKEA’s brand is focusing on innovation mix, advanced, and quality furniture. A combination of low-cost high quality furniture is the business model that is further being tackled with new innovations and techniques to expand and cut costs. Its simple idea of keeping costs low for manufacturers and customers is workable because it doesn’t own its sole manufacturing facilities. The upstream innovation and research & development activities are centralized in Malaysia. The strategic and operational strategies are workable and acquired a steady scope due to global policies.

Challenges

While operating in a global market, an international brand may face some challenges. For instance, while operating in Malaysia, it has to focus on its internal capabilities, ceasing activities, and incorporate key strategies to make its reputation (Carter, 2009). It has to work in an intensely competitive environment because targeting consumers is not easy, and there are multiple brands considering similar operations. It has been facing external and internal challenges in Malaysia regarding raw material, transportation, and availability of the latest technology. Some competitors are focusing on influential corporate decision-making strategies to make effective decisions for the firms. The management team has identified key threats from this business point objective so IKEA has to implement consumer related methods. It is facing diversification issues to boost sales (Alänge, Clancy &Marmgren, 2016). Some internal cultural issues are also prevalent. Due to geographic factors, IKEA is facing different taboos in Malaysia so it has to focus on to improving furniture design.

Conclusion

IKEA in Malaysia is working on competitive strategy with low cost initiatives. It has opened new stores, with an aim to use stability strategy. This will be helpful to monitor performance of the products and allow well operating conditions for business. The stability factor increases productivity of a company so it can take profit based features. Low cost operating methods, effective decision making approach and a business formulating method for its consumers are main pillars of Malaysian market that company is focusing. IKEA is working at global level so a focus on price and differentiation is a key to maintain. The price cost of company is linked to the cost of production, under strategic management framework, this scope is maintained. Globalization is a central aspect of strategic management, so IKEA in global market places, is expanding this view by gaining better competitive advantages and profits. The trend of consumer products at global marketplace is emerging and IKEA is viewing this phenomenon in Malaysia to reap a better growth.

References

Alänge, S., Clancy, G., &Marmgren, M. (2016). Naturalizing sustainability in product development: A comparative analysis of IKEA and SCA. Journal Of Cleaner Production, 135, 1009-1022. doi: 10.1016/j.jclepro.2016.06.148

Arrigo, E. (2005). Corporate Responsibility and Hypercompetition. The Ikea Case. Symphonya. Emerging Issues In Management, (2). doi: 10.4468/2005.2.04arrigo

Baxter, M., & Landry, A. (2017). IKEA: Product, pricing, and pass-through. Research In Economics, 71(3), 507-520. doi: 10.1016/j.rie.2017.03.003

Carter, R. (2009). Will consumers pay a premium for ethical information?. Social Responsibility Journal, 5(4), 464-477. doi: 10.1108/17471110910995339

Fröding, K., & Lawrence, G. (2017). Sustainability at IKEA. Linnaeus Eco-Tech, 67. doi: 10.15626/eco-tech.2010.008

Garnier, M., &Poncin, I. (2019). Do enriched digital catalogues offer compelling experiences, beyond websites? A comparative analysis through the IKEA case. Journal Of Retailing And Consumer Services, 47, 361-369. doi: 10.1016/j.jretconser.2018.12.011

Hultman, J., Johnsen, T., Johnsen, R., & Hertz, S. (2012). An interaction approach to global sourcing: A case study of IKEA. Journal Of Purchasing And Supply Management, 18(1), 9-21. doi: 10.1016/j.pursup.2011.11.001

Johansson, U., &Thelander, Å. (2009). A standardised approach to the world? IKEA in China. International Journal Of Quality And Service Sciences, 1(2), 199-219. doi: 10.1108/17566690910971454

Korsgaard, S., Rask, M., &Lauring, J. (2007). The Diversity Management Paradox in Globalization – The Swedish IKEA Way. SSRN Electronic Journal. doi: 10.2139/ssrn.1135570

Lechehab, S., &Kamassi, A. (2016). The Benefits of Implementing Lean Management System at IKEA Malaysia Company. مجلةالباحث, (16), 55-66. doi: 10.12816/0034358

Minkes, J., &Minkes, A. (2005). Decentralisation, Responsibility and Ethical Dilemmas. Social Responsibility Journal, 1(1/2), 16-20. doi: 10.1108/eb045790

Soh, K., Wong, W., & Chong, C. (2015). Strategic Choices: A Composite Model for Logistics Service Providers. Journal Of Southeast Asian Research, 1-10. doi: 10.5171/2015.652416

Stanciu, S., Zlati, M., Antohi, V., &Bichescu, C. (2019). The Development Analysis of the Romanian Traditional Product Market Based on the Performance Model for Sustainable Economic Development. Sustainability, 11(4), 1123. doi: 10.3390/su11041123

