Living in George Orwells 1984-Today Essay example -- George Orwell 19

Living in George Orwell's 1984-Today George Orwell's horrendous yet prophetic vision of the future in his novel, 1984 has come and gone. In this nightmarish novel, Oceania, where the story takes place, is the perfect depiction of "Negative Utopia" in which the government is in total control of their citizens. They control every aspect of their life. From the smallest things as the clothes their citizen wore on a daily basis to the person they were allowed to marry to their thoughts. Freedom of choice and thought was unquestionable and was not allowed and anything or anyone that went against this principle or resisted oppression was completely suppressed themselves. Now, under our current government there are a lot of similarities between the haunting novel of the "Negative Utopia" which George Orwell portrays in 1984 and ours. Many tactics which were used in 1984 by the Party and which are being used today in American by our current government are psychological manipulation of people, physical torture and the shaping o f human thought through language. In reality, democracy or true democracy has never existed in the United States of America. If we look back in time and read the creation of this nation in our history books, our founding fathers were the better off people during their time when talking about money. They were the only few that met the profile, which they created, that allowed a person to run for office; in essence, you had to be a white adult male (at least giving the fact that the youngest "freedom fighter" was 26 years of age) and owned your land (which meant wealth in that era). If the United States was truly established as a democracy, why did only a few white male who were the powerful ones during that... ...t and radio host in Austin, Texas. Barnes, Fred. "A War without Heroes? Only if you're Reading the Mainstream Media." Weekly Standard. 26 December 2005: Volume 011, Issue 15(1) http://www.weeklystandard.com/Content/Public/Articles/000/000/006/496eeymx.asp">http://www.weeklystandard.com/Content/Public/Articles/000/000/006/496eeymx.asp "Pat Tillman." Wikipedia: The Free Encyclopedia. 20:56, 5 May 2006 http://en.wikipedia.org/wiki/Pat_Tillman">http://en.wikipedia.org/wiki/Pat_Tillman Nichols, John. The "Plane Crash" of Senator Wellstone. 2002. 8 May 2006. http://www.oilempire.us/wellstone.html">http://www.oilempire.us/wellstone.html Guantà ¡namo: Lives torn apart - The impact of indefinite detention on detainees and their families. 2006. 8 May 2006. http://web.amnesty.org/library/Index/ENGAMR510072006">http://web.amnesty.org/library/Index/ENGAMR510072006

Classification Essay - Friends :: Classification Essays

Classification of Friends On a conscious level, we rarely spend much time actually thinking about and classifying our friends. However, since I was a small child, my mother taught me to recognize and appreciate various types of friends. I have discovered that there are three different types of friends. I group them according to how well I know them and how well they know me. We encounter each type of friend everyday, whether in school, home, or at the gym. First, there are the "pest friends"- general acquaintances. Next, there are "guest friends"- social partners. Lastly, we have "best friends"- our true friends. The first type of friend is simply an acquaintance. This means that you basically only know their name. You might not even remember what they look like if you go away for a short vacation. Usually, you meet these type of friends in school, at work, on the bus, in the gym, or anywhere else you might be. You normally would not mind having a cup of coffee with them, but if anything else came up, you usually would have no problem parting company. You normally don’t miss them when they are elsewhere. It is also this type of friends who give you the most amount of aggravation. Since most of the time you are placed in a position where you have to act friendly, such as school or work, you would not normally tell an acquaintance when he or she is doing something aggravating, such as tapping the fingers an a table or chewing gum loudly. This is why I call them "pest friends." The second category of friends I call "social partners." This is because they are closer than acquaintances, but no where near as close as a true friend. Social partners are usually acquaintances who evolve into "guest friends" through increased extracurricular activities. You know their name, a little of what they like or dislike, a little of their family history, and usually have several things in common. As the saying goes, "Birds of a feather flock together," so too the social partners have to have several things in common with you. No one is going to want to spend any more time than necessary with somebody completely opposite and aggravating to him. Keep in mind, though, that the biggest thing that distinguishes a "best friend" from a "guest friend" is the fact that "guess friends" usually don’t converse about anything substantial or deep, such as their innermost desires and fears.

