Emerging Themes in E-Commerce Business Sector
Case Study: Skies without limits: Drones-taking the UK’s economy to new heights
COURSEWORK TASK
1-Critically evaluate the case study, outlining the ways in which the identified relevant emerging themes might impact on the current business strategies relating to the identified organisation or sector.
Your critical discussion should include a critical analysis of the ways in which those themes might affect the appropriateness of existing organisational policies and practices.
Areas of focus should include any combination of TWO of the following:
- Political environments
- Technological advancements
- Demographic changes
- Social trends and shifts
- Industry globalisation
- Legal transformations
- Global economic issues
2-Critically evaluate how those themes identified could affect the operational and/or strategic decision-making necessary to shape organisations within the broad sector over the next five years. Your answer should use contemporary examples of how those emerging themes have started to be addressed within e-commerce business sector.
3-Provide justified recommendations for courses of actions that organisations within the broad sector can take to ensure that they are able to manage the effects of those emerging themes effectively.
E-Commerce Themes and Impact on Business Strategies
E-Commerce Retail Sector-Critical Analysis
Introduction
E-commerce themes are in the limelight due to the impact on the strategic decision-making process. To gain and sustain success in the long run, the management of the company has to contain some thoughtful considerations. E-commerce themes have changed the business or operational process. “Skies without limits” is a comprehensive content or an article that provides the appropriate background and helps to conduct the critical analysis regarding the pertinent industry. Drone technology has shaped the business process, and now it is the best time to adopt or embrace this technology to make a difference. The study revolves around two major themes along with major pillars such as emerging society, technology, work environment, markets/industry. Appropriate themes to initiate the study are technological advancements and industry globalisation. The critical analysis will be the combination of technological advancement and industry globalisation.
Finding & Critical Analysis
Drone technology has emerged as a key business trend in the UK economy. When it comes to e-commerce sectors, e-retail comes to life. Online retail industry or sector is quite pertinent to understand and critically analyse these themes. Due to the emergence of the drone technology in the United Kingdome, £42bn increase in the gross domestic product has been observed. It seems a remarkable achievement by the county, and the drone is a great contributor. £16bn net cost saving is possible due to drones in the country. 76,000 drones are operating in the United Kingdom’s sky. 628,000 people got jobs in the drone economy of the United Kingdom. Construction, oil & gas, and retail industries have taken benefits due to this emerging technology (Pwc.co.uk, 2018).
Theme 1: Technological advancements
In the article, it has been revealed that the drone has delivered beyond expectations to the businesses. Different organisations are looking to develop different applications which are associated with drones.
Impact of technology on current business strategies
Technology is growing in different industries. For Instance, the article tells the impact on the economy and other business benefits. However, critically, it does not highlight the impact on customers, especially in the online retail industry. Many firms are using drones to enhance drone delivery. However, not appropriate numbers have been shown in this article to justify the positive impact. The current business strategy of the retail companies in the online retail industry of the United Kingdom is to improve the work efficiency and build the innovative culture (Jiangsu, 2018).
Technology Pillar
For Instance, the current business strategy of different retail companies is to integrate with modern technology trends to emerge in the swift online retail sector. Through containing the efficiency, lowering costs, and increasing the effectiveness, the sector can become more competitive and advanced. However, critically, the article does not depict different cost and efficiency measures for retail sectors. Regarding technology, using drones to improve the process and make the difference is not enough. Several insights regarding cost and efficiency measures could have been given to make the whole article relevant. In the United Kingdom’s retail industry, the adaptation of drones can be costly for an online retail industry because it may need a massive transformation in the business process. Sales and logistics are to be evolved or transformed, and it can increase the cost of this technology adaptation (Indiaretailing.Com, 2017).
Emerging Society Pillar
Another current strategy, which has emerged and been observed in e-commerce retail is to enhance the visibility of customer satisfaction to experience customer satisfaction and loyalty. People in the United Kingdom are emerging in this contemporary business environment. Emerging society is a prominent pillar of the technology theme. For Instance, people in this region are becoming tech-savvy. They usually support companies which integrate with modern technology to improve sales and customer service process. Interestingly, the article has tried to elaborate on the use of technology regarding online retail delivery, inventory improvement, and real-time stock checks. People in this business industry or sector may have different perceptions about drone technology. For Instance, emerging society may want to know the workability, charges, and efficiency. Critically, it is quite tough to derive the impact on buying behaviour due to the technology transformation (Desjardins, 2018). The emerging society of the United Kingdome seems more sensitive to the organisational change, and it has to be the main concern for companies.
