The Impact of Online Shopping on Profitability and Sales of Asda

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This research investigates the impact of online shopping on the profitability and sales of Asda. It examines the trends of online shopping, evaluates its impact on profitability and sales, investigates key challenges faced by Asda in operating online stores, and provides recommendations to increase sales and profitability.

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RESEARCH PROJECT

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TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION....................................................................................................4
Research background..............................................................................................................4
Aim and objectives.................................................................................................................5
Research questions.................................................................................................................5
Significance of Research:.......................................................................................................5
Rationale:................................................................................................................................6
CHAPTER 2: LITERATURE REVIEW.........................................................................................7
Theme 1: To comprehend the trend of online shopping on business of Asda.......................7
Theme 2: Impact of online shopping in context of profitability and sales of Asda stores
limited.....................................................................................................................................9
Theme 3: To investigate key challenges face by Asda while operating their business through
online stores..........................................................................................................................11
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................14
Research methods.................................................................................................................14
Research philosophy.............................................................................................................14
Research approach................................................................................................................15
Research design....................................................................................................................15
Data collection......................................................................................................................16
Data analysis.........................................................................................................................16
Ethical consideration and limitation.....................................................................................17
CHAPTER 4: FINDINGS.............................................................................................................18
Theme 1: Trends of online shopping ...................................................................................18
Theme 2: Evaluating impact of online shopping in context of profitability and sales of Asda
stores limited........................................................................................................................20
Theme 3: Investigating key challenges face by Asda while operating their business through
online stores..........................................................................................................................22
CONCLUSION AND RECOMMENDATION.............................................................................24
Conclusion............................................................................................................................24
Recommendation..................................................................................................................27
REFERENCES..............................................................................................................................29
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Topic: The impact of online shopping on profitability and sales of a business: A case study of
Asda.
CHAPTER 1: INTRODUCTION
Research background
This research will lay emphasis on generating the impact of online shopping on sales as
well as profitability of business. Online shopping is an electronic commerce form in which
customers are allowed to buy goods as well as services directly from their official websites
(Parrott, Danbury and Kanthavanich, 2015). Customers from various geographic al areas visit the
official website and purchase products from retailer and get delivered at their convenient place.
Typical stores of companies through online website enables customer to get browse their desired
range of products and services through photos or images of product they demanded along with it
relevant information is provided on those products which is related with their price, feature and
other specification. Online shopping is a recent trend which is following under market of retail.
The customers due to their tight work schedule does not able to manage time for shopping. Thus,
this trend of online shopping enables time saving and efficient opportunity for them rather than
purchasing from physical stores.
The present study will focus on one of the biggest retail brand of UK which is Asda
stores limited. The company Asda was founded by the Peter and Fred Asquith in 1949 as a
British retailer in supermarket. Asda stores limited is a subsidiary branch of Walmart (Aldasoro,
Ehlers and Eren, 2018). Asda stores is third super market chain of UK which resembles their
brand position in retail market. Asda is operating in groceries, clothing, furniture, toys,
household items and skin care products. The company is engaged with large number of
employees who are carrying their business for further growth. They mainly deal their business
through online platform and through the online websites of Asda, it results in attaining success
and growth (Medway, Roper and Gillooly, 2018). Each product with their price and specification
is attracting more number of customer. As there customers are not limited till UK but also they
are attracting customers from different parts of the world.
This research will be executed in wide context but after narrowed down the approach
from whole retail trade business to outcome of sales and profitability this study will be attain in
more efficient manner. This research report will generate outcomes of online shopping by

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measuring increase in profitability and sales of business. The report will determine current trend
of online shopping in businesses. Along with it, the research will evaluate impact of online
shopping in context of sales and profitability of business. The researcher will also investigate key
challenges which will be face by company while operating their business through online
platform. The recommendations for overcoming these challenges will also be determined for
generating more sales and profit in Asda.
Aim and objectives
Aim – “ To investigate impact of online shopping on profitability and sales of business : A study
on Asda. ”
Objectives:
To comprehend the trend of online shopping on business of Asda.
To evaluate impact of online shopping in context of profitability and sales of Asda stores
limited.
To investigate key challenges face by Asda while operating their business through online
stores.
To recommend some ways to overcome such challenges in order to increase sales and
profitability of Asda.
Research questions
What is the meaning of trend of online shopping in Asda?
How the online shopping will impact on profitability and sales of Asda stores?
What are the key challenges which is face by Asda stores while operating in business
through online stores?
What are some suggestion on recommendation to overcome challenges to increase sales
and profitability of Asda?
Significance of Research:
This is mainly conducted to determine the importance of research. As by selecting this
topic, it helps the companies to take effective decision in respect of promoting their business
through online sources. The main reason of conducting this research is to help the other authors
to reviews the thoughts and ideas which is gathered at the time of conducting this research. The
impact of online shopping carries a crucial impact among the customer and companies who are
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promoting their business online. Thus, various aspects are to be determined which helps the
society to take effective decision at the time of preferring online services. Thus, by conducting
this research, the main benefits is to be gained by the employees of the Asda who are working
hard to achieve the interest of customer towards their products.
Rationale:
This research is conducted for the purpose of generating outcome of impact of online
shopping on profitability as well as sales. The research on online shopping has been chosen by
researcher as per the study of prevailing current trend in retail market. This trend drag attention
of researcher towards selection of this topic of research. The researcher also selected this topic as
their own interest to enhance their knowledge in context of online business. The scholar also
select this topic in order to accomplish their academic research in terms of retail industry which
has been narrowed down by researcher. To accomplish this research the scholar generate
outcome of profitability and sales of businesses which are operating in online business. The main
reason of choosing this topic by the researcher is that lot of authors had already gathered the
information relevant to this topic. Thus, it is easier for the researcher to collect data from such
sources and bring changes in their research work.
