INB 20009 - Global and Digital Marketplaces – Assignment 1

Critical Essay

Student ID: SWH01466

Course: INB 20009

Word count: 2934

Duo date: June 16

Date of submission: June 15

Name: Tran Le Gia Huy

Contents
I.Introduction
II. Key Aspects
1. Uber
2. Amazon
3. Netflix
4. Airbnb
5. Tesla

III. Applicable Concepts & Theories

1. Social Trust
2. Social Network Theory
3. Social Network Analysis
4. The Globalization theory
5. Innovation Creation Theory
6. Innovation Culture
7. Theory of planned behavior
8. Social Exchange
9. Goal-setting Theory
10. Global Consumer Culture Theory

IV. Key Strategies

1. Marketing Strategy
2. Target customer strategy
3. Customer relationship management
4. Data collection strategy
5. Customer retention strategy

V. Conclusion

VI. References

INTRODUCTION
The technological revolution has enabled significant innovation in the global economy. the real world
and the digital world are intertwining and quickly becoming one (van der Zwan, 2022). However, all
sectors of the economy, from multinational companies to workers, need to improvise to keep up with
trends. Therefore, the most effective tool to help us adapt to the times is Web 2.0.
The term Web 2.0 was first used in 1999 as the internet moved towards an active user engagement
system. Web 2.0 has more usable and user-generated content than its predecessor, Web 1.0 (Kenton,
2023) An enterprise may be attracted to Web 2.0 technologies due to their interactivity, which allows
for increased employee engagement daily while minimizing costs. When utilized effectively, they can
foster project engagement and facilitate the flow of ideas, thereby enhancing a company's knowledge
and skills. Additionally, they can increase the scope and scale of companies, improving interactions
with customers, suppliers, and partners (McKinsey & Company, n.d.)
This essay will provide an overview of the events and historical background of five prominent
international corporations: Uber, Netflix, Tesla, Amazon, and Airbnb. The subsequent material will
also encompass 10 global market thoughts that will counterbalance these 5 international Web 2.0
enterprises. Furthermore, these strategies might be implemented in Web 2.0-oriented enterprises to
attain triumph in the international market. The document will present credible sources to elucidate the
ideas in the subsequent parts.

KEY ASPECTS

1. Uber
In 2009, Travis Kalanick and Garrett Camp established Uber, a transportation enterprise that provides
ride-hailing services accessible through a mobile application. Rather than directly providing physical
resources, the organization acts as a mediator by collaborating with independent contractors to
connect pre-existing resources. Therefore, the multisided platform model is the most appropriate
framework to characterize Uber's operation.

● Convenience:
Users may save themselves the effort of hunting for a cab on the street or waiting for a car service to
arrive by using the e-hail app, which allows them to hail a car from anywhere and have it arrive in
minutes. Uber doesn't need your address to continue operating. It is conscious of where you are.
Because the passenger's credit card and e-hail account are linked, no cash is exchanged. The driver
stops the car when it gets to its destination, and the passenger gets out and goes away. The receipt is
given with an email that includes links to choices for rating and tipping the driver (Jalloh, 2021).
● Diversity of Service:
Uber's service goes beyond only offering technological cabs; Their "Uber for Everything" goal
statement guides their approach. This implies that Uber's target market includes both those in need of
cab services and users of other services. Regarding taxis, customers can choose vehicles such as
electric motorbikes or luxury cars and customize the desired distance. Besides, some services such as
UberEat, Freight, Uber Health also contribute to expanding business scale and diversifying customers
2. Amazone

Amazon founded in 1995, which is a cloud computing and e-commerce behemoth. It started in Jeff
Bezos' garage, selling books on the Internet. (Waters, 2024) Four Week MBA states that Amazon
Corporation has a highly diverse business model that encompasses several aspects such as
value, technology, distribution, and financial models.

● Multi-level Sale:
Amazon approaches e-commerce on multiple levels. Amazon focuses not only on customer
relationships, but also on suppliers such as online sellers, manufacturers, and brands. Amazon
generally serves as an intermediary to facilitate consumer purchases.

● Convenience
Amazon acknowledges the importance of timely delivery as a frequent obstacle in e-
commerce. To address this, they utilize various tools such as algorithms, warehousing
systems, and a network of couriers to expedite the delivery of products. This allows them to
provide clients the ease of obtaining their products within a timeframe as short as one hour,
and usually within two days.

3. Netflix

Netflix was founded in 1999, operating on a revenue model that started as a video rental store. Later,
Netflix is the world's leading online movie streaming platform with 220.67 million subscribers by
2022 (Jain, 2023)

● Flexibility:
Customers can enjoy the utmost ease of seeing any type of screen, be it from TV screens, PCs,
smartphones, or laptops, depending on their preferences

● No advertisements:
Netflix prioritizes its online streaming services, with one of its most satisfying aspects being ad-free
content. This avoids customers from being bothered by irritating and irrelevant advertising.