Culture Shock in Japan Essay

Culture is a condition of confusion and anxiety affecting a person suddenly exposed to an alien culture or milieu. There are many different ways to experience culture shock. It can be experienced across the world or as near as one’s backyard. Many Americans would venture that they consider themselves very culturally accepting. Often, when these same Americans travel abroad, they experience culture shock. It is not always a negative thing. Often to some American coming to Japan and adjusting to life in Japan can be difficult, since even the most mundane things could be done differently than they would have been done in the U.S, so here are some basic facts of Japan. And remember be patient. Home. When entering a Japanese home you are expected to remove your shoes before stepping up from the entry area into a Japanese home known as the genkan. There in the genkan you must change from outdoor shoes into indoor slippers. When entering the genkan, you have to remember to step out of your shoes, and step into the house proper. Then you must turn around, kneel or bend down, and turn the outdoor shoes around so that they face the door, ready to be slipped into again when they leave. This custom is also required in many traditional Japanese restaurants, all department store dressing rooms, temples, and a few other businesses. On an extra note it is wise to buy clean socks since you will be taking off your shoes when you enter homes or some resteraunts. And you don’t want to embarrass yourself with dirty socks. Food. In the U.S many people carry their lunches in lunchboxes, but in Japan people use Bento boxes which are pre-prepared lunches, sold in every convenience store in Japan or brought from home. Usually a bento box consists of a box divided into several sections, containing perhaps, noodles, rice, pickles,  meat or fish, and maybe a little fruit. If there is a need to heat their lunches almost all stores also have a microwave so that you can heat the bento in the shop. When traveling to Japan one must be aware of the proper way to eat. In the U.S slurping is generally considered rude, so it is useful to know that the Japanese people consider it correct to slurp whenever eating noodles, ramen or soup etc. By making slurping when one eats their soup or noodles is considered to be polite, also by slurping you compliment the person who cooked it. More than that slurping serves a practical purpose, as noodles, ramen etc, are often served very hot, slurping draws air into the mouth which helps to cool the food as well as bring out the flavor. Knowing how to use chopsticks can make life in Japan a bit easier, but you have to remember the certain etiquette that concern using chopsticks. Just as there are good manners when it comes to using a knife and fork in the west, the Japanese have definite rules of thumb when it comes to using chopsticks. Don’t point at people with your chopsticks, move plates with them or wave them or stick them. Do not stick chopsticks into your food, especially not into rice. Only at funerals are chopsticks stuck into the rice that is put onto the altar. Education. Education in Japan is similar to that of the education system in the U.S, since it was adopted based on the U. S education system by the Japanese after World War II. But some things are quite different. If you are a parent sending your child to school in Japan, there are some key facts you must know In Japan competition for entering a good University is fierce, for that reason many student start at a young age go to Juku, which are cram schools, parents send their kids to, so that they have a better chance of doing well on University exams. In Japan if you are able to go to a good University than the chances of a good and stable job is quite high. It quite common for kids to finish school then go at night for 2 to 3 hours to a cram school. Hygiene. When bathing Japanese style, you are supposed to first rinse your body outside the bath tub with some water from the tub, using a washbowl. Afterwards, you enter the tub, which is used for soaking only. The bath water tends to be relatively hot for Western bathing standards. If you can barely enter, try not to move much, since moving around makes the water appear even hotter. After soaking for a while, leave the tub and clean your body with soap. Make sure that no soap gets into the bathing water. Once you finished cleaning yourself and rinsed all the soap off your body, enter the bath tub once more for some more soaking. After leaving the tub, do not drain the water, since all household members will use the same water. There are three types of toilets commonly found in Japan. The oldest type is a simple squat toilet, modern Western-type toilets and urinals and the state of the art is bidet toilets However traditional toilets are usually the most common type in most public places, universities, restaurants etc. The tradition toilet is known as the squat toilet, it essentially looks like a miniature urinal rotated 90 degrees and set into the floor. Most squat toilets in Japan are made of porcelain, though in some cases (like on trains), stainless steel is also used. Instead of sitting, the user squats over the toilet, facing the wall in the back of the. A shallow trough collects the waste, instead of a large water-filled bowl as in a western toilet. In Japan, being clean is very important; the bidet toilet is like the western flush toilet. While the toilet looks like a Western-style toilet at first glance, there are a number of additional features, such as blow dryer, seat heating, massage options, water jet adjustments, automatic lid opening, flushing after use which are included either as part of the toilet or in the seat. These features can be accessed by a control panel that is either  attached to one side of the seat or on a wall nearby, often transmitting the commands wirelessly to the toilet seat. For an American coming to Japan for the first time, the squat toilet or the bidets could be quite a shock and could take some time getting used to. Gambling entertainment. If you want to gamble in Japan you must remember that gambling is illegal so to compensate there is the wildly addicting game known as Pachinko a type of vertical pinball machine. The winnings are in the form of more balls, which the player may use to keep playing or exchange for prizes such as pens or cigarette lighters. Cash cannot be paid out according to Japanese law, but players can then exchange certain prizes for cash at small centers located nearby, but separate from the parlors. In America there are cartoons and comic books in Japan there are manga and anime. Remember when reading manga or any Japanese book, guide for the matter, you must start at the â€Å"last† page and work â€Å"backwards†. The same applies to the panels within the pages. They should be read right to left, not left to right. Transportation. In Japan, cars drive on the left side of the road and have the driver’s seat and steering wheel on the right. And unlike the U.S which has a minimum driving age of 16, the legal minimum age for driving in Japan is 18 years. While you are waiting for the train to arrive, you stand in politely in neat rows, calmly waiting for your train. When the train arrives, the first rule you must bear in mind is that no matter how crowded it looks, there will always be room for one more. If you have any doubt about the above rule, there’s a white gloved attendant ready to shove you in. Then, once you get one the train, you must remember certain rules. Don’t drink coffee in the morning, save drinking anything for the ride back home. The morning rush hours peak on weekdays between 8am and 9am, while the evening rush hours are more spread out and commence around 5pm. Rush hours are most extreme in Tokyo, but also pretty heavy in Japan’s other major cities. So if you plan on riding the train it is best to go before rush hours. As you stay in Japan you as individual can learn to grow towards multicultural perspectives and develop alternative futures for his or her self, thus making his or her self a more culturally accepting person.