Through this procedure, it also helps companies to bring changes in their working and
adapt new strategies by viewing the changes in business environment. The another main reason
of selecting the topic is that researcher find this topic interesting as nowadays customer are
preferring the online services. In such case companies are adapting new technology to attract the
interest of customer at large scale. Thus, lot of information is to be gathered from such sources
and that's the reason researcher are more excited to select this topic.
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CHAPTER 2: LITERATURE REVIEW
Theme 1: To comprehend the trend of online shopping on business of Asda
According to the views of Parrott, Danbury and Kanthavanich (2015) online shopping is
a procedure of purchasing goods as well as services from retailers through the internet. The
customers can buy a huge range of items which are available on official websites of the
company. Customers can purchase them online and make deliver them at their place of
convenience. Clothing toys, books, hardware, household appliances, etc. are certain range of
products which companies sell through online websites. Asda also sell these products from their
official websites. For consumers who are interested in purchasing products of Asda need to log
on the interest on their official website. They visit the online store and make purchase according
to their relevance.
In addition to this Millar, Burnside and Yu (2019) stated that online shopping is the
platform or can be said the electronic market through which modern way of commercial
transaction take place. Online shopping helps the organisation in reducing the cost of the store
and the presentation and at the same time it also helps the consumer in management of the time
for the purpose of the shopping. As it takes the less time and it is convenient way of shopping for
the customer. This also helps companies to reach to large number of customer regarding their
products and services and also promote their new products easily. As by choosing the online
methods it reduces the cost of the company by promoting their business through personally
marketing or choosing the campaign to attract customers.
Also, Gössling, Hall and Andersson (2018) shared their views on Online shopping that it
also helps the organization in offering the variety of the product to the customer easily and at the
same time it also offers the variety of the choice for the customer to choose from available
products. The customers are showing their interest in online stores of retail market due to their
day to day work schedule. This is also beneficial for companies in attaining and attracting more
customers which assist them in accomplishing their target sales. By bringing business through
online sources, there are more chances of interacting with customers personally and examining
their reviews regarding such products in better manner.
In the view point of Jung, Ineson and Green (2013) the online shopping is adopted by
many people due to this align their convenience within their engaged schedule. The person can

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visit to any online store beyond any time. They enable growth of trend of online purchase all
over the world.
Beswick, Fisher and Hurt (2019) articulates that due to benefit of convenience customers
prefer online shopping but on the other hand, there is a fear of exploitation of information from
credit card. The customer’s during purchase make online payment in which it is necessary to
undertake relevant credit card information on the website. There are many cases of cyber theft
observed from increasing trend of online shopping. This not only affects the integrity of the
company but also distract the customer interests towards such services. As by preferring lot of
online services there are chances of infringement of their client’s information. Customer insert
lot of their details at the time of ordering the products through online. In such cases many
customers reflect the online services as their personally information are to be shared in company
profile and there are chances of fraud in ordering their online products.
In the views of Medway, Roper and Gillooly (2018) another reason for which customer
avoid online shopping because of the products which is depicted in the picture is not delivered
same. The quality compromises is generally observed by customers when they make any
purchase from online. In addition to this (Medway, Roper and Gillooly, 2018) shared their views
about online shopping is that the delivery is generally delay in shipment. The buyer need to wait
for at least 24 hours to receive the product at their door step. The delivery of the products can be
cancel at any time due to changes in environment. This distract the mind of the customers to
avail such products and prefer the company products for future perspective.
In accordance with Parrott, Danbury and Kanthavanich (2015) online shopping has
certain disadvantages but it attracts many customers towards them. The companies are attaining
profitability and increases their sales up to 20 % by operating their business online. The company
by operating through online website able to attract new customers from different geographies.
Also, the customer satisfaction ratio of Asda increases by past year due to their efforts and
establishment of customer base through online platform. The online trend of shopping enables a
customer base which have an attribute of loyal customers.
Aldasoro, Ehlers and Eren (2018) expresses their positive views about online shopping
that it is becoming popular among people residing in UK, US and Europe, etc. The people are
getting shifted from shopping to physical stores from online stores. Companies which are
operating business from online websites are attaining success. The companies which are dealing
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in retail such as Asda stores limited, Tesco group plc, Sainsbury group plc are dealing with their
customers outside different geographical boundaries which attracts many customers to make
purchases with their website through online portal.
In addition to above statement Goet, Fleming and Zubek (2019) expressed their views
that companies are offering many offers of discounts for their customers which execute
increment in their sales. The ratio of sales and revenue are showing an upward trend from past 4
- 5 years. This result in bringing positive impact by grabbing the online procedure in respect of
fulfilling the customer needs and demands. But in return it brings lot of competitors in market
regarding the same discount scheme which the company is offering. Thus, different strategies to
be used to bring the promotional scheme among the customers. So in that case, they can avail the
services of the company in better manner.
Theme 2: Impact of online shopping in context of profitability and sales of Asda stores limited.
In the view point of Lin, Wei and Lekhawipat (2018) the online shopping offers a lot of
convenience to both customer as well as company. It impacts company face by opting for online
shopping has two wide aspects. They are both positive and negative aspect. The positive aspect
varies from increase in sales of a company which directly impact on its profitability. The
companies mainly which are dealing in stores of retail are attain huge success because they have
increased their sales up to 25 % from sales from physical stores which lead them towards
profitability. Also, Dolega, Pavlis and Singleton (2016) argued that there is threat of window
shopping arose from online shopping. There is an alarming situation arises by the introduction of
online shopping that people prefer window shopping through physical stores to identify the
quality of product and purchase the same from online stores. This is becoming a big threat in
present times.