Aldi & Walmart Retail Competition and Growth

Aldi, Growth, PESTLE Analysis, Retail Competition, Situational Analysis, Swot Analysis, Walmart

Pages:13

Introduction

The internationalization of industry has boomed business, yet it is not a new phenomenon of growth. Many retail sectors are experiencing growth patterns based on innovation and emerging technology (Yadav &Verma, 2015). The speed and breadth in the market expansion are unprecedented. Grocery retailers are facing emerging marketing trends in the face of current consumer demand (Chatterjee, 2017). Increased market share and capabilities are making ways for these stores to make more revenues. In some cases, companies face failure in market performance, so confront unwanted consequences (Cova & Salle, 2017). This report will discuss business marketing strategies by Walmart and Aldi and explore how both of them faced each other and their marketing strategies in the form of distinct capabilities.

Situational Analysis of case

Mainly, the Aldi is targeting consumers and learning to chart their capabilities so that it can deliver value effectively. The firm is adapting to the competitive opportunity as per its rivals. Aldi was initiated from Germany and working to strengthen its economic landscape amid Walmart (Chatterjee, 2017).

Walmart is a strong competitor of Aldi that has substantial experience in the retail industry and managing the supply chain. It came across many challenges and problems in the growth path that helped it thrive in the industry and gain experience from past mistakes (Boswijk, 2017). In 1962, it was opened in Wal-Mart discount city and started selling toys. The essence of the company as wal-martization is to sell goods and bring change around the globe. For a retail store, it is important to unlock the capacity by selling larger than its competitors. Walmart has learned to set up a big picture of its business and bring innovation like Kmart. The business model, unfortunately, did not work more than expectations, and Walmart was not successful in converting it into what the customer wanted. This business model was to achieve predictability about customers’ demand.

The goal of Walmart was to predict and mark the extended value chain for its products on shelves. This capability was managed by offering surplus inventory. In case of lack of inventory, the company faced costs, and lean working capital was started as an innovative aspect of this business model. Walmart shared its point of sale data because of its large vendors. Some of its largest suppliers are Newell and P & G, and its suppliers, as well as logistics, are working on superior precision structure with better efficiency (Hernandez & Simmons, 2006). The stores and the entire inventory of Walmart are passed through check. Its predictability is ensured with the low price mechanism under a steady flow of customers when a period is approaching ending sales.

Aldi is a shorter name of (Albrecht Discount) which established by Kal and Theo Albrecht as a self-owner general store in 1945 in Essen. Aldi is carrying a billion-dollar price competition; this situation must be horrified for the Walmart. Aldi serves 1.5 % grocery market in the U.S, whereas Walmart is 22% (Boswijk, 2017). Aldi’s sales growth increased gradually and rose to 15%, and about Walmart assumed only 2% increased till then 2017.

The business needed strategic and developmental approaches to compete with other followers—this case-based on the Walmart retailing process, and how Aldi overcame the reputation of Walmart. Walmart is a regional company that designed several working models to compete with other organizations on price detecting issues. At that time the Aldi is also making its progress and competing with other grocery stores running into the U.S. The Aldi conducted an exhibition and tried to approach the different customers, where it identified its various abilities, and adjust contentious strategies to serve its products against the competitors (Chatterjee, 2017).

Retail Competition

The Aldi was established in Germany, and now it is increasing its worth in the U.S.A. The Aldi is creating a continuous change into the economic aspects by following the various business patterns. Aldi takes several right decisions associated with its first exhibition. Its first strategy is price control to underserved customers; second is opening the super grocery stores on cut-rate prices into communities for such consumers who are conducting a financial struggle by providing a limited range of merchants (Hernandez & Simmons, 2006).

Aldi follows Walmart and creates a low price conducting business model. But the different business models presented by Aldi, create a competitive environment for Walmart and allow Aldi to open new stores, several new business models are constructed, the step one is prepared to focus on the possible customers, and fixing the competition positions into the market (Voigt, Buliga, &Michl, 2016). Step two is constructed to select a convenient business model to develop the target section. Step three is to maximize the profit constituted in different business models. Four-step is for business development, the profit ratio develops on its priorities, and focusing on different profit-earning aspects.

Walmart is enjoying the developing business model and becoming a substation of business practices. It considered for consumers to buy goods from their stores based on the point of sale (POS) data (Hernandez & Simmons, 2006). By following the industrial methods, Walmart shares its experience of POS data to the other merchants; logistic providers also allow it to start its store to create a network. Further, it established a business network to efficiently the grocery business dealings, all strategies adopted to be an aggressive force in front of its competitors. It slipped because Walmart changed its retail business model to increase its business efficiency model and got stumbled on this practice. Aldi is making its reputation as a hard discounter. It offers such prices that traditional discounters did not offer before yet (Laurenthomas, 2019).

