Exploring the Growth of M-Commerce and its Impact on the Retail Sector

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The Digital Landscape
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Table of Contents
Introduction......................................................................................................................................2
Assignment 1b.................................................................................................................................4
Discussion....................................................................................................................................4
Conclusion.......................................................................................................................................9
Reference List................................................................................................................................10
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Introduction
The introduction of the digital landscape has shaped the technological areas given an upstart to
the growth of the mobile commerce technology. It has become the torchbearer of ease and
accessibility among the customers. The term ‘mobile commerce’ implicates the use of the
capabilities of an electronic service for ease and accessibility in the business transactions. Kevin
Duffey coined it in the year 1997 (Thongpapanl et al., 2018). The essay will elucidate an
understanding in the growth of mobile commerce technology and its role in the sector of
retailing. It will account for an understanding of the factors that are associated with the rise of
the mobile technology network.
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Assignment 1b
Discussion
1. What e-commerce services are provided by m-commerce ?
Mobile commerce (m-commerce) has witnessed a growth in its provision of hand-held devices.
These services are circulated and distributed using mobile, smart phones and tablets. It enables
the users have an access to the online shopping platforms that exist within the mobile shopping
application and experience (Blaise et al., 2018). The integration of the electronic commerce (e-
commerce) and the mobile commerce (m-commerce) are done through the utilization of the
shopping activities, which are done using mobile devices and smart phones.
It is also known as Mobile E-Commerce, which states that online sales with the use of hand held
device, to make purchases. 69% of individuals that make the utilization of the smart phones, with
an increase in its facilities. The growth and the rise of the mobile technology have given an
account of the electronic devices that are used by the individuals. The main e-commerce services
that are provided by the m-commerce are mobile related applications, ease and accessibility to
for making augmented reality experience. It is an important part of the growth in the
technology, which is useful for the marketing and retailing giants that have also incorporated
solution providers for the growth of services that are a part of their business.
The integration of the mobile commerce technology has brought in effective mobile technology
practices, which is useful for the comprehension of the business and the retail technology. The e-
commerce activities, which are rendered to the individuals, has not only increased the ease and
luxury for the customers but have been useful for comprehending the business of m-commerce
which is up and still growing amongst the huge masses (Souiden et al .,2018).
2. Discuss the role of m-commerce in retailing.
M-commerce has enhanced popularity amongst the consumers and has enabled an easy and
accessible mobile point and so on for the individuals. 384 mobile phones that were sold in the
year 2018. This gave an account for 84 percent mobile being sold for the understanding of the
factors that were related to the online shopping activities, which were useful for the individuals.
M-commerce has also been developed and enhanced by the introduction of social media, that has
taken up the job role of retailing. This has given an account on the important elementary factors
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that brings in growth amongst the retail sector market, which is important for the understanding
of the supermarket (Cbreus, 2019). It has given an upward rise to the bricks, mortar stores, and
high street shops that are into retailing. The growth of the m-commerce has become central to the
consumer buying behavior, which has influenced the companies to boost and initiate profits.
Therefore, the retail markets have been evolving and a number of other retailers like Amazon
have adopted the innovative use of the growing technology. With the evolution of the m-
commerce technology, there has been a subsequent rise in one-third of the use of e-commerce
transactions using the mobile commerce, which has influenced the individuals to make online
purchases. The retailing sales have seen a subsequent rise of 276 percent of m-commerce sales
for the growth of the business. The growth in the m-commerce sales accounted for purchases that
were made via smart phones.
The mobile operators have brought in flexible end-to-end business proposition, it has given the
retail companies to structure and make the use of mobile –e wallets that were useful for the
understanding of the business retail sector (Gsma.com, 2019). Therefore, the retail sector
businesses have played a pivotal role in the comprehension of the toolkits and wallets, which are
useful for the growth of the retail sector industry.
3. Why is m-commerce such a fragmented market?
The evolution of the m-commerce marketing has brought in improvements in the commerce and
customer journey. It has shifted the consumer perception and influenced their customer and
buying behavior for the individuals. It is very useful for the comprehension and the
accountability of the company to compete with no other companies in the possession of power. A
fragmented marketplace is characterized by a growth of companies that compete with each other
and there are no small markets that are useful for the industry. The m-commerce company is a
power upon itself and does not exert any power through other small companies that are in power
with each other.
