A Comprehensive Report: Online Shopping Impact on Business Development

This report delves into the impact of online shopping on business development, consumer behavior, and the retail industry. It examines the rise of online shopping, its advantages, and disadvantages, referencing companies like John Lewis and Kingfisher. The analysis includes the use of information technology, its influence on business strategies, and its effects on consumer buying behavior, including preferences of different age groups. The report also explores the challenges, such as cybercrime and tax avoidance, and the strategies employed by businesses to adapt to the digital landscape. Data from tables are interpreted to highlight the effects of online shopping on turnover, profit margins, and customer behavior. The conclusion emphasizes the need for structural changes in organizations to adapt to the digital age and enhance sales and profitability.

Researching and Analysing data

Table of Contents
INTRODUCTION...........................................................................................................................1
Main Body ......................................................................................................................................1
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Research refers to the systematic procedure of collecting data. It is the detailed study
related to the specific problem. The objective of the research is to enhance knowledge and find
effective as we;ll as suitable solution to particular issues. In organisation research is the
significant tool that help firm in analysing the need and demand of customer in market.
Data analysis is the procedure of consistently applying statistical or logical method in
order to define and demonstrate the effectiveness of information. It is the very important
procedure to be conducted in order to ensure integrity and accuracy of data.
The purpose of the report is to demonstrate the effective and efficient utilisation of
Information technology. It will also highlight the abilities and capabilities requires for collecting
and managing data. The project will include the argument related to the consumer buying
behaviour and impact of online shopping on organisation.
Main Body
Online shopping and High Street.
Shopping of the goods' as well as services over the internet has gained popularity in
present scenario as people find it a s convenient and easy to buy product. On line shopping is
referred to as type of Electronic commerce that enables customers to purchase product and
services by making use of internet through a virtual store.
Retailing is defined as the procedure of selling services as well as product to customers
through making use of multiple distribution channel.
There are many big companies like John Lewis that has adopted online technology just
for attracting customer. Information technology has provided firm an opportunity to develop
broad network and reach wide range of customers just by one click. The organisation by use of
information technology has created a network of thousands shops worldwide. Business entity has
able to provide its product and services to people worldwide. Recently John Lewis company has
introduced collect scheme that has provided customers an opportunity to pick and return goods
that has been purchased by them through online shopping. This activity has provided enterprise a
chance to gain customer loyalty and maintain healthy relationship with customers.
The manager of John Lewis company has stated that the purpose of developing scheme is
to make shopping easier for customers and provide client with good quality services at
reasonable price. Research reports states that there are many people who prefer to buy goods
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online rather than high street shopping. From the researcher, it has been identified that convince
of shopping is the major factors that influence consumer to buy product or services of particular
brand.
It has been analysed from the research that click and collect schemes that has been
introduced by manager in John lewis organisation has supported business unit trio increase its
sales and profits. Due to this activity the enterprise has able to achieve its target of increasing its
online sale by approx. 34.5 percent. The manager in John lewis company expected that the
particular schemes and facility provided by firm will attract more number of customers and will
encourage existing client to make frequent purchase of branded goods and services. The user of
information technology for promoting goods and services as well as providing quality as well as
services to customer has allowed business unit to increase its sales (John Lewis to extend online
shopping empire via thousands of corner stores,2013)
Besides the advantages or benefits of online shopping as it has given rise to the cyber and
other crime such as credit card fraud. It has become easier for the criminal to target telephone
and internet shopping. It has been identified that many of the customer believe that they do not
prefer to buy online products' ans services because it does not ensure the safety of private
information. While some organisation like John Lewis are more concern about the increase in
use of online platform for selling goods. As such it has increase the competition in the market.
This factor also has great effect on the firm sales as well as profitability. Increasing in use of
digital technology also has great influence on enterprise strategies, plan, policies and other
significant decisions. The report of interactive media in retail group indicates that some of the
companies that manufacture electronic products are influencing the prices of goods by adopting
strategies. Such business entity has forced other traders to rise the price of their goods. Many
organisations are facing difficulty in maintaining the prices of their goods.
