Case Study on Electronic Retailing

This case study explores the growth of online shopping and its impact on high street stores, the concept of omni channel retailing and its benefits for businesses, the key challenges faced by online retailers in a post COVID-19 world, and a comparison of the advantages and disadvantages of distributing digital and physical products. It provides insights into the changing dynamics of the retail industry and the opportunities and challenges faced by online retailers.

Case Study 1 on
Electronic Retailing

Contents
INTRODCUTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
1. Does the growth in online shopping mean the extinction of the typical high street store?...................3
2. What does omni channel retailing mean and how can businesses exploit this new phenomenon?.......4
3. What you think will be the key challenges to online retailing in a post COVID 19 worlds?...............5
4. Compare advantage and disadvantage of distributing digital products versus physical products.........5
CONCLUSION...........................................................................................................................................7
REFERENCES............................................................................................................................................8

INTRODCUTION
Mobile commerce or online shopping is considered as platform which provides
opportunity to users to that they can access to do online shopping by using internet. At online
platform an audience can compare different products operations on different sites without
moving from the place (Dey and Ghose, 2020). This show that through mobile commerce and
online shopping companies able to grow business as well as it is less time consuming option.
Around the world there are numbers of online shopping websites such as Amazon, Flipkart, and
many more. The respective report is based on analysis of retail companies which are conducting
their business through online medium. Topics include in this report are viewpoint on does online
shopping decline the high street store as well as it describe about omni channel retailing and how
business can adopt it. moreover it will also include key challenges of online retaining companies
in post COVID 19 as well as it include advantage and disadvantage of distributing digital
products versus physical products.
MAIN BODY
1. Does the growth in online shopping mean the extinction of the typical high street store?
According to the current situation when people are more prefer online shopping instead
of high street store. Online shopping is determined as technology based platform which provide
option to society that they can stay home and do shopping from different online shopping sites
by comparing prices of product. In respect of typical high street store people need to save their
time so that they can visit to the store for purchase products and services as well as if they not
find product accordingly then they need to visit numbers of store (Hanafizadeh, Mehri and
Hasanabadi, 2020). This is time taking methods as well as it also leads to wastage of resource
due to traveling from one place to another. So now people are more likely to move toward the
online shopping because in this they online need to have smart phone and internet connectivity
so that they can operate the online shopping application. For example – one online retail
company which impact badly on the high street store is Amazon as they offer cheaper as well as
easier options to customers than then visiting to the store for the same. In addition to this time to
time Amazon also offer sales which are more than any store will offer this will attract customers

and encourage them to buy products online instead of visit numbers of stores for one product.
Along with this, in respect of COVID 19 situation through which the world is going through it is
essential to maintain social distancing, this is highly impact on the street store as almost every
people is considering or selecting online shopping sites in order to avoid crow and prevent
themselves for COVID 19 (Liu, Kumar and Mookerjee, 2020). This is also considered as main
reason which impact on the business of high street shop badly as well as increasing growth
opportunity for the online retail sites.
2. What does omni channel retailing mean and how can businesses exploit this new
phenomenon?
Omni channel is considered as multi channel sales approach which is used to provide an
integrated customers experience to the potential customers. In this a customers can shop or buy
products online by using mobile, desktop, telephone or in a store which adopt brick and mortal
model. In the omni channel retailing the main stakeholders are products, marketing, customers
support, customer success, sales and so on. In current types every company of each industry is
adopting omni channel retailing because through it they able to attract more and more customers
and it also help in increasing sales successfully and effectively. There are several example of
firm which adopt omni channel for conducting retailing such as Amazon who offer wide range of
products and services to customers so that they can buy anything they want without going
outside the home (Lu, Liu and Ma, 2020). Every business has their unique idea for adopting
omni channel for their business operation and function through which they can grow business
successfully such as Starbucks. According to their omni channel when customer use Starbucks
card through phone or laptop they get reward points as well as it also provide option to coffee
lover to find nearby stores, send gifts to love one, order drinks and so on. Another famous
company’s example who use omni channel in brilliant way i.e. Chipotle according to this
application a person can order to food and set time that is in how much time they will collect
food. According to which customer’s food will get prepared so that it can be fresh and hot. This
shows that different companies are adopting omni channel in different ways which is based on
their business operations, aim and customer’s base as well as it also provide opportunity to grow
business successfully.

