E-commerce Impact on Argos

This assignment examines the influence of e-commerce on Argos, a popular UK retailer. It delves into Argos's e-commerce business model, analyzing its advantages and disadvantages compared to traditional retail. The analysis utilizes a customer survey to gauge customer preferences for online purchasing from Argos, covering aspects like payment methods, frequency of purchases, and perceived benefits. Additionally, the assignment explores potential challenges faced by Argos in e-commerce, such as technical security concerns and operational cost management.

RESEARCH PROJECT

TABLE OF CONTENTS
1. Introduction..................................................................................................................................3
1.1 Research Aim.........................................................................................................................4
1.2 Research Objectives...............................................................................................................4
2. Literature Review.........................................................................................................................4
3. Research Methodology................................................................................................................7
3.1 Sampling................................................................................................................................8
3.2 Data collection methods.........................................................................................................8
3.3 Data analyses methods...........................................................................................................9
3.4 Ethical considerations............................................................................................................9
3.5 Research Limitations.............................................................................................................9
3.6 Research Work plan.............................................................................................................10
4. Findings and Discussion............................................................................................................11
5. Conclusion and Recommendation.............................................................................................16
6. References..................................................................................................................................18
7. Appendices.................................................................................................................................20
2

1. INTRODUCTION
In the modern era most of the organizations are engaged in the E-commerce. Its an online
transaction business which provides multiple benefits to the consumers and entities both. In the
globalized era consumers take much interest in purchasing through online stores rather than
traditional mortal stores. Business to business (B2B) is the fast growing business in which
companies exchange information and goods to consumers via internet and other advanced
technologies (Coiro and et.al, 2014). Online trading has increased the revenues of most of the
organizations to great extent. Apart from this overall operational cost of the entities have been
reduced as firms do not have to spend much amount on maintaining their retail stores. With the
help of this medium, companies can attract mass audience and can make effective
communication with the large number of customers to great extent. Online trading supports in
enhancing sales and revenues of the organizations and it builds strong relationship with the mass
audience. With the help of e-commerce, firms are able to expand their business and to make
connection with the customers those who belongs to other country or nation. That is the easiest
way to increase brand image of the company and through e-commerce entities can sustain in the
corporate market for longer period (Gray and Malins, 2016).
Impact of e-commerce is the wide subject and there are number of researches have been
conducted by many other researchers. So sufficient data on the topic are available that can help
researcher in conducting the good research. Area of interest is another reason of selecting this
topic, as investigator has good interest and experience in the topic so that can help in preparing
effective report on the e-commerce business. But as cyber crime is increasing day by day so
there is neccessity to understate the issue related to the e-commerce business otherwise it may
harm the overall reputation of the company to great extent and it can give huge loss of the
entities. It is very important to understand the impact of e-commerce on the retail industry and
risk which are associated with the web trading. With the help of research future growth of retail
industry in e-commerce business can be examined by the scholar (Leavy, 2015).
Present report will discuss the concept of electronic business and its impact on the British
retail industry will be discussed. There are many issues which are faced by the entities while
3

engaging in the E-business. All these problems will be identified in this study for better
understanding the positive and negative impact of E-commerce on the Argos, Wood Green
branch. Furthermore, study will emphasis on the technological changes and their impact on the
consumer buying behavior (Bakker and et.al, 2015). There have been many studies done before
it but there were some gap, as investigators were unable to discuss the latest trends and modern
technologies. So real impact of online trading due to technological advancement have not been
discussed by the previous investigators. For conducting the present report data will be collected
through primary and secondary sources. Primary data will be gathered through questionnaire and
questions will be asked by the mangers of Argos, Wood Green branch.
1.1 Research Aim
To understand the impact of E-commerce on the British retailer; Case study of Argos, Wood
Green branch.
1.2 Research Objectives
 To understand the conceptual framework of E-Commerce.
 To analyses the impact of E-commerce on Argos, Wood Green branch.
 To investigate the issues related to E-Commerce on the British retailers. To provide recommendation for improving e-commerce business of Argos, Wood Green
branch.
Research Question
 What is the concept of E-commerce?
 What is the impact of e-commerce on the Argos. Wood Green Branch?
 What are the major issues faced by the entities while engaging in the E-commerce
business?
2. LITERATURE REVIEW
Concept of E-commerce
Electronic business is the wide range of online trading in which organizations offer
variety of goods and services to the consumers. It is the transaction between two parties through
electronic mediums such as internet etc. Rater than physical contact. Such types of transaction
occur as B2B, B2C, C2C business. According to the view of Kratochwill, 2013 Electronic
business is the broad application and that helps to attract mass audience from different locations
4

