E-commerce Analysis: Opportunities and Challenges for Myer Stores

This project provides a comprehensive analysis of the e-commerce operations of Myer Stores, a major Australian retailer. It explores the evolution of e-commerce, defining its core concepts and highlighting its importance in modern business, including the shift from traditional physical stores to online platforms. The project identifies key opportunities for Myer Stores, such as increased market reach, cost savings, and enhanced customer convenience. Simultaneously, it addresses the challenges faced, including lack of trust, the need for physical product guides, and system management issues. The research employs qualitative and quantitative methodologies, including questionnaires and interviews, to gather data on these aspects. The project also covers current trends in global e-commerce, including the rise of mobile apps and increasing online spending. Finally, the project concludes by discussing solutions to mitigate the identified challenges and proposes strategies for Myer Stores to adapt and thrive in the evolving e-commerce landscape, emphasizing technological advancements and diversification.

Elucidating the opportunities and
challenges of electronic commerce, a
case study of Myer Stores
Introduction
E-commerce (electronic commerce) business came to being back in the year 1960. It can be
defined as the process of buying and selling goods and services through internet connected
Medias such as smartphones, tablets, laptops and desktop computers (Rowe, Truex and Huynh,
2012). Development of technology and having the technological devices and information
systems easily accessible around the world have made e-commerce business a choice. The
scramble by companies to increase their market coverage have led to the increased number of
companies that join the e-commerce in the world. Since its emergence, its popularity keeps
increasing day by day among business operators (Mata and Quesada, 2014). The e-commerce
business have emerged with several opportunities such as time saving for both sides, cost
effectiveness and many more (Wanyoike, Mukulu, and Waititu, 2012). As well, it is full of
challenges just like the physical business such as lack of trustworthiness by the customers and
the need of after sales services. The opportunities and challenges of electronic commerce will be
looked at by considering the e-commerce operations of Myer stores.
Project objective
Primary objective
This proposal is aimed at explaining the importance of challenges of electronic commerce by
taking a case study of Myer stores. Being that Myer stores is the largest e-commerce operator in
Australia, investigating the opportunities and challenges experienced in e-commerce business
will be exhausted by considering this e-commerce operators.
Secondary objective
1. To determine the opportunities of e-commerce (electronic commerce) business, a case
study of Myer stores.
2. To determine the challenges of e-commerce (electronic commerce) business, a case study
of Myer stores.

Project scope
Gained popularity by e-commerce business have made the population attracted to it grow thus
having some positive effects such as lowering the prices and having a wide market coverage. E-
commerce business have become one of the economic contributors in the Australian economy
pumping almost $32 billion and annual increment of 13.5%. Its market competitiveness and
scramble by the businesses to join the business, have made the focus divert from the traditional
methods of transacting business. This has resulted to near abandonment of business traditional
method where physical contact between parties is involved.
Literature review
Concept of electronic commerce in business
E-commerce is a business method that focuses on virtual transaction. Transactions are conducted
through emails, file transfer protocol, shopping carts, online businesses etc. (Yoon, 2009).
Apparently, marketing through social media is used by companies to directly invite customers to
buy their products. Major parties in the e-commerce business are linked through electronic
devices with no physical contacts (Turban, et al., 2017). Electronic commerce operates under
four key market segments including business to business, business to customer, customer to
business and finally, customer to customer. Mail-orders and catalogues are used in the
purchasing process in electronic business. Credit goes to technology advancement that have
made all the online activities easy such as the internet banking, online transaction processing etc.
(Turban, et al., 2015). World Wide Web is used by the contemporary electronic commerce unlike
e-commerce where much technology is applied such as the e-mails and social media marketing.
E-commerce came to being in 1960s through value added networks and electronic data
interchange (Savrul, et al., 2014). Goods are bought and sold through the internet in e-commerce
business. World’s changing market provides greatest opportunity for the development of the
business. To bring contact between parties involved, telephones, credit cards, fax machines etc.
are used in the transaction process.
Importance of e-commerce in business
Due to nature of e-commerce, purchasing and vending of products is conducted through internet
in business platform. World’s business activities are shifting from physical contact business to
online business (Chen, Yen, Pornpriphet and Widjaja, 2015). E-commerce encourages the
development of 24 hour economy since it can be done anywhere anytime by using smartphones,

tablets or computer (Colla, and Lapoule, 2012). The devices have to be connected to the internet
using their choice of broadband networks. E-commerce websites are used by business
organizations to give their products’ descriptions for easy access by their customers. Business
organizations are moving for online stores for sale of their products (Patil and Divekar, 2014).
Range of products are ostentated which can then be easily accessed by the retailers which then
expands sales of products. Online purchase in the US is estimated at 60% (Ha, Oh, and Jo, 2015).
This tremendous increase is as a result of online user friendly interface. Marketing of gods is
easy sine it is done online through social media. Order placement, procurement, payment process
and all other transactions like after sales service are easy and online in e-commerce business
(Yoo, Sanders and Moon, 2013). E-commerce business activities are fast, time saving and cost
effective to both parties involved.
Opportunities for E-commerce of Myer stores
Customers at their own leisure time can be able to compare prices across different businesses
selling the same products through e-commerce since things happen at the touch of button.
Variety of goods are made available in the e-commerce business at affordable prices thus saving
time to the customers (Strauss and Frost, 2016). E-commerce can be considered in two parts i.e.
E-merchandize and E-finance. Modern communication instruments such as e-payments,
telephones, emails etc. are used in e-commerce business (Ahmad, Abu-Bakar, Faziharudean, and
Mohamad Zaki, 2015). This have seen the level of competition in the modern world to increase.
A large number of business organizations are joining the e-commerce business daily. With the
help of search engines, businesses in the e-commerce are capable of attracting new customers in
their daily operations (Gangeshwer, 2013). Due to the user friendliness of e-commerce business,
customers easily adopt with it (Chiu, Wang, Fang and Huang, 2014). Myer Stores are having a
wider market coverage both locally and internationally due to their venture into e-commerce
business. The cost of inventory management is reduced by e-commerce business since the
inventory management can be automated through web based management systems. Also, e-
commerce saves cost since it does not require opening of branches in different locations but just
load goods on e-commerce website that is accessible to all customers (Chen, Chiang, and Storey,
2012).

