E. Identifying Channel Inefficiencies Essay
Customers are households who read papers daily for general information, business people, professionals and travelers who read papers on trains, buses or airplanes.As identified by the group, selling channels are as follows: Newsagents, Electronic, Articles (online), Home delivery (register on-line, newsagents), and University students who can subscribe in compasses.In order to identify possible channel inefficiencies, the group used Gap Analysis. As defined, Gap Analysis is a business assessment tool enabling a company to compare its actual performance with its potential performance. This provides the company with insight to areas which have room for improvement.Newsagents are the consumers’ destination point because of their range of titles, their product knowledge, practice of the industry and their stock handling systems. The newsagents are the professionals and will serve both the publishers and consumers very well as they have the knowledge and expertise on the law of demand and supply. They can easily determine or forecast demand and control supply. These organizations are the experts on closing the gap between the demand and the supply.Home delivery on the other hand, means delivery of newspapers direct to households and businesses 363 days of the year, Christmas Day, New Year and other Holidays. This means total coverage for demand and assurance that supply is enough. This should also include work from light industrial premises to delivery publications to business and homes and should work for both a retail store and delivery to customers. It is important to note however, that communication and information technologies significantly impact the effectivity of Home delivery system. It changes the mode of payment and order process for Home delivery and it increases subscription. It speeds up the selling process and encourages interaction between the consumer and the supplier. The customer need not wait for someone on the front door to complain, give compliment or make additional order.Since most of the Australian Households have computers at home nowadays and many Australians use the Internet and mobile phones daily to conduct business and personal transactions, we can consider Electronic articles (online) as an effective Channel. But it only covers demand for the professionals, the young people and those who are open to embracing the technology. This means there is a division of the market between the technologically rich and the technologically poor.This will not cater to the low-income and the geographically isolated consumers. The reality is, there are still people who does not, or avoid using the computer and/or the likes. This channel though, will work hand in hand with Home delivery. And though Electronic article means extra cost like the computer and Internet maintenance, it is effective when it comes to delivery time.Subscription is the earliest form of making sure that the supply meets the demand. As defined, subscription is a purchase made by signed order, as for a periodical for a specified period of time or for a series of performances or anagreement to receive or be given access to electronic texts orservices, especially over the Internet. This is effective for people with constant need for a specific product or service. This equals to fix demand.The above mentioned channels have overlapping purpose to the desired effect of the suppliers. Yes, there are people who would like to be on the go, and get everything electronically at their fingertips. These are mostly the young people who reads the news online, while on the bus, on a restaurant or in the mall or anywhere they can open their laptops and other gadgets.. But there are still those who are laid back and would rather eat breakfast while reading the ‘paper’. To close the gap between the demand and supply between these different individuals, we should consider technology and social condition of the market. Demographics can also be considered.Having checked how these channel works, we can conclude that these can be incorporated into one system. There are many newspapers nowadays which are omnipresent in all types of channels. These organizations make sure that they got the ground covered, not only in terms of delivery and service but even in terms of the after sales benefits.The market has become a complicated system due to the influx of the new technology.