Evaluating the Use of E-Commerce in a 'Brick and Click' Organisation Essay

Evaluating the Use of E-Commerce in a 'Brick and Click' Organisation That Balances E-Commerce with a Continued High Street Rrese - Essay Example The business model of the Argos Company is built around three foundations. These include Argos strong information technology and communication systems, the company’s multi channel approach and finally the organization’s efficient supply chain management systems and alliance with UPS. The company has designed an integrated multi channel systems for consistent communication and distribution across traditional street stores, website, television, telephone, mobile devices etc. For this purpose, Argos has created click and collect online service, text and take home SMS service, ring and reserve telesales service, and Argos Direct home delivery service to ease consumer shopping experience. The E-business strategy of Argos is both businesses oriented and consumers focused. Both suppliers and consumers use the same web platform for transaction and trade. This is because Argos’ e-business supports and promotes the secure transaction through 128 bit SSL. This feature of Ar gos entails modifications for supply chain in e-commerce and it has surfaced as a channel of distribution for inbound and outbound logistics. This role has emerged in addition to the communication role of e-commerce between the company and customers; however, this also has further extended to interaction between suppliers. Moreover, the e-commerce is now deemed as a channel which contributions are surpassed from generating online sales to generating traffic to the street stores. Evaluating the Use of E-Commerce in a ‘Brick and Click’ Organization That Balances E-Commerce with a Continued High Street Presence Introduction This paper is an evaluation of e-commerce practice by a click and mortar company. The organization which is chosen for analysis is Argos, which is a UK based company. The paper studies and analyzes the business model and electronic business strategy of Argos, and determines how the company plans and executes its online business strategy to sustain balan ce between its online sales channel and offline counterparts. It also identifies how the organization, Argos, has designed and aligned its strategic business objectives in leveraging the broad commerce activity, i.e. assessing its business activity online and across the offline stores. Background of the company Argos is a UK based retail division of Home Retail Group, established in 1973. The group owns two separate divisions of Home Retail and Argos. Argos is a preeminent catalogue based retail chain which has both online and offline store presence of over 700 stores across UK and Ireland. The Argos catalogue comprises general merchandise products across a diverse assortment of categories such as furniture, sound & vision, photography, baby products, Do It Yourself goods (DIY), PC & games, personal care, garden & pets, household appliances, home wares, sports & leisure, toys & games, office, and jewelry & watches. The contemporary business orientation of the retail organization of Argo had historical foundations in traditional catalogue business which operates through telesales; however, today the customers’ base at Argo has provided a wide multi channel commerce facility for order placement through telephone, physical stores, electronic online stores, mobile phones, and social media. The organization Argo is a team of around thirty thousand people

Marketing in Practice Case Study Example | Topics and Well Written Essays - 2000 words

Marketing in Practice - Case Study Example Global scenario of Confectionary industry: The confectionary market consists of chocolates, gum, cereal bars and sugar confectionary. The global confectionary market grew by 3% in 2006 to reach a value of 100.9 billion dollars. Chocolate sales dominate, accounting for 54.4% of the global confectionery markets value. Out of total confectionary market worldwide, Europe generates 46.6% of the total global confectionary markets value. It has been projected that in 2011, the global confectionary market will become to the value of 116 billion dollars, an increase of 14.9% since 2006. By the year 2011, the global confectionary market is forecast to have a volume of 15.1 billion kg, an increase of 9.9% since 2006. (All the data has been extracted from the Data Monitor report on global confectionary, Feb 2008). The confectionary market in regions such as Western Europe and North America has become mature and nearing to saturation. Consumption level in these areas reached to nearly static posi tion. Confectionary market is growing mostly in Central and Eastern Europe, India and China. It has been forecasted that global confectionary market between 2006 and 2010, grow @16% in value terms reaching more than 145 billion dollars. Volume sales have been expected to over 17.8 million tones by 2010. So it has been obvious that globally, confectionery market is expected to grow and Cadbury being the largest company after merger with Hershey it has strengthen their respective positions in the higher-growth markets for healthier forms of confectionery. Confectionary market worldwide is very competitive and it could be very well understood by the fact that the global confectionery market remains relatively fragmented, with the top six manufacturers accounting for less than half (45%) of value sales. Significance for Cadbury: The Company, Cadbury Schweppes is one of the largest confectionary companies based in UK and operates in almost 30 countries. UK has a well grown confectionery industry as a sub-sector of the British food industry. Within the European confectionery industry, the UK confectionery industry leads the field and the UK is unlikely to lose its place as the leading consumer of confectionery products. It has been estimated that in the last ten years consumer expenditure on food has increased to double but the expenditure on confectionary has tripled. It has been contributing considerably to British economy. This situation clearly shows that if Cadbury has to expand its business, it has to move in the areas like India, China, and East Europe etc. Market of confectionery is growing but in the developed country where market growth has stagnated, companies are trying various strategies like expanding its business in the areas which ultimately providing them proper oppor tunities to grow. Cadbury have 8 major competitors but one of the major competitors has merged with it and provided strategic mileage to the company. This market research has shown the direction of change as well as the direction of progress for Cadbury. It should know its competitors, which are mainly Mass Inc, Hearshey Food Corporation, Nestle SA, Ferrere etc. Most of the companies have similar types of distribution channel and developing new product range. Looking at the market situation it has been very obvious that confectionary market has the potential to grow and at the same time companies also have motivation and zeal to move ahead. 2.