Ulster University: BMG814 E-Retailing Case Study on Digital Landscape

This report analyzes the evolving landscape of e-retailing, addressing key questions regarding the impact of online shopping on traditional high street stores. It examines various retail models, including 'clicks,' 'bricks,' 'bricks & clicks,' and 'clicks & bricks,' evaluating their sustainability. The report delves into omnichannel retailing, defining its meaning and exploring how businesses can exploit this phenomenon. It investigates the popularity of online travel services, the provision of free travel information, and contrasts the advantages and disadvantages of distributing digital versus physical products. The analysis incorporates academic references and facts to support the arguments presented. The report provides insights into the changing consumer behavior and the strategies businesses are employing to adapt to the digital era. The report also examines the role of technology, consumer behavior, and the challenges and opportunities presented by the shift towards digital platforms.

Module Code: BMG814 (67215)
Module Name: The Digital Landscape

1
1. Does the growth in ‘online shopping’ mean the extinction of the typical ‘high street’ store?
There are number of factors behind high street store emergency; one of the cause is the
online shopping trend. Amazon is the first-class instance for this practice; Amazon is vending
everything at one place, which has enhanced the ease of the customers towards fulfilling their
needs, demands and requirements. Another motive is changing consumer tastes in addition to
product substitute choice in online spending. According to Simon Thomas of Moorfields
Advisory, the consumers spend maximum time in the stores, appearance product along with
finds substitute in online at low price so, in the end, buyer purchase that product online as
opposed to bodily stores as an instance Toys R Us facing similar challenges according to Mr
Thomas (Thomas 2018).
Nowadays, the client ought to be able to find nearly everything, tangible in addition to
the intangible product with service. Amazon achieves accolades and glory by practising product
diversification, which influences the purchasing power of the clients and customers. Typical
evidence of this lies in home décor, electrical appliances, prime videos, music, e-book, on-line
storage, electronics damage with breakdown guard cover and so on (Mohan 2018)
Customers face several issues in on-line buying. Firstly, value with the proper product
may not be delivered as supplied in on-line, it can differ in colour, size, or completely different
product. Secondly, the online website may also misguide consumers in terms of going back
policy (Yoon and Occeña 2015). Furthermore, the biggest issue with online purchasing is that of
quality and originality, which is not always matching with the uploaded image. They must offer
telephonic support so the client can directly call and talk about their problem. Therefore, thinking
about these troubles, the store cannot simply vanish. (Nagrale 2019)

2
Somerville (2008) says that in the upcoming financial years, high streets need to come
back to the Victorian model, as in purchasing is all about social practice. People ought to get
used to on-line purchase along with looking for an opportunity to arrival high street. (Somerville
2008).
2. Examine the various models, ‘clicks’, ‘bricks’, ‘bricks & clicks’ and ‘clicks &bricks’. Which
if any is the most sustainable?
There are multiple ways to distribute products, and that is up to corporation that a way to
provide the product to the end customers and set up the delivery chain by the use of retailers,
intermediaries, suppliers and logistic wanders. 'Bricks' model is a traditional way of buying, and
a few of business enterprise provides service through 'bricks & clicks', in this model purchaser
can see product at store after which order on-line (Sundström and Radon 2015). In 'clicks &
Bricks' model, the patrons place order on-line after which take delivery from stores. If the
company's primary goal is to achieve high online profits than 'clicks' version is suitable in which
consumer order on-line along with preferring home delivery. So, here the internet will update all
different channels. Therefore, most of the organization may adopt 'clicks' version due to patron
influence in addition to price efficient (Chaffey and Chadwick 2002)
According to Willcocks and Plant (2001), the market chief and traditional enterprise
approached 'bricks & clicks' version to overwhelm the impact of on-line buying. According to
the reports, outsourcing and offshoring the businesses is an efficient means for dealing with the
competitive rivalry. So, overall patron also opts for this model because of several gains which
include they can have a look at product physically and then find a similar product at a reasonable
price.

3
Acquisition of click and bricks model has acted assistance for Amazon to reach $1 trillion
in September 2018 it’s miles indicates client moving to online buying, despite that survey
expresses that 70% shoppers still decide on 'bricks' version and due to that purpose Amazon also
wind up to bodily store and acquire 'clicks & bricks'. So, Amazon will deliver the facility of the
bodily store in addition to the online store for customers. Which shows that 'clicks %& bricks'
version is sustainable. (Candriam 2018)
3. We are increasingly hearing the term Omni-Channel retailing what does this mean and how
can businesses exploit this new phenomenon?
Omnichannel retailing outline that corporation involves numerous platform to attain
buyer such as social media, website, bodily stores to fulfil buyer calls for with seamless
purchasing revel in across all channels (Lee et al. 2019). For example, a customer who
places objects in their buying basket while surfing on their cell phone must be capable
of continue from where they left off and then use their preferred approach of purchasing a
desktop. For this, a stroller can be kept for the buyers to share their experience on the post
purchase evaluation. Additionally, if the same consumer chooses the "in-
save pickup" alternative to avoid a longer shipping window, a
very separate but connected enjoy in the shop must be induced to
meet client expectations for items with a faster carrier level.
Using software would be effective for Amazon to offer quality services, increasing the
capability and unique selling proposition. International Council of Shopping Centers conduct the
survey, and according to them omnichannel sellers have kept both bricks and clicks, and obtain
again of a bodily store in addition to on-line patron base to deliver fast rate customer buying
experience. Retailers need to attend to synergetic integration of channel, which helps them for

