E-commerce and Business Success: A Sainsbury's Case Study

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RESEARCH PROJECT
Digital technology
E-commerce and way it drives business success in retail companies: A case study of Sainsbury
by
………………………
HND Business

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Table of Contents
Task 1: Research Proposal...............................................................................................................2
Introduction..............................................................................................................................2
Background of the topic...........................................................................................................3
Rationale of choosing the topic...............................................................................................3
Research Aim and Objectives......................................................................................................3
Research objectives:....................................................................................................................3
Literature Review........................................................................................................................4
Rise of digitalisation................................................................................................................4
Benefits of digitalisation in business.......................................................................................4
Future of digitalisation in business..........................................................................................5
Research Methods with justification...........................................................................................5
Research Philosophy................................................................................................................5
Research Method.....................................................................................................................5
Research Approach..................................................................................................................6
Data Collection Method...........................................................................................................6
Sampling and Sample size.......................................................................................................6
4. Research outcomes..................................................................................................................7
Research Project..............................................................................................................................8
1. Introduction..............................................................................................................................8
Aim..............................................................................................................................................8
Objectives....................................................................................................................................8
Research questions.......................................................................................................................9
Background/Rationale.................................................................................................................9
Literature Review........................................................................................................................9

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Identifying E-commerce in retail.................................................................................................9
Benefits of Implementing E-commerce in Sainsbury's.............................................................10
Benefits to consumers................................................................................................................11
E-commerce at Sainsbury's and how it drives business success................................................11
Methodology..............................................................................................................................12
Gantt Chart.................................................................................................................................13
Ethical Considerations...............................................................................................................13
Task 2.............................................................................................................................................15
Introduction................................................................................................................................15
How primary and secondary research was conducted?.............................................................15
Recommendations......................................................................................................................15
Conducting the research............................................................................................................16
Research cost.............................................................................................................................16
Direct incurred cost................................................................................................................16
Directly Allocated costs.........................................................................................................16
Indirect cost...............................................................................................................................16
Access for research....................................................................................................................17
Ethical issues.............................................................................................................................17
Data collection Methods and their Pros and Cons (Pitfalls and Limitations)............................17
Data Analysis.............................................................................................................................19
Quantitative analysis..................................................................................................................19
Qualitative analysis....................................................................................................................19
Critical evaluation of Research methodologies and its Application on Sainsbury’s project.....19
Data Analysis Research Results................................................................................................20
Analysis of Quantitative Questions...........................................................................................20

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Critical Analysis of Quantitative questions...............................................................................26
Critical Analysis Qualitative Questions.....................................................................................26
Task 3.............................................................................................................................................29
Communicate the outcomes of a research project to identified stakeholders............................29
Task 4.............................................................................................................................................30
Reflection on the effectiveness of research methods.................................................................30
Critical insight and recommended action..................................................................................30
Reflection on engagement in resources.....................................................................................31
Conclusion.....................................................................................................................................31
References......................................................................................................................................33
Appendix........................................................................................................................................37
Quantitative Questions...............................................................................................................37
Qualitative Questions.................................................................................................................39

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Task 1: Research Proposal
Introduction
Technology has brought numerous changes in today’s world. Every sector and field has evolved
and developed itself by using advance technology. Digitalisation is one of the outcomes of
technology, which has helped in enhancing the operations and activities in various sectors.
However, one of the significant changes brought by digitalisation has been observed in the
business and organisational sectors. In the following literature, the changes that have been
brought by digitalisation in business environment of Sainsbury’s and their impact on the
operations and activities of business of Sainsbury’s will be discussed in a brief manner. In the
following description, the ways in which, digitalisation has influenced the business of Sainsbury
will be discussed in a brief manner. The following research proposal will shed light on the
various types of approaches and methods, used for conducting this research. All the related
aspect of the research topic will also be discussed in the proposal.
Background of the topic
As opined by David (2015), digitalisation has been one of the key factors for the organisations
for growing their business and making their expansion to wide range of customers. Business
trend like online shopping, advertisement and online promotion has facilitated growth for
numerous businesses all over the world. As mentioned by Thamhain (2013), many successful
brands like Amazon, Alibaba and Sainsbury has increased its sales and profit by initiating their
business on various digital platforms. This helps the organisation in saving many capital
investments and provides fruitful outcomes for the company. Digitalisation has also provided
opportunities to many companies and has proved to be beneficial for generating heavy revenue
from online digital portals. According to Karim (2012), digitalisation has not only comforted the
retailers and businessperson, they have also provided convenience to the customers using these
digital platforms.

