INNOVATION, ENTERPRISE AND SOCIETY: Essay on Retail Industry Trends

This essay delves into the transformative innovations within the retail industry, focusing on e-commerce, technological advancements, and their profound impact on both consumers and businesses. It explores the shift from traditional brick-and-mortar stores to online platforms, emphasizing the convenience and expanded options afforded to consumers. The essay examines various innovations, including mobile wallets like Starbucks' implementation, Apple's product innovations, and technologies such as Amazon Go's automated checkout and Audi's VR showrooms. It analyzes the reasons behind these innovations, highlighting their role in driving economic growth, meeting evolving consumer demands, and fostering competitive advantage. The essay further discusses the effects of these innovations on employment, mechanization, public policy, and funding, while also anticipating future changes like the integration of AI-powered assistants. Finally, the essay references key literature to support its claims and concludes with a projection of how these trends will continue to shape the retail landscape.

Running Head: RETAIL INDUSTRY
Retail Industry
Name of the Student
Name of the University
Author Note

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INNOVATION, ENTERPRISE AND SOCIETY: ESSAY OPTION ONE
In the business world, innovators are constantly creating new products, ideas and
methods to stay at the top of demand and popularity. The business organizations manage to look
at the problems and come up with new solutions, which are unreachable by others. Through
innovation irrespective of the products, services or the organizations itself, a company can
provide value to itself. Innovation has been considered as the most significant component for a
successful company. The global environment might leave greater impact on the way an
organization operates (Arvanitis and Stucki 2014). It helps to define the global business
environment along with describing the benefits and risks of operating under the global
environment. It is obvious that almost three decades ago, when a person wanted a new outfit or a
special weekend function, he/ she had to visit a range of retail shops to find something liked and
fit. However, today the scenario has completely changed through the incorporation of e-
commerce in the retail industry. E-commerce can be rather defined as the ability to buy online
products providing the customers an extensive range of options to find the desired one. I want to
develop my career in the retail sector as the industry is developing too fast and there are many
opportunities. The idea of e-commerce has opened up a range of possibilities for both the buyers
and the sellers. It has opened more shopping options and has added convenience and value to the
lives of people.
The retail innovation is entire about change and more specifically, the change is
regarding providing optimum and tangible value to the customers. It adds go the value as it
provides something improved in the field of service, product, technology or in the business
systems (Mansfield 1983). Additionally, when an organization provides value to the consumers,
it also provides benefits for the retailers as well. It also might come in the form of heightened

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sales, competitive advantage and business growth as well over the market rivals (Cohen 1979).
Taken for example, Starbucks has incorporated some of the process innovations in its retail shop.
They have introduced mobile wallet, which is used, by more than 20 % of the customers in order
to pay for the purchases. Moreover, it also collects loyalty points for placing online orders. The
mobile wallets also allow people to pay with even a mobile device rather than the cards (Dong
and Wu 2015).
Another product innovation is the innovation brought about by Apple. This company
ranks at the top of most innovative companies in the entire world. The time when the company
first introduced iPod, a seismic shift had been created in the way showing how music is not only
enjoyed but also consumed. Previously, people had to go to the music shop for purchasing
cassette tapes and CDs. The innovation through iPod also changed the way music used to be
stored and purchased. Gradually, music began being stored and purchased through the platform
of Apple that is iTunes (Heracleous and Papachroni 2016) .
As far as technology is concerned, it can be said that technology has been used through
various ways in the retail industry in order to appeal maximum users, enhance the convenience
for the buyers and promote the online presence of a retailer. The online shopping experience has
been significantly modified by Amazon Go’s automated checkout. It has somehow
revolutionised the online experience of shopping. More elaborately, the Go stores utilize a
combination of deep leaning , computer vision along with a sensor fusion technology for
automating the checkout and payment process (Polacco and Backes 2018). It further highlights
that the customers can easily enter the store and leave the store after picking up the desired item
without having to check out standing in a queue. This is because the payment is made
automatically through the amazon Go app.

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On the other hand, Audi has optimized the customer experience by introducing the VR
showrooms. The experience of buying cars is not limited only at the dealership because the
consumers are constantly researching through social media, websites. In the year 2017, a virtual
reality experience has been started by Audi in the international showrooms in order to provide a
more personalised CX. The VR experience helps the consumers to configure their dream car and
explore the interior and exterior of the car along with this with details. The VR experience also
consists of special ‘Audi Moments’ where the consumers can experience the pit-stop
atmosphere. Audi can offer the consumers an interactive and dynamic experience of buying
having transferred the process from a digital tablet to something more immersive.
After thorough understanding and observation, I believe that these innovations have
introduced for various reasons. New products, new services, new technologies have filled the
century but the call for innovation is never found less. These innovations are likely to drive the
economic growth of the organization and the country as a whole. The innovations are the
transformation of new knowledge into new services, products or meeting the market needs.
Additionally these innovations are incorporated for the progression of human well-being.
Innovating new products are essential for the society’s progress otherwise the society would not
have received a good life-style. The innovations are likely to develop new jobs for the society
and provide sufficient employment strengthening the economic stability of the country.
Moreover, the society is undergoing constant evolution and there are changing demands every
now and then. The innovations are introduced to gain competitive advantage over the market
rivals. It is also for the survival of the business and makes the best use of the opportunities.
Frequent innovations also help in keeping a flow of innovation in the organizations maintained
(Munson, Rosenblatt and Rosenblatt 1999).