Price-conscious customers purchase a short variety of grocery products. Aldi sells 30,000 grocery products, whereas Walmart has 15,000 items (Alxaedra, 2018).

Aldi believes in discount trade as it did on the Costco megastores chain. Both retailers have influenced the merchants by repackaging their goods to increase the demand for their goods (Manalova, 2018).

Departmental stores provide customers with every kind of product in one place and save time. A superstore provides a complete range of products on a serving pattern. The stock items collection makes it much easier. Aldi does not provide the bag and credit card facility that increases the consumer’s expenses. Consumers use a shopping cart that must be returned after shopping. Aldi connected electronic locks to a shopping cart that fixed the carts to the parking area. Although both retailers focus on the cost of products. Aldi hired experienced staff to maintain control of the price fluctuations in the market. Aldi also appointed a multitasking staff who can perform different kinds of duties on stores, minimum staff hired to perform duties. All tactics helped the retailers to possess the profit (Manalova, 2018). Aldi’s growth is increasing 8% every year, and 40 stores opened in a year from 2004 to 2010 only in the U.S grocery market, and also conscious of increasing the growth into new markets. Most new stores are privately managed. Aldi does not explain its growth to its shareholders.

Aldi focuses on its cost, which has essential performing edges, shows 9.3% in Germany, but its slow success because of its efficient business model (Nassauer, 2018). Aldi establishes its position as a 20th bigger grocer into U.S.A out of 52. All retailer strategies are mentioned in the 2nd exhibition. Product choice, supplier administration, and its workers are pivotal means for Aldi’s business model. Its business methods are easily followed (Meyersohn, 2019).

On the other hand, Walmart shares its sale data with other merchants and analyzes the demand of the consumers and prepares some predictions for its expansion for a particular period. P&G and Newell are also involved in making new and efficient manufacturing plants and to reduce product cost (Mujtaba& Maxwell, 2007). Alternately, the production volume and quantity of stores needed to increase.

SWOT Analysis

Aldi and Walmart are two strong retail brands. Aldi has larger than 1800 stores in California, Mid-Atlantic, Florida, and Mid-west. Aldi is now a strong supermarket chain after Kroger and Walmart in America (Alxaedra, 2018). The aggressive growth rate is forcing the industry to implement new changes that attract customers. Aldi is working on Walmart’s actions and approaching it in competition. Recently it opened a store in Bentonville, which is only one mile away from the corporate headquarters of Walmart. Another strength of Aldi is keeping low prices, so providing the best experience to customers regarding shopping. This privately held company is offering products without reducing quality. According to customers, ’ low priced products provideprovide a distinctive experience (Cova & Salle, 2017).

Another big advantage for Aldi is selling its own natural organic products,, so it makes customers happy, and they save time finding branded goods in the store (Boswijk, 2017). Aldi’s wage rate for workers is higher than average in the market, and it still saves labor costs by hiring few people. Its prices are about 50% cheaper than competitors such as Walmart in Chicago and Houston. Aldi is also investing in its stores to remodel, i.e., $1.9 billion is used to remodel 1300 stores. New technology is the use of zip codes with a $65,822 average household income. It is also providing smart shopping era by offering alternatives like bargain hunters. It is relying on private label brands to win Millennials, who are inclined to low prices and brand agnostic. To counter Walmart, Aldi has opted bare-bones approach under a national advertising campaign. It has pledged to improve sustainable packaging and cut plastic by 2025.

Walmart has lost its way to growth by focusing on thin profit margins and cost leadership strategy. Its key weaknesses are numerous ethical violations and lawsuits it faced against employment discrimination. Poor benefits and a less adequate working environment resulted in high turnover (Yadav &Verma, 2015). Walmart has faced failure regarding experiencing activities like other retailers or make its warehouse a large place to experience; some of its products are of inferior quality (Nassauer, 2018). The growth opportunity it has is to offer more goods to developing countries; it can seek a bargain, including large grocery stores, and offer modern formats (Hardaker, 2018). Aldi has weaknesses in terms of profitability ratio and Net Distribution, which is less than the industry average. Poor financial planning at Aldi is making it vulnerable, so liquid asset ratio and current asset ratio tell that company can use cash efficiently in the current situation. It has a high attrition workforce rat as compared to other retailers.

Aldi has future opportunities in terms of core competencies present, such as GE healthcare research. It has made new environmental policies and better market share due to new technology. This is done with the help of government agreement because free trade agreement is a big opportunity to enter into new markets. Walmart has big opportunities like providing better trendier goods, special products, and gluten-free and organic options. It has also started services like spa, optometry, and banking. Walmart is also facing competition from global retailers, and Aldi is an emerging one.

A successful business always estimates the values which are helpful in business growth. Omnichannel is helpful in examining customer experience. Omnichannel is a multi-business channel that deals with sales of the consumers, and critically analyze the customer needs and expectations and find the solution to meet the consumer’s needs and expectations (Hardaker, 2018). The Omnichannel introduced an online shopping method to give essential retailers.