(Kratochwill, 2013). Author has described the e-commerce as transformation process of an
organization for delivering the additional quality services to the consumers with the help of
advanced technologies. As per the view of McNiff, 2013 E-business is the organized efforts of
organizations in which entities sell its products online to gain higher profit. They deliver such
goods which help in meeting with the needs of clients and in satisfying them (McNiff, 2013). By
this way people get attached with the firm for longer period and will give benefit to the
corporation. Firms can approach via internet to the consumers and can offer them attractive
discounts that will help them in increasing the sales volume of the firms to great extent. As now
a days clients are much more aware with the internet and latest technologies. For small
transaction they use internet and buy products after analyzing the price and quality of the goods.
Berger, 2015 has argued that e-commerce business is giving two fundamental types of
benefits to the entities such as value creation and enhancement (Berger, 2015). As with the help
of internet and web technologies corporations are increasing communication with the service
users and try to find out their needs and requirements. That gives benefit to the organizations in
offering them goods as per their demands, so that they can get satisfied and be loyal towards the
brand. By this way brand image of the companies can get improved. Apart from this e-commerce
is giving benefit to the firms in enhancing the value, as people will be loyal towards the brand so
they will buy the products frequently. That would help in increasing sales of the organizations so
it will enhance overall revenue of the entities to great extent. Electronic transactions are also
beneficial for the users as well, as they will have option to record their bill transactions and they
will be able to check online balance. On other hand Cozby and Bates, 2015 has viewed that due
to electronic business fraud is increasing day by day. It has increased fear among users and due
to this online trading has been reduced over the past few years. People are getting fraud calls and
their transactions have been declined. That is why electronic business have been decreased
(Cozby and Bates, 2015).
Impact of E-commerce
According to the Falzon, 2016 e-commerce has affected the British retail industry to great
extent. The major impact have been taken place on the consumers. Now service users have been
empowered and they have multiple choices of getting quality goods at lower rates (Falzon,
2016). As due to zero maintenance of retail stores, overall operational cost of the company can
5

get reduced with the help of electronic business. Consumers will have to pay less amount for the
products online, as compare to retail stores. That is why trust and loyalty of the consumers have
been increased in this industry. As per the view of Myers, 2013 electronic business have
increased the sales of the companies. Due to hectic schedule and high pricing people do not go
for purchasing at the retail stores frequently (Myers, 2013). But e-commerce have given option
to buy the goods through online mediums and free delivery of the goods have encouraged them.
So e-commerce has impacted positively on the British retail industry to great extent.
Wang, 2014 has argued that electronic business has negatively affected the British retail
industry (Wang, 2014). As use of advanced technologies have decreased the employment
opportunities in the retail industry. As machines are able to do work of multiple employees so
most of the organizations are decreasing their number of workers. That reduction has impacted
negatively on the economic growth of the country. As per the view of Zheng, Zhu and Wang,
2016 stiffer competition is the negative impact of the e-commerce business (Zheng, Zhu and
Wang, 2016). As this medium helps the entities in expanding their business globally so such
mass area of trading increase competition in the market, that can negativity affect the sales
volume of the organization in the retail industry. There are many more retail firms such as
ASDA, TESCO etc. those which are operating globally. So it is very tough for the entities to
meet with the too high competition. That some time decreases brand image of the company if it
fails to meet with the standards.
According to Rohr and et.al, 2016 e-commerce impact on the employees of the retail
industry to great extent (Rohr and et.al, 2016). As many of people are not well aware with the
latest technologies so it becomes difficult for them to survive in the organization where they
have to do online trading. But companies try to provide them necessary training so that they can
enhance their skills and can stay in the workplace for longer duration. Most of organization
provide them incentives and cash bonuses so that they get encouraged and talent retain in the
organization for longer period (Schu and Morschett, 2017).
Issues related to E-Commerce on the British retailer
As per the view of Graham and Peleg, 2017 privacy issue is the major risk in the e
commerce business (Graham and Peleg, 2017). As while trading online, people have to pay
through debit or credit cards so there is high risk that personal details of bank account and others
6

