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Impact of Digital Technology in Improving Profits of Business : ALDI and LIDL
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Added on 2020-10-05
Impact of Digital Technology in Improving Profits of Business : ALDI and LIDL
Added on 2020-10-05
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RESEARCH PROJECT:The impact of digitaltechnology in improvingprofits of business: ALDI andLIDL.
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................4P1 Produce a research proposal thatclearly defines a research question orhypothesis, supported by a literature review............................................................................................................................................4Overview of organisation:..............................................................................................................4Research aim:.................................................................................................................................5Research objective:........................................................................................................................5Research question:..........................................................................................................................5Rational:.........................................................................................................................................5LITERATURE REVIEW................................................................................................................6METHODOLOGY..........................................................................................................................9Research Philosophy......................................................................................................................9Research Approach........................................................................................................................9Research Design...........................................................................................................................10Research Strategy.........................................................................................................................10Data Collection Methods..............................................................................................................10Data Collection Tools...................................................................................................................11Sample..........................................................................................................................................11Analysis........................................................................................................................................11Limitation.....................................................................................................................................11TIMELINE OF RESEARCH ACTIVITIES..................................................................................12REFERENCES..............................................................................................................................13Executive summary..........................................................................................................................1P2 Examine appropriate researchmethods and conduct primary andsecondary research.........................................................................................................................2Research aim:.................................................................................................................................2
Research objective:........................................................................................................................2Research question:..........................................................................................................................2Rationale of the study.....................................................................................................................3Significance of the study................................................................................................................3LO 2.................................................................................................................................................4P3 Research Methodology.............................................................................................................4P4 Result and findings....................................................................................................................6Conclusion....................................................................................................................................19LO 3...............................................................................................................................................19P5 Communicate research outcomes in an appropriate manner for theintended audience.........................................................................................................................19LO 4...............................................................................................................................................20P6 Reflect on the effectiveness ofresearch methods applied for meetingobjectives of the business researchproject...........................................................................................................................................20P7 Alternative research methods..................................................................................................21Appendix........................................................................................................................................22REFERENCES..............................................................................................................................24
INTRODUCTIONMaking and helping all the operations of business in the sense of digital platform that isallowing firms to grow and develop into the market place with increase in their sales and profitsof company as well. This is aiding business whether they are small or big whatever is theiroperation into market if they are not using or applying any form of technological advancementinto their business traditional methods would not be helping them in long run. So, it is necessaryin part of all companies that they are using and implementing the use of technology within theirproduction, marketing and human resources or selling of the products and service as well. In thiscurrent research report that is based on technology we would be studying about the impact of useof digital technology in improving profits of company like that of ALDI and LIDL. In would beincluding what is the effect on company and their profits if they are using, implementing andapplying digital technology into their day to day working that too in all departments of company.P1 Produce a research proposal thatclearly defines a research question orhypothesis, supported by a literaturereview.As traditional techniques would not be allowing company to use logistic practice or eitherreducing their cost of capital? Company should also be using cross docking techniques thatmeans loading and unloading of goods from one transport vehicle to the other on direct bases sothat this is avoiding storage cost. This technique if is used by company then they would beensuring that there is no shortage or wastage of products.Digitalisation of business operations will be mostly effective for company as it will beleading to more increased in number of profits and revenues of firm. With the help of this digitaltechnology it is essential for company to gain more and more customers if they are been using itwithin their business activities. Like with the use of digital technology company is able to remainin touch with their customers by social media application and receiving feedbacks.Overview of organisation:ALDI and LIDL are the two major competitors which are based on Germany and havingtheir operations in rest of EU, Asia and Australia as well. ALDI which is having two majorbrands under it is a discount supermarket chain in retail industry this is providing and usingtechnologies into their working. On the other hand, LIDL is another discount supermarket chain4
