Contents Contents...........................................................................................................................................2 INTRODUCTION...........................................................................................................................1 MAIN BODY..................................................................................................................................1 1. Explain the e-commerce services which provided by the m-commerce.................................1 2. Role of E-commerce in the retailing........................................................................................2 3. M-commerce such as fragmented market................................................................................2 4. Retailers spend much of their IT budget on m-commerce......................................................3 5. Impact of m-commerce on competition among retailers.........................................................4 6. Difficulties in managing mobile technology...........................................................................4 7. Future for m-commerce...........................................................................................................5 CONCLUSION................................................................................................................................5 REFERENCES................................................................................................................................6
INTRODUCTION Mobile commerce is the online platform of buying & selling of goods and various services with the help of wireless connection such as internet. Mobile commerce include the various hand sets such as smartphones and tablets. Without e-commerce, M-commerces are enable to complete their task such as online shopping. It help in including the most affective industry such as: Financial, telecommunication, service & retail, information services etc. This report include the various topics such as what is e-commerce, discuss the role of m-commerce in the retail company. In addition, how retailers spend their IT budget on m-commerce and other difficulties which affect the organization as well as competitive advantage. Along with this, it includes the future of m-commerce. MAIN BODY 1. Explain the e-commerce services which provided by the m-commerce There are various e-commerce activities or functions provided through m-commerce which help the organization in order to increase their sales and demand of product which automatically increase the profit margin and it is discussed below: ï‚·Financial services: Mobile commerce includes the banking as well as other services which help the individual as well as organization to maintain their finance through mobile applications(Eastin and et. al., 2016). All the activities and services displayed on the handheld device. Transfer of funds through mobile applications help the individual makes their daily life easy and comfortable. ï‚·Telecommunication: It is the service which is used on regular basis such as pay bills, review their accounts and other services that is handle on the same device.Along with this, electronic ticket and booking affect the business. ï‚·Service& retailer: This e-commerce services provide the online booking and payment which help the individual to make their task more easy. For example: booking of restaurant and other online services. ï‚·Information services: It includes the financial information which further helps in increasing their knowledge regarding sports, news, traffic updates etc. in the single phone. 1
2. Role of E-commerce in the retailing It includes the various role & responsibility of e-commerce in the retail sector such as Tesco Plc which is Retail Company and they play various roles in order to increase the productivity or profitability some of it dissected below: Develop online presence: According to a research, more than 80% people purchase online which is beneficial for the organization. It will saves customer's time and their efforts to visit the store. Manager of Tesco have to maintain their websites in order to provide the availability of products. Attract new customer: With the help of E-commerce, business attract new or retail existing customers. They are doing online or social media marketing to promote their products which help the business to increase(Hillman and Neustaedter, 2017). Reduce operational cost: It is possible for the organisations such as Tesco Ltd to make reduction in the operational costs of the company as like the other types of promotional activities, the use of e commerce will be very easy for not only to make the promotion of the business but also to provide the customers with the products that they want. Brand awareness: E Commerce also helps the companies to make increment in the reach to the customers of different areas and sometimes outside the boundary of the country also. It helps in removing the barriers of physical existence for the companies. It will create good image of the company also at that places where the company is not known and have no existence. In this sense it is said that the e commerce helps in increasing the brand awareness of the company. 3. M-commerce such as fragmented market Fragmented Market can be defined as the market in which the markets are diverse and with the passing of time these markets breaks into many diverse markets of different customer segments. Basically, the main concern behind E Commerce is related to the diverse market and market conditions where the customer has different choices of products and services. In addition to this, they are not restricted to the information about getting the information about any single product in the market but in the current times almost most of the companies are having their own physical as well as online existence such as the official website of the company where the company receives orders from the customers from different places and also provide them with the materials that they want from the company for the fulfilment of their needs and demands. 2
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Like other companies, Tesco Ltd can also makes its online existence with the help of which it can create and make existence of new markets for the sale of their products and services. This will help the company to get and attract new customers which will help in the increment in the sales, profit and revenue of the company and also for the customers also it will beneficial as the customers will have new products to fulfil their needs and demands which the products and services of existing companies are not capable of to do so(Laudon and Traver, 2016). The main benefit of M Commerce as the fragmented market is related to the acquisition of new products and services of which the other people has not listened about. It makes the other people curious about the new products and services in case they prove to be of good quality and of affordable prices for the customers. This will make the other potential customers of the company to have benefit out of the products and services of Tesco Ltd. As this will be a new experience for both the company and customers as they both will explore a new market and new products for the satisfaction of each other’s needs and demands. 4. Retailers spend much of their IT budget on m-commerce Retailers make their business operations at small or medium scales and M Commerce is the best medium to make an increment in the sources of their incomes and revenues. While operating their business through a small shop or retail outlet it will not be possible for them to increase their customer base but with the help of M Commerce, it will be possible for the retailers to make increment in the number of customers of the retailers as they will make online transactions with the help of which the customers will be able to avail the services and products of the company or the retailers. So this is the best way which could help the retailers to increase their customer base with the help of only one retail outlet or store. The retailer with the help of M Commerce, it will be possible for the retailers to provide the customers with the products and services and also about thespecificationoftheirproductsandservices,theirfeatures,picturesandmanymore information about the product and service. In addition to this, the retailers also provide their contact numbers and e mail id where the customers can put their questions and queries in front of the retailer and also could have knowledge and information about the products and services in order to make the purchase transaction complete with the customers. 3