According to the views of Cheah, Phau and Liang (2015) Many of the popular retail
stores of UK observed that their sales is almost rises by 25% when they operate their online
businesses through official website. As by online purchasing, companies are creating a strong
and loyal base of customers from all over the world. In addition to this Gössling, Hall and
Andersson (2018) stated that earlier when companies offer their products and services only
through physical stores they only able to attract customers from countries in which they have
opened their stores. The retail online shopping enables these companies to capture a huge market
and a loyal customer base by offering homogeneous quality through online retail shopping. This
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not only saves time of buyers but the stores are also utilizes their time in multiplying their sales.
Parrott, Danbury and Kanthavanich (2015) states that many retails are attaining customer
satisfaction which help them in attaining competitive advantage against other rivalries which are
operating both in physical as well as online stores. The customers are satisfied by online
shopping executed by such retail stores of UK like Asda, Tesco, Burberry, etc. because they trust
their quality and mitigating superior quality of products at their door step enhances their level of
satisfaction.
Jung, Ineson and Green (2015) articulates that along with many positive impact, there are
few negative impacts are also there for online shopping which affects profitability as well as
sales of the company dealing in market through online platform. The company in order to attain
success and growth through enabling online platform for the sale of their products must deal with
certain expenses. The first and foremost additional expense is marketing and promotional
expenses. The retail stores while operating through platform of online need to bear expenses for
executing promotional activities. Companies undertake social media paid ads, Advertisement
through television, newspaper, magazines, etc. Also, they pay for endorsing certain celebrities
too for exploring their promotional activities to influence wide base of customers.
In addition to the above statement Melero, Sese and Verhoef (2016) shared their views on
this that the company in order to increase their sales and profitability enables huge expenditure
which eventually increases their cost of products as a whole. Beswick, Fisher and Hurt (2019)
argued on this statement that customers are ready to bear high cost because by purchasing
products through online shopping customers are able to save their time. The trend of online
shopping have emerged in developed nations because of their packed schedules they did not able
to take out extra time for going out of shopping. Thus, online shopping increases expenditure of
company which executes rise in particular product price but it is acceptable to customers because
it saves their time of shopping which they can utilize in something more productive place.
In accordance with Parise, Guinan and Kafka (2016) their views that online shopping is
limited to users which prefer access to internet services. Due to technological advancement, the
usage of internet facility is accessible to numerous countries. For online shopping, it is necessary
that buyer must have secured with good internet connection. This is a limitation of online
shopping because company and their buyers are fully depended on internet connection. The
dependability on internet enables the company to get access to services of their delivery of

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products only on order placed under viable internet network. In the views of Baethge, Klier and
Klier (2016) Online shopping is not limited to internet sensitivity but also due to rise of online
shopping the personal relationship with customers are not focussed. The companies are failing in
building good relationship with their customers which could lead to affect customer’s loyalty in
long run. Also, the emergence of online shopping bring convenience to customers as well as
businesses but the customer satisfaction is necessary for a long term growth of a business entity
and their smooth functioning.
According to the above statement Parrott, Danbury and Kanthavanich (2015) states that
the online shopping is providing convenience and increasing sales of businesses which is not
possible by only operating through physical stores but it provides a downfall in loyal customers
in long run. The customers are not attached with the business entity also they are not getting
attached with products of the company by the wider availability of products through online
presence of various companies. The companies are focusing on increasing sales rather than
making good relationship with customers which can be found as biggest reason downfall of
businesses in coming years. (Millar, Burnside and Yu, 2019) argued that company is executing
their efforts in context of building relationship with their customers by availing them benefit of
after sales services. The business entities by providing after sales services to their consumers
able to attract trust of customers which build a goodwill among mind of customers which make
purchases with them.
Theme 3: To investigate key challenges face by Asda while operating their business through
online stores.
Koçoğlu, Akgun and Keskin (2017) sought to establish the fact that, online business is a
procedure that is conducted by the organization to sell their product or services through internet.
E-business includes different activity like buying and selling of product. The transition of
information sometimes considered as online business. Purpose of online or E-business is to
increase the number of target audience. Now day’s lots of people are connected to internet and
there is huge scope for a business organization to sell their product through internet. There are
many benefits of online business and it can provide marketing advantage to organization. Along
with many benefit organization have to face various challenges to conduct business on online
platform. According to Chen, Cheung and Tan (2018) the online business is not that simple as it
looks. In the process of online business different challenges faces by organization this challenges
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are usually related to selection of product and services that can be used to conduct E-business.
For example of retail store there are many products that can be easily sold through physical store
but in online business company cannot sell all the product which are available in the inventory of
organization. It is important to make right selection of product that are good for online business
of company. So, it is a big challenge to make list of product of company that can be used to
conduct online business. These challenges are important to consider during the business and
strategy planning to minimise the chances of loss and failure in the implementation procedure.
As per view of Koçoğlu, Akgun and Keskin (2017) apart from the selection of product or
services for online business it is also a challenge to select specific people as target of
organization. The selection of target market is based on the product that is used by organization
for online business. As per the specification and use of product or service organization can target
people to sell their product or services. To attract particular group of people is difficult for
organization cause to complete online sales objective company have to plan different strategies
and planning. The strategy of marketing is depended on various attributes of target audience. As
per their age group, gender, profession strategy of organization varies. This is very difficult
challenge for organization to make efficient online marketing strategy to attract more people on
online selling platform of company. For example company is selling women’s clothing in online
business so they need to plan online marketing strategy to attract women of different age group
to sell their product in high number. Gillett-Swan (2017) stated that, online business also face
various challenges which adversely affects operational growth and efficiency of the business. It
also leads to various technological changes.
According to Alotaibi (2016) choosing right technology is also a big issue for organization
that is trying to sell its products or services to online market. Without using technology it is not
possible for organization to sell product through online platform. The technology used by
organization to perform business in physical store is not compatible for online business. To start
business on internet it is essential for organization to make a deal with third party that could be a
technology provider, software provider or an online platform provider company. By associating
business with technical support providing company will help the company to conduct E-business
with high efficiency, this is not easy for organization to deal with third party software Provider
Company. This is big challenge for organization to select right technical partner for online trade.
