Impact of Online Trading on Global Retail Markets

Running head: MANAGEMENT
What impact does online trading have on global retail markets?
Name of the student
Name of the university
Author’s note

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Acknowledgement
Thank you to all of those who have helped listened and encouraged me throughout this study.
I am indebted to my supervisor ......................... whose guidance, advice and patience
have been immeasurable. My sincere thanks to all members of the............... [Mention your
university/college name], both staff and students, whose continuous support have made this
thesis possible.
I would like to thank all of the participants in the study: students, teachers and Local
Education Authorities, for the time and help given throughout. Without their participation,
this research would not have been possible. In this context, I am also thankful to them, whose
research work helped me to execute this paper well.
Finally, I thank my family, without whom this thesis would not have been started or
completed. Your encouragement and support have never faltered; thank you.

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Abstract
The research aim is to identify the impact online trading has on the global retail markets. The
various concepts and factors related to both the concepts are researched. The benefit of online
trading with the application of information technology can provide various benefits while
trying to gain the required strategies necessary for its success. The low operating expenses,
trading speed and ensuring that the transparency is provided in information received from the
market. The focus of the company is on Marks and Spencer. Marks and Spencer also known
as M&S is a British multinational headquarter that is located in Westminster, London. The
concepts of global marketing and online trading along with the factors that affect the
marketing is discussed. The methods used for the completion of the research include mix
method, interpretivism philosophy, inductive approach and survey through questionnaire has
been adopted. About 50 participants are considered for the research. The results show that
most of the people are aware of the concepts and that major improvement is required for the
application of online trading in the business.Thus, recommendations such as improving the
technological factors such as computers and ensuring that financial stability be maintained
are provided for the development of Marks and Spencer.

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Table of Contents
INTRODUCTION......................................................................................................................5
Research problem...................................................................................................................5
Background of the company...................................................................................................5
Research aim..........................................................................................................................6
Research objective..................................................................................................................6
Research question...................................................................................................................7
LITERATURE REVIEW...........................................................................................................7
Concept of global marketing..................................................................................................7
Factors affecting global marketing.........................................................................................7
Concept of online trading.......................................................................................................9
Factors affecting online trading..............................................................................................9
Benefit of online trading in the global market......................................................................10
Drawbacks of using online trading on the global market.....................................................11
Effects of online trading on the global market.....................................................................12
Effects of online trading on market participants..................................................................13
Conceptual framework.........................................................................................................14
METHODOLOGY...................................................................................................................14
Research design....................................................................................................................14
Research philosophy.............................................................................................................15
Research approach................................................................................................................15

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Research strategies...............................................................................................................15
Choices.................................................................................................................................16
Time horizon........................................................................................................................16
Data collection method.........................................................................................................16
Research ethics.....................................................................................................................17
Limitations of the research...................................................................................................17
Time scale.............................................................................................................................18
Resources..............................................................................................................................19
RESULTS................................................................................................................................19
DISCUSSION OF RESULTS..................................................................................................28
CONCLUSION AND RECOMMENDATION.......................................................................34
Conclusion............................................................................................................................34
Linking with objectives........................................................................................................35
Recommendations................................................................................................................36
Future scope of study............................................................................................................37
Bibliography.............................................................................................................................38
Appendix..................................................................................................................................44
Questionnaire........................................................................................................................44

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INTRODUCTION
Research problem
Online trading ushers several benefits on the global retail market. Online trading
platforms have enabled the consumers to order products, which are not available in their local
markets. Anwar and Daniel(2016) opined that digital platforms enable companies to get
access to a large base of customers, which also include foreign customers. Ahmad and Khan
(2015) in this respect point out that online trading of products enable companies marketing
products to advertise their respective products in full detail. This advertising of products in
full detail create trust among the viewing customers. This detailed information about products
available before customers allow customers to perceive the value creation, which they would,
derive upon consuming the products. The paves ways for creation of demand for the products
among consumers. The online portals in order to honour this demand created for the products
among consumers, enable the latter to order for the products. Ye, Lau and Teo (2018)
supporting the previous authors point out that online portals enable companies to advertise
and sell their products simultaneously, thus reducing the overall costs. Amazeen and
Muddiman (2018) mention that online trading of products does not require huge sales teams,
thus reducing the salary expenses companies have to incur to employ the immense sales
forces. Trautman (2015) opines that these benefits which online portals usher to companies
have encourage them to embrace online marketing to greater extents.
Marketing of products on digital portals undoubtedly ushers retail companies with
several benefits. However, the issues which online marketing of products present before the
retail companies cannot be belittled either. Lorimer, Diec and Kantarci(2017)point out that
online trading subject both the retail companies and consumers before threats like data theft
and online theft of money.Degryse, De Jong and Kervel (2015) stated that accessibility to

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markets which online trading ushers to companies encourages retail companies to engage into
online trading in spite of the risks which it attract. It cannot be denied that the online trading
has transformed the landscape of the global retail market.
Background of the company:
About M&S:
Marks & Spencer Group is a British premium retail chain and bank based in London,
the United Kingdom. The company was established 1884 by Michael Marks and Thomas
Spencer. The company at present operates under the leadership of Archie Norman in the
capacity of the chairperson and Steve Rowe holding the position of chief
executive(Marksandspencer.com 2019).
Financial performance:
M&S is a listed company with its primary listing on the London Stock Exchange. The
share price of M&S is a showing a bullish trend (Londonstockexchange.com 2019). The
company earned a revenue of £10377.3 m compared to £ 10698.2 m
(Corporate.marksandspencer.com. 2019). The share price and the revenue both show a
downward trend which means that the financial performance of the company is not strong.
Products and markets:
The product umbrella of Marks & Spencer Group Plc. can be divided into two broad
categories namely, wearable and financial products. The main markets of the company North
America, Europe, Middle East, Asia and Australia. The company has no presence in Africa.
The M&S Bank offers financial products. The main competitors of M&S are premium retail
chains like Zara and H&M. The company competes with other multinational banks as far as
its banking vertical operations are concerned.

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Marks and Spenser entered Australia around 1999 and expanded rapidly in the
market. The company offers products both in its signature outlets and on its own digital
portal, which is linked to its official website. The company
Research aim
The research aim is to identify the impact online trading has on the global retail
markets. The various concepts and factors related to both the concepts are researched. Along
with this, the research also undertakes an analysis of the benefits and drawbacks that can be
associated with the concepts.
Research objective
The research objectives include:
 To explore the conceptual understanding regarding online trading and global market
 To assess the benefits and drawbacks of online trading and global market
 To examine the effects of online trading on global market
Research question
The research question that is to be considered for the research includes:
 What impact does online trading have on global market?