Understanding the Impact of e-Commerce Existing Deficits
Added on 2019-09-25
4 Pages863 Words151 Views
LO2: Understand the impact of e-CommerceExisting shortcomings:1.When the recession hits the country, the response of Tesco is too late. The companykeeps on selling its products at the old prices at this time too. The consumers start buyingfewer products. The time when the economy is already hit by the recession, this companycreates further problems due to incorrect pricing. The competitors take advantage of thesituation, and they try to exploit the company further. 2.The company has stores in big sizes, and it rents out its parking space to other companies.This makes the people buy less from stores and more online. Even the very small thingsthat could be bought from the stores are purchased online, so company faces problem inmanaging the bulk of orders and sometimes they have to bear the extra cost of deliveryfor delivering small products.3.It faces bad debts from credit cards and the insurance claims of households. Due to this,the company sometimes faces the problem of inadequate funds to sponsor its furtheroperations. It needs a lot of resources in cash to invest in new technologies of The Weband IT. 4.It lacks experience in few markets that it has entered or plans to enter. The marketingstrategies adopted sometimes fail. It uses adaptation strategy but in some markets,standardization works. The campaigns of the company are found to be executed badly. 5.The company squeezes suppliers in the fight for becoming the biggest retailer in themarket of UK. The impact of introducing an enhanced e-Commerce system to the company:1
The enhanced e-commerce system will have more space for the products. It will be able to quotethe prices in a better way based on the prices of other online sellers. There will be no issue of theparking space as all the customers will buy online. Then the marketing will persuade thecustomers to buy online rather than going at the stores. It is easier to analyze the trend ofshopping with customers in the online mode so the company can make the plan of placing theirmarketing strategies accordingly.The positive and negative impact of e-Commerce on society:The e-commerce company like Tesco provides valuable goods and services to the people. Sincethe people have the opportunity to compare products online, the companies have to provide goodproducts to them if they don’t want to lose their clientele to the competitors. Then it alsoprovides employment to people with a lot of technical staff is needed to maintain and run the e-commerce company. The tax payment mechanism becomes transparent as the tax cannot behidden in e-commerce companies. Also, the exact amount of tax is paid as per the sales madewhich cannot be hidden when it is displayed to all the people. Due to increased sales,employment, and technology, the national growth is increased. But the traffic of online sitescreates a lot of digital pollution. The important websites take time to get opened. When the offersare made on online websites, the traffic increases too much. There are health risks for tworeasons. One is that running an online website is purely a sitting job; the employees’ getsexhausted and long hours of sitting tend to create backache and other problems for them.Another is that grocery is not a perishable commodity. If the company does not have an adequatestorage facility, then the grocery may affect the health of consumers. Financial instability is alsocommon in this as a lot of customers pay cash on delivery which is an uncertain thing in terms ofavailability of person at the time of delivery, change in the plan to purchase, inadequate cash2
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