can liked. Some times hackers hack the account of the users and debit their amount from the
banks. McNabb, 2016 has argued that most of the retail companies in UK fails to run their
business online due to ethical issues. Technical attacks are the most challenging issue in front of
corporations. Due to virus and other attacks consumers do not take much interest in online
trading. Due to this, there personal detail can be misused by the hackers (McNabb, 2016). That
can indirectly affect the brand image of the companies and can decrease their sales volume.
Williams, 2014 has argued that due to lack of knowledge people do not prefer to shop via
internet. They do not have much knowledge about the latest technologies and have fear of
leakage of their identity (Williams, 2014). That is why people are taking less interest in shopping
via internet. Apart from this, changing demands of service users is another issue for the business,
as people move from one brand to another if particular entities fails to satisfy their needs. Ion the
globalized era it is essential that firms offer them goods as per their needs. But due to changing
technologies and trends their demands get changed most of the time. As new firms offer them
attractive discounts and free delivery that attracts consumers towards them. But if particular
brand fails to provide them quality services then people move towards other brand. That is why
firms have to face huge loss, that is the main issue in the British retail industry. As per the view
of Ashraf, Jaafar and Sulaiman, 2016 there are many big competitor brands and they are offering
extra ordinary services to the consumers (Ashraf, Jaafar and Sulaiman, 2016). Due to online
marketing, companies are able to change mind of users and people move to other brand. Social
media advertisement and attractive offers attract the consumers and influence them. That is the
barrier for most of the corporation and influence the sales volume of the companies to great
extent.
3. RESEARCH METHODOLOGY
Research methodology is the plan for collecting relevant data for making sound business
decisions. It can be defined as scientific search for identifying the topic so that proper solutions
can be find out for over coming the issues. It is the systemic plan that assist in selection of the
effective techniques and tool which can help in accomplish the objective of the research.
Qualitative Research methodology has been chosen for the study in this report (Gorczynski and
Kooijman, 2015). In the current study scholar has selected the interpretivism research
philosophy and descriptive research design has been chosen for the study. Both these methods
7

are appropriate for the research and has helped in getting feasible information. In the present
report researcher has taken support of inductive approach. The rationales behind choosing this
approach is that with the help of this scholar can emerge new concepts with the help of relevant
data (Zhang, Zuo and Zheng, 2016).
3.1 Sampling
Sampling is the systematic process in which researcher select small number of
respondents from the mass market. There are several types of sampling methods are used while
conducting the research; probability and non probability. Probability sampling is chosen when
company wants valid results, there are several methods that helps in getting the results. Random
sampling is the technique in which all population have equal chance to get selected. In this
researcher can randomly collect the data from the sources. Stratified is another technique of
sampling in which scholar can divide the population into stratum on the bases of gender, social
class, education etc (Yeung and Ang, 2016). And researcher can collect the sample from the
stratum hypothetically. Non probability is another techniques of sampling which can help the
researcher in collecting samples. But as it is highly expenses so rarely used by the entities.
Purpose, quota, convenience sampling are some methods of non probability sampling. For the
present study random sampling have been selected by the scholar. The rationale behind choosing
this technique is that it gives every individual equal opportunity so researcher can collect best
information by this method. For the research 15 managers have been selected from the Argos as
sample (Bakker and et.al, 2015).
3.2 Data collection methods
Data collection is the tool through which a researcher can gather and measure the
information effectively and can attain the objective of the research significantly. Primary and
secondary are two methods of collecting the information. In the primary data are those details
which are collected by the scholar by own for specific objective. Whereas secondary data are
already available information which can be used for the research. There are several methods
which are used by the researcher for gathering the information such as observation, interview,
document analyses etc (Myers, 2013). For collecting primary data, researcher has taken support
of questionnaire and has designed some questions. This topic related questions asked by the
managers of Argos and by getting their opinion actual finding can be find out by the scholar.
8