Media Review: On Climate Change

Even before the post-contemporary period, various environmental problems have been detected as one of the principal factors that affect the change on the way of life all over the world. It is for the reason that environment serves as the prime setting wherein people do their thing and improve their way of living. Climate change has been one of the factors that people consider in performing their daily tasks and endeavors. It has significantly seen as something that changes the outline of the world and civilizations, geographically and sociologically wise. Global Warming is not a new issue. Global warming is the primary cause of sudden climate change that tends to make the climate hotter (Tyagi). The greenhouse gases are trapped in the atmosphere which makes the increase in temperature. This effects of this phenomenon are severe such that all regions of are feeling and witnessing them. The melting of the ice caps of the Polar Regions is one of its effects likewise, drought and intense heat (Tyagi). These effects have also bad effects on mankind’s daily activities. Vegetations and agriculture have been sternly affected by climate change. Various diseases that are triggered from having a very high temperature are also detected to debilitate the health of the people (Tyagi). These are just some of the ill-effects of untoward climate change. Nevertheless, such detrimental effects of extreme climate change could be treated and even prevented from impairing the world and the mankind. By being aware and involved on campaigns and programs that tend to rehabilitate the environment, one could really be assured that the problem on climate change could be addressed if not instantly at least gradually. Lastly, environmental issues should not be used for selfish interests and political propaganda. No matter how perfect the economy and the politics of one country if the environment is at risk, all the things that it has would disappear if environment problems would not be addressed and given priority. Work Cited: Tyagi, Avinash. Climate Change and Global Warming. Rajat Publications , 2006. Â  

Harvard Case : BMW of North America: Dream it. Build it. Drive it. Essay

Brief Description: Set in 2011, this case describes how BMW, the leading luxury car manufacturer in the U.S., successfully implemented a new marketing initiative based on its online video services and increased sales of customized vehicles. The case addresses the challenges of catering to the North American consumer, where most car buyers want or have become conditioned towards immediate gratification with their purchases. Main Learning Objectives: To underscore the importance of consumer behavior in strategic planning To illustrate the complexity of strategically managing the supply chain for a modern manufacturing company and the implications effects of ‘mass customization’ on supply (value) chain Preparation & Analysis For Wednesday’s class (10/9/13): 1. Go online, research and take down a few notes on a strategic marketing concept called â€Å"mass customization† for in-class discussion. The process of delivering wide-market goods and services that are modified to satisfy a specific customer need. Is a marketing and manufacturing technique that combines the flexibility and personalization of custom-made with the low unit cost associated with mass production Sometimes called made-to-order or built to order.  Enabling a customer to decide the exact specification of a product or service, and have that product or service supplied to them at a price close to that for an ordinary mass produced alternative. 2. Read the case study. 3. Review the following videos which directly pertain to the case Martha Stewart customizes a BMW X3 http://www.youtube.com/watch?v=8Ddq6O_QAz0 Understanding Robots – Mass Customization http://www.youtube.com/watch?v=HJzzPXeDdX8 BMW X3 Ad http://www.youtube.com/watch?v=KpLutmBkyZ4 BMW X3 Build Video http://www.youtube.com/watch?v=VH1gtBYNPOA Individual Assignment: After spending time researching the concept of mass customization,viewing the above videos, and reading the case answerand provide your rationale for each of the following questions in an overall1-2 page brief essay format. 1. Assuming that most modern cars share very similar characteristics, what do customers really buy – a product or an experience? In your opinion, what drives car-buying decisions?  Years after years, the customer’s perceptions towards cars has been changing. People value more on their needs these days than their wants. People started looking for products/vehicles that give more value to them; they want cars for real use not for showing off. I think customers buys products with experience from which they can get value out of it. The car buying decision is not an easy task and would drive various aspects before buying. In my opinion the most important factor is gender. In most cases gender plays a vital role in buying a car. Price can be another important factor that might drive the buying decision. Fuel efficiency, affordable, reliable, effective and efficient are various factors for car buying decisions. 2. Do you think customers really need â€Å"millions of combinations† for their car? Can they be happy with available standard options? What are the upsides and downsides of mass customization from both the consumer and manufacturer’s perspective? It depends on the customer needs that if they really need â€Å"millions of combinations† for their car or not. Most of the customers are happy with the standard options but if we dig little deeper, not all the features available  in the standard versions are important or useful for a particular customer and what they want may not be in the specific model. In my opinion, that is the main reason mass customization is being used by various car companies to carter the specific needs of their customers. Mass customization is the process of delivering products that are modified to satisfy a specific customer needs. This enables a customer to decide the exact specification of a product or services. Mass customization allowed manufacturers to customize products at lower costs, reduced overheads, and produced higher margins. For customers, they get benefited of finding exactly what they wanted without paying a premium price. The downside of mass customization from manufacturer’s perspectives are the major operational challenges faced in supply chain to manage the supply, maintain lead time and maintain various parts and products within a very little timeframe. The downside of mass customization from the customer’s perspectives is they won’t be able to compare and contrast the product with the competitors and sometime the price might be high with certain customizations. With various choices and lack of expertise some customers might chose unwanted and unnecessary par ts for the product. 3. Put yourself in Josef Weirda’s shoes. What would your decision be regarding using video streaming technology for other models such as the X5 or X1? In effect, would you apply a similar â€Å"Dream It. Build It. Drive It.† program for the launch of the X4 in 2014? What is the basis for your decision? â€Å"Dream It. Build It. Drive It.† was a success for X3 models. My decision for streaming technology for other models will be yes. This is because of the success factors the X3 models received, and almost 50% of the customers enrolled in it, accessed and shared the video. I think it is a better value for customers to see how their customized vehicle has been manufactured and be more in touch with it before it actually gets delivered. Based on the success result and the stats available from X3, I will apply a similar â€Å"Dream It. Build It. Drive It.† program for the launch of the X4 and  do aggressive marketing like it was done for X3. But will not only stick with this mass customization, I will also encourage for the standard models at the dealers. Customization can be one of the features for those customers who want to customize their cars. I think with the success of the X3, the customer will try to see some kind of similar features in the new launch and also this will give more value to the vehicle. Based on the numbers and records from the case, for now the mass customization concept should be based on US market only.