● Numerous Options
Upon acquiring a subscription to the platform, new accounts will receive a complimentary 3-month
Netflix service. Furthermore, this software provides three distinct packages: Customers have the
option to choose from three different tiers: Basic, Standard, and Premium.

4. Airbnb

Established in 2007, Airbnb operates on a business model comparable to Uber. The company does not
possess any real estate but rather acts as an intermediary platform connecting guests with hosts.
Airbnb caters to guests seeking alternative accommodations outside traditional options such as hotels,
resorts, or homestays.

● Different Options:
Airbnb offers a wide range of accommodation options, including apartments, houses, villas, hotel
rooms, and serviced apartments. This extensive array of choices enables consumers to find
accommodations that match their particular preferences and financial constraints.

● Amenity:
Airbnb often offers amenities such as a fully stocked kitchen, laundry facilities, and private areas,
enabling users to experience the conveniences of their own home.

● Unique Experiences
Guests are able to access residences that offer distinctive experiences, while hosts have the ability to
design their home in various styles. In addition, homeowners have the freedom to oversee their
property according to their preferences, while guests have the option to explore the Airbnb database
based on several criteria such as price, property type, amenities, and host language, in addition to date
and location. (Loraine Burger, 2016).

5. Tesla

Tesla was founded in July 2003 by a pair of engineers, Martin Eberhard and Marc Tarpenning, in San
Carlos, California (Forbes, 2022). Originally called Tesla Motors, Tesla's operating approach
isfounded on direct sales and servicing rather than franchised dealers.

● Supercharger Station Network:

Tesla's primary focus in its business plan is the construction of charging stations, as the
limited availability of gasoline for electric vehicles is seen as the most significant obstacle to
their widespread acceptance. Tesla has established its own network of supercharger stations,
enabling Tesla vehicle owners to recharge their vehicles in approximately 15 minutes at a
significantly lower cost compared to gasoline (Lobo, 2020)

● Direct Sales:
Tesla, in contrast to other automobile manufacturers, employs a direct sales model to
consumers instead of utilizing franchised dealerships. The corporation has established a
global network of showrooms and galleries that it owns, with the majority located in urban
areas (Lobo, 2020). Tesla's choice to handle the sales channel internally enables them to
accelerate product development and improve the overall consumer buying experience.

● Exceptional Car:
Tesla has effectively delivered on its promise to create an electric vehicle that outperforms
traditional gasoline automobiles in terms of performance, speed, and driving enjoyment.

Applicable Concepts & Theories

 1. Social Trust
Social trust refers to the conviction in the truthfulness, uprightness, and dependability of others, which
can be described as "confidence in people." Describing it is a straightforward task. However,
determining the individuals or reasons for their trust has always been a challenging task (NW et al.,
2007). Social trust plays a vital role in product evaluations and consumer opinion forums. Thus, each
of these five organizations must first establish customer trust as the information shared by other
customers tends to be more dependable.

2. Social Network Theory

Social network theory focuses on the role of social relationships in transmitting information,
channeling personal or media influence, and enabling attitudinal or behavioral change. (Liu &
Valente, 2017). Social networks are of utmost importance for international companies such as Uber,
Amazon, and Tesla. These businesses place a strong emphasis on using social networking tools to
build commercial relationships. Major corporations like Netflix and Airbnb rely on platforms like
Facebook and Instagram as their primary digital marketing tools

3. Social Network Analysis

The phrase "social network analysis" (SNA) refers to the broad process of describing social networks
and utilizing graph analytic techniques to investigate various aspects of such networks (Karl, 2005).
This approach might be an excellent tool for these five businesses. Corporations may obtain insights
into our increasingly linked society through their websites and platforms (Mehta, 2023)

4. The Globalization theory

The growth of trade, technology, and interpersonal ties are all included in the globalization idea,
which leads to a rise in interdependence worldwide (Parjanadze, 2009). It includes the shifts in society
and economy brought about by globalization. Netflix is a prime example of globalization in action, as
evidenced by its broad availability and extensive selection of TV and movie genres. With over 150
million users and streaming services available in over 190 countries, it exemplifies the all-
encompassing effects of globalization on the social, cultural, and economic spheres.

5. Innovation Creation Theory

The invention theory Creation is the process of coming up with new concepts, goods, or services by
combining experimentation, problem-solving, and creative thinking. As was already established,
Tesla has a fantastic company strategy that incorporates creative concepts for growth. Tesla leads the
present electric vehicle ecosystem because it incorporates new innovations into its system (Lang et al.,
2021).