After selecting technical partner this will be also a challenge for company to make effective deal
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to divide share in profit in initial level. For example the companies like Amazon, eBay are the
third part organizations. To conduct online Business Company have to make deal with larger
online shopping sites.
Gillett-Swan (2017) stated that starting online business is easy and simple process but
attracting customer is a big issue and challenge for organization that is planning to start business
through online selling platform. The first challenge for the organization to attract large number
of customer towards the product that are available for online shopping and other challenge for
organization is to make lone time relation with customer to meet the long term goals of
company. Because of online shopping there is no physical interaction between seller and
consumer so this is really difficult for organization to maintain warm relation with its customers
and this fragile relation affect the customer retention. So this big trouble for organization to
perform online business with high customer retention. Poor customer retention can lead to
financial and strategic loss to company and this is not good for global image of company.
According to Chen, Cheung and Tan (2018) the online business is not that simple as it
leads to data security and safety issues. It is also challenging as it results in technological issues
as it is changing at a faster place. It is very costly and challenging for the organization to adapt to
new changing technology which affects the operational efficiency, performance and productivity.
By selecting the procedure through online, companies had to firtsly work on their data protection
security as lot of customer are attached to the company profile and preferring their online
services. In such case they are sharing lot of details in company profile and sharing their
information which are expected to be secured in company systems. Thus, to maintain the
interests of customer for longer time period, data protection is must which is to be secured for
customer with high secuity.
Aldasoro, Ehlers and Eren (2018) sought to establish the fact that, data security and
protection is also one of the challenging task for the online business which in turn lads to hack of
personal information of customers. Integration of effective software which helps in protecting
data must be used. It also has to offer after sale services in online business which leads to longer
process of delivery and acceptance of certain goods and services. Another major challenge
associated with the online business is that there are large numbers of rivalry competitors present
in the company.

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CHAPTER 3: RESEARCH METHODOLOGY
Research methodology is an effective approach as it helps in making a systematic plan in
order to attain wide set knowledge on the particular subject matter. It helps in solving all the
research problem and find a justified a solution which helps in filling the gaps on the current
knowledge (Kumar, 2019). This helps in carrying out the research in systematic manner. It helps
in broadening the knowledge of the researcher on a particular research area. Research
methodology helps in collecting useful information in order to gain insight which leads to higher
growth and efficiency in attaining the set goals and objectives of the research.
Research methods
It is an effective approach as it helps in determining the various effective strategies and
methods which helps in collecting the data in order to collect new information. It helps in better
understanding of various complex concepts and cultural phenomenon which results in
understanding the subject matter in- depth. It can be classified into quantitative research methods
and qualitative research method. Quantitative research method takes into consideration only
mathematical, numerical and statistical data into consideration which helps in reviewing large
number of people (Mackey and Gass, 2015). This can be done through experiments, surveys,
questionnaires, polls, etc. Qualitative research method helps in critically examining the data by
using human behaviour, knowledge and logical reasoning into consideration. This can be done
through focus group, observations, interviews, focus groups, grounded case study, etc.
The researcher of this study has opted for qualitative research method where the researcher
will investigate impact of online shopping on profitability and sales of the company.
Research philosophy
This methodology helps in effectively gathering and analysing the perfect way to determine
the information on the particular subject matter. It deals with nature, source and development of
knowledge. It is a principle in accordance to which data should be collected in order to attain
better results and outcomes. It helps in effectively formulating the assumptions in order to collect
the correct, viable and reliable data. These assumptions and beliefs are the base for carrying out
any research project. It can be classified into pragmatism, interpretivism and positivism
(Silverman, 2016). Pragmatism method states that it accepts concepts which helps in supporting
relevant action. This method states that, there is no specific method of carrying out a particular
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research, it is all based on the particular situation. Positivism research method helps in viewing
only the factual insight and knowledge which is effectively gained through beliefs, observations
and assumptions. It helps in quantifiable statistical analysis of the data. Interpretivism philosophy
method help in interpreting various elements of the study by integrating human interest, ideas,
beliefs and logic into the particular subject matter. Interpretivism research philosophy is useful in
carrying out qualitative analysis method.
The researcher of this study has opted for interpretivism research philosophy in order to
comprehend the trend of online shopping on business of Asda.
Research approach
It is an effective plan that helps in collecting valid and reliable information from valid
sources which results in higher operational growth. It can be classified into deductive, inductive
and deductive approach. Deductive approach effectively tests the viability of the theories and
assumptions. It helps in giving specific data which results in higher operational standards
(Taylor, Bogdan and DeVault, 2015). This theory is very useful in setting conclusion and
evaluating hypothesis from the particular existing theory. Inductive approach helps in generating
the untested conclusion by carrying out research and finding conclusion from specific to general.
Deductive approach is based on generating testable conclusion. This approach leads to
incomplete observations and surprising facts, etc.
The researcher of this study has opted for inductive approach in order to evaluate the impact
of online shopping in context of profitability and sales of Asda stores limited.
Research design
It is an arrangement of collecting specific set of data in order to gain insight on the
particular subject matter. It helps in combining various components in logical manner in order to
solve various research problems. It can be classified into descriptive and exploratory research
design. Descriptive design helps in depicting various participants in an accurate manner (Flick,
2015). This is very useful in gaining in- depth knowledge on the particular subject matter which
helps in filling gaps on the current study. For example observations, case study, etc. Exploratory
research method explores the particular topic of the subject matter. It helps in critically
explaining and examining various aspects of the study. It takes into consideration practical
aspects into the study.
