The Impact of Online Trading on Global Retail Markets: Analysis

This report investigates the significant impact of online trading on global retail markets, focusing on Marks and Spencer as a case study. It explores the benefits, such as increased market reach and reduced costs, and the drawbacks, including data security risks. The research employs a mixed-method approach, including surveys, to analyze the effects of online trading on market participants and the overall global market landscape. The report delves into the concepts of global marketing and online trading, examining factors that influence them, and presents a conceptual framework and methodology, including research design, philosophy, and approach. The findings highlight the need for technological improvements and financial stability, offering recommendations for Marks and Spencer and suggesting future research directions. The report provides a comprehensive literature review, covering topics from global marketing concepts to the effects of online trading on market participants. The study's conclusion links findings with objectives, offering recommendations and outlining the future scope of research, supported by an extensive bibliography and appendices, including the questionnaire used in the research.

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What impact does online trading have on global retail markets?
Name of the student
Name of the university
Author’s note

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Acknowledgement
Thank you to all of those who have helped listened and encouraged me throughout this study.
I am indebted to my supervisor ……………………. whose guidance, advice and patience
have been immeasurable. My sincere thanks to all members of the…………… [Mention your
university/college name], both staff and students, whose continuous support have made this
thesis possible.
I would like to thank all of the participants in the study: students, teachers and Local
Education Authorities, for the time and help given throughout. Without their participation,
this research would not have been possible. In this context, I am also thankful to them, whose
research work helped me to execute this paper well.
Finally, I thank my family, without whom this thesis would not have been started or
completed. Your encouragement and support have never faltered; thank you.

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Abstract
The research aim is to identify the impact online trading has on the global retail markets. The
various concepts and factors related to both the concepts are researched. The benefit of online
trading with the application of information technology can provide various benefits while
trying to gain the required strategies necessary for its success. The low operating expenses,
trading speed and ensuring that the transparency is provided in information received from the
market. The focus of the company is on Marks and Spencer. Marks and Spencer also known
as M&S is a British multinational headquarter that is located in Westminster, London. The
concepts of global marketing and online trading along with the factors that affect the
marketing is discussed. The methods used for the completion of the research include mix
method, interpretivism philosophy, inductive approach and survey through questionnaire has
been adopted. About 50 participants are considered for the research. The results show that
most of the people are aware of the concepts and that major improvement is required for the
application of online trading in the business.Thus, recommendations such as improving the
technological factors such as computers and ensuring that financial stability be maintained
are provided for the development of Marks and Spencer.

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Table of Contents
INTRODUCTION......................................................................................................................5
Research problem...................................................................................................................5
Background of the company...................................................................................................5
Research aim..........................................................................................................................6
Research objective..................................................................................................................6
Research question...................................................................................................................7
LITERATURE REVIEW...........................................................................................................7
Concept of global marketing..................................................................................................7
Factors affecting global marketing.........................................................................................7
Concept of online trading.......................................................................................................9
Factors affecting online trading..............................................................................................9
Benefit of online trading in the global market......................................................................10
Drawbacks of using online trading on the global market.....................................................11
Effects of online trading on the global market.....................................................................12
Effects of online trading on market participants..................................................................13
Conceptual framework.........................................................................................................14
METHODOLOGY...................................................................................................................14
Research design....................................................................................................................14
Research philosophy.............................................................................................................15
Research approach................................................................................................................15

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Research strategies...............................................................................................................15
Choices.................................................................................................................................16
Time horizon........................................................................................................................16
Data collection method.........................................................................................................16
Research ethics.....................................................................................................................17
Limitations of the research...................................................................................................17
Time scale.............................................................................................................................18
Resources..............................................................................................................................19
RESULTS................................................................................................................................19
DISCUSSION OF RESULTS..................................................................................................28
CONCLUSION AND RECOMMENDATION.......................................................................34
Conclusion............................................................................................................................34
Linking with objectives........................................................................................................35
Recommendations................................................................................................................36
Future scope of study............................................................................................................37
Bibliography.............................................................................................................................38
Appendix..................................................................................................................................44
Questionnaire........................................................................................................................44