Therefore, the mobile commerce technology has been useful for users that have heavily
depended upon the use of Android and Apple. Fragmentation of the m-commerce market can be
witnessed between the growths of the Android users that have grown from 1.2 users actively
within the years. M-commerce does take into account the use of the use of technological aids
such as Google and the options by Apple. There has been the fragmentation of the market, which
also shows that there are signs of plurality between the mobile payment providers (Golden et al.,
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2013). It is accountable and useful, as there have been the increase in better service payment and
increase in the values of the customers. The differences in the transaction fees are also improved
with the customers that are given accountability for consumers that are reliable for the
improvement in the retail industries. Consumers are reliant on the use of the mobile technology
for the ease in their payments using the internet channels, mobile accessed websites and so on
(Ecommercewiki.org, 2019).
4. Why do retailers spend their IT budget on m-commerce?
The retailers spend most of their IT budget on making the m-commerce a reality for the
customers that are part of the business. It improves on the needs and demands of the impatient
customers that demand the use of the sites in a free and flexible manner. With the growth of
mobile accessible shops in the high streets of UK, the presence of online shopping has faced a
considerable growth in its business. There is 43% money invested for the growth of the physical
stores, while investments in online commerce accounts for half the investment. The IT budget
makes the utilization of around 57% sales growing in accordance to the pan-force European
Survey (Koster et al., 2016). There are 59% North Americans that make the implicit use of smart
phones and there 7 billion across the globe that make the use of smart phone (MasterCard Social
Newsroom, 2019). The IT spends a huge budget behind the creation of mobile phones, which
would boost customer perception on the understanding of the shopping experience.
5. Discuss the impact of m-commerce on competition among retailers
The high street shops and other retail sector businesses have improved on their provision of
efficient access. The m-commerce has taken over the retail sector by the introduction of profits
and sales for the growth of the business. M-commerce has revolutionized stores to act by intents
for the understanding of the consumer behaviorism within the spheres of the market. It has
reduced the care of the consumers for making the use of cash or debit cards while initiating on an
online trading process (YouTube, 2019).
The m-commerce and their technological advancements have given an upper hand to the retailers
that are a part of business and are on the lookout for having an upper hand over their
competitors. The consumers are able to procure to the major sites during any time of the day
while making decisions on the area of customer support, relationship building transaction
activities and so on. The different sectors of the retail market are being able to make the increase
customer interaction using mobile technology. Retailers such as Amazon, Flipkart exhibit the
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quality and the sales of the products, which have brought in better growth of sales in the
business. It has also given a calculative lookout, and given a competitive approach to the
markets (Jahanshahi, 2011).
Retailers have faced a tough competition with the other business giants, as merchandise and
technology, which are produced by other companies, have increased considerably. This has also
enhanced and given a better lookout of in-store customer experience for the individuals. M-
commerce has also opened the portals for multichannel marketing efforts and brought in the use
of Omni-channel retailing (YouTube, 2019). It has given considerable access to the consumers
for the use of coupons, push notifications and so forth enhancing their outlook on the retail store.
The retailers in France, US, Germany have been facing the either to collaborate with technology
or face a total loss of customers. The applications, such as Shopkick provides the consumers with
the use of reward coupon for checking into stores of Macy’s Best Buy and so on. Therefore, m-
commerce would take over the retail market in the upcoming years.
6. What are the difficulties in managing mobile technology?
The technological advancements have rapidly permeated among on a worldwide scale but are
still subjected to the use of difficulties. These difficulties range from privacy issues, security,
crashing of websites and so on (Kumari, 2019). Mobile technology has become the reality of
today, but has also resulted in the disadvantages of the user credibility and disadvantages and so
on. It is also resource poor and unable to render to the static elements. The management of
mobile technology is highly hazardous to connectivity and the improvements in the performance
of the device. Some of the retailers provide with the use of high-bandwidth connectivity while
others suffer from low-bandwidth connectivity. Mobile technologies tend to crash and not
provide enough finite energy elements, which are seen in the case of Samsung tablets. This can
make the customer unsatisfied with the daunting effects of the business. There are problems of
disconnection, central services and so on, which can affect the productivity and the management
of the business. These can affect the business base and impact on the productivity and the
performance of the business.
