The Impact of E-Commerce on Business Strategies in the 21st Century - Research Proposal

Introduction

In the brink of 1997 to 2003, researchers concentrated on finding more about the e-commerce consideration the technological advancement had started to kick off in the world (Mason, 2019, pp.365-383). At first, the researchers concentrated on finding out the influence of the internet on the companies' imposable strategies in competition available in the markets. The more technology advances, the more the companies and other small traders find it easier to manipulate the internet for their market advantage. The world's highest population is accessible to the internet and social media. Many people (traders) concentrate on finding the more straightforward ways of conducting businesses and interacting with customers without involving long processes like traveling, and the internet has been that friend to enhance interaction and socialization of different stakeholders to meet and conduct their businesses. The highest population in the world prefer attending activities and shopping online as it is first and efficient and does not take much of their time. Consumers' perspectives dominate the literature and research on online businesses. The impossible organizational strategies should be directed towards factors that make and motivate consumers to prefer e-commerce business over other companies. These factors may include conveniences, trust, cost, and security, among other factors that look obvious to the eyes of companies but very much weightier in the eyes of the customer. For brick-and-mortar retailers to continue developing, there is some online adaptations they need to adjust, enabling them to stay strong in the markets giving the capabilities to defeat their online competitors.

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Background to the Study

Every year there is news about the increase in sales online showing improvement and development of e-commerce and how fast it is developing. On the other hand, there is the growth of the death of the brick-and-mortar talk as online sales increase. The statement is as valid as it is said by the naysayers showing that the brick-and-mortar retailers and other business people are taking longer to adapt in the fast-growing online market (Gerber, Ward, and Goedhals-Gerber, 2014, pp.99-106). E-commerce businesses seem to be new lyrics to the brick-and-mortar retailers that is involving them more time and resources than they need they expect in running their business.

In 2016 online sales accounted for 8.1% of total sales in North America, where sales were anticipated to increase with technological advancement in the coming years. It means that the brick-and-mortar retailers had an economic power to turn it to a million-dollar deal. However, brick-and-mortar retailers have been found to be losing traction of their markets quickly. They should, therefore, enter into the online commerce field ready to fight for their market share and the future.

Research Questions

• How will the brick-and-mortar retailers add customer value to their products online?
• What is the best methods for brick-and-mortar retailers to use for syncing online and offline deals?
• Who are the potential customers of the brick-and-mortar retailers' products?
• How many of the brick-and-mortar customers shop online?

Objectives of the Study

• To find out the best methods of adding customer value to the brick-and-mortar retailers' products online
• To identify the potential customers of the brick-and-mortar customers online
• To investigate the best methods for the brick-and-mortar retailers to sync their online and offline deals.

Aim of the Study

The aim of the study is identify methods and ways through which brick-and-mortar retailers would adapt in the ecommerce businesses to achieve competitive advantage.

Literature Review

Researchers have viewed e-commerce as an area of business to consumer, where they see it as direct interaction. They reason that the increase and widespread of technological use have motivated businesses to settle in online marketing. The online supermarkets, groceries, and other retailers are already benefitting from the growth of technology (Barney, 1991, pp.99-120). Technology has brought retailers closer to the buyers in a more convenient way that does not involve significant capital to start or maintenance as it relies on online marketing and linking with potential buyers in the social media and other online platforms like websites.

A small fraction of brick-and-mortar food retailers has expressed their intention of establishing their online food retails and groceries. And there is quite a reluctance among them as other merchandized traders and supermarkets have invested hugely in online platforms scaring off the brick-and-mortar food retailers (Thomas, 2010). However, online businesses are experiencing increased sales because of increased internet use in the globe. Increased internet use has enhanced Consumers' acceptance of online groceries and food conveniences, and fast deliveries, and there is also an increased emphasis by significant internet supermarkets use online for shopping and other services. Online platform allows consumers to order and wait for their groceries and foods at the convenience of their place without necessarily having to move to the vendors.

The European online food market is broken apart with low margins in competitive environments. The United Kingdom has the most extensive online food market. In 2005, online sales in the United Kingdom amounted to over 1600 million euros that was configured to be 74% of the total market total commodities sales and 1.3% in food and grocery sales (Cheung, Chan, and Limayem, 2005, pp.42-60). Brick-and-mortar foods retailers should, therefore, look into such market shares and explore ways into which it would bombast and outdo other sails and retailers like supermarkets.

