The new Iphone OS4 is going to continue the huge success since the launch of the first Iphone, users have downloaded well over 4 billion apps, from apps which monitors your sleeping patterns to your online shopping apps. When I found out that my friend’s Iphone has a Nike ID app I quickly looked into it and realized its tremendous potential in future sales.
The video shows how shopping can be done so remotely, on the screen of your iphone, truly a new sensation. This app does not only show off its coolness and expresses the convenience one would have from shopping online, but raises a question of ‘How firms sell their products nowadays?’ Traditionally, you would have to go to a shop, choose your favourite products and then buy pay at the cashier however, with the advancements of technology the traditional business models do not apply anymore. Businesses are able to cut out entire platforms such as retailers and distributors through the use of the ‘Direct Business Model’, a famous example include Dell which is a lean machine utilizing only the necessary to maximize returns. This method allows customization which increases the value the consumer has for the product. Hence it will also benefit the firm in other terms such as brand loyalty and reputation.
I feel that all companies that sells a material product should look into these channels as younger generations (myself included) are more willing and ‘able’ to utilize these services. On the offside though, some products are not suited for this method for example, product which are not designed for customization such as P&G’s detergents. Furthermore, some people generally prefer shopping in malls as a mean to spend time with friends, families and lovers.