7. What is the future for m-commerce?
The growth of m-commerce is the future for the twentieth century citizens as it has been rapidly
evolving in a better manner. There are shoppers now, which have made the use of the
technological devices to render to the technological needs of the business. Most of the shoppers
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make the use of the technology for convenience (63%), discounts and coupons (52%) price
comparison (48%) and unavailability of in-store products (YouTube, 2019). The consumers have
embraced technology and are making the use of tablets and smart phones at homes for easy
accessibility. Mobile technology has been effective in making the utilization of geological
services, taking pictures, reading reviews and so on. In a span of 2 years, it can be perceived that
the 7 billion individuals make the use of smart-phones. This ensures that the m-commerce is the
reality and the future for the upcoming generation. There had been an increase in mobile
payments in the year 2012, and contributed for a successful implementation of the business,
which is important for the customers.
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Conclusion
The essay has given an account of the future application of the mobile technology networks that
have brought in easy access and transfers for the customers. M-commerce has given tough
competition to the individuals, which are part of the retail sector giant. This is useful, as it brings
along the utilization consumer understanding, which is useful for the business. It also accounts
for the understanding of the profits and the monthly services, which are given the ease and
access to the websites. It has further improved the accessibility of the companies and improved
the perception and the accessibility of the business.
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Reference List
Blaise, R., Halloran, M. and Muchnick, M., 2018. Mobile commerce competitive advantage: A
quantitative study of variables that predict m-commerce purchase intentions. Journal of Internet
Commerce, 17(2), pp.96-114.
CBREUS. (2019). What is the Role of M-commerce in Retail Sales?. [online] Available at:
http://www.cbre.us/real-estate-services/real-estate-industries/omnichannel/the-definitive-guide-
to-omnichannel-real-estate/by-the-numbers/what-is-the-role-of-m-commerce-in-retail-sales
[Accessed 9 Jul. 2019].
Ecommercewiki.org. (2019). Fragmented M-Commerce. [online] Available at:
https://www.ecommercewiki.org/reports/245/fragmented-m-commerce [Accessed 9 Jul. 2019].
Golden, S.A.R. and Regi, S.B., 2013. Mobile commerce in modern business era. International
Journal of Current Research and Academic Review, 1(4), pp.96-102.
Gsma.com. (2019). [online] Available at:
https://www.gsma.com/digitalcommerce/wp-content/uploads/2013/08/GSMA-Mobile-
Commerce-in-Retail-White-Paper-V2.pdf [Accessed 9 Jul. 2019].
Jahanshahi, A.A., Mirzaie, A. and Asadollahi, A., 2011. Mobile commerce beyond electronic
commerce: Issue and challenges. Asian Journal of Business and Management Sciences, 1(2),
pp.119-129.
Köster, A., Matt, C. and Hess, T., 2016. Carefully choose your (payment) partner: How payment
provider reputation influences m-commerce transactions. Electronic Commerce Research and
Applications, 15, pp.26-37.
Kumari, K.B., 2014. Challenging Issues and Limitations of Mobile Computing. Compusoft, 3(2),
p.554.
MasterCard Social Newsroom. (2019). M-commerce now accounts for one quarter of spending.
[online] Available at: https://newsroom.mastercard.com/eu/press-releases/m-commerce-now-
accounts-for-one-quarter-of-spending/ [Accessed 9 Jul. 2019].
Souiden, N., Ladhari, R. and Chiadmi, N.E., 2018. New trends in retailing and services.
Thongpapanl, N., Ashraf, A.R., Lapa, L. and Venkatesh, V., 2018. Differential Effects of
Customers’ Regulatory Fit on Trust, Perceived Value, and M-Commerce Use among Developing
and Developed Countries. Journal of International Marketing, 26(3), pp.22-44.
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YouTube. (2019). How Mobile commerce is changing the shopping experience. [online]
Available at: https://www.youtube.com/watch?v=Q6HXOXZcCZg [Accessed 9 Jul. 2019].
YouTube. (2019). Mobile Commerce. [online] Available at: https://www.youtube.com/watch?
v=Fdt5rRgimao [Accessed 9 Jul. 2019].
YouTube. (2019). The Future is mCommerce. [online] Available at:
https://www.youtube.com/watch?v=k2w0yQUcypU [Accessed 9 Jul. 2019].
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