There is a fierce online market in the most developed countries, more so the European countries and the United States. However, brick-and-mortar foods can explore ways into which to get consumer's trust and winning their orders (Jarvelainen, 2007, pp.53-74). Adding value to consumers' products is one such method. Many online retailers and other traders charge customers for deliveries. This means that when consumers buy their foods and groceries online, they pay extra charges for shipping (Erdem and Karakaya, 2005, pp.259-273). However, other vendors offer free shipping when shopping meets a given company threshold. Brick-and-mortar industry can also explore such opportunities to provide consumers with fantastic experiences that would make them come back to shop for more (Parengkuan, 2013). With their skills in the markets, the retailers can design their food prices in a way that they cater to the shipping prices without really showing customers that they are asking for the shipping fee (Minfang, 2011, pp.1-4). Such services would include in-store inclusivity and inviting customers to engage in activities that beg for their convenience (Khalifa and Limayem, 2003, pp.233-239). Some institutions have done it and found it convenient for their customers, and an example is Medley pharmacy that fills prescriptions and delivers to the customers in New York without charging them. The Pharmacy runs by using a mobile app where they offer prescription management to their customers that allows users to schedule their pick up stations. The app also allows customers to ask for free delivery on the same day as their prescription (Brem, Maier, and Wimschneider, 2016). Brick-and-mortar food retailers would also employ the same strategy to win more customers while still maintaining available ones. Such a design of supplying customers with foods while reducing shipping charges will encourage more customers to work with brick-and-mortar retailers hence experiencing an advantage in the competitive online marketing (Lim and Srai, 2018).

Syncing online and offline deals is an effective way of creating a good relationship with customers (Wang and Emurian, 2005, pp.42-60). The process requires individuals if they are offering a discount on their offline deals also to provide the same on online foods. The strategy will help brick-and-mortar food retailers develop a good eCommerce working relationship with their customers that will make sure that they acquire an advantage in the fierce online competition, winning more customers. Creating a consistent service to customers both online and offline is the key to engaging in the eCommerce competition without investing much on advertisements (Sreeram, Kesharwani, and Desai, 2017). Thomas (2010) reasons that poor customer service is all it takes to ruin customer relationships, making them deflect to the competitors' services.

Methodology

The study has utilized a systematic review of the available literature online to understand how bricks-and-mortar would design their eCommerce strategies to remain relevant in the competitive business environment. To examine the factors that would enable sustainable competitive advantage in e-commerce, the study explored the case study research that was conducted on the factors that enhance competitive advantage in e-commerce. The study searched online with the following keywords; bricks-and-mortar food retailers, competitive advantage, e-commerce, food supply chain management, factors that win customers online, and e-commerce sales. These were the materials found online for the analysis of the study. Most of the materials were in the form of the case study and contributed hugely to the study. The study also analyzed journals and other materials written about bricks-and-mortars business models and opinions on how the retailers would turn around and make online business more lucrative for the retailers.

Unlike in other researches, the study involved outside observers who had no influence on the retailers operations. The case study that was analyzed for this study is the LeShop online business model for competitive advantage. The case analyzed the e-commerce operations of the LeShop and the real-life context in its contemporary life business operations. The study compared the literature of the LeShop model of conducting an online business and the findings found in other studies discussing how the organizations can maintain their online competitive advantage online.

The study also utilized the theoretical framework designed by Mata et al. 1995 that reasoned tried to outline the organizational competitive advantage online by reviewing corporate resources abbreviated as (RBV) to understand adaptations that an organization requires to make to outshine other firms in the competitive markets (Yin, 2017). The model proposes the variables that need investigation in e-commerce to establish the connection between technological advancement and the competitive advantage. RBV model has been criticized for its shallow neo-classical economic rationality. However, the model provides for the analysis of commercial case studies in a way that differentiates research results from mere hypothetical reasoning (Mata, Fuerst, and Barney, 1995, pp.487-505).

The study utilized Mata et al. 1995 framework analysis of the available literature. Still, it does not grant the model-independent detailed analysis of all the factors that define and enable e-commerce.

Preliminary Findings

Business processes is essential for enabling e-commerce consistency with the offline business model. Processing of goods and assembling consumers online is a factor that enhances e-commerce business. The efficiency of business processes will enable in dealing with the question of whether the reta...