Liberty in America from 1865 to 1941

Liberty is not just a wonderful thing. It is a rare thing. As much as we would like to wish otherwise there is far more tyranny in the world as opposed to liberty. Throughout history, there have been tyrannical monarchies and totalitarian regimes that impose their will on the populace. Actually, one does not even have to look into the historical past for examples as there are many nations this very day where tyranny rules. Those who live in the United States, however, can at least lay claim to living in one of the freest nations on earth. This is because the United States has built itself upon the concept of liberty, democracy and freedom. While there have been dark patches in American history, many of those dark periods have been overcome. One of the more interesting periods in the nation's history in terms of exploring liberty progression and regression would be during the time period from the end of the Civil War to just prior to American involvement in World War Two. During the Reconstruction Era, a tremendous amount of liberty was provided to African-Americans as freedom from slavery had arrived. Sadly, there was not much in the way of racial equality brought forth during this time period and many point to the apartheid like environment southern blacks had to endure. However, there was also the period of the Great Migration where many African-Americans moved north during World War One to take advantage of ob opportunities and a better living environment. No one impeded the migration as the liberty of being able to seek a better life was afforded. In addition, the liberties of the United States were afforded to people who lived outside the United States. This is evidenced in the significant immigration waves to the USA from Europe. These waves occurred throughout the late 19th century and early 20th century and all those who arrived were provided all the freedoms of the United States as well as being afforded the opportunity to take part in the democratic process. In addition to voting in the United States, many of these immigrants would go one to become major political figures. In fact, within a short number of decades many immigrants and African-Americans would become mayors of major cities. While liberty was not expanded quickly, it did expand and crossed all racial, gender and ethnic lines. Of course, at various times in American history there have been a number of challenges to liberty. Under President Woodrow Wilson, there were a number of famous assaults on the concept of liberty. This was most notable in Wilson's Sedition Act which essentially imposed the totalitarian concept of the â€Å"enemy of the state† on people who opposed Wilson's war policies. However, the way in which these procedures were enacted were so severe there is no way one could argue that these were sane policies. These laws arbitrarily targeted large numbers of the population and were quite random in their enforcement.. Thankfully, with the end of Wilson's tenure such practices would cease to occur with the exception of the Japanese internment during World War Two. The reason this aberration is pointed out is because it is an aberration. Such extreme methods are not the general practice of the United States as it remains a reliable beacon of liberty where such liberties are provided for all. Yes, there are stumbling blocks to liberties now and then but ultimately the United States remains the freest nation of earth and one that cherishes its freedoms.            

E-Retail Industry – The Uk Internet Grocery Market

This study aims to understand the competitive environment of some of the main retailers within the UK market and to demonstrate the different elements of the e-environment that impact on the retailer's business and marketing strategy. Furthermore this study will assess the impact of many factors and constraints surrounding the e-retail industry and specifically the grocery sector of the retail industry. It is known globally that the UK has the most developed grocery e-tailing sector in the world and that is increasingly appearing specially after the failure of many business models which have adopted the internet for distributing and selling there products This study will exclude B2B sector and will focus on B2C sector in the retail market I will be focusing on the online grocery market and the main British players leading this market. I have selected this industry because recently, it has caused a noise globally, and many interested people are wondering whether this industry has reached the mature level or it is still growing or it is only a noise which will lose its importance later. The UK Grocery Market it is estimated that à ¯Ã‚ ¿Ã‚ ½105 billion of groceries are sold in Britain each year, (MINTEL Nov, 2002) , that shows a noticeable increase in sales over the period since 1999 until the end of 2002. The Total retail sales through specialist and non-specialist food retailers were worth some à ¯Ã‚ ¿Ã‚ ½90 billion in 1999 and many specialists predict this market to continue growing to reach 120 billion by 2005 (MINTEL, Nov. 2000) Within the food market itself, fruit and vegetables represent the largest market, with high demand within the sector for fresh produce. Convenience foods – fresh and frozen ready meals – are also highly demanded, as are products which generally fit well with the needs of the much maligned ‘cash rich and time poor' consumer. Key debates within the market surround the use of genetically modified (GM) produce, and this has helped to create niches in the retail market for suppliers of GM-free or organic ranges. The major supermarkets have been moving quickly into the organic sector, in which higher margins can be found. (Key Note) The UK grocery market is driven by economic factors, population structures, household size employment pattern and lifestyle patterns whose impact is shown below as macroeconomic factors: Economic factors – Although consumer expenditure is predicted to continue to grow by 12.6% to 2004, with personal disposable income expected to also grow steadily, it is unlikely that this will impact strongly on spending on food for in-home expenditure; As personal wealth has grown, spending on food has decreased as a proportion of total expenditure, with leisure activities, including eating out, taking most of the surplus. Some premium categories of food, such as organic produce, will benefit. As a result the focus of promotional strategy is moving away from price competitiveness towards other aspects of the retail offer. The population structure – Food expenditure and the overall market size is directly related to the size of the population but the long-term outlook for the British population is for very low growth, implying that the food retailing sector is likely to find domestic profits hard to grow. Household structure – Over the period 1999-2004, an increase of 830,000 (3.4%) (MINTEL, Nov 2000) household is anticipated. This is due to factors other than an increase in population; the growth is coming from one- and two-person households, due to rising divorce and separation rates, getting