Impacts of Innovation and Technology on Sales, Profit, and Growth of Kingfisher Plc

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Impacts of innovation and technology on sales, profit and growth of Kingfisher Plc................1
REFERENCES................................................................................................................................4

INTRODUCTION
Business environment is a collection of internal and external factors such as technology, supply
and demand of products, customers, political factors and others (Čepel and et.al., 2018). It affects
performance and sales of company. This present study is based on Kingfisher Plc that is a British
multinational retailing company, founded in the year of 1982. This study is going to show
importance and benefits of technology and innovation in performance of company. Technology
is one of the effective external environmental factors that is affecting performance, sales and
growth of companies in critical manner. Further, it will discuss importance of managing
sustainability and CSR that make companies able in increasing performance, productivity and
sales.
TASK 1
Impacts of innovation and technology on sales, profit and growth of Kingfisher Plc
Innovation and technology plays a vital role in the growth and sales of companies because
technology makes companies able in performing functions in a timely and effective manner.
There is no requirement of man power as with the help of innovation and technology they can
provide services to customers easily and effectively. In regards to Kingfisher Plc it can be said
that it is an international home improvement company as it has around 1360 stores in total 9
countries. It is famous for its qualitative home improvement products such as: home appliances,
tools, home furnishing and others. There are several companies of different sectors that make use
of technology and innovation and with the help of advanced technology in its functions, it
attracts customers and increase their experience. There are some advantages and reasons that
show that how innovation and technology can help Kingfisher in growth and sales such as:
Improves productivity: Technology and innovation helps Kingfisher in providing qualitative
and attractive products to customers. When customers receive unique products then it makes
them feel valued and they are more likely to stay with the company for the long run. By making
use of technologies in marketing functions, home delivery of products, online booking of product
s and making use of tools like total quality management, six sigma and others, they can reduce
errors and can improve performance (Aristi Capetillo, 2020). Improved performance of
employees leads to productivity. So, it can be said that this improved productivity and
performance can increase sales and make them able to grow business.
1

Increase customers retention rate: By making use of technology like algorithm that can solve
queries of customers can also makes them feel valued. When customers receive appropriate
solutions in an effective and timely manner then they are more likely to buy products with the
company and stay with them. It increases customers retention rate and improves image in the
eyes of stakeholders. Improved image and increased staff retention rate leads to increased profit
margin, sales and revenue. It can also help them out in taking competitive advantages and
making an effective position in the market. Due to Covid-19 and lockdown companies are facing
problems in being in the competition and attracting customers. It has affected sales and growth of
companies including Kingfisher Plc. But by making use of technologies and innovation, it can
provide unique and innovative products to customers that can make it able in attracting
customers. Innovation and technology also makes this company able to have an effective
position and increasing sales (Tabeshian, 2018).
Improves communication: It is found that Kingfisher operates in around 9 countries so, it is
important for this company to have an effective communication mode for making employees
aware about effectiveness of tasks. By making use of technology and others modes of
communication like social media platforms, mobile phones, web camera and others, company
can communicate with employees with remote area. It can held online meetings or video
conferencing by making use of web camera. It saves their time and cost and can allow them to
communicate with employees and reducing miscommunication (Lee, Leem and Bae, 2018). Due
to lack of technology, it is not possible to communicate and interact with employees in different
countries in an effective manner and it can leads to miscommunication as well as errors on tasks.
With video conferencing and communication via mobile phones and others, employers can
provide detailed information to employees in other countries that can help them out in
completing tasks.
Broaden customers’ base: Technology allows business or companies to reach new economic
market and attracting customers. Rather than just selling customers goods in the local market,
Kingfisher and other companies can reach regional, national and international market. Retail
website is known as one of the best and effective ways of selling products in different economic
markets. Website represents low cost option and it is beneficial for consumer as they can access
24*7 when they require purchasing goods and products of company. By making use of internet
services and internet advertising in reaching to new markets and attracting global customers. So,
2