Some previous statistical facts and figures have been selected from books, journals and internet
articles by the researcher for this study.
3.3 Data analyses methods
Data analyses is the tool which supports the scholar in analyzing the information deeply.
There are two types of techniques which are used by the researcher for analyzing the
information; qualitative and quantitative. In the qualitative technique scholar try to find out the
results with the help of graphs, charts etc. Whereas in the quantitative methods several SPSS, t
test are used for getting the optimistic results (Gray and Malins, 2016). For the present study
qualitative tool thematic analyses is being used by the researcher so hat individual can
understand the actual perception of managers regrading impact of e-commerce on the Argos.
With the help of this tool scholar has tried to find out the impact of electronic business on the
internal working of the company. Thematic analyses is the best method through which scholar
can identify the positive and negative impact of online trading on the overall business
performances. As managers are the key persons in the organization they can tell effectively about
the reasons of growth and decline sales (Cozby and Bates, 2015).
3.4 Ethical considerations
Ethical consideration is one of the important part of research, if researcher miss this part
then overall dissertation may get failed. By concentrating on the ethics scholar can maintained
the accuracy and reliability on the research work. Scholar has maintained the privacy and all data
are used only for the present study (Leavy, 2015). Data will not be liked for commercial
purpose. Researcher has maintained high level of objective while carrying out the research. For
carrying out the research scholar has used the prior research on the same topic and authentic
references have been attached in the report. Hence, it can be said that ethical consideration aspect
is being fulfilled by the researcher for getting the accurate results.
3.5 Research Limitations
Researcher has work deeply to identify the real impact of e-commerce on the British
retail industry. But somehow individual has faced some limitation. Time was the major constrain
in this research as for the scholar there was limited time period for the research so in less time it
was not possible to use all techniques to get reliable information. Apart from this lack of
9

financial resources have restricted the researcher and due to this advanced software were not
used by the scholar in the research (Kratochwill, 2013).
3.6 Research Work plan
Activity Week1 Week
2
Week3 Week
4
Week5 Week6 Week7 Week
8
Week9
Planning
Research
Proposal
Reading
various
literature
Set aim and
objectives
Literature
review
drafting
Secondary
data
collection
Data
analyses
Develop
research
approach
Drafting
research
methodolog
y
Designing
questionnair
10

e
Arrangeme
nt of
interview
for
managers
Conduct
interview
Accumulate
data
Drafting of
Findings
Analyzing
data
Completion
of
remaining
chapters
Submission
of report
and taking
feedback
Rectificatio
ns as per
the
feedback
Printing and
binding
11

Submission
4. FINDINGS AND DISCUSSION
1. Frequency of customers to purchase products of Argos online
Once in a month 5
Twice in a month 7
3-4 times in a month 6
More than 5 times 2
From the research it can be said that five managers of the Argos said that customers do
online shopping once in a month. Severn managers has said that they shop twice in the month, 6
managers viewed that generally customers shop online 3-47 times whereas 2 managers have said
that people do online shopping more than five times in a month. So from the findings it can be
said that generally people have tendency to buy products online two times or maximum three
times in a month which is very high as compare to retail store shopping. So from the results it
can be interpreted that e-commerce business is beneficial for the Argos because by introducing
the electronic business overall business of the cited firm can get increased.
2. Method for the payment people used for online purchasing?
Credit cards 5
12
Once in a month Twice in a month 3-4 times in a month More than 5 times
0
1
2
3
4
5
6
7
8
5
7
6
2
Column H

paypal 4
Cash on delivery 7
Debit card 4
From the research it is found that 5 managers have said that maximum people pay
through credit cards in the online purchasing. Four managers said that people pay through paypal
and seven manages have viewed that generally people pay on cash at the time of home delivery
of the products. Four managers have viewed that people pay through debit card in the online
purchasing. So from the findings it can be interpreted that maximum public pay cash at the time
of getting delivery. By paying cash they will not have to face any trouble like hacking of
account, fraud calling etc. So they find it secure and safe.
3. Sales of the Argos is being increased or not after engaging in the e-commerce business?
Yes 15
No 5
13
5
4 7
4
Credit cards
paypal
Cash on delivery
Debit card