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The researcher of this study has opted for descriptive research design in order to investigate
key challenges face by Asda while operating their business through online stores.
Data collection
Data collection is a very effective procedure in order to collect, evaluate and analyse the
data collected for the research and attain in- depth knowledge by collecting viable and reliable
information on the particular subject matter. It helps in collecting information from various
relevant sources. It can be classified into primary and secondary source of data collection.
Primary source of data collection is information which has been collected from the first time
from the researcher on the particular area of study. It mainly includes projective techniques,
interviews, surveys, questionnaires, polls, etc. Secondary source of data collection is information
which has already been collected by others and the researcher uses such data for further
investigation (Bresler and Stake, 2017). It mainly includes government reports, census, books,
articles, journals, blogs, newspaper, database, manuals, etc.
The researcher of this study has opted for secondary source of data collection in order to
investigate impact of online shopping on profitability and sales of business.
Data analysis
This is a very crucial process as it helps in effectively evaluating the data which in turn helps
in discovering useful information and takes necessary decision to attain specific aim and
objective of the research. This method helps in collecting all the necessary information and
finding specific conclusion in order to attain greater heights. The researcher can use both
quantitative and qualitative research method. Quantitative research method takes into
consideration only mathematical, numerical and statistical data into consideration which helps in
reviewing large number of people. This can be done through experiments, surveys,
questionnaires, polls, etc. Qualitative research method helps in critically examining the data by
using human behaviour, knowledge and logical reasoning into consideration (Taylor, Bogdan
and DeVault, 2015). This can be done through focus group, observations, interviews, focus
groups, grounded case study, etc.
The researcher of this study has opted for qualitative research method where the thematic
analysis will be used in order to cater useful information and make necessary conclusion in order
to attain aims and objectives of the particular area of the study.

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Ethical consideration and limitation
Ethics are the norms and strategies which help in conducting research in an ethical and
systematic manner. An ethical consideration helps in protecting the anonymity and the
confidentiality on the particular area of study. This method states that the information used by
the researcher should be from valid sources, authors to gain valid, reliable and correct data
(Mackey and Gass, 2015). The researcher of this study will protect all the resources from valid
sources. It helps in minimizing the risk of harm to the individuals and taking necessary measures
to protect the data in order to attain aims and objectives. Research limitation helps in determining
the factors which affect the study. This is also very useful in determining the various limitations
in order to carry out the research project effectively and efficiently. The major limitation faced
by the researcher was time constraint which made it difficult for the researcher to carry out the
research on a timely manner.
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CHAPTER 4: FINDINGS
Theme 1: Trends of online shopping
Asda is 80% driven by the insight and 20% by the market trends. Online shopping trend
is considered to be one of the most effective approach which in turn is considered to be very
useful in selling goods to the large number of customers across the globe. This in turn tends to
result in higher customer base and profitability for the business (Aldasoro Ehlers and Eren,
2018). E-commerce automation is considered to be very useful because it helps in catering
attention of the customers from across the globe. The researcher of the study demonstrates that,
Asda tends to focus on complying with the online shopping which in turn is considered to be
very beneficial in increasing the sales of the company. Asda has suffered the declining trend in
the sales within the organization. Online shopping tends to add ease and convenience to the
customers by buying goods online from anywhere by accepting various online modes of
payment. This in turn helps in delivering goods at the doorstep of the customers. Online
shopping is considered to be beneficial because it aids to shopping on a real time basis. The
major trend of the online shopping is mainly linked with customer engagement and
personalization of services (Baethge, Klier and Klier, 2016).
Asda engages in various other wide range of services and products in order to maintain
competitive position within market. Artificial intelligence, Chatbots, automation technology, etc.
in turn results in higher sustainable growth and efficiency. As per the literature review, online
shopping is considered to be one of the cost efficient approach where the company tends to focus
on effectively promoting their business through online social platforms. It leads to reduction in
cost related with marketing campaigns, personal marketing, etc. The major disadvantage
associated with online shopping is associated with the fear of exploitation of information from
credit card. It might also result in delay in shipment because of large number of orders in queue.
Online shopping tends also results in cancel of the delivery due to any of the external
environmental factors which in turn leads to dissatisfied employees. Furthermore, this study
evaluates that, online shopping results in increase in sales up to 20 % by operating their business
online (Beswick, Fisher and Hurt, 2019).
The key strategy associated with the Asda is based on discovering strategic priorities,
trading strategies, effective marketing platform in order to attain greater heights. Online
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shopping helps in attracting new customers from various geographical boundaries. The people
tends to get shift towards online shopping than any sort of physical stores. This is because it aids
to ease and convenience to the customers. It has been established that, online shopping results in
higher competition in the market because of the same discount schemes offered by the company.
Use of appropriate promotional and effective marketing technique in turn largely leads to long
term sustainable growth of the business. Online shopping is considered to be useful because it
helps in offering better price through various discount schemes. It also helps in comparing prices
from one website to another. This in turn helps in making wise buying decision which in turn
leads to higher sustainable growth and efficiency. It tends to offer wide variety of products and
service when compared with the products and services available at any physical store of the Asda
(Chen, Cheung and Tan, 2018). The UK tends to have one of the highest e-commerce spend per
capita where most of the shopping is done through mobile phones and laptops. Mobile shopping
is expected to be increase by up to 56%. It has been found out that, approximately 80% of the
young consumers make impulse buying through online and around 65% of the shoppers like to
buy online and pick up from stores in order to compare online and in turn focus on improving
their shopping experience. It has been examined that, 87% of the online shoppers are largely
influenced by the social media.
Social media tends to play a very critical role in carrying out organic brand integration
with the help of Instagram, search engine optimization, YouTube, Facebook, etc. It has been
investigated that, 84% of the consumers have bought shoes and clothes online. The major trend
associated with Asda is that, people are buying more products through online website. Online
shopping is considered to be one of the effective approach which in turn helps in controlling the
operations of the business which in turn leads to higher operational efficiency and sustainability.
