Do Ecosystems Present New Growth Opportunity For Retailers?
Digitalization is taking over the world at a rapid pace. If a business wants to survive in the coming years, there’s no other way than to simply adjust to these technological transformations.
It goes without saying that this includes the retail industry as well.
Despite the significant changes technology has undergone in the past years, the retail industry faces several challenges due to intense competition. The ever-changing landscape of customer needs and their wants which are for a unique shopping experience.
The wake of technological advancements and the resulting widespread use of online shopping platforms only adds further uncertainty to the future of the retail industry.
But businesses and entrepreneurs who are effectively operating their business models today prove that exploiting technology to deliver what the customers want is the key to become successful.
In their struggle to maintain relevance with customers, retailers have often partnered with each other to complement their operations and obtain the resulting benefits. But today’s fast-changing times call for a technique more sophisticated than such traditional company partnerships.
So what is the answer?
Ecosystems are inspired by the strong and well-connected networks of technology giants and other service providers have built. They are the ultimate solution to create high levels of customer satisfaction and rise above conventional supplier relationships. They lead to innovation and ultimately ensure that your business stays on top instead of collapsing or falling prey to the industrial predators.
The trend has already started
Several companies that were able to pick up on the bright future that ecosystems promise have already begun establishing them.
For instance, IKEA recently announced a partnership with Adidas.
Their aim is to understand what people need and want when it comes to daily tasks such as exercising, eating and sleeping at home. By joining forces, the two giants aim to benefit from shared insights, which will eventually lead to R&D in order to introduce new products and an improved service line.
While this is an example of an ecosystem formed between two businesses of different types, players on the same service level are merging too.
This includes, for instance, the strategic alliance of Tesco with Carrefour.
These leading retailers hope to maximize their profits by reducing costs and improve customer choice by enhancing competition.
Another example would be Walmart and Microsoft who have partnered to excel at innovation and outpace their competition in their relevant industries.
In case you are wondering how this can lead to groundbreaking success, here is a brief explanation.
What does a retail ecosystem offer?
Growth and expansion
By combining their resources and focusing on their joint technological, functional and industrial strengths, ecosystem players can serve a larger group of customers and even open new markets both locally and internationally.
Setting up for success
When companies with varying capabilities come together, their collaborative mindset allows them to create an industry experience and build customer relationships that guarantee success.
By continuing to evolve and introducing quality goods and services, retailers can rest assured that their customer base is going to develop and strengthen.
Therefore, instead of beginning everything from scratch, a retail ecosystem lets you invest in scalable technology and reap fruitful results much sooner than you might expect.
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