Questions Yes No
Is there any impact of online
shopping on average turnover
of firm?
30 20
Does online shopping have
effect on profit margin?
45 5
2

Does discounts are asked by
customers before buying
products or services?
40 10
Organisation keeps more
variety of stock for attracting
customer?
35 15
Does business entity provide
after sales services to client?
45 5
Whether the technology is
used by firm for advertising its
brand.
30 20
Does business unit provide
additional facilities to its
customers?
40 10
Whether the rise in widow
shopping has been analysed?
35 15
Interpretation of the table:
The tables indicate that increase in online shopping has great effect on the turnover of the
companies. Most of the retailer has agreed that use of digital technology for online shopping has
great impact on the profitability of organisation. The various schemes, discounts, offers has been
designed by manager in order to attract customer to buy particular brand. The many of the
business unity has planned to maintain stock of variety of goods in order to encourage existing
customer to make most frequent purchases. It has been analysed from the above collected data
that many of the organisation like Kingfisher and John Lewis are opting for quality, quick as
well as effective services to clients in order to gain their loyalty. The enterprise are now involved
in advertisement campaign for increasing its sales and profitability (Foroudi, Foroudi and Duda,
2017)
Every company has different purpose to implement information technology at workplace.
Objective of Kingfisher firm for implementing information or digital technology in business is to
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reduce the tax burden. The organisation like kingfisher has to face big threat of store closure over
on liner business tax advantage. The company has to bear the chargers' approx. 119 m pound
each year. The entrepreneur as well as manager of Kingfisher has planned to close its store that
are not contributing towards profit for the firm. Manager in Kingfisher organisation believes that
by implementing this plan, business entity will able to reduce its expenditure and tax burden. As
due to this infrastructure and leases the organisation has to bear the high burden of taxes. The
manager in Kingfisher organisation has stated that closure of few stores will not have any kind of
effect on companies profit and sales (Brody and Pureswaran, 2015.) The business entity can take
various advantages such as lower cost improved quality of goods as well as services, effective
working culture, etc. just by implementing suitable information technology at workplace. The
implementation of effective as well as suitable technology allows business entity to reduce
competition. Increasing use of technology by people and organisation has created major
challenge for the legal authority to identify another source of raising funds. It has been analysed
from the research that many of the big firms such as amazon , google etc. (Daudt,van Mossel and
Scott, 2013.) are using various strategies in order to reduce the tax burden. Amazon company has
utilised its Luxembourg subsidiary for avoiding payment of corporate tax in UK. The google
sales that was measured as approx. 2.4 Pound bn. Due to which the organisation has to pay bill
of approx. 3.4 m pound in 2011.But according to the research it as been assumed that revelations
of alleged tax avoidance by big organisation could have negative effect on the organisation brand
image (Hernandez, Prieto Martín and Ramalingam, 2016)
Kingfisher company is considered as The Europeans the largest homer improvement
retailers that has approximately 999 stores in 8 countries. The business entity has employed
more than 80 thousand employees during 2011 to 2012.The enterprise has major online presence
in trade as well as hardware. It also delivers variety of products and services through its websites.
The organisation is UK that has been considered as High tech investors has stated that the
companies should adopt information technology as it will allow the firm to become more causal
with their customers. Adoption of appropriate technology will assist business entity in
developing as well as maintaining healthy relationship with client (Caniëls, Lenaerts and
Gelderman, 2015)
The partner in Index venture that is Saul Klein has stated that the organisation with
advance technology has high potential to make contribution towards economic development of
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the country. It has been analysed on the basis of the present trend that The companies like
amazon and google has been successfully in making appropriate use of technology in business.
These enterprises have also encouraged other business unit dealing in other sectors such as
finance, accommodation, retail travel industry to adopt technology.