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INTRODUCTION
Research problem
Online trading ushers several benefits on the global retail market. Online trading
platforms have enabled the consumers to order products, which are not available in their local
markets. Anwar and Daniel(2016) opined that digital platforms enable companies to get
access to a large base of customers, which also include foreign customers. Ahmad and Khan
(2015) in this respect point out that online trading of products enable companies marketing
products to advertise their respective products in full detail. This advertising of products in
full detail create trust among the viewing customers. This detailed information about products
available before customers allow customers to perceive the value creation, which they would,
derive upon consuming the products. The paves ways for creation of demand for the products
among consumers. The online portals in order to honour this demand created for the products
among consumers, enable the latter to order for the products. Ye, Lau and Teo (2018)
supporting the previous authors point out that online portals enable companies to advertise
and sell their products simultaneously, thus reducing the overall costs. Amazeen and
Muddiman (2018) mention that online trading of products does not require huge sales teams,
thus reducing the salary expenses companies have to incur to employ the immense sales
forces. Trautman (2015) opines that these benefits which online portals usher to companies
have encourage them to embrace online marketing to greater extents.
Marketing of products on digital portals undoubtedly ushers retail companies with
several benefits. However, the issues which online marketing of products present before the
retail companies cannot be belittled either. Lorimer, Diec and Kantarci(2017)point out that
online trading subject both the retail companies and consumers before threats like data theft
and online theft of money.Degryse, De Jong and Kervel (2015) stated that accessibility to

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markets which online trading ushers to companies encourages retail companies to engage into
online trading in spite of the risks which it attract. It cannot be denied that the online trading
has transformed the landscape of the global retail market.
Background of the company:
About M&S:
Marks & Spencer Group is a British premium retail chain and bank based in London,
the United Kingdom. The company was established 1884 by Michael Marks and Thomas
Spencer. The company at present operates under the leadership of Archie Norman in the
capacity of the chairperson and Steve Rowe holding the position of chief
executive(Marksandspencer.com 2019).
Financial performance:
M&S is a listed company with its primary listing on the London Stock Exchange. The
share price of M&S is a showing a bullish trend (Londonstockexchange.com 2019). The
company earned a revenue of £10377.3 m compared to £ 10698.2 m
(Corporate.marksandspencer.com. 2019). The share price and the revenue both show a
downward trend which means that the financial performance of the company is not strong.
Products and markets:
The product umbrella of Marks & Spencer Group Plc. can be divided into two broad
categories namely, wearable and financial products. The main markets of the company North
America, Europe, Middle East, Asia and Australia. The company has no presence in Africa.
The M&S Bank offers financial products. The main competitors of M&S are premium retail
chains like Zara and H&M. The company competes with other multinational banks as far as
its banking vertical operations are concerned.

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Marks and Spenser entered Australia around 1999 and expanded rapidly in the
market. The company offers products both in its signature outlets and on its own digital
portal, which is linked to its official website. The company
Research aim
The research aim is to identify the impact online trading has on the global retail
markets. The various concepts and factors related to both the concepts are researched. Along
with this, the research also undertakes an analysis of the benefits and drawbacks that can be
associated with the concepts.
Research objective
The research objectives include:
 To explore the conceptual understanding regarding online trading and global market
 To assess the benefits and drawbacks of online trading and global market
 To examine the effects of online trading on global market
Research question
The research question that is to be considered for the research includes:
 What impact does online trading have on global market?

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LITERATURE REVIEW
LITERATURE REVIEW
Concept of global marketing
Globalization is the reason why the main thing that has to be considered is the fact
that marketing has become a worldwide activity in the recent times. This is the reason why
expenditure has been so high in the context of marketing in the recent times. It is because of
the fact that marketers around the globe have been making a single message of marketing
available across the globe, by targeting every community in their own specific manner.
According to Gauvin and Rebillard (2018), global marketing can be explained as being the
extension of the promotion of a particular product, service, or idea, which could be reached
out with to the entire world, by localizing the content in each locality. It opens up new scope
for marketing.
Leonidou and Hultman (2019) points out that this is an activity which can only be
carried out when an organization has reached out to a particular geographical location with
the product or service or idea, ad aim to promote it in the area.
Factors affecting global marketing
The factors that affect global marketing include:
Cultural factors: one of the most essential factors that play a part in global marketing
is that of culture. Kirilenkoet al. (2017) states that the main thing which has to be noted in
this context is that different regions have different languages which they speak and their
different backgrounds make them perceive things differently due to the fact that they have
varying beliefs in them. This could be further explained well by the Hofstede’s model.Alonet
al. (2016) stated that the main thing in which a particular cultural difference could be

