Digital Transformation and Business Success: A Study of Waitrose

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DIGITAL TECHNOLOGY AND BUSINESS ACTIVITIES
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DIGITAL TECHNOLOGY AND BUSINESS ACTIVITIES
Table of Contents
Introduction......................................................................................................................................3
Research Background......................................................................................................................3
Company Background.....................................................................................................................4
Aim of the Research........................................................................................................................4
Research Objective..........................................................................................................................5
Research Question...........................................................................................................................5
Research Rationale..........................................................................................................................5
Literature Review............................................................................................................................6
Concepts of Digital technologies like Digital marketing and database management..................6
Merits of the technologies...........................................................................................................7
Demerits of the technologies.......................................................................................................8
Implementation of the technologies in business..........................................................................9
Current scenario.........................................................................................................................12
Methodology..................................................................................................................................13
Research Philosophy..................................................................................................................13
Research Design........................................................................................................................13
Sampling....................................................................................................................................14
Data Collection..........................................................................................................................14
Data Analysis.............................................................................................................................15
Ethical Consideration.................................................................................................................16
Timeline of Research.....................................................................................................................17
Conclusion.....................................................................................................................................18
References......................................................................................................................................19
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Introduction
In the modern era of globalization, various organizations have been able to greatly improve and
develop themselves in a number of ways. This has allowed the business operations and activities
of the organizations to enhance and improve that led to the success of the organization. Since the
20th century, technology has been rapidly developed to serve the needs and requirements of the
organizations and businesses as well as for the common people too. The inclusion of technology
in the development of business operations and activities of the organizations has played a critical
role in the success of the organizations (Armstrong et al., 2015).
Moreover, technology has been able to provide the organizations with various innovative and
critical ideas that not only impacted the life of the people, but it has also brought rapid changes
in the market. The following study will critically analyze and evaluate the impact of digital
technology in the business activities and operations. The research study will help to not only
understand the significance of digital technology, but it will also help to acknowledge the
importance of technology within the context of business operations and activities.
Research Background
Since the late 20th century digital technology has been a very critical part of business
organization. Digital technology gained significance within the context of business in the late
1990’s when it was heavily incorporated into organizations that helped in their business
operations. Over 95% of the digital technology implemented organizations were able to gain
success as well as being able to spread themselves in other countries. With the heavy
development of digital technology in the 21st century, various organizations have been able to
integrate and incorporate digital technology as part of their business operations in order to fulfil
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their goals and objectives (Baltes, 2015). Digital Technology has helped organizations in
multiple ways such as data management, IT servicing, content loading, recruitment and selection,
promotion and marketing, and many more. This has not only helped to gain a large customer
base for the organizations, but it has also contributed for the revenue and profit generation as
well as expansion of the organization. The following research study will use Waitrose as the
organization where the impact of digital marketing in its business operations and activities will
be critically analyzed and evaluated (Yasmin, Tasneem, and Fatema, 2015).
Company Background
Waitrose is a UK based multinational retail organization that exists as a chain of supermarkets
and is one of the largest supermarket chains of Britain dealing with grocery products and goods.
Waitrose was founded in 1904 by Wallace Waite, Arthur Rose, and David Taylor in West
London and since then, the organization has been able to grow and develop into a successful
retail organization of UK. Waitrose is present in over 353 locations in all over UK as well as
having over 65 convenience shops and a market share of over 5.2%. As of 2019, Waitrose has
revenue of £5.4 billion as well as an operating income of £175 million and employee strength of
over 52,600 which allows them to export their goods and products into 52 countries with
locations in Middle East (Waitrose.com., 2019).
Aim of the Research
The research aims to evaluate the impact of digital marketing in the business operations and
activities of Waitrose. The study would analyze the concepts and different aspects of digital
marketing as well as database management and apply it within the context of the business
operations and activities of Waitrose. Furthermore, the research aims to understand the benefits
obtained from the use of digital technology as well as the flaws and errors that are present in it.
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Research Objective
The research objectives for this research study are:
 To evaluate the importance of digital marketing and database management in an
organization
 To understand the merits and demerits of digital marketing and database management in
business operations and activities of Waitrose
 To evaluate the impact of digital technology in the organizational performance of
Waitrose
Research Question
The research question for this research study are:
 What the importance of digital marketing and database management in an organization?
 What the merits and demerits of digital marketing and database management in business
operations and activities of Waitrose?
 What is the impact of digital technology in the organizational performance of Waitrose?
Research Rationale
The following research study is being conducted in order to gain a thorough and deep analysis of
the impact of digital marketing in the business operations and activities of Waitrose. The study
would be able to understand the importance as well as the merits and demerits of digital
marketing and database management in business operations and activities of Waitrose.
Furthermore, this study will gain a deeper insight of the subject topic through the analysis of
gathered data and information from various sources.
