The Impact of Digital Technology on Business Activity: A Case Study of Argos

This research report examines the impact of digital technology, specifically e-commerce, on the business activity of Argos, a leading retailer in the United Kingdom. The report analyzes the efficiency of e-commerce in Argos' online business, exploring its impact on sales, customer relationships, and overall business growth. It delves into the history of Argos, its current e-commerce strategies, and the challenges and opportunities presented by the digital landscape. The report utilizes both primary and secondary research methods to gather data and insights, providing a comprehensive analysis of the role of e-commerce in Argos' success.

The Impact of digital technology on business activity
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Table of Contents
Introduction......................................................................................................................................3
History of the company...................................................................................................................4
Topic................................................................................................................................................4
Aim:.................................................................................................................................................4
Objectives........................................................................................................................................4
Rationale..........................................................................................................................................5
Literature Review............................................................................................................................6
Conclusion.....................................................................................................................................11
References......................................................................................................................................12
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Introduction
In today’s business era E-commerce has played a crucial role in all business organisations. It is
highly important for the company to develop great plan and strategies according to the market
current requirement and customer’s needs before engaging in electronic commerce. E-commerce
is the concept of selling and buying products as well as services online. There is no interaction
process take place between buyer and seller but still, buyer maintains a good relationship with
customers. This research report is based on Argos which is retailer operator in the United
Kingdom. It is subsidiary of Sainsbury’s which provide all categories products and services to its
customers online. Argos gives high attention on its online trading for achieving high profitability
and sales in the large competitive marketplace. This report analysis efficiency of E-commerce in
the online business of the company.
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History of the company
Argos is retailer operator in the United Kingdom and a subsidiary of Sainsbury’s which is
popular in all around the world. This company was formed on 13 November 1972 by Richard
Tompkins who is also the founder of the Green Shield Stamps scheme. Argos trades both
through online as well as physical stores to achieve high sales and revenue effectively. There is
more than 845 retail store through which sell its products and services (Rodriguez, et. al., 2014).
The company earns huge income through its online and physical stores because per year millions
of customers visit its stores and online sites. Argos offers a wide range of products and services
to it are foreign as well as domestic customers at high quality. It provides products like sports
and Leisure, Health and beauty, Toys, Clothing etc to fulfill customer’s requirement.
Topic
The effect of e-commerce on Sales: A case study of Holborn Argos.
Aim:
The aim is to determine the efficiency of e-commerce in online business.
Objectives
 The main goal is to analyse the impact of e-commerce on the business activity.
 To determine new ways of e-commerce to build a good relationship between company as
well as customers.
 To determine the ways in which ideas and concept of e-commerce generated.
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Rationale
In today’s era, it is highly important for the company to adopt internet revolution for achieving
high revenue and sales. Argos is Retailer Company which can easily grab new growth
opportunities by developing new ideas and concept for online business. This company can easily
expand its business operation in a new market through e-commerce and online payment easy for
the customers. E-commerce play very important role in the growth and success of the company
in the large competitive marketplace. The main aim of this research is to analyse the efficiency
level of e-commerce in the online business of Argon. In the UK, there are huge companies which
operate a commercial website to sell their goods and services. By adopting e-commerce concept
any company can enhance their sales and profit margin effectively. Argon cover large market
share by improving e-commerce services. This company develop great strategies for global e-
commerce growth and attract a large number of customers.
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Literature Review
As per thought of McDermott and Payvision (2015), E-commerce is an effective concept which
is adopted by almost all companies for increasing their sales and revenue in the large competitive
business environment. People can purchase goods and services through online stores of Argos
without any barriers of time and distance. It is highly important for the Argos retailer to
implement E-commerce concept effectively to achieve set goals and objectives. It provides so
many advantages to the company as well as customers such as it is cheaper, faster, and
convenient for buying and selling goods and services. E-commerce increases security and safety
of online transaction for reducing the fear of customer to make an online payment. Argos can
build a strong relationship with customers, suppliers, stakeholders etc by improving electronic
commerce.
According to Lundh, et. al. (2015), E-commerce is a most effective concept which allows
customers to purchase and sales goods online without any kind of barriers of distance and time.