Maximising productivity to meet the needs of customers in a competitive market is a key business or corporate strategy of the company. Especially in the online retail industries, major players such as Amazon, Target, and eBay are looking to increase their production capacity. The increase in the production capacity is triggered by the gross cost saving, gross net saving, and the multifactor productivity impact (Pwc.co.uk, 2018).
The link between production maximisation through technology with gross cost saving, gross net saving, and multifactor production is highlighted in the article. It is quite surprising to observe zero multifactor production impact, gross cost saving, and net cost saving.
In the emerging society like the United Kingdom, it is impossible to state a lack of impact, as shown in the article. Critically, it looks lack of research or a deeper analysis of the online retail sector of United Kingdome. People are assertive in embracing new things such as the inclusion of drones in the delivery process, driverless cars with parcels and many other technological associations (Davidson, 2018). The demand of customers in the sector is increasing due to these technological improvements, and the retail sector is to be navigated with deeper research (Pwc.co.uk, 2018).
Theme 2: Industry globalisation
It has been observed that the United Kingdom is looking forward to integrating with the global drone trends in the businesses. When using drones in different businesses, especially in the online retail sector, it is important to implement some key safety measures or standards. The online retail industry has been globalised. It has depicted remarkable evolvements or improvements with the passage of time. In the emerging society, social acceptance is quite visible. The global retail industry is looking to reduce the impact on the environment. Using drone technology to remove the use of fossil fuel is the best option that any global company in the retail sector can undertake to make the difference. Emerging societies in different industries can put pressure on global retail firms in technology to reduce the environmental impact (Euromonitor Communications, 2017).
Impact on the strategic decision-making process
The retail business sector can make many decisions to enhance the visibility of improvements, in the competitive market. Some key decisions have been depicted by companies in the global Oil & Gas and construction industries. However, navigating the global retail sector is interesting due to emerging trends.
· Work Environment Pillar
United Kingdom online retailers have decided to use drones to upskill staff in different countries. Using drones in the delivery service is not the single factor that is highlighted in the article. It can also improve the whole work environment in the country. For Instance, if the retail company intends to expand the business in the United States, it must have to integrate with the local work environment. The work environment is one of the prominent pillars of industry globalisation. Developing people to learn different skills and take part in the technology revolution can help the company get an edge over other competitors. It is a fact that drones can help countries meet future challenges (Bailey, 2011). UK cities and regions are facing some challenges. It seems tough to shape people’s behaviour and attitudes towards drones. New arrivals in the UK’s retail sector have to build a work culture that can help to meet these challenges. The impact of drone technology of the decision of staff training is positive. It can be done by building innovative culture in the internal business environment.
· Market/Industry Pillar
The relevant article has depicted the planning process of the construction sector or companies. Critically, the planning process through drone only in the construction industry cannot be justified. The online retail sector is quite different in the United Kingdom, and it looks quite dynamic as well as compared to other industries. For example, the retail company decides to expand the business in the United Kingdom. Critically, the management of the company may plan to use drones in the operational process. Planning through drone is still irrelevant in the retail industry. No doubt, Retail Company can use drones to investigate Brick & Mortar, retailers. However, it is a minimal part of the retail planning process (Jackson, 2018).
This e-commerce industry or sector contains organisations, which usually plans for the next five years. The market or industry is also a prominent pillar of industry globalisation. The five-year plan refers to the evolvement of any company in the competitive market to gain and sustain the competitive advantage. In the competitive market of the United Kingdom, the retailer usually plans the digitalisation in next five years Drone is a good source for the company to derive data or insights. The decision or plan to use drones to digitalise the whole business operation is the best approach to make the difference.
Addressing E-commerce Themes (Examples)
Zalando, a prominent online retailer in the United Kingdom, has collaborated with Wal-Mart to test the drone technology. The company wants to integrate with the new trends in the retail market, and starting from drone technology is the best idea. The purpose of the company is to reduce the impact of Amazon, world biggest online retailer, to enhance sales and improve the work process. Interestingly, it is a strategic decision or strategy, which must be executed in new 4 in five years (Retailupdate.Com, 2017).
AO, a prominent online home appliance retailer in the United Kingdom, has perceived the technology differently. Instead of focusing on drones and blind technology integration, the firm has adopted web applications and monitoring web analytics. The purpose of the company is to improve the business capacity to gain a competitive advantage over other retailers in the industry. The strategic decision of the company in this retail sector is to get a strong competitive position to keep shining revenues streams and profitability (Macaulay, 2017).
