Question

In: Operations Management

During the Covid 19 pandemic (corona virus diseases 19) there are many businesses experiencing disruption such...

During the Covid 19 pandemic (corona virus diseases 19) there are many businesses experiencing disruption such as retail, hospitality, travel, shopping malls, property, office rentals, etc. Instead, there are some businesses are booming, such as e-commerce, online schooling, webinars or online training, sports equipment at home and others. As is known, before the vaccine of that covid 19 was discovered, it is predicted that the duration of this pandemic will plague within the next 1-2 years. In this period, most of companies are trying to find the new models to survive and earn income. Therefore, marketing strategies including building branding for a better business are needed. The slumped businesses must look for new business models including how to make low costs in production or operations. Several companies that can be adapted to the reality will be able to escape the hurricane covid 19 likely. In the board of leadership meeting of PT. XYZ which has been engaged in off line retail business of a special product that rarely found in the market. One of the leaders Mr. Bagus, suggested to consider the improvement in the sales system by using the online system with the aim is to maintain and increase sales turnover. He recommend to make a team for preparing everything in connection with the proposal. However, another leader Mr. Agus has a different opinion, he said in order not to be in a hurry to invest on the online sales system, because it will be required the expensive investment costs, skill labor still not available yet, beside for a long time sales turnover has been achieved well although conducted by off line. Then, he argued that the covid 19 will pass soon, he is not sure that the outbreak more than 6 months, it will only be temporary. According to him, the vaccine will be founded in a short time, then the condition will be running well in a prompt time, and those customers will be came back automatically to PT. XYZ. The another argument of Mr. Agus rejecting to Mr. Bagus' proposal is that it will be very difficult to sale products in credit by using the online application system, especially to increase sales. According to him, the credit sales have boosted the sales revenue value for a long time, where only 30% cash sales of total sales.

Question:

Which proposal will you agree and support, do you agree and support to the Mr. Bagus' proposal to build a digital sales system or do you agree to the Mr. Agus' opinion to keep or maintain the old sales system by using offline?, or will you agree and support to the combination of digital and offline sales system. Explain your opinion and support your opinion clearly!

Solutions

Expert Solution

I agree and support the combination of digital and offline sales systems. The pandemic caused by Covid-19 is hampering the sales of the business. Thus, it is essential for the company to launch its online sales system to earn revenue regularly. The vaccine for the virus has not been found yet and it can not be predicted precisely as when it will be found. Till then, the company has to use the online sales system to survive in the market. Also, the world is getting modern and adopting digitalization day by day. So, in such a scenario even if the Covid-19 situation had not arrived, the company should tap into e-business because most of the people have started to prefer online shopping.

On the other hand, the company must not shut down offline sales completely. Whenever this pandemic is over, the customers would return to their previous routine and start buying offline as well.

Hence, it would be beneficial for the company to have a combination of onlne and offline sales. It would help the company to earn reveneue even in this Covid-19 situation and when it gets over, the combination of online and offline sales would increase the reach of the company to its customers and it would help in the growth of the company.


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