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Rationale of choosing the topic
The reason for choosing this topic was to analyse the importance and significance of
digitalisation in today's business sector. Digitalisation has aided to the success and growth of
many businesses and has helped in sustaining the business growth of the companies for long-
term basis. The reason for choosing this topic was to analyse the impacts of digitalisation on the
business growth of the Sainsbury’s, and to assess the future of digitalisation in business sector.
Evaluating the benefits of including digitalisation in business was also one of the reasons for
choosing this particular topic. All these factors will provide an overview of the role played by
digitalisation in current and future business trends.
Research Aim and Objectives
The aim of this research is to analyse the impact of digitalisation on business.
Research objectives:
The objectives of this proposal or research are as follows-
 To determine the changes brought by digitalisation in business sector.
 To analyse the benefits of digital technology on current and future businesses
 To identify whether there are any further improvements to be made to Sainsbury’s e-
commerce
Literature Review
Rise of digitalisation
As per the opinion of Martin (2018), digitalisation is a procedure of transforming a piece of
information or material into digital fashion. In today’s world, every project or deal needs pace,
accuracy and best outcomes. All these demands are difficult to be fulfilled without large amount
of investments of capital and hard work. Digitalisation though has aided the society and
organisations to accelerate their growth. According to David (2015), many business
organisations are driving towards digitalisation for most of their work to be done. Digitalisation
has provided an enormous platform for companies to communicate with customers, which has

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increased their sales rate. As mentioned by Karim (2012), it has also assisted organisations like
Sainsbury by providing them with technologies that does their maximum amount of work in
minimum time and also with great efficiency and safety. Features like proper storage of
documents, rapid management of data, online advertisements and many more are adopted by
organisations like Sainsbury allowing digitalisation to thrive and rise across the world.
Benefits of digitalisation in business
Digitalisation has several benefits, which keeps growing day by day. According to Fowler
(2013), communication of organisations with customers interested in their products is very
crucial. Digitalisation has provided ways in which, business can be grown is through making the
products appealing and attractive. Technology aids organisations by making ravishing images
and videos of the products, which are spread across the social media. This surely has a great
impact on customers thereby increasing sales rates. As mentioned by Thamhain (2013), knowing
the needs of customers through social media like Facebook, WhatsApp, Instagram, etc. has
allowed organisations to make changes in manufacturing of their products. Another aspect,
which has attracted customers worldwide, is packaging of products, which includes aesthetic
look, proper details of the product and the organisations. All these factors are the outcomes of
digitalisation. Sainsbury is one such organisation, which started a website called Sainsbury
online, which permits the customers to choose their products and get them delivered home. As
suggested by Naranjo (2015), this feature was appreciated by the customers of Sainsbury and it
reflected growth in their sales. All these are the benefits that have been enjoyed by Sainsbury in
its business.
Future of digitalisation in business
As per the ideology of Karim (2012), organisations in future are assumed to mostly dependent on
robots, artificial intelligence and automation. This enormous amount of growth in business has
both positive as well as negative impacts on society. Digitalisation has increased the risk of
unemployment. Martin (2018) has stated that, technology has replaced manual work resulting in
less job opportunities. Looking on the bright side of growth of digitalisation in future, it will help
the customers get the best quality products in minimum amount of time. With the help of
digitalisation, business can make the best use of available resources. Therefore, we can conclude
that future of business is primarily dependent on future of digitalisation.