Now days almost every company adopt e-commerce concept for improving their online services
to satisfy customers’ needs and wants. With the help of digital technology company can provide
so many options to their customers regarding different products and services. Argos gain so
many advantages of e-commerce such as easy payment system, easy to compare, convenience,
easy to find a review, deals, coupon, enhance sales in next one year, improve customer base,
instant transactions and many more. E-commerce makes the business activity more convenient
for the employees and organisation through which they can easily perform allocated task in
appropriate manner. It is the best way to expand business operations at a higher level. With the
help of e-commerce company provide full security and safety of online money transaction to
their customers so that they can do purchase online goods and services without any fear.
In the view of Lawrence and Weber (2014), nowadays every company face tough competition in
the global market due to which they adopt new concept, ideas, digital technology and methods
for increasing their sales and revenue. E-commerce is effective methods which improve online
trading of goods and services. Argos is largest retailer company in the United Kingdom which
provides a wide range of products and services to its customers through physical stores and
online. Most of the people prefer to purchase goods and services online to save their time. But
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some people do not prefer to purchase products online due to fear of online transaction payment.
Argos gives core attention to its online services for satisfying customers’ needs and to enhance
their satisfaction level.
In the words of Laudon and Traver (2013), with e-commerce concept, Argos Retailer Company
can easily enhance its online sales in next 2-3 years. Customers can purchase products and
services 24/7 through online and save their time. E-commerce increases the customer base of the
company by satisfying high-quality goods and services online. It is highly important for the
company to give core attention to the factors like security and safety of online payment for
providing full safety to customers. It is the biggest problem for the company because of which
they are unable to expand their online industry on a global scale to enhance sales and revenue.
By giving high attention to all these factors Argos retailer can resolve customers queries and
problems effectively which will increase online sales of the company.
In the view of Kemp and Owen (2013), E-commerce provides so many benefits to the company
through which Argos retailer can easily accomplish set standard of sale and revenue per year.
The company can increase its sales and profit margin in the certain time period by adopting
digital technology. It is highly important to develop so many strategies and plans related to e-
commerce to enhance sales of the company. By giving high attention to e-commerce Argos
retailer can increase customer base, enhance sales, 24/7, 365 days services, instant transaction,
make payment easy and expand business operation at global scale. It is necessary for the
company to develop strong strategies and plans for improving security and safety for customers
to purchase goods and services through online.
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(Figure 1: Expected e-commerce revenue)
(Source: Staples, 2017)
By analysing above graph it can be said that market potential is enhanced for electronic
commerce business day by day thus, it is essential for Argos to give high attention on its online
websites to increase sales margin.
According to Jain and Kulhar (2015) company should give core attention to the quality of goods,
delivery time, hidden costs, privacy and security for increasing sales and revenue in the large
competitive marketplace. It is essential for Argos retailer to give great deliver services to
customers without any late delivery issue (Staples, 2017). This company provides good deliver
services or products to its services without any delay to satisfy customers’ needs and demands.
Sometimes company delivers product at wrong address due to which customer face problem.
Thus, Argos retailer gives high attention to the quality of its goods, delivery services, and
packaging. It is highly important for the company to deliver products safely to customers without
any harm by effective packaging. In UK e-commerce industry face tough competition so, Argos
retailer needs to develop strong plan and strategies for improving its online services. It will help
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to attract a huge number of the customer towards the goods and services of the company. There
are so many problems and issues faced by the online merchant in the large competitive
marketplace which can be easily tackled by the management with the help of great idea and
concept. Argos retailer company enhance the level of sales and revenue by improving the
security and safety of online money transaction because customer fear to make payment online
due lack of privacy and security.
According to Foss and Knudsen (2013), Argos retailer should spread awareness among people
about the online purchase system and resolve their queries regarding the same. It will build their
trust and loyalty towards the company and they get convinced to purchase product and services
online. There are so many benefits of online purchasing to the organisation as well as the
customer. Very few people exist in the UK who do not prefer to purchase online because of
corruption and fraud otherwise almost people are aware towards the online purchasing and
security. In UK people are highly educated so they have high knowledge about the safety and
security system of e-commerce but another country such as India people are unaware about the
online security and do not prefer to purchase online. Argos retailer provides a wide range of
products to its customers through online who offer so many benefits to customers such as they
can make payment by the net banking system, debit card, and credit card.
