CPA117 CASE 1 Online Shopping Essay

Words: 1633
Pages: 7

1. Identify the industry, value chain industry segment
The industry is the Australian shopping centre industry. Core activities cover building, developing and managing shopping centres in Australia.

2. Value chain
Design S/C Project management Leasing & sales Property Management Refurbishment & redevelopment (Renovation of the shopping centre or optimise the building structure to better suit customers’ need )

3. What is the current life cycle position of the industry?
Maturity to shake-out
Within few years, it’s expected about 12% US retailing is done online or via mobile device, and this figure will be higher in Australia.
There will be fewer physical stores, which means less demand on shopping centres

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Basically, there is not much difference of services provided by different shopping centres.
Exist barrier is high for the shopping centre owners as significant amount of capital investment was required to build, maintain and manage.

The role of government - Low
Low entry to online shops due to lack of regulation for internet administration and distribution

Buyer’s buyers – High
Buyers’ buyers refer to the end consumers who buy products & services from the tenants of S/C. Their demand is price elastic with value for money being a key driver of the purchase decision.
Consumers now have information power which used to be available only to retailors. They can easily find out everything about a product,