The major disadvantage associated with the online shopping is that, it tends to charge shipping
cost at the time of delivering the products and also sometime return procedures tends to become
much more difficult in online shopping.
Unclear website policies, unclear delivery times, quality of the product, payment
confirmation missing, etc. in turn are considered to be one of the major issue which in turn
largely affects the business operations. Online shopping also tend to result in compulsive buying
of the products and services due to large variety of options available for the business (Lin, Wei
and Lekhawipat, 2018). Augmented reality for the visualization of the product in turn results in

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higher operational growth which in turn leads to long term sustainable growth and efficiency.
QR code payments, integration of artificial intelligence, voice commerce, etc. in turn helps in
boosting up the sales of the products and services offered by the Asda.
Theme 2: Evaluating impact of online shopping in context of profitability and sales of Asda
stores limited.
Asda tends to focus on innovation, higher customer service and low price which in turn
largely affects the business operations. Online shopping is considered to be one of the
competitive and improved way to effectively carry out the business operations. Asda tends to
invest more in e-commerce and mobile application in order to improve the sales online. This in
turn largely results in higher business operations and productivity of the business (Medway,
Roper and Gillooly, 2018). Online shopping tends to offer high degree of convenience both to
the company and customers. One of the most crucial advantage of the company is that, it helps in
increasing the sales of the company which in turn directly results in higher profitability for the
business. It has been investigated that, there has been an increase in sales of to 25% through
online shopping. This study also established the fact that, customers are highly satisfied of online
shopping by retail stores of UK like Asda, Burberry, Tesco, etc. This is because customers trust
the quality of the products and in turn focuses on delivering goods at their door step which in
turn enhances their level of satisfaction. The company in turn tends to focus on effectively
determining that, online shopping in turn helps in enabling various social media platforms in
order to bear expenses associated with the execution of the promotional activities. Online
shopping is only limited to the people who tends to have access to the various internet services.
The company tends to focus on effectively providing after sale services in order to gain attention
of the customers at a greater scale. E-commerce platform is considered to be one of the most
essential network for the supermarkets of the UK which in turn is considered to be very useful in
improving online sales of the company.
Customers tend to expect seamless experience where the management of the Asda
company tends to focus on providing effective customized and personalized services which in
turn leads to long term sustainable growth and efficiency (Parrott, Danbury and Kanthavanich,
2015). This study has also investigated that, Asda tends to focus on improved innovation which
in turn leads to long term sustainable growth and efficiency of the business. Online shopping in
turn largely results in incremental exploitation towards confidential and privacy threats. This in
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turn adversely hampers the productivity and efficiency of the business. Asda customers tend to
focus on continuously choosing to buy groceries through online and then tends to pick the
products from stores. This study establishes the fact that, the financial results of the Asda states
that, click ad collect now tends to account for rise in sale by 10% through online platforms. This
in turn largely results in higher online market sales which in turn eventually leads to higher
profitability of the business. The Asda tends to have higher market share of online shopping
which in turn has increased to 18.40% and there seems to be a double digit growth in the e-
commerce sales in United Kingdom. Click and collect tends to see a catalyst growth in
effectively driving high range of customers which in turn eventually leads to higher operational
sales and productivity (Parise, Guinan and Kafka, 2016). Asda tends to invest around 700 million
in various multichannel of the e- commerce solution which in turn leads to long term sustainable
growth and efficiency.
As supported by the literature review, it has been investigated that, online shopping tends to
provide convenience in order to increase sales for the business which in turn is not possible for
physical stores. This in turn largely results in downfall of loyal customers. Online shopping also
attract attention of the customers, because Asda tend to provide effective after sale services like
return and exchange policies. This in turn is considered to be one of the effective measure which
in turn is very useful in building goodwill among mind of customers who in turn make purchases
with the company. This study also sought to analyse the fact that, online shopping is considered
to be one of the effective approach which in turn helps in saving time of both the customers and
the retailers. This helps in reducing the phone calls (Melero, Sese and Verhoef, 2016). Online
shopping in turn is considered to be very useful in aiding convenience and saving cost associated
with the establishment of the retail stores. Online shopping is considered to be huge at gaining
popularity because it tends to result in endless innovation. Online shopping helps in comparing
various variety of products and its prices to that of the competitors. This in turn is considered to
be very useful in making several business decision. There are innumerable number of options
which in turn are available for effectively providing large variety of products. It also tends to
provide large degree of options to the customers as compares to the physical store. This in turn
eventually results in increase in sales of the products and services offered by Asda.
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Theme 3: Investigating key challenges face by Asda while operating their business through
online stores.
This study determines the fact that, online shopping tends to result in high degree of
business challenges where the logistics of the company has been messed up (Dean, 2019).
Customers also tends to face challenge associated with quality of the product in online shopping.
The key purpose associated with the online business is mainly linked with the increase in the
number of the target audience. As supported by the literature review, it has been evaluated that,
online business is not considered to be the simplest form of business because it tends to result in
various challenges. One of the major challenge associated with the online business plan is that,
there are large number of hidden cost associated with the online business. This is mainly
associated with the transportation cost, internet charges, shipping charges, insurance cost, and
cost associated with theft and damages, maintenance cost, etc. in turn results in higher
operational cost to the business. There are various unclear policies associated with the website
which in turn largely affects the business operations. Increase in the website traffic in turn helps
in carrying several business operations (Nayyar and et.al., 2019). It is considered to be a major
challenge for the business to control the traffic on the website.
