AT&T: Transformation in Retailing

Subject: Company Analysis
Pages: 2
Words: 286
Reading time:
< 1 min

The innovators in the sphere of retail have the potential to increase their sales by taking the customer experience to a new level. For instance, AT&T in Chicago was one of the first to showcase different user-adaptive interactive mobile technologies such as an Internet-enabled car or preference-adjustable product shelves (Greenwald). Such companies establish new trends and create a short window of opportunity when no one else can compete with this unique advantage. On the other hand, they also risk introducing something that the customers would not come to appreciate, and the organization may achieve a favorable return on investments. Early adopters are often opinion leaders and have the power to sway customers to accept the new technology or its mode of application.

For instance, Soho, who recently adopted interactive touch panels to upgrade the shopping experience, attracted customers with the idea of fun, utility, and accessibility (Greenwald). Although the technology is not new, Soho as the opinion leader may enjoy the position of power and do not a risk as much as innovators. Early majority, as well as the late majority, will benefit from the technology mostly in a utilitarian sense and attract middle-class buyers who value performance and comfort. Laggards will also benefit from the technology from the standpoint of utility it offers, yet the risk of losing audience is higher than in the rest of the classes. At the point in time when laggards introduce mobile technologies, they have a high chance of becoming obsolete which brings a decrease in profitability (Gustafson). As such, department stores such as TXJ and Home Depot named as laggards report substantial losses.