Boohoo has emerged in the United States with its unique business strategy. The business strategy of the company is to enhance the localisation to integrate with local fashion trends. The industry globalisation theme comes into life when illustrating the example, this top fashion retailer. In the US, the online retail industry, business expansion is the key strategy of the company. However, the firm is carrying new quality standards to contain the general acceptance in different cities of the United States. Emerging society, technology, work environment, and market industry is the main pillars of the theme. Boohoo has integrated with this theme by providing the appropriate response. For Instance, it has changed the work culture to start the business in the United Kingdom. It contained a logistics or delivery service that can be tracked. Differentiation has been adopted as a key market strategy. Customer or market analytics have been used to integrate with needs of the emerging societies (Milnes, 2017).
Recommendations to manage the effects of emerging themes
- Concerning technology advancement as the first theme, the retail sector must have to use technology to enhance the personalisation It is a key recommendation of the retail sector to increase online customer traffic (Maldonado, 2018).
- Regarding technological advancement, it is necessary for the retail company to conduct a complete market or customer analysis before adopting any technology. For Instance, the firm may use drone technology for the delivery process if the emerging society depicts the green signal or general acceptance (Fleming, 2018).
- On the other hand, regarding industry globalisation, the pertinent localisation is highly recommended. When expanding in different countries or emerging in the global e-retail market, the intention of the firm must be to align with the global industry trends. Cultural integration and localisation are key suggestions for the survival of e-retail business (Wales Online, 2009).
- In the global retail industry, the retail firm may face intense competition. Thus, the most important thing for the company is to depict the multifactor productivity. Bringing efficiency at all levels is the appropriate approach by the company to gain a sustainable competitive advantage (Shaw, 2012).
Technology advancements and industry globalisation have become an emerging theme in different industries. However, the retail industry, especially the online retail industry, has to devise some improvisations to implement these recommendations. Analysing the impact of these recommendations on the business process is the right approach in this sector to measure the workability of the recommendations.
Conclusion
In the end, it is to conclude that some emerging themes trigger retail e-commerce industry. Critically analysing the article has helped to derive some key insights. In this comprehensive critical analysis, the E-Commerce sector has been navigated along with different themes. Interestingly, online retailers in the United Kingdom usually make business strategies and decisions, which revolve around these themes. Technology, work environment, emerging societies, and market or industry are some key revolving pillars or factors. The main source of this analysis helped to investigate the drone technology and streamlined the technological impact on the economy, business, and strategic decision making. Technology and globalisation trends can help this sector to emerge and portray its boom in different countries.
References
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Davidson, B.J. (2018) How Technology Will Change Ecommerce in the Coming Years, [Online], Available: https://percentotech.com/bobbyjdavidson/
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Desjardins, J. (2018) Is the Future of Ecommerce in Drone Deliveries?, [Online], Available: http://www.visualcapitalist.com/ecommerce-drone-deliveries/ [6 November 2018].
Euromonitor Communications (2017) E-Commerce Is the Fastest Growing Global Retail Channel Through 2022, [Online], Available: https://blog.euromonitor.com/e-commerce-is-the-fastest-growing-global-retail-channel-through-2022/ [6 November 2018].
Fleming, J. (2018) What’s Happening in UK Retail – and Is Online Shopping Really to Blame?, [Online], Available: https://www.webtrends.com/blog/2018/06
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Jackson, G. (2018) ‘Strong’ online sales lift UK retail industry in July, [Online], Available: https://www.ft.com/content/45a4fccc-a12f-11e8-85da-eeb7a9ce36e4 [6 November 2018].
Jiangsu, Z. (2018) How e-commerce with drone delivery is taking flight in China, [Online], Available: https://www.economist.com/business/2018
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Macaulay, T. (2017) AO.com boosts retail site performance with application monitoring tools, [Online], Available: https://www.computerworlduk.com/
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Maldonado, S. (2018) UK Shoppers Crave Personalization in Retail, [Online], Available: https://www.curalate.com/blog/uk-shoppers-crave-personalization-retail/ [6 November 2018].
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Pwc.co.uk (2018) The impact of drones on the UK economy, [Online], Available: https://www.pwc.co.uk/issues/intelligent-digital/the-impact-of-drones-on-the-uk-economy.html [6 November 2018].
Retailupdate.Com (2017) RetailUpdate – by LebensmittelZeitung, [Online], Available: http://retailupdate.com/a/lz/170719-zalando-starts-zet-and-walmart-tests-delivery-drones [6 November 2018].
Shaw, H. (2012) Why Canadian retailers are a productivity bright spot, [Online], Available: https://business.financialpost.com/executive/
why-Canadian-retailers-are-a-productivity-bright-spot [6 November 2018].
Wales Online (2009) High-street retailers benefiting from globalisation, [Online], Available: https://www.walesonline.co.uk/business/
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