Other threats include new competition, local co-ops, e-commerce (Amazon) and a shift in consumer preference. Trader Joe’s has resisted increased technology in the stores and has little presence on social media (mostly customers). This has the potential of becoming a threat to Trader Joe’s competitive advantage, as e-commerce and social media use expands globally. The threat of substitute and brand name products is also a concern for Trader Joe’s and the current competitive advantage. Brand loyalty is significant, Trader Joe’s does not stock a significant amount of name brand products in stores and this could become a strategic threat in the future.
As example customer need online purchasing platform to make them more effective and efficient purchase. Also prices are set by the central plan and so it can’t use to measure or control on the demand instead rationing often become necessary 3. Lower on stimulating
A payment gateway is another factor that makes a major difference for the customers in choosing the site they prefer to shop. The more options the company will provide to make payment, the probability of attracting more customers accordingly increases. Easy return, exchange and after sales service is the next factor which further creates a game changing step for E-commerce portals. If the customers find it hard to return the products or don't get proper guidance from the support team, it is a negative sign for the company and chances of losing such customers definitely increases. Assurance of quality is another factor which restricts many customers from buying online portals
Customer may purchase things online instead of walking to the store. The reason in it might be to inconvenient, or customer is too lazy to go out. This is one of the hardest factors that Wal-mart needs to take into consideration. They have enough associates, stores and also expertise in the company but it is believed that locations do matters as convenience
Nevertheless, traditional shopping still has its advantages. Different to online shopping, the consumer has multiple payment options, making the need for a credit card not as important. Such payment methods include cash and checks which are usually not accepted by online stores. Also, the elimination of shipping fees can sometimes make in store purchases more
Having a visit to the doctor’s office can be expensive and you can feel overwhelmed and sometimes using your card is the best option at that moment. Sometimes having a payment plan works out better and can cost lower. Lastly, most people these days prefer to shop online. If you don’t use a secure website, you are setting yourself for fraud and shouldn’t use your credit card. Your credit card information can get stolen by not being careful online.
This model has its weaknesses. It is very easy involved in product recall events because of the shortage of quality control. However, the consumer buys the products from Tesco directly. Every product recall events would damage Tesco’s reputation and trust seriously. Tesco’s profit has been impacted by bad debt from credit cards and high levels of household insurance claims (Ruddick, 2014).
Scams is the most risk spread. More they can stole the client account. Furthermore, they leak customer data when they sign in to sites. In addition, low quality because they cannot check the quality of product as traditional shopping they may give low quality product. Moreover, should be careful when buy because sometime the delivery price of the product itself.