Report on the Impact of M-Commerce on Retail and Business Growth

This report provides a comprehensive overview of mobile commerce (m-commerce), detailing its e-commerce services such as financial services, telecommunications, and retail. It examines the role of e-commerce in the retail sector, including how businesses like Tesco Plc develop an online presence, attract customers, and manage operational costs. The report discusses the fragmented market nature of m-commerce, how retailers allocate their IT budgets, and the impact of m-commerce on competition. It also addresses the difficulties in managing mobile technology and concludes with an analysis of the future prospects for m-commerce, highlighting its potential for growth and business expansion. The report covers the benefits and challenges associated with m-commerce for both businesses and consumers.

Mobile Commerce

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
1. Explain the e-commerce services which provided by the m-commerce.................................1
2. Role of E-commerce in the retailing........................................................................................2
3. M-commerce such as fragmented market................................................................................2
4. Retailers spend much of their IT budget on m-commerce......................................................3
5. Impact of m-commerce on competition among retailers.........................................................4
6. Difficulties in managing mobile technology...........................................................................4
7. Future for m-commerce...........................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Mobile commerce is the online platform of buying & selling of goods and various
services with the help of wireless connection such as internet. Mobile commerce include the
various hand sets such as smartphones and tablets. Without e-commerce, M-commerces are
enable to complete their task such as online shopping. It help in including the most affective
industry such as: Financial, telecommunication, service & retail, information services etc. This
report include the various topics such as what is e-commerce, discuss the role of m-commerce
in the retail company. In addition, how retailers spend their IT budget on m-commerce and other
difficulties which affect the organization as well as competitive advantage. Along with this, it
includes the future of m-commerce.
MAIN BODY
1. Explain the e-commerce services which provided by the m-commerce
There are various e-commerce activities or functions provided through m-commerce
which help the organization in order to increase their sales and demand of product which
automatically increase the profit margin and it is discussed below:
 Financial services: Mobile commerce includes the banking as well as other services
which help the individual as well as organization to maintain their finance through
mobile applications (Eastin and et. al., 2016). All the activities and services displayed on
the handheld device. Transfer of funds through mobile applications help the individual
makes their daily life easy and comfortable.
 Telecommunication: It is the service which is used on regular basis such as pay bills,
review their accounts and other services that is handle on the same device. Along with
this, electronic ticket and booking affect the business.
 Service & retailer: This e-commerce services provide the online booking and payment
which help the individual to make their task more easy. For example: booking of
restaurant and other online services.
 Information services: It includes the financial information which further helps in
increasing their knowledge regarding sports, news, traffic updates etc. in the single
phone.
1

2. Role of E-commerce in the retailing
It includes the various role & responsibility of e-commerce in the retail sector such as
Tesco Plc which is Retail Company and they play various roles in order to increase the
productivity or profitability some of it dissected below:
Develop online presence: According to a research, more than 80% people purchase
online which is beneficial for the organization. It will saves customer's time and their efforts to
visit the store. Manager of Tesco have to maintain their websites in order to provide the
availability of products.
Attract new customer: With the help of E-commerce, business attract new or retail
existing customers. They are doing online or social media marketing to promote their products
which help the business to increase (Hillman and Neustaedter, 2017).
Reduce operational cost: It is possible for the organisations such as Tesco Ltd to make
reduction in the operational costs of the company as like the other types of promotional
activities, the use of e commerce will be very easy for not only to make the promotion of the
business but also to provide the customers with the products that they want.
Brand awareness: E Commerce also helps the companies to make increment in the reach
to the customers of different areas and sometimes outside the boundary of the country also. It
helps in removing the barriers of physical existence for the companies. It will create good image
of the company also at that places where the company is not known and have no existence. In
this sense it is said that the e commerce helps in increasing the brand awareness of the company.
3. M-commerce such as fragmented market
Fragmented Market can be defined as the market in which the markets are diverse and with
the passing of time these markets breaks into many diverse markets of different customer
segments. Basically, the main concern behind E Commerce is related to the diverse market and
market conditions where the customer has different choices of products and services. In addition
to this, they are not restricted to the information about getting the information about any single
product in the market but in the current times almost most of the companies are having their own
physical as well as online existence such as the official website of the company where the
company receives orders from the customers from different places and also provide them with
the materials that they want from the company for the fulfilment of their needs and demands.
2

Like other companies, Tesco Ltd can also makes its online existence with the help of
which it can create and make existence of new markets for the sale of their products and services.
This will help the company to get and attract new customers which will help in the increment in
the sales, profit and revenue of the company and also for the customers also it will beneficial as
the customers will have new products to fulfil their needs and demands which the products and
services of existing companies are not capable of to do so (Laudon and Traver, 2016).
The main benefit of M Commerce as the fragmented market is related to the acquisition
of new products and services of which the other people has not listened about. It makes the other
people curious about the new products and services in case they prove to be of good quality and
of affordable prices for the customers. This will make the other potential customers of the
company to have benefit out of the products and services of Tesco Ltd. As this will be a new
experience for both the company and customers as they both will explore a new market and new
products for the satisfaction of each other’s needs and demands.
4. Retailers spend much of their IT budget on m-commerce
Retailers make their business operations at small or medium scales and M Commerce is the
best medium to make an increment in the sources of their incomes and revenues. While operating
their business through a small shop or retail outlet it will not be possible for them to increase
their customer base but with the help of M Commerce, it will be possible for the retailers to
make increment in the number of customers of the retailers as they will make online transactions
with the help of which the customers will be able to avail the services and products of the
company or the retailers.
So this is the best way which could help the retailers to increase their customer base with
the help of only one retail outlet or store. The retailer with the help of M Commerce, it will be
possible for the retailers to provide the customers with the products and services and also about
the specification of their products and services, their features, pictures and many more
information about the product and service. In addition to this, the retailers also provide their
contact numbers and e mail id where the customers can put their questions and queries in front of
the retailer and also could have knowledge and information about the products and services in
order to make the purchase transaction complete with the customers.
3