married later or not at all and the elderly living longer These trends disrupt the economic logic of the superstore model which is designed to offer large families convenient means to buy large volumes of food in one place, relatively infrequently, during the daytime, and to transport that shopping home by private car. Yet only 20% of adults have children under 16 living at home with them. All the major grocery retailers are competing to grow their share of this crucial segment of the population. Smaller households equate to more frequent shops for a few items at a time, often at unsociable hours, a considerably more expensive retailing proposition. Changing employment patterns and practices, with increasing frequency of part-time working, mean there are fewer families in which one partner has the time to shop at relative leisure during the day, and more for whom shopping is a shared duty, carried out whenever busy schedules will allow. In turn, time-pressured shoppers will often want to use a variety of shopping patterns according to circumstance, with retailers being required to offer more channels to market in order to compete. This cannot be done without cost implications. Changes in consumer tastes and lifestyles have an influence on grocery demand patterns. Healthy-food fashions and food-safety scares cause people to change what they eat, while there is a strong trend towards snacking and convenience eating – which involves an increasing proportion of food being bought through channels other than grocery retailers.(MINTEL) Internet adoption in the UK retail Sector Retailers generally begin on-line activities by providing information and interactive communication. Their site may develop into an electronic shop almost mirroring their offline activities A study by the department of trade and industry (DTI) called, ‘E-Commerce Impact Study: Retail Overview' (www.dti.gov.uk 29 July 2002) shows that: More than 75% of retailers are adopting e-business technologies, Nearly a quarter of retailers surveyed, and more than 56% of micro firms in the convenience store sector, have not thought about the benefits of the e-commerce. This report provides a detailed look at a number of key retail sector, and shows how UK retailers are getting to grip with e-commerce and that modern technologies are helping to change the way they do business. The report mentioned that: – 77% of companies are adopting e-commerce technologies – 71% of businesses use external e-mail – 53% of firms have a website More British food shoppers have converted to online grocery shopping than in any other country. However, Internet sales still represent a tiny, although growing, percentage of the overall UK grocery market. Most people use the Internet as a way of gathering information on products and making price comparisons before visiting their local store.(Key Note) Despite these statistics are showing quite positive numbers, some experts and specialists state that this field needs further research to determine the extent to which the web is likely to promote long term changes in the retail sector . Table 1 A classification of online retail activit 1 Food and consumables: Grocery, including supermarkets and hyper-markets 2 Convenience stores 3 Specialists food retailers, e.g. bakers and confectioners 4 Alcohol retailers, including off-licences 5 Clothing and accessories: Clothing retailers, including female, male and children 6 Footwear retailers, including fashion and work wear 7 Jewellery retailers, including accessories 8 Home: Furnishings retailers, including hard and soft furnishings and Textiles 9 Electrical goods, including brown and white goods and Computers 10 DIY, including gardening 11 Leisure and entertainment: Sports retailers, including sportswear and equipment 12 Toys retailers, including games, hobbies and crafts 13 Books, music, stationery and video retailers 14 News, including newsagents and CTNs 15 Health and beauty: Health and beauty, including chemists and opticians 16 Home shopping: Home shopping, including catalogues and mail order Directories 17 Mixed stores: Mixed stores, including department stores and variety retailers Source N.F. Doherty, F. Ellis-Chadwick and C.A. Hart. 1999 .Cyber retailing in the UK: the potential of the Internet as a retail channel Online Grocery UK Market In the UK online market there are four main grocery retailers dominating the market those are (Tesco, J Sainsbury, Asda, and Iceland.co.uk) According to the researchers the UK leads the world in online grocery shopping. â€Å"Chains like Tesco and Iceland have been much faster than their US counterparts in exploiting the immense potential of new virtual shopping markets.† They estimate that the online grocery market is already worth à ¯Ã‚ ¿Ã‚ ½200m a year and will reach à ¯Ã‚ ¿Ã‚ ½1bn within two years.(Guardian Friday February 4, 2000 ) The online grocery market is characterised by many of the features of the traditional grocery market. Big supermarkets have woken up to the Internet as a distribution channel and are gearing up to dominate the market. Smaller suppliers, using the Web as another side of their portfolio, are sure to lose out in this area. Smaller niche suppliers make up a large element of the market in terms of numbers of firms. In fact, there are so many companies, many of which operate on a very local delivery basis, that it is almost impossible to calculate their actual number. MARKET SIZE Online shopping grew 19 times faster than traditional brick-and-mortar retailing in December 2002, and increased a further five percent in January 2003 to represent six percent of all UK retail .(www.nua.com) Various reported predictions suggest the online grocery market will be worth around up to 10 % of 120 billion which is the predicted grocery market size by 2005 (MINTEL Nov, 2000) The current size of the UK online grocery market has been estimated to be worth à ¯Ã‚ ¿Ã‚ ½1.2bn. (Key Note 2001), while Tesco reported 446 million sales during 2003. Sainsbury's the second market leader announced annual sales of à ¯Ã‚ ¿Ã‚ ½110 million during 2002 (MINTEL Mar 2003) More than half the UK population will have bought something online by the end of 2003. Online shopping will represent 7% of all retail sales in the UK, accounting for à ¯Ã‚ ¿Ã‚ ½2 billion a month.(MINTEL Apr 2003) The total size of the UK grocery market has been estimated at à ¯Ã‚ ¿Ã‚ ½100bn per year. To support the market, the UK has 5.9 million online shoppers, growing to a predicted 8.5 million over the next 5 years à ¯Ã‚ ¿Ã‚ ½500m of turnover, that suggests that average spending per user in 2000 was in the region of à ¯Ã‚ ¿Ã‚ ½83 per head, suggesting that the Majority of users are not regular consumers of online services.