It has been identified through investigation that The Klevin organisation has increased
pound 1 bn in technology start up and growth funds. The business entity has made investment in
business venture that include retailer and Net-a-Porter too financial services. The now the
mission of the company is to adopt creative thinking on the basis of prediction that the trend of
digital or information technology will continue to grow. The report provided by investors has
indicated that many business unit has to face short as well as long term losses due to lack of
understanding about information technology and use of internet or digital media.
The klevin the biggest investor in UK has stated that the major problem that has been
faced by investors nowadays is awareness issue (City must wake up to digital growth, says tech
investor,2013)
Consumer behaviour
It has been identified from the research that youngster enjoy or prefer to buy goods and
services using either of method such as online as well as traditional shopping method.
Extensive research on customer buying behaviour has identified that youngster has high
potential to analyse the clear advantages of utilising the internet or online shopping. The
youngster realised the benefit of online shopping on the basis of price, speed, convince etc. It
has been recognised that the young people also likes to visit high street for shopping. The reason
for high street is competing with internet shopping is the narrow price difference in online and
goods that are sold stores. The elder as well as older people prefer to buy products using
traditional method. As it allow consumer to touch the good they want to purchase. The young
generation are ready to compromise with the quality of products so they prefer to select method
of shopping on the basis of convenience. On the other hand, older people are more concerned
with the quality of products so they prefer high street shopping (Hutchinson, Donnell and Reid,
2015)
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CONCLUSION
It has been concluded from the report that it is essential for organisation to make
structural changes at workplace. As this will assist business entity in increasing sales,
sustainability and profitability. The project has concluded that the major challenges has been
created by information and digital technology. It has been analysed that the increase in online
shopping has great impact on organisation growth and profitability. The study has been
demonstrated that the way various sectors have influence on consumer behaviour. It has also
been found that youngster enjoy or prefer to buy goods and services using either of method such
as online as well as traditional shopping method. The klevin the biggest investor in UK has
stated that the major problem that has been faced by investors nowadays is awareness issue.
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REFERENCES
Books and journal:
Brody, P. and Pureswaran, V., 2015. The next digital gold rush: how the internet of things will
create liquid, transparent markets. Strategy & Leadership, 43(1), pp.36-41.
Caniëls, M.C., Lenaerts, H.K. and Gelderman, C.J., 2015. Explaining the internet usage of
SMEs: The impact of market orientation, behavioural norms, motivation and technology
acceptance. Internet Research, 25(3), pp.358-377.
Daudt, H.M., van Mossel, C. and Scott, S.J., 2013. Enhancing the scoping study methodology: a
large, inter-professional team’s experience with Arksey and O’Malley’s framework. BMC
medical research methodology, 13(1), p.48.
Foroudi, P., Foroudi, P. and Duda, M., 2017. Digital technology and marketing management
capability: achieving growth in SMEs. Qualitative Market Research: An International
Journal, 20(2), pp.230-246.
Hernandez, K., Prieto Martín, P. and Ramalingam, B., 2016. The Impact of Digital Technology
on Economic Growth and Productivity, and its Implications for Employment and
Equality: An Evidence Review (No. IDS Evidence Report; 207). IDS.
Hutchinson, K., Donnell, L.V. and Reid, A., 2015. Loyalty card adoption in SME retailers: the
impact upon marketing management. European Journal of Marketing, 49(3/4), pp.467-
490.
Online:
John Lewis to extend online shopping empire via thousands of corner stores, 2013 [Online]
Available through: <https://www.theguardian.com/business/2013/feb/21/john-lewis-
online-shopping-collect?INTCMP=ILCNETTXT3487>.
City must wake up to digital growth, says tech investor, 2013[Online] Available through:
<https://www.theguardian.com/business/2013/mar/01/city-wake-up-digital-investor>.
Kingfisher chief warns of store closure over online firms' tax advantage,2013
[Online] Available through:
<https://www.theguardian.com/business/2013/mar/04/kingfisher-warns-of-store-
closures>.
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