Procter & Gamble Company have the intention of transforming coupon industry with a technology that will permit the retailers bar code scanners to read coupon codes on client’s smart phones. This is advantageous because the customer will no longer rely on the clerk to insert the codes. Business people who own grocery shop have their choices: use of clipped or printed paper coupons, transfer of coupons to loyalty cards through electronic or the display of coupons on smart phone. This is disadvantageous because it requires the use of manual means to put in the coupon code.
Competitive Advantage of the IT
The limitation of this technology is that the bar code scanners cannot detect and read the screen of smart. This burden will be solved as Procter & Gamble Company wants to partner with San Francisco based Mobeam Company that deals with light communication technology (Rowh, 2012). This partnership has the goal of bringing all digital movable coupon organization to the market. This technology will allow all business people who own retail shops to read electronic coupons on the smart phones.
Procter & Gamble Company is well known for the production of consumer products and a modern user of technology. This partnership is presumed to bring a lot of success if the other users of smart phones go along with this idea (Rowh, 2012). This will offer a chance to bring transformation in the use of mobile coupons. The technology that is invented by mobeam will change the code data to beam of light that can be read by the bar code scanners. P & G Company has taken this technology seriously because it is one of the leading distributors of coupon. The company will benefit from the sophisticated method of coupon redemption.
The company will be able to bridge their gap with the customers through the use of this technology. The retailers will benefit from this technology because they do not have to put any new gadget at their sale point (Rowh, 2012). The other advantage is that the use of smart phones is faster than the use of coupons that scan papers. This helps the analyzing of data through the digital technology in case of effectiveness.