The omnichannel transformation for Walmart is an advantage because this strategy will improve $1.2 billion. Increased physical stores, fulfillment centers, click and collect, and delivery services are making it successful. This is related to a fully integrated shopping experience and a big approach to marketing. Aldi is also Omni channel retailer with fast development and transformation of its supply chain in the digital growth. The integrated digitalization strategy is acting as a key to transforming it into an omnichannel retailer (Alxaedra, 2018). The financial implications of these processes will be positive and productive for companies and engage better customers.

PESTLE analysis of Aldi & Walmart

Political, economic, social, technical, legal, and economic factors work inherently for any organization. Aldi has applied an approach to analyze and catalog the macro environment and its further perspectives that are implemented on the political, cultural, commercial, environmental, and legal framework which influence a company. This investigation assists in identifying principal factors, these principals consisted of opportunities and threats into the company’s external environment and afterward to overcome these opportunities and threats. Aldi, which is a shorter name of Albert Discount, was operating grocery stores into the U.K environment. Aldi’s achievement was extremely inspired by political and juridical circumstances European Union.

On the other hand, Walmart is an American brand, and dealing with the retail industry, its associated branches render its services around the world. It provides a wider range of products to customers. Grocery, household items, garments, enjoyment, and different other varieties are manufacturing to facilitate its consumers. This company got an unbeatable position to become the world’s best retail industry around the world. Government support retailer business because it provides mixed job opportunities for unemployed people. It also provides job facilities to none experienced and highly attractive payment to experienced, encouraging the living standard of different people by providing them job opportunities.

Aldi also provides part-time job facilities to students and other needy persons. Walmart is based on the macro-environmental factors and such aspects that are directly associated with business and its development. It critically analyzes the positive and negative, direct, and indirect aspects that influence the business structure. It also is known as Walmart PEST. This term helpful to create a trustful relation with U.S.A that implemented on both retailers like Aldi and Walmart. It moderates all political risks that impact business growth, prepares such strategies through the company pay less than five %tax from the other companies, faces an economic crisis, and can control price expansion into the market.

The social factors and social-cultural aspects that impact on consumer attention and inclinations. Social factors present a healthy lifestyle aim, cultural difference, residential movement; these factors create opportunities for the Walmart and Aldi business growth. Thus the companies can increase their production by following various cultural aspects. Aldi and Walmart must follow the technical approaches, by increasing the business self-regulation, business analytics on behalf of data collection, and by providing the transport facility to consumers, these factors are helpful in the expansion of the business growth (Manalova, 2018). The company boosts its production by providing an online facility. Companies can enhance their revenue by using the source of online marketing and selling of products. Environmental protection is a common principle that influences business. According to ecological factors, the impact on business sustainability, and friendly environment is essential for Aldi. To achieve monetary sustainability, Walmart improves its business operations; technical addition also improves business performance.

Change business procedures and production systems that are present to sell into retail stores. Aldi purchased raw material from farmers or other local producers to get sustainable development. Aldi adopts a strategy to attract consumers by providing an attractive label and packaging. Aldi has received Green chill certification by using a viable refrigeration system and adopting an environmentally friendly method. Aldi has faced a copyright issue on brand operational methods. It proves successful for the Aldi brand on Aldi’s products or on non-Aldi, s products. The advertisement also encourages the business into expansion matters. Aldi is a chain of supermarket companies that need to update their technology to meet the production level. Consumers rely on their commodities rather than follow a queue (Hernandez & Simmons, 2006). These retailers provide an e-commerce platform that serves consumers by providing online facilities. Social media like Facebook, Twitter also create the consumer’s interaction with the brand. Walmart is also the largest retailer brand around the world and has a large scale of operations through which it is able to achieve a good economic scale and has developed a technical mode of websites.

Different prosecutions have faced Walmart due to unethical behavior to its workers. Walmart has huge political support. PESTEL analysis on Aldi and Walmart’s business is very valuable and helpful to take initiatives for the business growth to compete with the other business rivals. It provides a complete guideline collection of raw material to production and supply in different stores and countries. It also provides a complete guideline of economic, environmental, and political issues on how to sort out them and how to overcome these situations. It also guides the companies on how to increase productivity growth and how to satisfy the customers. Aldi and Walmart are the two largest retailers’ companies sharing their parts around the world. Thus both companies follow the PESTEL analysis and follow the business growth and focus on its strengthening aspects and gain a trustful relation to customers and making progress day by day (Laurenthomas, 2019).

Conclusion

Aldi’s newest store in Cleveland is making development that Walmart supercenter possessing. Aldi increased its customers by creating a price competition to compete with its rivals. Aldi opened its new stores that are close to Walmart and selling it8s products on discount. Aldi opened new multiple adjoining superstores to Costco in New York City. Its rivals arranged its marketing because a variety of customers trusted Aldi. This plan was constructed to operate 2000 stores into U.S markets in 2018.