As supported by the literature review, it has been evaluated that, it is considered to be one
of the biggest challenge for the Asda to make proper list of the products and services that can be
offered to the customers while carrying out online business. Selecting variety of products for the
target audience is also considered to be one of the biggest challenge. Needs, wants and
preference of the customers in turn has been increasing at a very fast pace which in turn
eventually leads to lower operational growth and sustainability. Integration of appropriate
information communication technology and appropriate software for online shopping is
considered to be one of the most challenging task. Continuous technical support is necessary to
carry out business online. Selecting the right technical support is considered to be one of the
most challenging task for the company. One of the major challenge associated with the online
shopping is to attract large number of customer towards the product that are available with the
help of online shopping. There is no face to face interaction between the customers because this
in turn lar gely affects the several business operations (Pramanik and et.al., 2020). Online
shopping alos tends to result in several safet and data securrity issues. This in turn might result in
hacking of the confidential and personal information of the customers.

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Data security is consoderd to be one of the biggest challenge associated with the online
shopping which in turn leads to lower operational growth and performance of the Asda. There
are large number of rivalry competitors who in turn deliver same range of products at a
competitive price. This in turn largely influences the purchasing decsion of the customers which
in turn affects the business operations of the Asda. Lack of information and several malpractices
which in turn has been carried out by the suppliers are considered to be as the key challenge
associated with the online business (Hitpass and Astudillo, 2019). Another major key challenge
associated with the online business is problem associated with duplication of the products and
services in turn largely results in lower operational growth of the company. Delivering wrong
goods to the wrong customers and delay in delivering products is considered to be one of the
major challenge for the online buisness. Another major challenge assosciated with the online
business is that, management of the company tends to face difficulty in contyrolling stocks and
inventory of the product. Furthermore, this study has recommended that, the management of the
company should focus on effectively overcoming various challenges in order to increase sales
and profit margins of the company (Nayyar and et.al., 2019). Asda must focus on taking full
adavtage of the social media marketing which in turn is consdered to be very useful in enhancing
the interest of the customers. It has been examined that, Asda must focus on critically evaluating
the needs and demand of the customers. It must also tend to focus on offering variety of
promotional discount in order to cater attraction of more customers from across the globe. This
in turn eventually led to higher customer share, higher online market which in turn leads to
higher sales and profitability.
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CONCLUSION AND RECOMMENDATION
Conclusion
This research report was about impact of online shopping on sales as well as on
profitability. The online shopping stated in above study is a form in businesses make sales
directly from their official site. Customers from different geographical areas make purchase from
different businesses residing in different country of the world. As per this study it has been
depicted as a recent trend in the world of retail and this is preferable by customers as a time
saving and efficient shopping stores. The study was focused on retail brand of UK that is Asda
stores limited. The researcher executed this research in context of increase in profitability and
sales of businesses which operate through online websites.
This research was developed to gain understanding about trend of online shopping
in which it was observed that almost every business entity execute their sales through online
websites. The trend of online shopping was analysed that it assist convenience and time saving
element for businesses. But this study also depicted about fear of cyber theft which affects sales
of companies. But by analysing sales and revenue ratio of 4 to 5 years of businesses which are
operating online such as Asda showing an upward trend which depicts their growth in world of
online business. It has been analysed that for Asda stores, online shopping assist a modern way
in which company undertakes commercial transaction with an ease. Another objectives which
has accomplished in this research was impact of online shopping in sales as well as context of
profitability for Asda stores limited. It was analysed from the above study that online shopping
has both negative and positive impact. The positive impact identified in this study was that retail
stores are attained increase in sales up to 25 % by online establishment of retail businesses. Also,
to attract new customer base from different geographies online expansion of business entity was
observed as one of the best method while other negative impact of business that by online
shopping people visit physical stores just for window shopping which influencing overall sales
and by establishing online presence company such as Asda stores limited need to bear high
expenditure for advertisement to attract customer base from various geographies. Along with
this, companies are facing lack of building strong personal relationship with their customers
which is analysed as a long term threat. The Asda stores are operating in online business which
enhances their sales but due to their in ability to build strong relationship with customers will
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affect their long term profitability. It has been concluded that there are various key challenges
faced by Asda while operating their business through online stores. It has been concluded that,
selection of target market is a major challenge. Choosing right technology is also a big issue for
organization that is trying to sell its products or services to online market. Online business is
easy and simple process but attracting customer is a big issue and challenge for organization that
is planning to start business through online selling platform. No physical interaction between
seller and consumer so this is really difficult for organization to maintain warm relation with its
customers and this fragile relation affect the customer retention.
It has been concluded that, research methodology is an approach which helps in solving
all the research problem and find a justified a solution which helps in filling the gaps on the
current knowledge. It can be classified into research methods, research philosophy, research
approach, research design, data collection, sampling, ethical consideration and limitation, etc.
The researcher of this study has opted for qualitative research method which helps in critically
examining the data by using human behaviour, knowledge and logical reasoning into
consideration on a thematic basis in order to cater useful information and make necessary
conclusion in order to attain aims and objectives of the particular area of the study.
This study focus on depicting trend of online shopping. In which most of the senior
managers supported to trend of online shopping is convenient for customers. They supported this
statement as per the observation of study of reaction of customers which aligning interest of
customers with ease in shopping through online websites. Along with this, some managers have
identified online shopping as a time saving element for customers which are operating their
purchases from online websites. Also, managers were asked about their views on operating
businesses through online platform. This analysis depicted that most of the managers supported
their views that company is attaining sales target by enabling online transactions. The negative
and positive impact of online shopping which impacts directly on profitability of Asda was also
analysed under this research report by senior managers. The managers stated that by online
shopping customers prefer window shopping from physical stores and positive impact was
supported in context of creating customer base from different geographies along with attaining
competitive advantage from other rivalry business entities. It was analysed in this study that
business of Asda were affecting from negative aspects but there are some positive aspects also
analysed to generate their sales and profitability.