From the research it is found that 15 managers have said that sales of the Argos has been
increased to great extent after involved in the e-commerce business. Whereas, five managers
have said that sales is not being enhanced. So from the graphical presentation it can be said that
e-commerce impact positive on the overall business of the cited firm at Wood Green branch. By
this way organization will be able to enhance its revenues and that would give optimistic
outcome to the entity.
4. Major benefit of Argos with engaging in the e-commerce business?
Increment in number of customers 8
High brand image 6
Worldwide connectivity 5
Profit maximization 1
14
Yes
No
0 2 4 6 8 10 12 14 16
15
5
Column E

From the above research it can be said that eight managers have said that Argos can
increase number of customers if it uses e-commerce business. Six managers have viewed that it
can enhance brand image of the company. Five managers have said that worldwide connectivity
will be the major benefit for the Argos if it engaged in the electronic business. One manager has
said that it can increase profit as well. From the graphical presentation it can be said that e-
commerce business will give benefit to the Argos in increasing number of consumers. By this
way sales volume will also get increased and that will help in improving its profit to great extent.
5. Main issue which is faced by the entity in the e-commerce business?
Technical attacks 7
Leakage of privacy and security 5
Server problem 4
Untrained employees 3
Other 1
15
Increment in number of customers
High brand image
Worldwide connectivity
Profit maximization
0 1 2 3 4 5 6 7 8
8
6
5
1
Column F
Technical attacks
Leakage of privacy and security
Server problem
Untrained employees
Other
0
1
2
3
4
5
6
7
8 7
5
4
3
1
Column D

From the report it can be said that seven managers have said that Argos has to face
technical attacks if it enters into electronic business. Five managers have said that privacy can be
destroyed if company engaged in the e-commerce business. Server problem can also the main
issue that can create negative image of the cited firm in front of consumers. Three managers said
that unskilled people is another issue, as lower level employees have not that much knowledge
about the online trading so that are not able to manage the operations. So it can be interpreted
that the major issue which can be faced by the Argos if it comes in the e-commerce business that
technical attacks such as virus etc. can destroy the data and can damage its privacy to great
extent.
6. Does e-commerce has reduced the operational cost of the Argos?
Yes 12
No 8
From the research it is found that 12 managers of the Argos have said that with the help
of electronic business operational cost of the company can get reduced. 8 managers are not
agreed with this point, as they think that cited firm will have to give training to staff and will
have to implement advanced software for doing online trading so it will enhance the
expenditures. From the above research it can be interpreted that though it will increase
expenditures but with the help of this sales volume will get enhance to great extent so profit will
reach o next level and after deducting the expenditure overall net profit of the organization will
get improved.
16
Yes No
0
2
4
6
8
10
12
12
8
Column G

7. Does population really take interest in the online trading?
Yes 16
No 4
From the above research it can be said that 16 managers are agreed on the point that
customers really take interest in the online shopping. The main reason is that free home delivery,
cashless transaction, after sales service, attractive offers, lower price, variety of options
encourage them to shop online.
5. CONCLUSION AND RECOMMENDATION
From the above it can be concluded that e-commerce impact on the overall performance
of the British retail industry to great extent. Though there is high risk of hacking and leakage of
privacy, But in the modern technological era there are many options which can reduce the risk of
security. Argos, Wood green Branch will also get benefited by the e-commerce. With the help of
this, cited firm will be able to make connection with the mass audience and will be able to
enhance its brand image worldwide. Though there are some issues and risk associated with the
electronic business but companies can manage and can find solutions to overcome from these
issues. Online trading is one of the fastest growing business and consumers have much interest in
the online shopping. So by engaging in this business cited firm can get success and can improve
its working performance to great extent.
Recommendation
The major issue in the e-commerce business is the hacking and leakage of privacy. But
form overcoming these problems cited firm can use advanced anti hacking software and
technologies which can save the data and can protect the system from being touch in virus and
17
0.8 1 1.2 1.4 1.6 1.8 2 2.2
0
0.5
1
1.5
2
2.5
16
4
Column G

other hackers. Apart from this issue, lack of skills of employees to handle advanced software is
another problem if Argos involve in the e-commerce business. But to reduce the expenses cited
firm can give training to its staff members so that they can learn the technical skills and can
improve their knowledge. By this way they will be able to make effective communication with
customers and by this way sales volume and brand image of the organization will get enhanced
to great extent.
18

