The Impact of Online Shopping on Profitability and Sales of Asda

RESEARCH PROJECT

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

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

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

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.