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mitigated in the context of marketing is by ensuring that they are identified in the first place
through the application of this theory, for the purpose of successful marketing.
Economic factors: This is the factor in marketing that is ever fluctuating, and is one
of the dynamic factors that influence marketing decisions. As observed by Koutsoupias and
Lazos (2018) Australia has an economic structure, which could be the most undesirable for
an organization to ensure development. Subsequently, this would prove that the marketing
efforts in this country would be highly stunted since foreign investors would not be willing to
invest here due to the economic conditions. According to Mackey and Nayyar (2016), supply
and demand in the economic context may not be in a balance and the main financial
transactions between B2B and B2C may fail, which is why the main thing which has to be
considered in this regard is the fact that this is a factor which could be highly risky in the
context of understanding marketing on a global scale.
Political factors: Political factors are also very dynamic in nature. In the words of
Sassen (2016), laws in a specific nation may vary with time, with different political parties in
the country ruling inn different periods of time. It is for this reason why the main thing which
has to be considered in this regard is the fact that license and other permits also have to be
looked into since they would vary as well. As stated by Li, Hou and Wu (2017) there has to
be enough consideration about how exactly taxes and other payments have to paid to the
government, which is why it is important to note that the main thing which has to be done in
order to market successfully in a country is to ensure that the political factors in the county
are well studied.
Technological factors:
Online trading comes under the influence of several technological factors which
enable it to facilitate mobilisation of money and products. The first technological factor

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which impacts online trading of products is advancement of information and communication
technology. Waseem-Ul-Hameed et al.(2018) opine that advancement in information and
communication technology has boosted the online transactions in the retail sector. This is
because the entire process of online trading takes place on the platform provided by internet.
The customers are able to view products on the official website pages of the companies
marketing the goods and/or on the webpages of ecommerce companies. Retail companies
today in order to gain trust of customers and encourage purchase decisions generally make
detailed information about the products available on the web-based pages. This information
about products and their benefits is made available to customers using advanced software and
hardware technology. Benson, Saridakis and Tennakoon(2015) strengthens this discussion on
the role of technology in online trading from the point of view of the customers. They point
out that customers are able to gain information about products of different retail companies
on applications compatible to tablets and smart phones. Celik (2016) opine that the marketing
of products are dependent to operating systems, which are developed by ICT companies.
Thus, it can be pointed out that the marketing of products are dependent on technological
advancements largely. Apiyo and Kiarie(2018) point out to the next stage where
technological factors play important roles-order processing. They point out that online trading
has made to feasible for more customers to view products and place orders online. This
means that retail companies have to an immense numbers of orders, which they have to
process individually. Mensah, Merkuryev and Longo(2015) strengthen the opinion by
mentioning that advancement in ICT enables the retail chains to process orders. They retail
companies communicate the orders of customers to suppliers on real time basis which
ensures minimum time gap between time of order receipt and delivery of goods to customers.
The companies are able to communicate with their suppliers on real time basis to process
orders received which has emerged into one of the driving factors behind the power of the

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retail chains serving thousands of online orders. Scuotto et al. (2017) opine that retail
companies today hold supply chains spanning across several markets. This means that retail
companies have to communicate with immense numbers of suppliers on regular basis in order
to be able to deliver goods to consumers within shortest possible time. The procurement
managers of the retail companies are able to hold meetings with the suppliers on real time
basis using video conference systems, which again points out the significant role which
technology plays in the business cycle of the retail chains. The second area in which
technology plays a very important role in transferring goods to customers is in the case of
transport and logistics. Wang, Sanchez Rodrigues and Evans(2015) point out that modern
freight carrier vessel are able to carry larger amount of goods. This means that retail chains
are able to transport similar volume of goods using modern freight carriers at lower costs. It
can be pointed out from the discussion that this advancement in transport technology holds
even more significance since online trading enable customers to order goods available in
foreign markets as well. This means that the retail chains have to ensure transport of goods to
overseas customers within shortest possible time, which would not have been feasible
without advancement of transport facilities. The third area in which modern technology holds
immense importance is online transfer of payments. Abulafia and Cohen, Jumio Inc(2016)
point out that online trading requires immense mobilisation of funds between retailers,
customers and suppliers which is not possible on the traditional banking platforms. This need
to process a large number of payments necessitates the use of financial technology or fintech
platforms which are capable of processing large number of payments. The customers are able
to make payments using debit and credit cards, which again would not have been possible
without support of technological advancements. Thus, it can be inferred from the discussion
that technological factors play immense role in online trading.