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There are many existing literature discussing the impact of innovation on society and
economy. The technological innovation of the retail sector leaves greater impact on the society
as a whole. The changes in the retail sector have optimized and digitalized the way of living of
people providing them an updated life style. The innovations and changes have helped people
save extra time and get all the work done fast with the help of technology. In today’s world
people are working and life style is extremely fast. The large –scale innovations are saving the
world every day and contributing to the economic growth of the country as a whole (Rosenberg
and Frischtak 1983). The innovative changes are also likely to advance the developing countries.
In the modern economy, innovations will enhance the value creation, the employment rates and
growth at the enterprise level, the regional or the national level.
In this regard, the effects of these innovations on the employment and job provisions in
the retail industry can be analysed. The concepts of The employment effects of mechanization
and public policy and funding of innovation will be discussed over here. Mechanization can be
referred to as the process of using technology, machines and automation for works. Since the
previous time, mechanization has meant to be increased production with enhanced revenues and
there are many benefits too such as low operating costs, the quality of work, higher efficiency
level, accuracy, effective controls and many others (Pantano and Vannucci 2019). It has been
found from various surveys that the use of technology and mechanization might replace the job
opportunities of people, which is a rising concern in the workplaces. The retail organizations
have forecasted that the disruptive innovations such as machine learning might significantly
change the scenario of labour market leading to major loss of jobs but new kinds of works will
also be created. The retail sector is found to be prone to the disruption driven by the online giants
such as Amazon that increases spending on new technologies for cutting costs. However, there is

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a lot to become optimistic about incorporation of technology. At one hand, mechanization will
replace some of the job responsibilities, it will create new job opportunities on the other hand.
Moreover, the rise of applications has enabled people to save time, do other jobs, and enhance
income as a whole.
Regarding the public policies and funding of innovation, it can be said that the retail
sector faces various challenges. The retail sector consists of many different sub-sectors such as
groceries, clothing, furniture and many others. All the sectors face regulatory challenges ad
become widely affected by the labour impositions nationwide as the overtime pay laws and the
minimum wage laws. It is with all of the industries that the government adds the compliance
costs along with possible legal liabilities in the retail sector (Testa and Karpova 2018).
Regarding the taxes in the retail sector, the maximum corporate taxes are paid by this sector, as
they have no certain tax loopholes ad have dispersed interests of lobbying.
After examining, discussing and analysing about the trends of retail sector, its key
components, the pros and cons, I can anticipate that since people’s demands are increasing
almost every day and the organizations need to survive, the innovation process will continue for
long. The millennials spend money on the experiences more than anything else for getting the
brick –and –mortar experience. I believe that soon there will be incorporation of Robotic AI-
powered assistants in the retail shops. This will help the consumers to avoid confusion with voice
–control shopping assistants. These changes are likely to erase the barrier between online and
offline and the customers will be able to easily have the product of their desire .

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Reference
Arvanitis, S. and Stucki, T., 2014. The impact of venture capital on the persistence of innovation
activities of start-ups. Small Business Economics, 42(4), pp.849-870.
Cohen, G.A., 1979. The labor theory of value and the concept of exploitation. Philosophy &
Public Affairs, pp.338-360.
Dong, J.Q. and Wu, W., 2015. Business value of social media technologies: Evidence from
online user innovation communities. The Journal of Strategic Information Systems, 24(2),
pp.113-127.
Heracleous, L. and Papachroni, A., 2016. Strategic Leadership and Innovation at Apple Inc.
SAGE Publications Ltd.
Mansfield, E., 1983. Long waves and technological innovation. The American Economic
Review, 73(2), pp.141-145.
Mende, M., 2019. Retail Apocalypse or Golden Opportunity for Retail Frontline
Management?. Journal of Retailing, 95(2), p.84.
Munson, C.L., Rosenblatt, M.J. and Rosenblatt, Z., 1999. The use and abuse of power in supply
chains. Business Horizons, 42(1), pp.55-56.

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Pantano, E. and Vannucci, V., 2019. Who is innovating? An exploratory research of digital
technologies diffusion in retail industry. Journal of Retailing and Consumer Services, 49,
pp.297-304.
Polacco, A. and Backes, K., 2018. The amazon go concept: Implications, applications, and
sustainability. Journal of Business & Management, 24(1).
Rosenberg, N. and Frischtak, C.R., 1983. Long waves and economic growth: a critical
appraisal. The American Economic Review, 73(2), pp.146-151.
Testa, D.S. and Karpova, E., 2018. Academic Research Use in Strategic Decision-Making:
Barriers and Opportunities within the Apparel Retail Industry.