which is German based but is operating only on EU and USA with about 10000+ stores all over.Both of them are selling products both at retail and wholesaling bases that too on discount basesas this is causing them higher profits in market. Digital technology is now the base of both thesesupermarket retail chain which they are using in most effectively.Research aim:To analysis the impact of digital technology in improving profits of business: ALDI andLIDL.Research objective:To analysis the impact of digital technology in improving profits of business.To ascertain the contribution into success of retail discounters like that of ALDI andLIDL.To recommend the ways in which they could enjoy this success in permanent bases.Research question:11How digital technology affects Aldi and Lidl profitability and productivity?11What do you mean by digital technology and its various techniques?11What are different advantages and disadvantages of digital technology withinorganisation?11Is digital technology boots business performance of Aldi and Lidl?Rational:As it is included that digital technology is main aspect of business and other lifestyle ofpeople of world they are using and inventing new form of technology very frequently. It is alsonecessary that application of digital technology into company should be emphasised so that theirprofits are been improved. So, this study on impact of digital technology is very much importantat current time so that company is able to analysis what is the effect on their profits and revenuegeneration as well. Technology is that aspect of business in today’s time which is making andhelping firms into their success and especially that of discount retailers like that of ALDI andLIDL.The research is very much important as it is including impact of digital technology onbusiness activities of two organisation ALDI and LIDL. The impact can be both positive andnegative one so they need to be included within this research.5
LITERATURE REVIEWAs per Bughin, Chui and Manyika, (2010) it is included that digital technology isenabling companies whether large or small scale in getting success and profits out of their effortswhich they are putting into company to make them grow. It was seen that ALDI it regarded to asmarket leader in this high discount industry as they are acting as role ideal for all other firmspresent into market. Till the year 2009 both ALDI and LIDL were into top 10 global retailers inthe race of discount chains as they having annual income of more than $60 billion. Bharadwaj, El Sawy and Venkatraman, (2013) said that customer in market majorlyfocus on mainly two to of the factors which are cost and quality of products that are been soldand manufactured by company. So, the aim of company must also be on providing the bestquality of products which is giving their customer the best price as well. This could be attainedby firms in market by certain policies which is required to be implemented within like that of:better operations, improving the share of private labels that too in affordable prices, maintain ofquality in products and that in services is also important and then limiting the variety of allproducts and service of company.As it was included by Michelini, Principato and Iasevoli, (2018) that of high discountretailers are providing only limited variety or choice of products but at best quality is the mostvital aspect of them and their market. If the companies are providing limited range of productsbut on higher quality of products here it would also be having stock keeping units (SKU) intoeach group of products. Both the market leaders are mainly focusing on everyday products asthese are those products which customers are purchasing and consuming on daily bases. Socompany must be focusing on technological advancement in these types of daily use productsand also providing discount to its customers.It is required for all companies and especially like that of ALDI and LIDL that they aregiving discount to their customers which would be enabling them to improve profits and revenuefor company. Li, (2018) also included that company which are focusing on quality not onquantity are the one who would be regarded to like as market leaders with giving limited rangeof products as well. This could be done if companies like that of ALDI and LIDL are using betterand efficient methods of quality and food control which is enabling customers with better qualityof products. It was also seen that efficient and that operation that is cost effective for company issupport or main pillar for all discounted retailers (Stankovska Josimovski and Edwards 2016).6
There are included two major things or elements which are reduced in working capital andfrequent or fast delivery of products.Tata, and McNamara, (2018) said that if company wants to earn higher and more profitsthen they should be applying the use of efficient and effective form of technology which is themodern one. Bughin, Chui and Manyika, (2010) by giving example of checkout counters inALDI which is good example of use of technology like that of short and precise having no kindof buffer zone at its counters. In this process it is easy for customers for their easy purchase andmaking payment of goods which is purchased by them in transferring products on easy and fastbases and then making payment at the end of door.In this way out these discounted retailers are not believing into any sort of marketingdepartment team which would be engaged in promotional activities of company. Rather Tata,and McNamara, (2018) explained that more focus of company would be on satisfaction ofcustomers by giving them low priced and high quality of products. Investing in marketingdepartment or in collaboration with consultants would not be good idea for company as theiroperations are the most important element for them. All these said changes would beimplemented if there is very good technology and use of it in proper way out. As they are relatedto settlement of techniques and then their application into all type of organisations which istaking up revolutionised form.In the last decade it has been made in more dramatically change is taking place which isover the traditional business models and transforming all kind of activities of organisation(Taiminen and Karjaluoto 2015). Digitalisation is the most effective and important tool which isused by all companies and business all around the world which is increasing their wealth ofchoice and that of opportunity as well. Michelini, Principato and Iasevoli, (2018) indicated thatall sort of existing products could become more and more profitable if companies are includinginnovative and new products in market which are attracting majority of people. Digitaltechnology is enabling diversity in products and their portfolio with on the same hand havinggood and better quality of products. Impact of technology could be analysed in all sort offunctions and areas of company including like that of communication, distribution,administration and especially into production.In the communication it could be said that use of technology could be seen in highest andmost common way as it is helping firms to use and employ social media or more effective than7
this could be mobile technology. Both of them are allowing company to connect andcommunicate with customers and other clients of business. Thus bring the effect of goodrelationship that too in global level of business and also collaboration of products and serviceswith their customers. Bughin, Chui and Manyika, (2010) elaborated that other than this digitaltechnology is also used and implemented within the production function of business as by doingthis they would be able to ensure better use of inputs into manufacturing of products. If companyis using artificial intelligence into their production of goods and services and then the big dataAs per the part of customer it is included that giving their customers convenience intoshopping is the best part of innovation into retailing business. Client accommodation has drivenmost advancements in retailing, including grocery stores, retail establishments, strip focuses,territorial shopping centres, and class superstores. The accentuation that clients put onaccommodation has incited retailers to broaden one-quit shopping, update store workingframeworks, stress the offer of administrations, and put resources into nonstory retailingaccording to Li, (2018).The interest for more advantageous shopping mirrors a few patterns, including expandingquantities of ladies in the workforce and buyer view of constrained time. In 1998, 63.6% ofwedded ladies with youngsters under 6 years old worked all day or low maintenance contrastedand 18.6% out of 1960—a 242% expansion. Ladies now involve 41% of America's all dayworkforce and 68% of its low maintenance work-compel (33% of whom spend no less than 35hours for every week at work, the likeness a full-time schedule). Since, working ladiescommonly hold family unit administration obligations, helpful other options to conventionaltasks like shopping have turned out to be to a lesser extent an extravagance and to a greaterextent a need. As indicated by Bughin, Chui and Manyika, (2010) overview by Kurt Salmon Associates,the dominant part of shoppers (56%) concurred that they have far less relaxation time thanbefore. Most trust they have lacking time to do all they should do in addition to all they need todo. Since so much shopping falls into the "must-do" class, occupied customers trying to improvetheir lives support retailers that spare them time and energy. Numerous customers pick up time for different exercises by diminishing their shoppingtime. Customers in Kurt Salmon Associates' review spent under 1% of their aggregate timeshopping; 52% expected to shop even less to build time for different employments. The8
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