(Key Note) Market size is difficult to determine, as figures for turnover from Internet sales are often included in total sales figures. Companies that are struggling to perform in the market may be taking a rather flexible view in how they present figures that may disappoint shareholders. However, Key Note's assessment is that the size of the true online market is currently à ¯Ã‚ ¿Ã‚ ½465m (lower than many estimates suggest). Within this, Tesco claims 64.5% of the market, Sainsbury's 9%, ASDA 7.5%, Iceland 4.7%, , with the balance held by a range of independents, small suppliers and niche companies. Table:2 The UK Online Grocery Market by Online Sales by Supermarket (à ¯Ã‚ ¿Ã‚ ½m and %), 2000 Online Sales (à ¯Ã‚ ¿Ã‚ ½m) % of Total Tesco 300 64.5 J Sainsbury 42 9.0 ASDA Wal-Mart 35 7.5 Iceland.co.uk 22 4.7 Others 66 14.2 Total 465 100.0 Source: Key Note Macro Environment To understand the macro-environment a technique called a PEST (Political, Economical, Socio-cultural, and Technological) analysis is usually undertaken. The PEST analysis identifies all external factors that affect the way a business can operate. What follows is a PEST for the E-grocery industry PEST ANALYSIS POLITICAL FACTORS The UK government sets itself as the target of making the UK the world's best place for e-commerce by developing public internet access and e-commerce awareness among UK businesses To trade in the UK there are 40 different laws that a company may be subject to (chaffey) Stephen Timms, e-commerce Minister, said: â€Å"The UK's retailers are making progress in adopting e-commerce and developing e-business solutions. But there clearly is room for improvement, and we cannot afford to be complacent. â€Å"E-business technologies offer a wealth of benefits. In order to exploit these we must help create the right culture throughout the business community so that UK firms of all sizes can seize the competitive advantage. â€Å"UK online for business is leading the way in getting business online, and the Government's aim to make the UK the best place in the world for e-commerce.†( http://www.gnn.gov.uk) The first Annual Report on the strategy was launched in September 2000. The UK strategy for online development is laid down in the UK Online Action Plan, which details 94 recommendations for action in 25 areas of priority. One specific goal is to develop the UK as the world's best environment for electronic trading by 2002. This, it is stated, will be achieved in four specific ways: * Encouraging competition in Internet access markets * Establishing a new regulatory framework for converging telecommunications and broadcasting markets * removing regulatory obstacles to electronic ways of working * Co-operating with international partners to develop a ‘global framework for e-commerce'. Oftel (Office of Telecommunications) is one of the tools for achieving this strategy, and, as such, has been charged with driving competition in the areas of dial-up access and delivering high-speed access routes to the Internet , specifically the encouragement of adoption of Broadband technology, and NPD (new product development) in the mobile-phone and fixed-wireless markets. Government strategy is to put as many UK consumers as possible online. Those responsible for driving this strategy are aware of consumer concerns about the Internet that must be addressed if the Government's objective is to be secured.(Key Note) ECONOMICAL FACTORS The innovation in information technology (IT) and new business practices facilitated by IT are forming a â€Å"new† economy, Electronic commerce and the IT innovations fuelling it are supposed to be fundamentally changing the logics of business practice, forming new social realities, and new business models. Traditional â€Å"old economy† firms and organizations are busy building bridges to the new economy. A stable rate of economic growth is one way in which the Government hopes to guarantee macro-economic stability, which can assist firms when assessing the risks associated with innovative practices. This, combined with the factors outlined below, has an influential effect on the rate of growth of the online grocery market. Low Cost of Internet Access One of the main drivers encouraging the use of Internet access and e-grocery in the UK is the relatively low cost of time spent online. The UK is the cheapest off-peak location in the world from which to surf the Internet, peak rates have has been dropped. This advantageous position benefits consumers, and the state of competition within the market is strong, with a large number of good quality Internet service providers (ISPs) available and eager to serve the public demand. Levels of Disposable Income The greater the levels of PDI consumers have, the more likely they are to be tempted towards higher margin products. Such high-margin products can make the difference between a profitable online transaction and a loss-making one. Table: 3 Index of Personal Disposable Income (1995=100 and %), 1995-2001 1995 1996 1997 1998 1999 2000 2001 Disposable Income index 100 106 113 116 122 127 132 % change Year-on-year – 6.0 6.6 2.7 5.2 4.1 3.9 Source:National Statistics Table 3 shows that levels of disposable income are rising, and have risen by 32% since 1995. The indications are that the upward trend will continue to apply, suggesting that this economic indicator will contribute to growth within the market in the short term. Rate of Change of Prices The change of prices gives a good sign of the stability of the economy. The UK has a low rate of inflation, and this is confirmed by an assessment of the RPI in Table 4 Table 4: Retail Price Index for All Items and Food(1995 =100 and %), 1995-2000 1995 1996 1997 1998 1999 2000 RPI (all items) 149.1 152.7 157.7 162.9 165.4 170.0 % change Year-on-year _ 2.4 3.3 3.3 1.5 2.8 RPI (food) 151.4 154.9 160.5 166.5 169.4 175.2 % change Year-on-year – 2.3 3.6 3.7 1.7 3.4 RPI – retail price index Source: National Statistics It can be seen from Table: 4 that the rate of change in the price of food between 1995 and 2000 has been roughly in line with the general rate of change in the RPI. Similarly European Currency and Simplification O European Trading Laws The advance of the European currency and the simplification of European trading laws will mean that Consumers will find it increasingly easy to trade with European retailers. The Internet offers International retailers a great opportunity to attack the UK marketplace. British shoppers are already prepared to go Euro to get what they want online. â€Å"Big brand names are in the best position to immediately exploit e-commerce but if they don't start moving soon the threat from foreign competition is real.