6. Innovation Culture
An innovation culture is the setting that leaders create to promote nonconformist thought and its
execution. Firms that foster an inventive culture generally hold the belief that creativity is not limited
to senior executives and can come from any employee (Dyche, n.d.). These five businesses are just a
small sample of the many that encourage an inventive culture. Maintaining the status quo won't help
you compete successfully; instead, you need an inventive culture.

7. Theory of planned behavior

The theory of planned behavior explains all behavior under human control, evaluating the advantages
and disadvantages associated with those outcomes. In fact, every company, not just the 5 companies
above, needs Theory of planned behavior to analyze the market, analyze the competition, and thereby
recognize points that need to be promoted or improved.

8. Social Exchange
The idea that social behavior is the result of an exchange process is the basis of social exchange
theory (Cherry, 2023). According to this theory, people weigh the potential benefits and drawbacks of
their social ties. When the hazards are too severe for them to take, they will cut off or part ways.
Reducing costs and increasing revenues are the objectives of this trade (Cherry, 2023). Positive
perceptions of Uber, Amazon, and Airbnb can also be attributed to the interactions that occur between
customers and single contractors or retailers.

9. Goal-setting Theory
Setting clear, quantifiable goals to increase output is part of the goal-setting theory, an employee
engagement strategy. You may increase employee engagement and enhance employee performance in
the workplace by implementing the goal-setting principle. Netflix can utilize goal-setting to provide
customers with desired items or services before they know what they want. This strategy is reinforced
by customers' sense of the services' importance and intrinsic incentive to use them.

10. Global Consumer Culture Theory

Consumer culture is a social structure in which markets act as a mediator between meaningful, valued
lifestyles and the material and symbolic resources they depend on, as well as between the lived
cultural experience of daily life and social resources (Sheth et al., 2019). Commercial goods rule
consumption in consumer culture, which is a global practice. Companies like Uber, Amazon, Tesla,
Netflix, and Airbnb are aware of how important symbolic values are in drawing in customers. The
globalization of trade has given companies a platform to market their goods internationally and
connect with clients throughout the globe.

Key Strategies
To establish and develop an online presence for May Bong Benh (Mây Bồng Bềnh) bakery, it is
necessary to deploy five web 2.0 strategies. These strategies will focus on leveraging popular social
media platforms, as well as optimizing the company's website to leave a lasting impression with
customers.

1. Marketing Strategy
Advertising PlanSocial media has become an essential component of modern marketing strategies.
The benefits of using Web 2.0 for product or service marketing help companies reach customers more
effectively and easily. Comprehending the complexities of digital marketing and strategic planning
allows businesses to obtain valuable insights that enable them to develop a strong framework that
connects with their target audience and surpasses their rivals (Matt, 2024).

2. Target customer strategy

A bakery needs to classify its cakes into many different product types and prices to meet the needs of
a diverse customer base. The store targets suitable options for students to senior citizens, from retail to
large quantities. By understanding the target customer files, the salon can Save time and money, boost
sales team morale, or nurture strong customer relationships (Van Rensburg, 2024)

3. Customer relationship management

After identifying the customer file, the Customer Relationship Management Strategy is a plan that the
bakery needs to implement to develop. CRM helps ensure customer needs are met by allowing
businesses to better understand their behavior and modify their operations accordingly (Waypath,
2021). A company's operations will function smoothly and its customer relationships will be
reinforced with the implementation of a good CRM strategy (Fanning, 2022).

4. Data collection strategy

A data collection strategy is a set of techniques that will be applied to obtain accurate and reliable data
from various data sources such as communication, reflection, etc (Mae Camacho, 2024). Since then,
brands can better understand customer files and customer needs to develop products

5. Customer retention strategy

We will work toward keeping the bakery's primary customer file once we have filtered and obtained
it. A Customer Retention Strategy is therefore a crucial component for the store. In order to create a
loyal customer base over time, we will offer appropriate incentives including gifts, prizes, coupons,
and loyalty cards. Increasing client retention is an excellent approach because it is more cost-effective
to keep current consumers.

Conclusion
In conclusion, this article provides great, practical business model creation methodologies by
outlining the key principles and theories from a global case study of organizations. commerce online.
After assessing five successful Web 2.0-based business models with essential aspects from each
company, ten digital and global market space principles are identified and explored in each company's
practice. Companies should employ theories to create market-specific strategies and marketing. Visual
communication technologies like media platforms struggle for outreach. This social media network
has helped Amazon, Uber, Netflix, Airbnb, and Tesla build consumer happiness.

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