Impact of E-Commerce on Business Activity

Running head: IMPACT OF E-COMMERCE ON BUSINESS ACTIVITY
Impact of E-Commerce on Business Activity
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1IMPACT OF E-COMMERCE ON BUSINESS ACTIVITY
Executive Summary
The paper describes the findings of a study on how e-commerce has impacted the business
activity around the world and in UK. The study approached the investigation by making a case
out of Toys “R” Us and how e-commerce has impacted the fortunes of the company. The study
took into consideration managerial interviews and employee insights through survey analysis. It
was found that e-commerce has resulted in making the market more aggressive. Competitive
prices, door step deliveries and the diverse product range of big companies like Amazon and
Walmart have made it increasingly difficult for brick and mortar businesses to keep holding onto
their customer bases and maintain profits. Traditional businesses who lack the foresight and
understanding of the digitized business world thus have been facing crisis. E-commerec has
slowly become a necessity in retail business as internet continues to touch all aspects of life
including business.

2IMPACT OF E-COMMERCE ON BUSINESS ACTIVITY
Declaration
I hereby declare that the sources used in the study are authentic and that I have conducted the
research by abiding all the ethics as per the guidelines of research to the best of my abilities.
Date: Name

3IMPACT OF E-COMMERCE ON BUSINESS ACTIVITY
Acknowledgement
I would like express my appreciation and thanks to my professor, ___________ for giving me
the guidance to carry out this project.

4IMPACT OF E-COMMERCE ON BUSINESS ACTIVITY
Table of Contents
Executive Summary.........................................................................................................................1
Declaration.......................................................................................................................................2
Acknowledgement...........................................................................................................................3
Chapter 1: Introduction and background.........................................................................................7
1.1 Research aim..........................................................................................................................7
1.2 Background of the research...................................................................................................7
1.3 Research objectives...............................................................................................................8
1.4 Research questions.................................................................................................................8
1.5 Scope of the research.............................................................................................................9
1.6 Summary................................................................................................................................9
Chapter 2: Literature review............................................................................................................9
Innovation of digital technology and implementation in Business.............................................9
Disruption due to Digitization...................................................................................................10
Business Environment after Digitization...................................................................................10
Effect on Traditional Business...................................................................................................11
Chapter 3: Research Methodology................................................................................................12
3.1 Research Approach..............................................................................................................12
3.2 General Theories on Digital Marketing..........................................................................13
3.3 Research Methods................................................................................................................13

5IMPACT OF E-COMMERCE ON BUSINESS ACTIVITY
3.3.1 Data Collection: Quantitative Part................................................................................13
3.3.2 Data Collection: Qualitative Part..................................................................................13
3.4. Research Design.................................................................................................................14
3.5 Sample Selected...................................................................................................................14
3.6 Sample Profile.....................................................................................................................14
3.7 Method Summary................................................................................................................14
Chapter 4: Results..........................................................................................................................15
4.1. Introduction.........................................................................................................................15
4.2. Qualitative Analysis............................................................................................................15
Theme 1: Investment in E-commerce....................................................................................15
Theme 2: Customer Reach.....................................................................................................16
Theme 3: Competition...........................................................................................................17
Theme 4: Debts , Profits and Loss.........................................................................................17
Theme 5: Adaptability..........................................................................................................18
4.3. Quantitative Analysis..........................................................................................................19
4.5. Summary.............................................................................................................................27
Chapter 5: Discussion....................................................................................................................28
Chapter 6: Conclusion...................................................................................................................29
Chapter 7: Recommendation.........................................................................................................29
References......................................................................................................................................31

6IMPACT OF E-COMMERCE ON BUSINESS ACTIVITY
Appendix........................................................................................................................................33

7IMPACT OF E-COMMERCE ON BUSINESS ACTIVITY
Chapter 1: Introduction and background
Technology has reached a stage where it determines and touches all aspects of life and
business. The period of internet has ushered in a new era of high velocity transactions and high
volume of interactions in the business world. The digital world is the new frontier where
information in form of binary codes are used to conduct business via electronic equipment and
applications (Thomas 2011). This has enabled businesses to reduce operational time, cost and
hence increase in their profitability. The age of internet has sped up life and expectations, for
which customers yearn for faster and often door step solutions. E-commerce is a business
industry that is founded on this very reality. Retail shopping is one of the key business areas
touched by it (Lu, Zhao and Wang 2010). The focus of this research paper is the impact of digital
technology, particularly the e-commerce technology on the business activity, specifically the
retail industry.
1.1 Research aim
The research aims to study how e-commerce technology has impacted the traditional
business and their activities.
1.2 Background of the research
E-commerce has become quite a prominent business activity both in the United Kingdom
and in the world within the past couple of years. Retail industry is one of the fields which has
been significantly changed by the emergence of this new technology. The internet and its
integration with the business process have been able to capture a large share of the market as it
becomes a daily commodity to more and more shoppers around the world. The benefits that e-
commerce enable is manifold. Companies are able to afford to offer benefits, such as, customer