† (Jolanta Pilecka, E-commerce Marketing Manager, Hewlett-Packard). In future a number of important factors might affect the economic state of the UK and inevitably supermarkets. The first is the possible introduction of the Euro. The Euro has been introduced in various European countries, but most notably France. The introduction of the Euro in France has pushed up weekly shopping bills for the average French household by 10 per cent. Could the same be expected to happen in Britain should the Euro SOCIAL FACTORS To know the barriers to consumer online purchasing adoption it is useful to understand the different factors that affect the level of internet access. Value proposition ease, Security and fear of unknown are the main factors affecting the internet adoption (Chaffey) Over the period July to September 2002 an estimated 11.4 million households in the UK could access the internet from home, that amount 46 percent of all households. This is over twice the number three years earlier and is an increase of 7 percent from 39 percent reported in the third quarter of 2001. (www.nua.com ) Evidence suggests that household formation will continue to grow, but that the profile of home size as mentioned at the first of this paper will stay strongly biased towards homes with one or two people. Table 5: Changing Household Numbers in the UK (million and %), 2000 and 2005 2000 2005 Million % of Total Million % of Total One person 7.3 29.1 8.0 31.1 Two persons 8.9 35.5 9.0 35.0 Three persons 3.7 14.7 3.5 13.6 Four persons 3.5 13.9 3.5 13.6 Five or more persons 1.7 6.8 1.7 6.6 All households 25.1 100.0 25.7 100.0 Source:National Statistics An estimated 62 %of adult in the Great Britain have accessed the internet some time according to figures from the October 2002 national omnibus survey. This is equivalent to approximately 28.6 million adults in Britain having accessed the internet. In the month prior to the survey 52 per cent of adults had accessed the internet. Differences between the countries and regions of the UK Levels of access vary greatly between different parts of the UK. In October 2001 to September 2002 the proportion of households with access was lowest in Northern Ireland (30%), Wales (31%) and the West midlands (34%). It is noticeable that the proportions were highest in the East of England (52%), London (50%) and the South East (50%) were around half of households had access to the internet. Table:6 Households with home access to the Internet by Government Office Region & UK country: October 2000 to September 2001 and October 2001 to September 2002 Oct 2000 Oct 2001 to to Sep 2001 Sep 2002 Per cent North East 26 36 North West 35 41 Yorkshire and the Humber 32 39 East Midlands 40 46 West Midlands 35 34 East 40 52 London 46 50 South East 46 50 South West 38 41 England 39 44 Wales 27 31 Scotland 30 40 Northern Ireland 26 30 United Kingdom 37 43 Source: national statistics According to International Telecommunication Union (ITU) (www.itu.int ) it is shown that in the UK 36.62 per 100 own a PC Table 7: Internet Estimated PCs Hosts total 2002 Hosts per 10`000 inhab. 2002 Users (k) 2002 Users per 10`000 inhab. 2002 Total (k) 2002 Per100 Inhab. 2002 2`865`930 485.03 24`000.0 4`061.74 22,00 36.62 table 7 , shows that a large proportion of the UK population own a PC that makes accessing the internet easer than going to the work place or other places Legal and ethical concerns It is argued that people do not change as quickly as may be believed. They still do not like parting with personal details, especially to those that they do not trust. Firms that request data from consumers need to make supplying information optional and allow users to change and delete the information provided. Crucially, they need to convince consumers that they will treat all information confidentially. Firms that are recognised as ‘good citizens' and with a high reputation in this regard are well placed to ease the anxieties of consumers scared of fraudulent use of details. Smaller companies with an Internet-only presence will find it hard to build up this trust. TECHNOLOGICAL FACTORS E-retailing can be seen as an innovation in retailing that in turn is built around a technological innovation Many reports have summarized technological problems as: The complexity of the user interface bandwidth restrictions and access connection speeds and security concerns A wide range of new technologies have enabled companies to create better and more efficient relationships with consumers as e-retailers: – provide more information in the pre-shop experience; – increase the number of access points to meet customers needs; – offer a wider choice of products than can be held in-store; and, – improve the overall service provision, for example through better stock management. www.gnn.gov.uk Technological breakthroughs are some of the key drivers in building the right conditions for online grocery to thrive. The main technological factors influencing the market include: à ¯Ã‚ ¿Ã‚ ½ The expansion of broadband Internet à ¯Ã‚ ¿Ã‚ ½ The introduction and growth of DTV (digital television) à ¯Ã‚ ¿Ã‚ ½ M-commerce (mobile-commerce) and WAP (wireless application protocol) phones à ¯Ã‚ ¿Ã‚ ½ Automated reordering systems à ¯Ã‚ ¿Ã‚ ½ Systems offering defence against fraud à ¯Ã‚ ¿Ã‚ ½ Automated customer service. (Key Note 2001) Broadband Internet One of the problems many consumers have when dealing with the Internet is the speed of access. Many consumers connect using 56K modems, although the majority never achieve this speed, perhaps because they live a great distance from the central phone-exchange routes or because their phone lines are too old. Broadband connections can alleviate this problem. Broadband connections come in two basic types: digital subscriber line connections (DSL) and cable modem connections In the first quarter of 2001, the number of DSL lines grew by 90% in the UK This market is likely to experience high growth in the coming years.(www.itu.int) Digital Television Advancements in television are running parallel to other Internet-enabled technologies 4.4 million households had DTV in 2000, and the figure is now probably in excess of 5 million. Not all DTV services are fully Internet-enabled, but there are plans to achieve this. The growth rate in subscription to DTV services is believed to be higher than the rate of new subscribers to ISPs. It has been suggested that more than 45% of homes will have digital satellite TV by 2008 (generating revenues for the communications companies of à ¯Ã‚ ¿Ã‚ ½2.4bn per year). One of the major barriers to e-grocers is the high costs charged to the suppliers by the DTV companies. Tesco reported to have found Open Digital's charges too expensive to make a venture worthwhile, however, the majority of the large supermarkets are signing up to the service may have very severe consequences in the long term. M-Commerce and WAP Phones M-commerce for all markets in Europe is forecast to reach levels of around $38bn by 2004.(Key Note) with over half of European companies planning to offer some form of service via mobile phones (particularly in the banking and service sectors). Major multiples are increasingly active in the service sector, and their online successes in other areas could well spill over into m-commerce activities, Mobile communications company Ericsson has estimated that, by 2004, there will be more than 600 million people using mobile Internet services in Europe. In 2000, the market for subscriptions to mobile-phone services grew by 67% and by 84% in 2002 .