In the words of Barnes and Hunt (2013), E-commerce is most important aspects which are used
by Argos retailer for increasing its sale as well as profit margin per year. The company can sale a
huge number of the product through its online website to satisfy the current requirement of its
customers. It is necessary to develop great idea and strategies to create an attractive website
which attracts a huge number of people. There are millions of people who visit online website of
Argos retailer to purchase goods and services which will help the organisation to achieve set
goals and objectives. E-commerce improves the online services which help the organisation to
build a good relationship with customers and also to build their trust towards the products of
Argos retailer. This will enhance the sales and revenue of the company effectively in the large
competitive business environment.
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Methodology
There are so many methods will be used by the researcher to conduct appropriate information
about the efficiency of e-commerce in online business. With the help of primary as well as
secondary research methods research gather important information and data for the selected
research topic. Research assist to identify reliable and accurate information through a survey that
how many people are aware of the online purchasing, security, and benefits of e-commerce. For
conducting research in proper manner researcher uses quantitative and quantitative research
methods which provide suitable data for the related topic (Mackey and Gass, 2015).
Primary research method: It is the effective method through which research collect appropriate
information through interviews, surveys, observation and ethnographic. It takes lots of time and
cost to conduct primary research but it provides reliable and accurate data for the study. The data
will be collected in research through questionnaire which is distributed to the employees of the
Argos Company.
Secondary research method: Researcher uses this method to collect relevant data and
information about the selected research topic through internet, books, articles, journals,
newspapers, magazines etc. This will take less time as compared to primary research method but
it does not provide latest data for the study.
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Conclusion
By analysing this report it has been analysed that electronic commerce play very important role
in high growth and success of Argos retailer. It is most effective concept through which online
buying and selling process can de take place. With the help of Ecommerce Argos retailer
increase its sales and revenue per year. It is processed through which any business organisation
can reach out to the maximum number of people and also develop strong brand image among
customers. E-commerce is used by Argos retailer for increasing its sale of goods and services
and also to enhance financial returns on the investment. It is highly important for the company to
design effective e-commerce solution for giving so many advantages to its customers, suppliers,
stakeholders, clients, and employees. Argos retailer can cover larger market segment to increase
the number of customers by taking help of e-commerce. This company make market research
before designing e-commerce for satisfying the current requirement of customers and market
effectively.
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References
 Barnes, S. and Hunt, B. eds., 2013. E-commerce and v-business. Routledge.
 Foss, N.J. and Knudsen, C. eds., 2013. Towards a competence theory of the firm (Vol. 2).
Routledge.
 Jain, R. and Kulhar, M., 2015. Growth Drivers of Online Shopping in Small Cities of
India. International Journal, 3(9).
 Kemp, D. and Owen, J.R., 2013. Community relations and mining: core to business but
not “core business”. Resources Policy, 38(4), pp.523-531.
 Laudon, K.C. and Traver, C.G., 2013. E-commerce. Pearson.
 Lawrence, A.T. and Weber, J., 2014. Business and Society: Stakeholders, ethics, public
policy. Tata McGraw-Hill Education.
 Lundh, A., Sismondo, S., Lexchin, J., Busuioc, O.A. and Bero, L., 2015. Industry
sponsorship and research outcome. Cochrane Database Syst Rev, 12.
 Mackey, A. and Gass, S.M., 2015. Second language research: Methodology and design.
Routledge.
 McDermott, K. and Payvision, B.V., 2015. Key business drivers and opportunities in
cross-border e-commerce. Payvision, Amsterdam.
 Rodriguez, H., Smith, N.J. and Spinac, C.J., Toshiba Global Commerce Solutions
Holding Corporation, 2014. E-check and e-commerce. U.S. Patent 8,645,241.
 Staples Misha., 2017. 4 Big Ecommerce Trends That Will Shape 2017 to 2020. [Online].
4 Big Ecommerce Trends That Will Shape 2017 to 2020. Available
at: https://www.demoup.com/blog/the-4-big-ecommerce-trends-that-will-shape-2017-to-2020/.
[Accessed on 21 March 2018].
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