4
better customer buying (Bianchi et al. 2016).
Retailers must explore this idea to decorate their patron delight, and venders can devolve
rise patron base similar to Kohl's and Wal-Mart have “purchase on-line, select up in-shop". This
practice saves 30% time of purchaser by pick up on-line order in bodily store instead of just
bricks model, and it’s also going to decorate income of retailers (Lee et al. 2019). To put into
effect, this phenomenon for retailers several aspects need to take care, which is a way to be
terrific in omnichannel outlets through product variety for client demand and innovation in facts
delivery. Development in future product success and up to date distribution construction
analyzed in terms of logistic growth (Lee et al. 2019).
Few studies explored marketing issues of omnichannel retailing for vendors such as
personalized delivering client encounter, one communique factor for all channels, interconnected
all networks. Therefore, Retailers may be able to deliver purest along with privilege revel into
consumer and customer can be dependable to retailer to enhance their income.
4. Why are online travel services such a popular Internet application? Why do so many web sites
provide free travel information?
People are making a plan for journey approximately wherein and the way to travel, 65%
of persons use the internet for searching that reported utilizing Google-commissioned Ipsos
MediaCT report (2014). In addition to this, the report states that 74% traveller use net for travel-
related info, these days internet site have top place in the medium for choosing journey
destination (Tran et al. 2017). According to the arguments of Alcantara-Pilar et al. (2017),
destination picture shows in a journey internet application is emerging as a key issue in the

5
tourism field. Customer delight is the most common and vital element for comparing online
journey carrier. This involves internet software service evaluation and judgment of service which
elaborate consumption of net application.
Use of the security cookies and policies is effective for averting the issues of
commercialization. Consciousness in this direction is crucial for achieving trust, loyalty and
dependence from the clients and customers (Langlois 2017). According to the Forbes article,
82% consumer do investigate online earlier than going to store so travel information assists them
to reach retailers. Kim (2019) says that maximum of mobile search approximately places base
search, and this is hastily incising in addition to most of person use maps for every purpose. So it
is beneficial that retailers provide their tour information in their web sites.
5. Compare the advantages and disadvantages of distributing digitisable products electronically
versus physically.
Digitalization expands the supply chain network of the businesses. Along with this,
Banga (2019) is of the view that digitalization adds an innovative touch to the businesses, which
is vital for luring the buyers. Online promotion of digital products is recognized as electronic
transmission (Ghezzi 2019).
There are several benefits of digitalized products which includes: absence of inventory
management techniques and strategies, which is an advantage in terms of reducing the cost of in-
house storage. Apart from this, high speed manufactures is an attraction for the buyers, which
enhances the sales volume of the digitalized products. The manual labour power is low,
therefore, quality is highly maintained. Social media marketing proves to be effective for
delivering the orders to the customers according to their needs (Fluid Digital, 2017). When it
comes to physical product additionally has own interest like there are many clients still favour to

6
see, touch, experience the product so for those patron distributing physically is preferable, and
there are still a few products which cannot be exchange. (Doofinder 2019). The perceived value
is much higher in this situation for the in-exchangeable product. This is due to the
implementation of the high exchange rates. Follow ups from the customers is effective for
gaining an insight into their approaches towards the online shopping experience (Fluid Digital
2017)
One of the negative points of digitalized products is that it is time consuming and needs
high maintenance and clarification for fulfilling the needs of the customers. At down aspect of
digitisable product on-line consisting of it is challenging project to demonstrate product as
compare bodily, it takes more time, planning, clarification at factor of purchase to getting buyer
(Fluid Digital 2017) and web site or network goes down at that factor consumer cannot capable
to use their product such as music, film will not play without net, in addition to disadvantage of
digitisable is most of the people like to have interaction with product physically so for them it is
not proper option to buy electronically, and the most effective disadvantage is competition due to
growth in digital market (Cochran, 2019). In terms of physical distribution also has own
problem like shipping and handling charges can cost high to both buyer and seller, another one
needs vital investment in terms of human resources, storage and operating value (Holden 2015).
It is a time-consuming technique to control product, delivery in time, managing inventory as well
as the consumer has also wait for product till delivery (Fluid Digital, 2017). So, both distribution
types have their own pros and cons, but the online distribution market is growing significantly in
recent year.