Aldi adopts the strategy slowly and steadily wins the race, its slow progress gains the customer trust by providing them the preference, satisfied their expectations at a low price. Aldi and Walmart are two successful retailers performing in many economies of the world. The cut-throat competition of both companies is due to increased demand. This case study shows that Walmart is now becoming vulnerable to Aldi, which is a privately owned firm and working as a grocery chain on an innovative model. Aldi is outcompeting its competitors on the basis of pricing and become a significant competitor in the US grocery market.

References

Alxaedra, B. (2018). Business Valuation and Value Drivers. Financial Planning & Analysis and Performance Management, 507–534. doi: 10.1002/9781119491460.ch22

Boswijk, A. (2017). Transforming Business Value through Digitalized Networks: A Case Study on the Value Drivers of Airbnb. Journal of Creating Value, 3(1), 104–114. doi: 10.1177/2394964317697736

Chatterjee, S. (2017). Two efficiency-driven networks on a collision course: ALDI’s innovative grocery business model vs Walmart. Strategy & Leadership, 45(5), 18–25. doi: 10.1108/sl-06-2017-0057

Cova, B., & Salle, R. (2017). Creating superior value through network offerings. Creating and Managing Superior Customer Value Advances in Business Marketing and Purchasing, 317–342. doi: 10.1016/s1069-0964(08)14009-1

Hardaker, S. (2018). Retail Format Competition: The Case of Grocery Discount Stores and Why They Haven’t Conquered the Chinese Market (Yet). Moravian Geographical Reports, 26(3), 220–227. doi: 10.2478/mgr-2018-0018

Hernandez, T., & Simmons, J. (2006). Evolving retail landscapes: power retail in Canada. The Canadian Geographer / Le GéographeCanadien, 50(4), 465–486. doi: 10.1111/j.1541-0064.2006.00158.x

Laurenthomas. (2019, July 3). Walmart’s e-commerce biz is reportedly racking up $1 billion in losses and that’s only one problem it has. Retrieved from https://www.cnbc.com/2019/07/03/walmarts-e-commerce-business-on-track-to-lose-over-1-billion.html

Manalova, T. S. (2018). Small Multinationals in Global Competition: An Industry Perspective. Globalization and Entrepreneurship. doi: 10.4337/9781843767084.00012

Meyersohn, N. (2019). How a cheap, brutally efficient grocery chain is upending America’s supermarkets. Retrieved from https://edition.cnn.com/interactive/2019/05/business/aldi-walmart-low-food-prices/index.html

Mujtaba, B. G., & Maxwell, S. (2007). Wal-Mart In The Global Retail Market: Its Growth And Challenges. Journal of Business Case Studies (JBCS), 3(2), 1–10. doi: 10.19030/jbcs.v3i2.4837

Nassauer, S. (2018, August 31). Why Walmart Shoppers are Finding More Items ‘Out of Stock’. Retrieved from https://www.wsj.com/articles/why-walmart-shoppers-are-finding-more-items-out-of-stock-1535716801

Voigt, K.-I., Buliga, O., &Michl, K. (2016). Striving for Customer Benefit: The Case of Aldi. Management for Professionals Business Model Pioneers, 11–24. doi: 10.1007/978-3-319-38845-8_3

Yadav, R. K., &Verma, M. (2015). Consumer Preference towards Retail Stores for Food and Grocery in Evolving Retail Market. International Letters of Social and Humanistic Sciences, 60, 102–111. doi: 10.18052/www.scipress.com/ilshs.60.102

Qualitative Research Proposal

Netflix, Swot Analysis

Introduction

Mobile devices are rapidly proliferating as more than 2 billion smartphones were reportedly used back in 2014, and it is anticipated that more will be deployed for use. These penetration rates introduce the use of different applications within mobile devices (Kortum, 2015). Until 2007, smartphones were not mass-marketed and were not commercially available. However, after the launch of the first iPhone back in 2007, and android launch in 2009, the smartphones became commercially available, before 2007, a large number of selectable consumer applications within mobile phones were not available (Kortum, 2015). Users can now easily customize the applications within their mobile platforms which suit their needs. The amount of downloadable user applications for the mobile devices is large and continues to grow, with more than 1.2 million applications available in i0s platforms and more than 1.3 million available via GooglePlay in Android OS (Kortum, 2015).

Pine (1998) defines user experience as a unique set of offerings that emerge s when an organization intentionally uses its product or service offerings to engage the users in such a way that it creates customer delight. User experience encompasses the whole aspect of a service acceptance by a user. It touches all the elements inclusive; hedonic and pragmatic of a product. The instrumental or pragmatic elements of a service or product referred to the beneficial aspects such as the ease of use of an application or usefulness of the service. The non-instrumental or hedonic elements refer to the experiential and emotional aspects of service use. Learnability, security, user satisfaction and user interface are some of the factors that contribute towards user experience for a mobile application.