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Literature Review
The literature review is one of the primary components of research it helps to critical analyze the
previous research paper for gaps and ideas in an efficient manner. This literature review will
focus on the main concepts of digital technologies and its relationship with business. Critical
analysis of different concepts of digital technologies will be done. The positive and the negative
aspects of the digital technology in relation to business environment will be discussed in this
section in an efficient and effective manner. The implementation of the digital technologies in
business and the current scenario will be elucidated.
Concepts of Digital technologies like Digital marketing and database management
At present globalization and the rise of technology is the major trend. Most of the global
companies are influenced by the concepts of different technologies. In the word of Adedoyin
(2016), Technological advancement is helping the organization to spread their business in a
global basis. One of the most efficient technology that is the digital marketing that is performed
by the different global organization in an effective manner. The main concept of the digital
marketing includes the search engine optimization or the SEO thatis an essential component of
the digital marketing. In the search engine optimization, the algorithm present is refined in an
efficient manner so the searched content may be a viable in web page in a prominent manner. It
attracts the consumers to know about the different products and services of the organization. At
present it is seen that consumers are becoming tech savvy and using the internet as the main
mode of communication. It may enhance the process of promotion. Companies like Waitrose is
implementing digital technology in an efficient manner.
According to Tyagi, Gupta and Singh (2016),The content for the web reading may be optimized
by the help of SEO. The search engine optimization process helps to highlight the main contents
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of the organization in an efficient manner. As it is known that consumers do not read long
paragraphs in web. Long paragraph is restructured by software and the lengthy content may be
transformedinto concise and attractive content. As opined by Ge (2017), at present presentation
is one of the essential factors of marketing on which the holistic business depends in a global
basis. This kind of software’s are known as the content mastery software’s.Moreover, there is
presence of another concept known as the full funnel strategy. The full funnel strategy is
completely based on the model that includes marketing research to preparation of marketing
content of an organization. The data of marketing research is fed into the system and the system
formulate effective marketing content for the websites of the organization. It helps to amplify the
promotion of the organization in an efficient manner.
Another important concept is the database management system. According to Otoo, Akyamaa,
and Nemati (2017), data base management system is one of the most essential elements needed
to manage business. In business there are presence of innumerable datalike marketing data
financial data human resource related data. The database management software helps in
integrating this valuable and confidential data under one roof. It helps the top management of the
company to efficientlyanalyze data and take decision. Waitrose company use database
management system that helps toanalyze take decisions in an efficient manner.Due to the
database management technology there is approximately 20% Growth in the holistic business of
the Waitrose. This is turning out to be one of the most effective technology for the administration
of the organization as well.
Merits of the technologies
According to Yaqoob eta l., (2016) digital marketing may reach the target customer in an
efficient manner. As digital content is uploaded in the internet it can be viewed by the customers
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ina global basis it may help to enhance the business of the organization in an efficient manner.
Moreover, it is said that digital marketing may have very fast and timely impact on the
consumers in the current situation. For example, Waitrose has enhanced its digital campaign that
has a holistic impact on its business growth in an efficient manner. Digital internet marketing
may be done in a bound manner that helps to attract specific customers who searches for specific
brands. Immediate feedback of the promotion may be available in the web page in an efficient
manner. In the hub spot section total data of customers view and comments are available that
help to formulate new content strategy for organization. Furthermore, another important point is
that digital marketing is far more cost effective than physical marketing. It is seen form the
global statistics that global company like Waitrose, mark and Spencer having enhanced profit
margin by almost 15%
Data base management system helps in proving integration of the data in an efficient manner. It
helps in sharing of valuable data in an efficient manner. It helps in proper decision making of
the company. The top management may see the current status by analyzing the data and then
take decisions according to the requirement. Better service may be given to the customers in an
effective manner. It is opined by Shaw (2016), data base management system enhances the
decision-making process of the company in an efficient manner. More than 70% of the global
companies is starting to use data base management system in an efficient manner. It is seen that
Waitrose is using the data base management system in an efficient manner.
Demerits of the technologies
It is stated by Daraio et al.,(2016),digital marketing is totally based on the internet. There might
be less connectivity insome of the areas of the world where potential consumer base is present.
Promotion of product may not reach those areas. In many of the Asian countries there is presence
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huge consumers, but the internet connectivity is not up to the mark. Moreover, another point is
that digital content present in the website may be easily copied and used by any different
organization. This might hamper the business growth of the pioneer organization.Furthermore,
negative public reaction cannot be properly managed in case of digital marketing that might have
detrimental effect on the business. In the word of Schaltegger and Burritt (2017), digital
marketing often requires a big initial investment and competent human resource who may
perform the search engine optimization in an efficient manner. It is seen that sometimes
competent human resource is not available that cause problem for the companies like Waitrose.
Data base management system may also have some negative impact on the organization. As it is
stated by Adekolaand Sergi (2016) it sometimes increases the holistic cost of the company. Since
the technology is a littlebit high end there is requirement of the tech savvy employees. This may
increase the holistic cost of the company that might affect the company in a negative manner.