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Research Methods with justification
Research Philosophy
Positivism research philosophy has been exercised for this particular research. Positivism
research philosophy is used, as the research comprises of discussions on the status of
digitalisation in business sector as well as it also focuses on predicting the future impact of
digitalisation in business sector (Fowler Jr, 2013). The facts regarding the research topic are
explained and inductive reasoning has been done in the research. All these factors are the
constituencies of positivism research philosophy. Only empirical evidence and verified
information are used in this research.
Research Method
Qualitative and quantitative research methods have been used for this research purpose. Both the
types of numerical and non-numerical data have been used for conducting this research. Specific
research questions have been designed and used for carrying out the research. Along with this,
broad and thematic inquiries have also been performed for this research (Fowler Jr, 2013). By
using both of these research methods, the research has been completed in an accurate and
appropriate manner.
Research Approach
Both the inductive and deductive research approaches have been used for this research purposes.
Specific research questions have been designed for acquiring essential research data (Huang and
Oppewal, 2006). Getting answers to specific questions is called as inductive approach. On the
other hand, general opinions and ideas have also been used in this research, which encompasses
the deductive research approach in this research.
Data Collection Method
Secondary and primary data collection methods have been used for gathering the essential
research data. In primary methods of data collection, various approaches like surveys and
interviews have been opted for collecting the required data for this research. Group discussions
have also been exercised for collecting the primary research data for carrying out the research
(Fowler Jr, 2013). Apart from these methods, several secondary data resources like journals,

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books, articles and magazines have been brought into use for gathering necessary information for
this research. In this way, both the methods of research data collection have been used for
gathering necessary data for this research, which has helped in carrying out the research in an
accurate and efficacious manner.
Sampling and Sample size
In this research, random sampling has been opted for acquiring the research information and
ideas of general people regarding the research topic. Individual of general population were
selected and inquired randomly (Research-Methodology. 2018). As the customers of Sainsbury
are mostly from general population, using this type of sampling was most suitable and
appropriate for this particular research. The sample size included 20 males and 20 female
candidates, ranging between the age group of 20 to 50 years.
4. Research outcomes
According to the research data received, customers of Sainsbury’s are impressed with the
services and quality offered by the company. However, in this trend of online shopping,
customers prefer to buy more from the online shopping platform of the company. By surveying
and interviewing few of the customer of Sainsbury’s, it has been revealed that the offline store of
Sainsbury’s offer much better quality as compare to the online shopping website of the company.
The services offered on digital portal of Sainsbury’s are good but the quality is the worst factors
of the digital platform of the company. Therefore, some improvements and development are to
be made by Sainsbury, regarding its digital business and online shopping websites.

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Research Project
1. Introduction
The business world is a dynamic mechanism. For an organisation to survive and stay
competitive, continuous development is important. A successful business is one, which can
identify the internal and external forces, which can strengthen its position in the market. Digital
technology that is evolving and lifestyles that are changing drive consumers towards the Web or
internet shopping (Ahola et al, 2000). The success of E-commerce initiatives of brick and mortar
organisations primarily depend on the acceptance and adoption of information technology-based
products and services by customers and therefore the research is conducted on e-commerce at
Sainsbury’s and how it drives business success. First, the aims and objectives and research
questions are stated, followed by the literature review, which consists of the introduction to the
topic, e-commerce activities, and benefits of e-commerce activities in Sainsburys and e-
commerce activities and how it drives business success at Sainsburys. Then the Rationale behind
the literature review is stated. Further methodology of the research, the plan of the research
project in the form of Gannt chart, the ethical considerations, the sample letter, quantitative
questions and qualitative question for the survey is established. Then conducting the research,
data collection methods are critically analysed. Data analysis is conducted followed by a critical
reflection and insight on the effectiveness of research methods and alternative research
methodologies.
Aim
The aim of this research is to investigate on how E-commerce drives business success of
Sainsbury’s.
Objectives
The objectives of the research project are:
1. To identify the benefits to Sainsbury in implementing e-commerce in Sainsbury’s
2. To identify the benefits and popularity of Sainsbury online shopping platform with
consumers