Mobile applications like Netflix use online personalization to enhance user experience. Online personalization via adaptive user interface means that the user interface automatically adjusts context, demands, detected changes, adjusts content, visual presentation or layout (Yang, 2016). User experience design is immensely important in developing a good mobile application since it has a huge impact on the success or failure of the application (Yazid, 2017).

Purpose of the study

The purpose of this research is to enable practitioners to use the information concluded within the research to make informed decisions regarding the mobile application and benchmark their progress for Netflix against other applications for mobile platforms.

Research Problem

Netflix application allows individuals to obtain content anytime, anywhere and through a mobile platform. Because of this specialty, individuals show immense interest in the application all over the world (Cebeci, 2019). This is why it is imperative to investigate what makes a good user experience for Netflix application and how the application is perceived by the users.

Research Objective

Previous researchers have focused mainly on Netflix as an emerging media platform or on its content. It has been observed that there is little research regarding the factors that affect the user experience for Netflix mobile application. Since it is still a gap in the literature, the research aims to investigate the determinants of user experience for Netflix application. The current research will focus on the studies dedicated to the user experience of using Netflix.

Research Questions

Is the Netflix application easy to navigate for the users?

Is the Netflix application interactive?
Is the user interface (UI) plain and easy to follow?
What elements of user experience i.e. ease of use, learnability, security, user satisfaction, user interface design etc. does the application follow?
How satisfied are the users with the user experience?
How likely are the users to reuse the Netflix application?
Can the Netflix application serve the users to achieve the end goal, i.e. stream videos, watch TV shows, movies, etc.?
Does the Netflix application meet its functionality?

Interview Questions

In your opinion, is it easy to use Netflix mobile application? Explain your answer.
Is the setting of your device sufficient for the use of the application?
Do you think that all the functionalities of the Netflix application are designed in such a way that they aid the user in performing the task?
Netflix interface design has elements that invite the attention of the users and provide the ease of use such as auto-play which induces binge-watching in users. What are the features that make the user interface easy for you?
Do you think that the recommendation algorithm in Netflix application reduces the navigation time and enhances the user experience?
Do you think that the Netflix interface uses a narrative to make the user believes to be in control and has the agency of controlling his or her Netflix experience through their choices?

Literature Review

Research related to user experience while using mobile applications has gained momentum as well as considerable interest from both practitioners as well as scholars. The literature within the field of user experience happens to include all factors which affect the interaction of a user as well as their experience of the product or system (Yazid, 2017). Yazid (2017) uses User Experience Questionnaire adapted from Chen’s User Experience (UX) assessment model for mobile applications which offers insight into the factors that affect the user experience. Ease of use, learnability, user Interface, security, user satisfaction etc. are some of the elements that contribute towards a fulfilled user experience. Ease of use factor covers three elements of user experience: data accessibility, usability and navigation. Yazid (2017) defines usability by how functional an application is for the end-user. This means that all the functionalities of an application must be designed in such a way that they aid the user in performing the task most efficiently compared to what they have been using or are used to before.

According to Yazid (2017) , it is imperative that the navigation pattern within an app is simple to aid the users that are new in figuring out how to move across the mobile application with ease in the fewer number of clicks. Data accessibility aspect for an application means that the data must be available readily at any location for consumption by the user to make the application reliable. Validation aspect contributes towards the ease of use elements in the context of making the users aware of the mistake that they might have made. This enables the users to check the error before they click the submit button.

Learnability happens to be the degree of ease as well as the speed with which a user gets familiar with using a specific application. High learnability refers to how users intuitively learn how an application in a mobile phone is used without checking user guide or FAQs. The user interface, according to Yazid (2017), is a touch-sensitive display present on a cellular device and is highly important for engaging the customer’s attention as it is the first thing the user observes. Selection of size, colours and icon give a meaningful impact on user perception. Another factor that impacts user experience, according to Yazid (2017), is behavioural intent which is a subjective norm.

An application with a good user experience design deploys the user with the right information and fulfil their anticipation so that the user can bookmark the relevant material and use the application again in future. Reduction of user errors influences the user’s intention to reuse the application (Yazid, 2017). Thus having suggestion tools such as listing recommendations based on previous click or views can be used as a method to improve user experience.

Yang (2016) states that machine learning and the adaptive user interface has become an effective tool for enhancing mobile user experience (UX). Popular mobile applications such as Netflix, Facebook, Google Search, Instagram, Kindle, Mail, Pandora, YouTube, Safari, Twitter etc. regularly mine user behaviour and context data to enhance personalized recommendations, predict log behaviours like sleeping or walking and filter out spam. Moreover, users now expect mobile applications to have smart systems that have intelligent interfaces (Yang, 2016). Mobile interface (UI) benefits from adaptations which specifically reduce navigation because mobile contexts and tasks vary greatly small mobile screens limit interaction as well as content space. For example, the Starbucks application learns how a user pays through their phone learn about the user payment method when the application is launched inside the store.