Sometimes there are a data loss that may adversely affect the business of the company. Effective
fire wall system is required that helps in effective management of data. This might increase the
over all cost of the company. There might be a holistic loss for the company that may affect the
business in a negative manner.
Implementation of the technologies in business
In the modern business world, the usage of digital marketing has been growing rapidly all over
the world. Numerous strategies for digital marketing has been devised and extensively utilized to
increase the profits for the businesses. The various digital platforms that connect millions of
people using online connectivity provide the perfect platform for publicity of the business
organizations, which are always looking to publicize their products to as many people as
possible. This style of advertising strategy is called digital advertising, and the latest photo
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sharing sites like Instagram or the latest social media platforms like Facebook or Google+ plays
a very important role in it. According to Vendrell‐Herrero et al., (2018), since people from
various cultural background and preferences use social media, the Social Medias like Facebook
or Instagram provide places to put advertisements in their web interfaces. These are the places
many business companies put their advertisements about their products, since it allows them to
inform many kinds of people about their products, all at the same time.
According to Goerzig and Bauernhansl (2018), this ensures that the business companies gain a
large and diversified segment of potential customers, which increases the chances of a boost in
their sales and profits. For instance, Waitrose UK has managed to increase their sales by
approximately 18% in the year 2015-2018 after starting to post online advertisements. Facebook
even provide premium promotional pages to the business owners, which allow the business
organizations to reach out to a much larger number of people. However, according to Riki
(2018), it can also be argued that not all types of business products can be suitable and profitably
be advertised in the digital platform. For example, the products that are targeted for senior
citizens usually are not advertised in the digital platform on a high amount. This is because the
digital platform is mainly used by the younger generation, and so the people from older
generation have much lesser chance to view the digital advertisements.
However, according to Boneva (2018), it can also be argued that this drawback of digital
advertising and marketing can be overcome by email marketing, which is one of the basic
marketing strategies adopted by nearly all the medium and large companies who have their own
websites. This strategy involves sending promotional and commercial emails to the existing and
potential clients. Since the latest Smart Phones pretty much always require a valid and working
email to operate, this email marketing strategy ensures that the advertisements of the products
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are viewed by a much larger number of people, potentially making it more beneficial than Social
Media advertisements. Starting from 2017, Waitrose has also adopted this policy, sending
promotional emails to their customers. According to Kasemsap (2018), although not as
extensively used as Social Media or email, the various video sharing websites are also used
extensively to promote the advertisements of the products and services of the business
organizations. Compared to regular digital advertisements which are mainly still images or short
gif animations, the advertisement videos posted in various video sharing websites like YouTube
or Dailymotion can be longer in length, and hence can present the positive aspects of that
particular product or service in a much more detailed and efficient manner. According to WHO
(2018), these video advertisements can also be posted in between other popular videos while
they are streaming, which increases the chances of their viewing by the potential customers. As
for Waitrose, they also post video advertisements about their various products in YouTube and
various other websites, which has significantly increased their sales and popularity.
The digital database management systems, on the other hand, have gradually become an essential
part for any business company which operates over a large number of branch offices and handles
a large number of stakeholders. According to Teece (2018), the various digital databases like the
inventory database, the financial transaction database, the sales and purchase database and the
production database can be kept in digital format in electronic hardwires, and these databases can
be internally connected with each other to form a database network, which makes it very
efficient to search and retrieve any particular information about the business activities of the
company. For instance, since Waitrose operates over a large number of stores and vending
machines, they maintain a sophisticated ERP system for keeping records of their sales and
purchases, which greatly improves their efficiency of business operations and facilitates their
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business decision making process. After implementing the ERP system for maintaining all of
their financial records, Waitrose experienced approximately 14% increase in their annual profit.
This figure is even higher for a lot of other retail supermarket chains, so the popularity of digital
database management systems has been increasing exponentially.
Current scenario
The modern era has been experiencing a rapid increase in the time that a person spends every
day interacting with other through the digital world. As a result, they usually search for their
desired products or services online through their Smart Phones. According to Nissen (2018), this
is why the business organizations are also trying to move their activities in the digital platform in
order to reach out to potential customers more easily and quickly. For Waitrose, they have
started online shopping system through their official website www.waitrose.com since 2017,
which allows their customers to directly order grocery items from their mobile phones. This has
increased the annual revenue of Waitrose by approximately 56%, which provided a huge boost to
their business operations and profitability.
In the above discussion, the various aspects of digital marketing have been discussed, along with
the advantages and drawbacks of digital database management systems. It has been seen that
digital technologies has significantly changed the ways of marketing and advertising a product or
service, and managing an electronic database has significantly sped up the business operations.
Being a supermarket chain, Waitrose has made full use of these technologies in this decade and
has managed to increase their business efficiency by a large margin.
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