INB 20009 - Global and Digital Marketplaces – Assignment 1

Critical Essay

Student ID: SWH01466

Course: INB 20009

Word count: 2415

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 is a massive cloud computing and e-commerce company that was started in 1995. It all began
with Jeff Bezos selling books online out of his garage. (Waters, 2024) According to Four Week MBA,
Amazon Corporation has a very broad business strategy that incorporates value, technology,
distribution, and financial models, among other things.

● Multi-level Sale:
Amazon has a multifaceted approach to e-commerce. Amazon prioritizes ties with suppliers,
including manufacturers, brands, and online merchants, in addition to relationships with
customers. Generally speaking, Amazon acts as a middleman to help customers make
transactions.

● 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

When Netflix was first established in 1999, it used a business model similar to that of a video rental
company. Afterward, Netflix has 220.67 million members by 2022, making it the largest online movie
streaming service in the world (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

Two engineers named Martin Eberhard and Marc Tarpenning founded Tesla in San Carlos, California,
in July 2003 (Forbes, 2022). The operational philosophy of Tesla, formerly known as Tesla Motors, is
based on direct sales and servicing as opposed to 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 successfully fulfilled its promise to produce an electric car that is faster, more
efficient, and more enjoyable to drive than conventional gasoline-powered vehicles.
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

According to social network theory, social connections play a key role in information sharing, media
and personal influence channeling, and facilitating behavioral or attitude change. (Valente & Liu,
2017). Global corporations like Uber, Amazon, and Tesla place a high value on social media. These
companies strongly emphasize the use of social networking platforms to develop business
connections. Large social media like Facebook and Instagram are the main digital marketing tools
that they use, examples of these are Netflix and Airbnb.

3. Social Network Analysis

"Social network analysis" (SNA) is the general term for the process of characterizing social networks
and exploring different facets of them with graph analytic methods (Karl, 2005). This strategy could
be a very useful tool for these five companies. Through their websites and platforms, corporations can
gain insights on our increasingly interconnected society. (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
Social exchange theory is predicated on the notion that social behavior is the outcome of an exchange
process (Cherry, 2023). This hypothesis states that people consider the advantages and disadvantages
of their social connections. They will break off or separate when the risks become too great for them
to bear. The goals of this trade are to increase revenues while decreasing costs (Cherry, 2023).
Customer encounters with independent contractors or retailers are another factor contributing to
favorable opinions of Uber, Amazon, and Airbnb.

9. Goal-setting Theory
A tactic for increasing employee engagement is goal-setting theory, which includes defining specific,
measurable objectives to boost performance. By putting the goal-setting concept into practice, you
may improve worker performance and engagement at work. By using goal-setting, Netflix can give
users the products or services they want even before they are aware of what they want. Customers'
perception of the value of the services and their inherent motivation to use them support this
approach.

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
Five web 2.0 methods need to be used for May Bong Benh (Mây Bồng Bềnh) bakery to build and
grow an online presence. These tactics will center on making the most of well-known social media
sites and improving the business website to make a lasting impact on clients.

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 summary, this essay presents excellent, realistic approaches for creating business models by
summarizing the main ideas and concepts from an international case study of companies. online
business. Ten concepts related to the digital and global market environment are selected and examined
in each company's operations after evaluating five prosperous Web 2.0-based business models with
key components from each organization. Businesses should use theories to develop marketing and
strategy that are tailored to certain markets. Media platforms and other visual communication
technologies have trouble expanding their reach. This social media platform has aided in the
development of customer satisfaction for Tesla, Amazon, Uber, Netflix, and Airbnb.

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