The answers are below. How did you get on?
B – Online Alternative
The Online Alternative is a new start-up that uses the Internet as an original channel of distribution to get products, brands, services or solutions, currently available elsewhere, to market. Some segments may be better targeted with this online alternative, for example remote or fragmented markets.
C and D – Online Innovators
Online Innovators come in two forms:
- C – Online Innovators are existing businesses that see a benefit to launching new and innovative products, brands, services or solutions online by leveraging new technology. Existing businesses have a wealth of knowledge and learning that underpin their moves onto the Web. Remember, the Internet is not a business paradigm shift (at least not yet) and so current business approaches are often adapted for the Internet. Existing businesses have experience.
- D – Online Innovators are start-ups that seize the opportunity to launch new and innovative products, brands, services or solutions online. Despite not having as much knowledge and learning as some of their competitors, they are flexible and can move much more quickly. Start-ups often lack experience.
Company One is a successful commercial bank with a very well-known and popular brand. It has decided to launch a new online brand which uses online technology as a channel to market its current portfolio of services – employing a new and energetic branding theme pitched at youth segments. Answer: Innovator (Existing Business).
Company Two is also a commercial bank. However its strategy is to use the Internet as a way of communicating with, and accessing its traditional segments with its existing portfolio of brands. Answer: Online Extender.
Company Three is a new business that has gained a large amount of venture capital for its innovative business idea. It is employing Web 2.0 technology to build a community of practice for African farmers that currently work in remote regions, but may soon have access to the Internet in many local towns. Answer: Online Innovator (Online Start-Up).
Company Four is also a new business. Its owners have seen an opportunity to get jewellery to consumers by building a website which employs e-commerce technologies. Essentially the site owners intend to advertise using Google Adwords based upon keywords such as ‘wedding ring’ and ‘bling.’ Hopefully the pay-per-click adverts will move traffic to their site where sales will be made. Answer: Online Alternative
A – Online Extender
An Online Extender is an existing business that has a strategy whereby it extends its marketing activities to the Internet. It could be any traditional, terrestrial organisation that has historically grown through using traditional channels of distribution to get existing products, brands, services or solutions to market.