Furthermore, Yang (2016) states that mobile applications like Netflix use online personalization to enhance user experience. Online personalization via adaptive user interface means that the UI automatically adjusts context, demands, detected changes, adjusts content, visual presentation or layout. Movie recommendations in Netflix mobile application reduce the effort needed by the user to find the right movie or TV show. The Netflix application employs adaptive UI that uses the user profile and the set of user models to personalize the user experience as well as to address the needs of heterogeneous users. This is because online personalization benefits the service providers like Netflix and users. The term “algorithm identity” is used by (Markham, 2018) to denote how user interface adjusts content for the users and is a crucial element of the user experience catered by Netflix.

Algorithm identity is the “self” of the user that is constantly reproduced based on user interaction with the platform through clicks. This claim is authorized by a growing body of research that acknowledges the role of algorithms for generating different versions of a user’s identity online. Cheney-Lippold (2011), for example, a claim that application algorithms categorize the identity of the individuals which are inferred based on their application usage. Similarly, Markham (2018) argues that algorithms personalize and construct relational meaning and construct identity in contemporary use of the application.

Markham (2018) also focuses on what does the algorithm do and how it shapes the behaviour as well as the experience of the users. When it comes to the interface in Netflix application, over time and with routine use, it can be seen that the algorithmic identity develops. At the start, there is no typical profile page which users can refer to; instead, users can set up a small profile to inform the application regarding “who’s watching?” by choosing several avatars (Markham, 2018). The application also provides choices such as ‘maturity level’ and language topic from which caters to the need to the user.

Netflix via its mobile application successfully uses personalization in such a way that it anticipates the users’ behavioural intent and reduces the navigation time also known as the number of screens and reduces selection efforts which are the number of inputs or taps (Yang, 2016). The adaptive user interface is also beneficial for the service provider such as Netflix as it provides enhanced customer satisfaction and loyalty. The research and service design community recognize personalization as an essential element in maintaining and building long-term customer relationships while enhancing customer lifetime value. Yang (2016) states that adaptive user interfaces might confuse users who have the perception that the changes within the system’s behaviour happen to be negatively inconsistent instead of taking it as personalized user experience. This is because adaptive user interfaces might decrease the sense of control for users.

Cebeci (2019) uses the Technology Acceptance Model (TAM) to examine the factors that influence the intention of users to use Netflix and the user’s experience of the application. The Technology Acceptance Model (TAM) has been derived by Theory of Reasoned Action, which has four main constructs: attitude, intention to use, perceived ease of use and perceived usefulness. Cebeci (2019) states that perceived ease of use is the degree to which a user believes that using an application would be free of any effort and the perceived usefulness is the degree to which a user believes that an application would be beneficial to them. Users are having a high level of knowledge regarding application usage regard it as easy to use. Similarly, if a user has knowledge regarding Netflix application, he or she will believe it to be easy which means that Netflix is positively related to user’s perceived ease of use (Cebeci, 2019).

Similarly, Kortum (2015) uses the Technology Acceptance Model as a theoretical framework to denote the rapid adoption of mobile applications as the model suggests that technology and applications are widely adopted because of perceived usefulness. This perceived usefulness is related to the ease of use of the application such as the elements of availability, portability, low cost, ubiquity etc. contribute towards user experience (Kortum, 2015).

Markham (2018) uses a series of user journeys through the interface and critically analyzes each moment of the selected user’s Netflix experience (Markham, 2018). Over the course of the analysis, Markham (2018) ended up foregrounding different aspects of the influential, relational and infrastructural elements of the socio-technical experience of using Netflix. The researcher focused on three complexities, first being the user experience of the Netflix interface in which a complete narrative is implanted in such a way that the user believes to be in control and has the agency of controlling his or her Netflix experience through their choices. This happens to be apparent in the image of the company itself and is reinforced through the Netflix application.

Secondly, the Netflix application functions both indirectly as well as directly to condition the attitude as well as behaviours of the users. Directly, Netflix pushes to promote the original content as well as region-specific content. Indirectly, the Netflix interface design has elements that invite the attention of the users and provide the ease of use such as auto-play which induces binge-watching in users and promotes perceived ease of use.