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The manager’s analyses competitive advantage by business expansion on online
platform. This research depicts views of managers that most of the managers have shared their
neutral views on this statement because expanding business of Asda stores online need to be
updated requires different technological aspects to stay business within competitive environment.
Some shared positive views that company is attaining competitive advantage through their
business expansion while other shared negative views that accordance with their perception they
are not identifying that Asda stores are attaining competitive advantage as they have entered into
global competitive environment. Also, managers were asked to rate success of company Asda in
relation to business expansion. The managers were also asked about their observation in context
of challenges face by company in expanding sales through online websites. For identifying key
challenges, managers of Asda which were selected as respondents were asked for their views. In
this most of the managers were supported as a major challenge that company is facing target
market selection as the biggest challenge while other few managers supported that company is
facing logistical challenge. Some of them are also facing technological challenge is the biggest
challenge. According to analysing all other aspects, the study gave a comprehension in respect of
selection of target market.
The research report also aligned some key aspects which need to be followed by
company. For this, they asked respondents for some important according to their observed
challenges. Most of the managers suggested that company Asda should focus and invest more in
sector of research and development sector while other suggested that company must insure their
products during departure till reach it to final customers. Some suggest that for overcoming
logistical challenge company should track their delivery on timely basis to safeguard from any
hazard. This study establishes strong presence in context of executing sales target. A long run
challenge which is becoming threat to company that by executing online sales companies are
unable to build personal relationship with purchasers were also asked by managers. According to
the perception of most managers that they are highly agreed with this statement other five shared
their neutral views and two were disagreed about this statement. Thus, from the above analysis,
research outcomes stated that company is attaining success as well as profitability from
executing online sales but due to certain negative aspects they are not attaining their goals
effectively. It has been analysed that Asda stores by operating their business online need to
establish and create customer base for attaining efficient and sustainable sales target.
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Recommendation
From the above study it is to be recommended that Asda can use various strategies and
methods to overcome from the challenges which they are facing in relation to increasing sales
and profits in company. The major factors is relating to reducing their marketing cost which they
are spending in context of promoting their products and services at international market. As
customer spend more of their time surfing through social media and prefer such products which
they can easily available online and also the quality products are to be undertaken at best prices.
Thus, Asda can make full utilization of social media by personally interacting with large number
of customers examining their needs and demand and fulfil accordingly. Social media marketing
helps company to interact with customer also deal with them, if they are searching their products
as by promoting their products through add or by attracting through creative method to attract
their interest towards such products.
As Asda already carry a strong brand image thus they had to spend less of their earning
through promoting their business through social media marketing. They can use various method
to bring their products in market such as by organising the campaign which enhances the interest
of customer towards their products as they also promote such company in preferring their
products at large scale. By campaign they can also promote various other activity which they are
expanding in their business to increase more profits in their operational activity. Another
challenges which the company are facing are in relation to reducing the prices of their cost
internally and externally. As reduction can be done regarding the wastages of products which are
to be produced by company and if there is less in demand of such products and services. As
customers taste are changing due to changes in environment and also they need such company
which fulfil their needs at higher level. Thus, by adapting this procedure there are less chances of
committing wastage in products which the company had to make strategy to reuses such products
in innovative way. Through the process of reuse, they can attract more customer towards their
products and services and by this strategy they can promote their business for larger scale. Asda
company came up with such strategy which can attract the interest of customer through their
products by raising their reviews regarding selecting the appropriate products. As they are
dealing in such products which are organic and hygienic and didn't harm the environment badly.
Thus, company had to bring such products which fulfil the customer needs and demands. Asda
can also take the reviews from customers regarding the availability of such products. By this
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procedure customer feels motivated to choose such products and promote their business to other
person as well.
The reduction in cost can also be overcome by managing the employees work effectively
and by this concept they can save more economy in country and utilize in some other work. By
this strategy they can expand their business into large scale and bring more activity to their
business to increase their sales and profits for longer time period. Asda company can easily
expand their business globally as they carry the strong brand image and also can beat the
competitor which the techniques which they are using to attract the interests of the customers for
longer time period (Gössling, Hall and Andersson, 2018). By managing their internal working
they can save cost by dealing in more project and increase their team through producing more
products and enhancing their business into international market. Thus, by reviewing their offer
which the company is giving to customer to enhance their interests towards such products are to
be reviewed due to changes in time. This helps to retain the customer for longer time period.
It has been recommended that organization should focus on locating areas which will
help in improving the activities of the business (Parrott, Danbury and Kanthavanich, 2015). It
should focus on reviewing areas which leads to lower wastage and attain economies of scale
which eventually leads to lower operational cost and higher productivity. Identifying areas which
leads to higher expenditure and take necessary measures to reduce the same. Integration of
advanced technology also helps in higher sales which in turn also results in higher profitability
and productivity for the Asda. Benchmarking and setting an effective budget plan helps in
attaining higher operational efficiency and growth (Aldasoro, Ehlers and Eren, 2018). It is also
very useful in determining and keeping track of the cost which in turn leads to higher operational
growth, performance and productivity. The management of the organization should identify the
target market which leads to higher sales and profitability for the company (15 Simple Ways to
Make Your Company More Profitable in 2018, 2018). It has been recommended that
management of the organization should focus on concentrating the sales by selling the products
to the target customers which in turn increase the sales and profitability of the company by
delivering the goods and services which are needed. The organization should focus on making a
strategic price which in turn helps in attaining higher profits than its competitors. The
management should focus on developing various strategic plan and offer discounts on various
products and services which in turn leads to huge sales and higher profits.

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15 Simple Ways to Make Your Company More Profitable in 2018. 2018. [ONLINE]. Available
through: <https://www.inc.com/david-finkel/15-simple-easy-ways-to-make-your-
company-more-profitable-in-2018.html>
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