7
References
Alcántara-Pilar, J.M., Blanco-Encomienda, F.J., Armenski, T., Barrio-García, S.D. (2018)
Journal of Destination Marketing & Management, 9, Database: ScienceDirect, 21.
Banga, R. (2019) Growing Trade in Electronic Transmissions: Implications for the South.
UNCTAD, SER.RP/2019/1, 1.
Candrim(2018) Why "bricks and clicks" is the winning sustainable retailing model. Available at:
https://www.candriam.co.uk/en/private/market-insights/topics/sri/why-bricks-and-clicks-is-the-
winning-sustainable-retailing-model/ [Accessed 03 November 2019].
Chaffey, D., and Chadwick, F.E. (2002) Digital Marketing. 7th ed. Pearson Education Limited.
173-174.
Cochran, L. (2019). Digital vs. Physical products: Which should you sell online? Available
From: https://www.podia.com/articles/what-is-a-digital-download [Accessed 9 November 2019].
Doofinder (n.d.) Physical Store VS Online Shop : advantages and disadvantages. Available
From: https://www.doofinder.com/en/blog/physical-store-vs-online-shop-advantages-and-
disadvantages [Accessed 9 November 2019].
Ghezzi, A., 2019. Digital startups and the adoption and implementation of Lean Startup
Approaches: Effectuation, Bricolage and Opportunity Creation in practice. Technological
Forecasting and Social Change, 146, pp.945-960.
Fluid Digital (2017) Physical Vs. Digital Products: Pros & Cons of Selling Online. Available From:
https://www.fluid-digital.com/blog/physical-vs-digital-products-pros-cons-selling-online/4187/
[Accessed 9 November 2019].
Holden, P.R., 2015. Virtually Free Marketing: Harnessing the power of the Web for your small
business. Bloomsbury Publishing.

8
Kim, L. (2019) 10 Things You Need to Know About the New Google Maps Local Search Ads.
WordStream. 20 August. Available from:
https://www.wordstream.com/blog/ws/2016/06/01/google-maps-local-search-ads [Accessed 9
November 2019].
Langlois, C. (2017) 7 Benefits of Google Maps Street View for Your Business. Montreal 360. 24
July. Available from: https://www.montreal360virtualtour.com/7-benefits-google-maps-street-
view-business/ [Accessed 9 November 2019].
Lee, Z. W.Y., Chan, T.K.H., Chong, A.Y., Thandani, D.R. 2019 Industrial Marketing
Management, 77, Database: ScienceDirect, 90-91.
Mohan, M. (2018). Over 71 Amazon Products & Services You Probably Don’t Know. Minterest.
Available from: https://www.minterest.com/list-of-all-amazon-products-and-services/ [Accessed
31 October 2019].
Nagrale, P. (n.d.). Top 5 Problems You Can Face in Online Shopping. Money Connexion.
Available from: https://moneyconnexion.com/online-shopping-problems.htm [Accessed 31
October 2019].
Somerville, M. 2008. Death of the high street: is it time for retailers to throw in the towel?
Growth Business. Available from: https://www.growthbusiness.co.uk/death-of-the-high-street-is-
it-time-for-retailers-to-throw-in-the-towel-2549711/ [Accessed 8 November 2019].
Sundström, M. and Radon, A., 2015. Utilizing the concept of convenience as a business
opportunity in emerging markets. Organizations and Markets in Emerging Economies, 6(2),
pp.7-21.

9
Think with Google 2014 The 2014 Traveler’s Road to Decision. Think with Google. Available
from: https://think.storage.googleapis.com/docs/2014-travelers-road-to-
decision_research_studies.pdf [Accessed 9 November 2019].
Thomas, D. (2018). Six reasons behind the High Street crisis. BBC. Available from:
https://www.bbc.co.uk/news/business-43240996 [Accessed 31 October 2019].
Tran, V.T.T., Phan, N.V.N., Nguyen, T.N. and Do, H.H., 2017. An impact of social media and
online travel information search in Vietnam. Global Review of Research in Tourism, Hospitality
and Leisure Management, 3(1), pp.414-439.
Willcocks, L.P. and Plant R. 2001 Pathways to E-Business Leadership: Getting from Bricks to
Clicks. Mit Sloan Management Review Spring, 58.
Yoon, H.S. and Occeña, L.G., 2015. Influencing factors of trust in consumer-to-consumer
electronic commerce with gender and age. International journal of information
management, 35(3), pp.352-363.