5. Impact of m-commerce on competition among retailers
Looking upon the competition of today’s world, it is becoming very intense and complex
with the passing of time. It is because of the increase in the number of substitutes of the products
and services prevailing in the market that has led to substantial increase in the competition
among not only in the retailers but also in between the companies as well (Lee and Rha, 2016).
M Commerce has impacted in both the ways to the retailers as well as for the customers. It has
impacted positively because of the improvement in the quality and quantity of the products and
services.
Earlier due to low competition in the market, the preferences of the customer were not
considered much. The company make those products which they could sell not those which the
customers want to buy. But in the today’s world the companies are making and the retailers are
making sales of those products which the customers prefer to buy. But now the condition has
been changed. Customers are the king of market and those products are made which are made for
the satisfaction of the customers and also satisfies the needs and demands of the customers. So
this distinction has made an increment in the competition in between the retailers as they want to
capture as much as possible the share of the market. This will help in creating good brand image
and awareness of the products and services of the company. With the help of good brand image
and good quality of products and services of the company, it will be possible for the retailers to
make and increase the number of customers of the company which will help in the growth and
development of the organisation, due to this reason, M Commerce has impacted highly on the
growth of competition in the marketplace.
6. Difficulties in managing mobile technology
It is not easy for the retailers to make proper management of the mobile technology. There are
many difficulties and problems which are faced by them for making proper management of their
mobile applications so that they could work in the right way and will be able to fulfil the needs
and demands of customers being in time (Hew, 2017). There are many problems which are faced
by the retailers in managing their mobile technology such as sometimes there creates some
situations of server down which impacts upon the working of application in slow connection or
in any other sense. This impacts negatively and eradicates the positive impact and image of the
retailer in the mindset of customers which could impact negatively on the sales and profit of the
company (Lee and Wong, 2016)
4

. There are also some instances of update and other related things which avoid the
customers from making use of services for a specific period of time which creates negative
experience for them. In case they are not updated within the specified time period, the
applications will stop working (Rose and et. al., 2017). Moreover, the problem is also related to
the cost which is incurred by the company or the retailer in making proper management of the
mobile technology for its smooth working and providing the customers with the best experience
possible. This maintenance cost increases the operating cost of the business for the retailers and
makes the retailers to make an increment in the prices of products and services of the company.
7. Future for m-commerce
The future of Mobile Commerce is bright as the now the customer have almost left their visits to
the official stores and shops for making their purchases. The customers do not have much time
and some contribution is also of the new facilities provided by the companies which make the
customer lazy to make their choices by experiencing the products. But now the trend has
changed as the customer preference in relation to making online purchases will increase with the
passing of time. So the availability of opportunities is not only for the customers but also for the
retailers as well. In future, it can also be possible that the retailer could provide the customers
with many more additional services that could help them in the growth and development of their
business. It will prove to be a good source for the business expansion for most of the type of the
businesses in the market (Yadav, Sharma and Tarhini, 2016). It will also lead to increase in the
competition among the different businesses carried over in the market and make the choices for
the customers more complex and variable. So the future of mobile commerce will provide many
opportunities and threats for both the customers as well as for the retailers.
CONCLUSION
From the above assignment, it has been made clear that mobile commerce is a developing
technology in the today’s fast changing world. In addition to this, it also provides the customer
with various grounds to make improvement in their purchases of different products and services.
Moreover, the conclusion has been drawn about the various problems which are faced by the
retailers in making use of these services. Lastly, it is also concluded that in future there will be
many opportunities and threats which could be faced by the customers at the time of making use
of mobile commerce.
5

REFERENCES
Books and Journals
Yadav, R., Sharma, S.K. and Tarhini, A., 2016. A multi-analytical approach to understand and
predict the mobile commerce adoption. Journal of enterprise information management, 29(2),
pp.222-237.
Eastin, M.S., Brinson, N.H., Doorey, A. and Wilcox, G., 2016. Living in a big data world:
Predicting mobile commerce activity through privacy concerns. Computers in Human
Behavior, 58, pp.214-220.
Lee, W.O. and Wong, L.S., 2016. Determinants of mobile commerce customer loyalty in
Malaysia. Procedia-Social and Behavioral Sciences, 224, pp.60-67.
Laudon, K.C. and Traver, C.G., 2016. E-commerce: business, technology, society.
Hillman, S. and Neustaedter, C., 2017. Trust and mobile commerce in North
America. Computers in Human Behavior, 70, pp.10-21.
Lee, J.M. and Rha, J.Y., 2016. Personalization–privacy paradox and consumer conflict with the
use of location-based mobile commerce. Computers in Human Behavior, 63, pp.453-462.
Hew, J.J., 2017. Hall of fame for mobile commerce and its applications: A bibliometric
evaluation of a decade and a half (2000–2015). Telematics and Informatics, 34(1), pp.43-66.
Rose, G.G., Lauer, C.B. and Waltman, J.T., Qualcomm Inc, 2017. Mobile commerce
authentication and authorization systems. U.S. Patent 9,734,495.
Marinkovic, V. and Kalinic, Z., 2017. Antecedents of customer satisfaction in mobile commerce:
Exploring the moderating effect of customization. Online Information Review, 41(2), pp.138-
154.
Amit, J.H.A.S., Siddiqui, A., Jiang, L., Dai NGUYEN, V. and Konecny, M., LUCOVA INC.,
2016. Systems and methods for facilitating mobile commerce interactions between customers and
merchants. U.S. Patent Application 15/022,884.
6