6. REFERENCES
Books and Journals
Ashraf, M., Jaafar, N. I. and Sulaiman, A., 2016. Impact of Instrumental and Social-
Psychological Beliefs on Customer Satisfaction with Online Product
Recommendations. Asian Journal of Business and Accounting. 9(2).
Bakker, R. and et.al., 2015. Measuring party positions in Europe: The Chapel Hill expert survey
trend file, 1999–2010.Party Politics. 21(1). pp.143-152.
Berger, A. A., 2015. Media and communication research methods: An introduction to qualitative
and quantitative approaches. Sage Publications.
Coiro, J. and et.al., 2014. Handbook of research on new literacies. Routledge.
Cozby, P. C. and Bates, S., 2015. Methods in behavioral research. McGraw-Hill.
Falzon, M. A., 2016. Multi-sited ethnography: Theory, praxis and locality in contemporary
research. Routledge.
Gorczynski, T. and Kooijman, D., 2015. The real estate effects of e-commerce for supermarkets
in the Netherlands. The International Review of Retail, Distribution and Consumer
Research. 25(4). pp.379-406.
Graham, C. and Peleg, A., 2017. Will a Smart City Have a High Street?. InSustainable Smart
Cities (pp. 143-157). Springer International Publishing.
Gray, C. and Malins, J., 2016. Visualizing research: A guide to the research process in art and
design. Routledge.
Kratochwill, T. R., 2013. Single subject research: Strategies for evaluating change. Academic
Press.
Leavy, P., 2015. Method meets art: Arts-based research practice. Guilford Publications.
McNabb, D. E., 2016. A Comparative History of Commerce and Industry. Houndmills,
Basingstoke, Hampshire: Palgrave Macmillan.
McNiff, J., 2013. Action research: Principles and practice. Routledge.
Myers, M. D., 2013. Qualitative research in business and management. Sage.
Rohr, C. and et.al., 2016. Travel in Britain in 2035.
Schu, M. and Morschett, D., 2017. Foreign market selection of online retailers—A path-
dependent perspective on influence factors. International Business Review.
19

Wang, W., 2014. Comparing the Energy Consumption of Logistics Chains in Traditional
Retailing and E-commerce for Popular Products in the Context of China. The ANU
Undergraduate Research Journal. 5. pp.243-267.
Williams, D. E., 2014. An Evolutionary Approach to e-Tailing: Implications for Practitioners.
In Handbook of Strategic e-Business Management (pp. 433-466). Springer Berlin
Heidelberg.
Yeung, G. and Ang, K. L., 2016. Online fashion retailing and retail geography: the blogshop
phenomenon in Singapore. Tijdschrift voor economische en sociale geografie. 107(1).
pp.81-99.
Zhang, M., Zuo, W. and Zheng, H., 2016. Research on the Coordination Mechanism and
Improvement Strategy of the Business Model from China’s Export Cross-border E-
commerce——Based on the Theory of Coevolution.
Zheng, Z. A., Zhu, W. and Wang, K., 2016. WOULD GOOD BECOME BETTER? AN
EMPIRICAL INVESTIGATION INTO THE HERDING EFFECT IN CHINA ONLINE
RETAILING MARKET.
20

7. APPENDICES
Questionnaire
1. Name
2. Age
3. gender
4. How frequently customers purchase products of Argos online?
 Once in a month
 Twice in a month
 3-4 times in a month
 More than 5 times
5. What method for the payment people prefer for online purchasing?
 Credit cards
 paypal
 Cash on delivery
 Debit card
6. Whether sales of the Argos is being increased or not after engaging in the e-commerce
business?
 Yes
 No
7. What is the major benefit can get Argos with engaging in the e-commerce business?
 Increment in number of customers
 High brand image
 Worldwide connectivity
 Profit maximization
8. What is the main issue which is faced by the entity in the e-commerce business?
 Technical attacks
 Leakage of privacy and security
21

 Server problem
 Untrained employees
 Other
9. Does e-commerce has reduced the operational cost of the Argos?
 Yes
 No
10. Does population really take interest in the online trading?
 Yes
 No
11. Suggest ways to reduce adverse effects of E-commerce.
PPT
22

23

24

25

26

27

28

29

30