(www.itu.int ) However, WAP phones, currently the only method of accessing Internet via a mobile, have been relatively slow to catch on in Europe and make up only 15% of overall handset sales globally. Automated Re-ordering Systems All the technologies so far discussed require a conscious effort on the behalf of the consumer. In the future, it is possible that automated re-ordering systems will mean that the retailer is automatically notified when products are being used up within the home and need replenishing. There are two enabling technologies currently under development that may make this less fictional and more everyday. Vendor managed inventory (VMI) is one of these technologies. Another enabling technology in the same area is radio frequency identification technology, also known as RFID. This improves on VMI by using radio waves to scan all products in the fridge at any one time. Those kinds of technologies build and grow up the relationship between the consumer and the supplier learns more about the consumer behaviour to satisfy his demand Also they can create a competitive advantage for the business Systems Offering Defence Against Fraud Concern over fraud continues to scare many consumers away from using the Internet as a route for purchasing items and services. Credit-card companies are already making changes to their services to ease these concerns, but longer-term solutions may be found in encryption technology. Technology is being developed that adds digital signatures to a purchaser's Web browser which may help fight fraud. Such services can only be developed and provided by strategic partnerships between online retailers and Web security corporations such as Inktomi, Ariba, Broadvision, Vignette and Verisign (all leaders in secure-payment processing solutions). INDUSTRY ENVIRONMENT Porter's 5 forces analysis Michael Porter's five forces is The model that widely used for competition analysis in business strategy formulation, states that an organisation exists within an industry. To succeed it must deal with the competitive forces that exist within that industry: (1) Entry of new competition. (2) Threat of substitute products. (3) Bargaining power of buyers. (4) Bargaining power of suppliers. (5) Rivalry amongst existing competitors. THE GROCERY E-TAILING MARRET As an industry in the early stages of its life cycle, the online grocery market is currently very fragmented, with a growing number of competitors. The reasons for this fragmentation lie in several factors: relatively low entry barriers, high transportation costs, the perish ability of grocery items, nontradable goods and services industry, and the ability to specialize in geographic regions and reap the benefits of economies of scale. Much like traditional bricks-and-mortar supermarkets, online grocers are highly localized except for a few that operate nationally or internationally by delivering only non-perishable goods. (Success factors) Barrier to entry Compared to building traditional supermarkets, the barriers to entry in the online grocery market are relatively low, since most online grocers are localized. Set-up costs include establishing the computer system, creating logistics and warehousing capabilities, building brand awareness, and having the necessary alliances with local grocers in place. Many online grocers have already established partnerships or alliances. Entry into the industry is currently relatively easy, because no one has inherent advantages. Innovation and competitive moves, which can be easily replicated, have not prevented new firms or substitutes from entering the market. However, entry barriers may rise in the future as consolidation likely occurs. Market such as groceries, barriers must be built on differentiation through brand recognition by achieving superior customer service and responsiveness. One attraction for the recent surge of Internet startups in the grocery business is that online grocers require less capital and have lower variable costs than bricks-and-mortar stores. Fixed costs are high, but the potential for big returns is great if a large sales volume can be generated. Exit barriers can be moderate to high, depending on the amount invested in logistics and warehousing, the Web site, computer systems, and marketing. PPOWER OF SUPPLIERS Retailers have high bargaining power when they purchase a large volume of goods from their suppliers. Unlike huge supermarket chains, the smaller online grocers typically possess a lower level of bargaining power than their suppliers. But traditional grocers that decide to branch out onto the Net have the advantage in this regard, buying in bulk and enjoying established relationships with suppliers and customers. This allows them to price their goods competitively, deterring new entrants or forcing inefficient incumbents out. POWER OF BUYERS The bargaining power of buyers or consumers is very high in this industry. With many substitutes and competitors to choose from, dissatisfied customers can simply switch to a competitor. Groceries are commodities, so consumers can be sure to purchase the exact same products elsewhere. THREAT OF SUBSTITUTE PRODUCTS The threat of substitutes is undoubtedly high for two reasons: Firstly, the products and services offered online to customers are extremely similar. So similar in fact that supermarket' often have to lower their prices to give them more appeal. Secondly although there is a certain degree of brand loyalty, it can't be relied on, as customer loyalties tend to change when they find they can obtain better value for money elsewhere. E-grocers understand that the threat of substitutes is high, and this then is the main reason for supermarkets branching out and pursuing a broader product line, as a means of calming the intense competition with their competitors. However, in pursuing broader product line grocers open themselves up for further competition from experienced players in other non food retail markets. RIVALRY AMONGST EXISTING COMPETITORS Competitors will do everything in their power to increase their market share. Supermarkets also have high fixed costs due to the sheer number of stores they have open. They must make a sufficient amount of sales to cover their costs and generate profit. As discussed earlier there are a variety of substitute products and services that are becoming increasingly difficult to differentiate thus custom is very much determined by price. This situation is further aggravated because switching costs are difficult to impose, as food is an everyday necessity, many customers will happily forget any loyalties if they really need to obtain it. Conclusion The environment in the online grocery industry is growing more and more competitive as new firms continue to enter. Grocers which established its online purchasing site first is gaining the benefits of the first-mover advantages such as Tesco.com E-grocery has become a considerable industry sector each main player in this industry is trying to create a competitive advantage to attract more numbers of spoiled customers trying to satisfy there demands. The UK e-environment is one of the best e-environments globally that ease the entrance to this industry and generate the potential for more and more customers to buy grocery on line. This industry sector is a quite new industry that makes the flow of information about its success and pitfall factors relatively not enough to know every factor influences this industry We can't say that e-grocery sector has reached the mature level since there are more and more numbers of customers and rivals are entering this sector.