5. Impact of m-commerce on competition among retailers Looking upon the competition of today’s world, it is becoming very intense and complex with the passing of time. It is because of the increase in the number of substitutes of the products and services prevailing in the market that has led to substantial increase in the competition among not only in the retailers but also in between the companies as well(Lee and Rha, 2016). M Commerce has impacted in both the ways to the retailers as well as for the customers. It has impacted positively because of the improvement in the quality and quantity of the products and services. Earlier due to low competition in the market, the preferences of the customer were not considered much. The company make those products which they could sell not those which the customers want to buy. But in the today’s world the companies are making and the retailers are making sales of those products which the customers prefer to buy. But now the condition has been changed. Customers are the king of market and those products are made which are made for the satisfaction of the customers and also satisfies the needs and demands of the customers. So this distinction has made an increment in the competition in between the retailers as they want to capture as much as possible the share of the market. This will help in creating good brand image and awareness of the products and services of the company. With the help of good brand image and good quality of products and services of the company, it will be possible for the retailers to make and increase the number of customers of the company which will help in the growth and development of the organisation, due to this reason, M Commerce has impacted highly on the growth of competition in the marketplace. 6. Difficulties in managing mobile technology It is not easy for the retailers to make proper management of the mobile technology. There are many difficulties and problems which are faced by them for making proper management of their mobile applications so that they could work in the right way and will be able to fulfil the needs and demands of customers being in time(Hew, 2017). There are many problems which are faced by the retailers in managing their mobile technology such as sometimes there creates some situations of server down which impacts upon the working of application in slow connection or in any other sense. This impacts negatively and eradicates the positive impact and image of the retailer in the mindset of customers which could impact negatively on the sales and profit of the company(Lee and Wong, 2016) 4
.There are also some instances of update and other related things which avoid the customers from making use of services for a specific period of time which creates negative experience for them. In case they are not updated within the specified time period, the applications will stop working (Rose and et. al., 2017). Moreover, the problem is also related to the cost which is incurred by the company or the retailer in making proper management of the mobile technology for its smooth working and providing the customers with the best experience possible. This maintenance cost increases the operating cost of the business for the retailers and makes the retailers to make an increment in the prices of products and services of the company. 7. Future for m-commerce The future of Mobile Commerce is bright as the now the customer have almost left their visits to the official stores and shops for making their purchases. The customers do not have much time and some contribution is also of the new facilities provided by the companies which make the customer lazy to make their choices by experiencing the products. But now the trend has changed as the customer preference in relation to making online purchases will increase with the passing of time. So the availability of opportunities is not only for the customers but also for the retailers as well. In future, it can also be possible that the retailer could provide the customers with many more additional services that could help them in the growth and development of their business. It will prove to be a good source for the business expansion for most of the type of the businesses in the market(Yadav, Sharma and Tarhini, 2016). It will also lead to increase in the competition among the different businesses carried over in the market and make the choices for the customers more complex and variable. So the future of mobile commerce will provide many opportunities and threats for both the customers as well as for the retailers. CONCLUSION From the above assignment, it has been made clear that mobile commerce is a developing technology in the today’s fast changing world. In addition to this, it also provides the customer with various grounds to make improvement in their purchases of different products and services. Moreover, the conclusion has been drawn about the various problems which are faced by the retailers in making use of these services. Lastly, it is also concluded that in future there will be many opportunities and threats which could be faced by the customers at the time of making use of mobile commerce. 5
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REFERENCES Books and Journals Yadav, R., Sharma, S.K. and Tarhini, A., 2016. A multi-analytical approach to understand and predict the mobile commerce adoption.Journal of enterprise information management,29(2), pp.222-237. Eastin, M.S., Brinson, N.H., Doorey, A. and Wilcox, G., 2016. Living in a big data world: Predictingmobilecommerceactivitythroughprivacyconcerns.ComputersinHuman Behavior,58, pp.214-220. Lee, W.O. and Wong, L.S., 2016. Determinants of mobile commerce customer loyalty in Malaysia.Procedia-Social and Behavioral Sciences,224, pp.60-67. Laudon, K.C. and Traver, C.G., 2016.E-commerce: business, technology, society. Hillman,S.andNeustaedter,C.,2017.TrustandmobilecommerceinNorth America.Computers in Human Behavior,70, pp.10-21. Lee, J.M. and Rha, J.Y., 2016. Personalization–privacy paradox and consumer conflict with the use of location-based mobile commerce.Computers in Human Behavior,63, pp.453-462. Hew, J.J., 2017. Hall of fame for mobile commerce and its applications: A bibliometric evaluation of a decade and a half (2000–2015).Telematics and Informatics,34(1), pp.43-66. Rose,G.G.,Lauer,C.B.andWaltman,J.T.,QualcommInc,2017.Mobilecommerce authentication and authorization systems. U.S. Patent 9,734,495. Marinkovic, V. and Kalinic, Z., 2017. Antecedents of customer satisfaction in mobile commerce: Exploring the moderating effect of customization.Online Information Review,41(2), pp.138- 154. Amit, J.H.A.S., Siddiqui, A., Jiang, L., Dai NGUYEN, V. and Konecny, M., LUCOVA INC., 2016.Systems and methods for facilitating mobile commerce interactions between customers and merchants. U.S. Patent Application 15/022,884. 6