The perceived ease of use is the degree to which a user believes that using an application would be free of any effort (Markham, 2018). Thirdly the recommendation algorithm creates an unsteady state of being in the users due to its incomprehensibility because of which users are never quite sure what the recommendation will be which enhances user attentiveness while using the application and engages them. Varela (2019) uses the user-focused approach for her study of the algorithmic culture that influences user experience. The researcher used Netflix’s recommendation algorithm to study the questions of black boxing, biases in the algorithm in terms of visibility as well as socio-technological elements of algorithms. The researcher conducted an in-depth interview methodology with users who are loyal users of Netflix in Singapore. Varela (2019) concludes that users also happen to be co-producers of the content as they contribute towards their experience as well through their usage of the application and consequently to the success of the application.

Pine (1998) defines user experience as a unique set of offerings that emerge s when an organization intentionally uses its product or service offerings to engage the users in such a way that it creates customer delight (Pine, 1998). Mobile user experience has been expanded upon using three dimensions such as device-related issues, application-related issues and communication-related issues. The device-related issues happen to be associated with hardware features that contribute towards ease of use of the accessories or the device such as a mobile phone. Communication-related issues tend to be focused on interpersonal communication, while application-related issues are linked towards the interaction of the user with the specific mobile application. The application related issues have been identified as the crucial layer which contributes towards user experience by Subramanya and Byung. Their research suggests that the application-related issues compensate for user constraints and underlying device constrains (Subramanya, 2009).

Research Methodology

The research methodology that is going to be used for this research is qualitative data collection and analysis (Hammarberg, 2016). Qualitative research is the most suitable method since the nature of this particular study is investigative. The research focuses on user experience while using Netflix application, and according to Hammarberg (2016), qualitative methods are used to explain research queries regarding perspective, experience and meaning from the standpoint of the participants. The research will employ qualitative research technique of small group discussions for investigating the concepts, beliefs as well as attitudes of normative behaviour. The quantitative technique has not been used because closed-ended questions that are asked for data collection do not provide good insight into the mind of the respondent.

Data Collection Technique

Focus group technique is going to be used as the data collection technique for this research because this technique provides insight into what individuals’ experience and feel. Focus groups are good for gaining a better understanding of the phenomenon being studied within the research. Data Analysis Technique used will be interviewed in which group interviews will be used that will allow the researcher the ability to capture in-depth information in a cost-effective way in comparison to individual interviews. The main benefit of this technique is that group interaction during the interviews will allow the researcher to grasp different views and will encourage the participants to make connections to various concepts of user experience while using Netflix.

Data Analysis

For each question asked during the focus group session, the researcher will summarize the main themes or the ideas that were discussed. Observations such as tone and opinion difference will also be taken into account. This procedure will facilitate a deeper understanding of the topic of the study. The discussion points that will not be coherent with the questions will also be noted and studied for a greater understanding of the topic. Data reduction will be done by summarizing the one to two-hour discussion with the focus group into manageable concepts for the development of the report. Concept map method will be used to aid in concept building during analysis (Barry Nagle, 2013).

References

Barry Nagle, N. W. (2013). Methodology brief: Introduction to focus groups. Center for Assessment, Planning and Accountability, 3.

Breen, R. L. (2006). A Practical Guide to Focus-Group Research. Journal of Geography in Higher Education, 463–475.

Bucher, T. &. (2018). The Affordances of Social Media Platforms. In J. Burgess, The SAGE Handbook of Social Media. Sage Publications.

Cebeci, U. (2019). Understanding the Intention to Use Netflix: An Extended TechnologyUfuk Cebeci. International Review of Management and Marketing, 152-157.

Cheney-Lippold. (2011). New Algorithmic Identity: Soft Biopolitics and the Modulation of Control Theory . Culture & Society, 164-181.

Hammarberg, K. (2016). Qualitative research methods: when to use them and how to judge them. Human Reproduction, 498–501.

Kortum, P. (2015). Measuring the Usability of Mobile Applications for Phones and Tablets. International Journal of Human-Computer Interaction, 518–529.

Markham, A. (2018). Netflix, imagined affordances, and the illusion of control. In T. Plothe, Netflix at the Nexus. Peter Lang.

Pine, J. B. (1998). Welcome to the Experience Economy. Harvard Business Review,, 20.

Subramanya, S. R. (2009). Enhancing the User Experience in Mobile Phones. IEEE 5th International Conference on Advanced Video and Sinal Based Surveillance, 200.

Varela, D. K. (2019). The Netflix Experience: A User-Focused Approach to the Netflix Recommendation Algorithm. In Netflix at the Nexus: Content, Practice, and Production in the Age of Streaming Television (pp. 197-211). Lang Publishing Group .

Yang, Q. (2016). Planning Adaptive Mobile Experiences When Wireframing. Proceedings of the 2016 ACM Conference on Designing Interactive Systems, 565-570.

Yazid, M. A. (2017). User Experience Design (UXD) of Mobile Application: An Implementation of a. Journal of Telecommunication, Electronic and Computer Engineering, 197-290.

Strategic International Business Management

Business Management, IKEA, IKEA strategies, Mission, Successful Strategic Goals, Swot Analysis