Challenges of electronic commerce of Myer stores
Main products of Myer Stores are menswear, beauty, children wear, women’s wear etc. that are
displayed in the e-commerce website accessible by the customers around the globe thus covering
the global market. Apart from the benefits enjoyed by Myer Stores in operating e-commerce
business, it is as well facing some challenges such as losing the customers that do not have
access to the internet despite the widespread of smartphones. Use of some goods require physical
personal guide which e-commerce lack and this can result to loss of customers at the end (Spieth,
Schneckenberg and Ricart, 2014). Lack of trustworthiness, lack of verification measures, lack of
product return in case they are faulty and lack of integration are some additional challenges of e-
commerce business (Veit et al., 2014). Expectation of the customers go unnoticed since after the
customers’ registration on the portal, they do not have the business operators’ follow up. Such
cases put creditability of the customers in question. System management such as order tracking
system is the key challenge faced by the e-commerce business operators such as Meyer stores
(Veit et al., 2014).
Solution of recovering the challenges of E-commerce in Myer Stores
Assimilation of customer with several systems harmonization making them available across
every system and showing single edge is one of the solution that is adopted by Meyer stores in
their e-commerce business operation (Zhang, Bian and Zhu, 2013). Proper management return
with flawless interaction platform can have the costs minimized in conjunction with vendor and
logistic partners. Assuring the customers of providing solution to their experience solutions by
monitoring all the customers’ interactions (Niranjanamurthy and Chahar, 2013). Most of the e-
commerce challenges are supposed to be overcome by e-commerce business operators by
adopting changes in technology. The benefit and cost of incorporating new technology is
supposed to be evaluated by the e-commerce business managers. The business is to widen their
scope and not only depend local possibilities which might expose the business to impulse of
local economies (Zhang, Bian and Zhu, 2013). Diversification of organizations’ objectives are
some of the solutions to building robust ecosystem. Making e-commerce accessible to the
customers through internet on their smartphones, tablets and desktops to manage competition
and widen market.

Current trends of E-commerce in global market
Expenditures on e-commerce have increased to $2.1 trillion in the recent past and is expected to
rise to $5 trillion by 2020 (Chong, Chan and Ooi, 2012). The increase in customer demand will
be easily taken care of in the future through e-commerce. Online search is fundamental in e-
commerce since it enables the regular shoppers to view the features of products before purchase
(Chong, Chan and Ooi, 2012). Increase in the number of mobile phone use have led the e-
commerce operators to develop mobile apps that will enable their customers to easily access their
products from their phones.
Research questions
This research project will guided with the primary question that states; what are the opportunities
and the challenges of electronic commerce? Responses to this question will be in consideration
to Myer as the case study.
Secondary questions
1. What are the opportunities of the e-commerce (electronic commerce) business in
Australia, a case of Myer stores?
2. What are the challenges of e-commerce business in Australia, a case study of Myer
stores?

Research design and Methodology
Qualitative research
Key steps are;
1. Identifying the research problem
2. Review the literature
3. Specification of the purpose
4. Data collection
5. Analysis and interpretation of data
6. Report the results
Sampling is the process of extracting a sample of a given sample size out of a population
(Uprichard, 2013). Data will be collected by using the self-monitored questionnaires and
interviews of some of the staff management and staff members in Myer stores. A sample size of
50 participants will be used out of which variables concerning the opportunities and challenges
of the e-commerce business will be achieved.
Quantitative research
Just like in qualitative research, the key steps in quantitative research are;
1. Identifying the research problems first
2. Carrying out the review of literature
3. Specification of the purpose
4. Collecting data
5. Analysis and interpretation of data
6. Reporting the results
The research instruments that will be used in the collection of data will be the questionnaires and
interviews. Questionnaires are chosen for their ability to provide privacy to the respondents and
interviews for their ability to result to detailed data. The structure of the questions that will be
used in the questionnaires and the interviews will be both closed and open ended. The sample
size will be as mentioned above. In test for reliability and validity of the instruments, Cronbach’s
alpha analysis will be used.

Data analysis
In the analysis of data, frequency, descriptive and thematic analysis will be used in the analysis
of the collected data. With the help of statistical packages such as excel, SPSS, Stata, R, RStudio,
etc. will be used to represent the data on tables and graphs for true depiction and easy
interpretations.
Research limitations
In this research proposal, the research will be mainly concerned with the evaluation of
opportunities and challenges of electronic commerce in Australia taking a case study of Myer
stores. On the same, this research does not discuss about the full roles of the e-commerce
business in the growth of Australian economy. As well, this research did not explain how jobs
will be created in case the e-commerce business completely takes over the business transaction
all over the world.
Conclusion
In conclusion, e-commerce have been estimated to have an annual growth of 13.5%. In order to
meet the objectives of this proposal, the literature have given the reviews of the possible
challenges and opportunities that will be enjoyed by in the operation of e-commerce business in
the country. Companies and business organizations have been scrambling for the venture into e-
commerce business. Technology advancement is playing a big role in the spread and expansion
of e-commerce business thus making it accessible to the customers through widespread of
smartphones and tablets.

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Appendix
Key terms
E-commerce business, internet, social media, technology and global market