3. What you think will be the key challenges to online retailing in a post COVID 19 worlds?
In current time almost each and every company is conducting its business through online
medium because this will provide wide range of opportunity which help in grow the business
such as it increase customers’ base, market presence and many more (Vasu and Jayamol, 2020).
But due to COVID 19 the world is facing several challenges from which online retailing is also
experiencing bad day. Companies operating in respective industry are going through several
challenges which impact on their business operations and functions. Form which some main
operations are mentioned below:-
 Management of demand fluctuation – Due to COVID 19 situation demand of products on
the online sites get fluctuated which impact on the businesses of the online retailers.
Moreover due to COVID 19 government also shop sales and purchasing through online
sites which leads to impact on the company’s business and profit.
 Protecting people from COVID 19 – In order to prevent a person from COVID it is
essential to maintain social distancing but for the business it is not possible to avoid
contact for so long. In respect of online retailers it is challenging for them to conduct
their business because they required huge labour at the warehouse for managing products
as well as their member deliver the products door to door. This is challenging for online
retailer as that may lead to increase in COVID 19 cases.
 Change in customer priority – Due to COVID 19 priority of people are changing as they
are more concern to buy essential products like food items, sanitizer, mask and so on.
This change will also leads as challenge for online retailers as their sales, profit and
market presence get decreasing.
4. Compare advantage and disadvantage of distributing digital products versus physical products.
Distributing digital products Physical products
Advantage  No inventory is required. In
digital commerce is
considered as low risk
medium (Wagner, Schramm-
Klein and Steinmann, 2020).
It is so because in it retailer
 Exhibiting esteem is simple -
It's far simpler to show the
estimation of a physical item
since its motivation is
typically clear and simple to
clarify.

not needs to invest in the
inventory which avoids cost
of storage.
 This method will help online
retailer to attract wide range
of customers towards the
product and by offering
discount encourage them to
but it quickly.
 Make one of a kind items -
Anyone can sell a
computerized item on the
web, yet on the off chance
that a person plan and make
retailer own items online no
one but they can sell them.
Individuals should come to
retailer on the off chance that
they need to purchase their
physical items since they
won't have the option to
discover them anyplace else.
Disadvantage  Lower apparent worth -
Digital items aren't
substantial; they aren't
'genuine'. Subsequently, they
frequently have a lower seen
esteem (Wagner, Schramm-
Klein and Steinmann, 2020).
 Item improvement is tedious –
Getting an advanced item
prepared for showcase takes a
lot of arranging and testing.
For an advanced item to be
dispatch prepared it must be
completely tried and of
incredibly high caliber from
the start.
 Harder to scale - Scaling a
physical item is much slower
than scaling a computerized
item.
 Tedious - Digital items and
administrations can be
overseen and conveyed with
a couple of snaps. Not so
with physical items.
Overseeing stock, staff and
requests is a genuine time
channel.

CONCLUSION
By conducting analysis of above discussed topics it can be summarized that now business
of online retail store are increasing because at the mobile commerce an individual can select,
compare and buy specific products and services according to their requirement. But this is
leading to situation according to which sales of high street shops business are decreasing as well
as their profit and sales also get decreased. Moreover in the situation related to COVID 19 when
it is essential to avoid crowd and maintain social distancing, online shopping is best option
because on site audience can select and buy products accordingly to their demand and need.
Moreover omni channel also plays a major role in order to expand and grow business as well as
there are numbers of examples which show companies are using respective model in brilliant
manner such as Amazon, Starbucks and many more.

REFERENCES
Books and Journals
Dey, S. and Ghose, D., 2020. E-retailing & its associated paradigms: a study in India. Int. J.
Anal. Exp. Modal Anal. 12(1). pp.2511-2528.
Hanafizadeh, P., Mehri, S. and Hasanabadi, H., 2020. Analyzing value creation in electronic
retailing: The case of Digikala–Part A. Journal of Information Technology Teaching
Cases, p.2043886920910433.
Liu, D., Kumar, S. and Mookerjee, V.S., 2020. Flexible and Committed Advertising Contracts in
Electronic Retailing. Information Systems Research.
Lu, Y., Liu, Z. and Ma, L., 2020. Competing through logistics management: Studies on e-
retailing in China. In Supply Chain and Logistics Management: Concepts,
Methodologies, Tools, and Applications (pp. 1075-1094). IGI Global.
Vasu, B. and Jayamol, K.V., 2020. Influence of Point of Purchase Advertising on Consumer
Behaviour-A Case Study. Studies in Indian Place Names. 40(74). pp.874-883.
Wagner, G., Schramm-Klein, H. and Steinmann, S., 2020. Online retailing across e-channels and
e-channel touchpoints: Empirical studies of consumer behavior in the multichannel e-
commerce environment. Journal of Business Research. 107. pp.256-270.