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3. To identify whether there are any further improvements to be made to Sainsbury’s e-
commerce
Research questions
● Have there been any benefits to Sainsbury’s in implementing e-commerce?
● Have there been any benefits in implementing e-commerce in Sainsbury’s to consumers?
● How much is Sainsbury online shopping platform popular among consumers?
● Can Sainsbury’s further improve their e-commerce?
Background/Rationale
The rise in digital technology use among modern day consumers means that they are more
inclined to make online purchases. This persuaded Sainsbury to provide e-commerce to
customers. The research is about e-commerce and way it drives Sainsbury’s business to success.
The most fundamental decisions, in terms of e-commerce, taken by Sainsbury’s, that have led to
outperforming market growth, are pinpointed by this research.
Literature Review
Identifying E-commerce in retail
The basis of this research is that a variety and number of businesses, no matter how large or
small, are adopting e-commerce and that the appropriate way to study the impact of digital
technology and the changes it brings to retail business would be through a case study. This then
led to studying Sainsbury's, and the involvement of e-commerce, in the supermarket’s success.
Sainsbury's, a supermarket founded by John James Sainsbury in 1869, began small, with a rented
store in Drury Lane, eventually growing to over 1300 stores across the UK with over 161,000
employees (Anketell, 2003).
There are five key factors in online shopping; convenience, variety, price, service and ambiance.
People shop online for multiple reasons, such as having less free time to shop in-store due to

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long working hours or packed family schedules. Customers with various disabilities also find it
easier to shop online rather than in-store (Punakivi, et al. 2001). Two primary reasons why
customers switch from traditional to e-shopping methods are time and convenience (BBC.co.uk,
2018). For this reason, digital technology should provide a vast range and complete product
description in order to satisfy various consumer groups, satisfying different criteria based on
factors such as food preferences based on religious beliefs, ethnic origin and dietary
requirements. Consumers are using more online services, with UK broadband usage being fifth
in the world and second in Europe. A 2007 study shows 15.9% of the responding customers
buying groceries online once a week, 2.7% shopping twice or thrice a month and the largest
group of shoppers, shopping once or twice a year. This increase in internet usage shows a
correlation with the frequency of online shopping. Those who shop online buy larger amounts
than that in-store (Punakivi et al. 2001).
Society and economy have developed and retail businesses respond to this and consumer activity
has changed quite vastly (Dawson et al., 1988). E shopping is relatively new, and a chance
provided to customers to partially shop online. Moving household goods from one place to
another is difficult, and therefore e-commerce enlightens traditional retailers to use e-
commerce/online channel to trade their goods. The developments do lead many traditional
retailers to enter e-commerce (Roberts and Thomas, 2003). Most consumers would likely still
choose to primarily shop for groceries in supermarkets; however, e-commerce is becoming more
prevalent with the rise of technology and digitalisation, changing the way people shop.
Consumers want speed, flexibility and convenience; these are made available to them with the
ability to order online and on their mobile phones to wherever they want it delivered (Laughlan,
2016).
Benefits of Implementing E-commerce in Sainsbury's
Online sales currently account for almost one-quarter of the retail market, showing how fast
online retail is growing. Those who decide not to implement e-commerce into their business may
notice trade lessening as more customers shop online (Martin, 2018). It is beneficial to
Sainsbury's as it is easier to access the market. E-commerce also reduces overheads because
selling online remove expensive premises and staff wages; this then allows Sainsbury's to invest
in marketing and customer experience on their website. Sainsbury's also grow rapidly as selling