The Impact of Globalization and Digitalization on Retail Organizations

Does the growth in online shopping mean the extinction of the typical high street store

In the recent era of globalisation and digitalisation, the rise in technology and advancement in adopting new techniques in the retail organisation, which provides a scope to the retail corporate companies to expand their business across the international countries through online activities. Through the online activities, the firms promote their products in the global retail industry as well as share appropriate information and data to the customers worldwide. The online platform is one of the effective ways for the retail firms to run their operational activities and strengthen their customer’s base for long run. For example, Amazon is an effective platform where the retail organisations try to utilise the platform for retaining the customers worldwide (Liu, Tan and Mookerjee, 2018). The customers are also interested recently to get proper updates through internet and online activities, where there is increasing numbers of customers who prefer to make effective purchase decision through online activities. The online platform is hereby utilised well for making effective purchase for the retail products in the market. Hereby, the street stores are facing challenges to attract the audiences in the market (Abhishek, Jerath and Zhang, 2015).

Additionally, the organisations in the retail sector are experienced to have lower profitability as compared to the online profit. Hereby, the physical stores are declining its profitability and sales volume, due to high rise on online shopping activities and high e-commerce growth which influence the buyers to make effective purchase decision not through the physical stores, but through the online activities and e-commerce. The technological up-gradation and the rise in internet activities influence the buyers to make purchase through online rather than utilising the high street stress (Panda and Swar, 2016). Hereby, the rise in online activities and e-commerce facilities adversely affect the activities in the physical stores, where in the recent era of globalisation an digitalisation, there is high numbers of customers who are interested in online purchase activities, where they can compare the quality and price of the products and make effective purchase decisions successfully. Hereby, rise in online activities have negative impacts on the profitability and sales volume of the physical stores and thus it can be stated that the growth in online shopping means the extinction of the typical high street store.

Examine the models “clicks’, ‘bricks’, ‘bricks and clicks’ and ‘click and bricks’. Which is the most sustainable

The models of “clicks’, ‘bricks’, ‘bricks and clicks’ and ‘click and bricks’ are effective in understanding the activities of the retail firms, where the leader and the managers manage their operational activities through different strategic planning. The model of Clicks is the business model, where the organisation focuses on online activities only and run their operations through the online e-commerce services. For example, Amazon is following the business strategy of clicks, where it serves the customers through online activities. The products and services are displayed in the website of Amazon and the organisational representatives are efficient to manage the customers through the e-commerce services. On the other hand, Brick is also another business model, where the organisations run their business operational activities over the physical stores, where managing the stock of the products and maintaining the physical store are mandatory for establishing the company in the market (Renko and Popović, 2015).

additionally, the ‘bricks and clicks’ is another important business model, in the recent era of globalisation, where the organisations operate both an online store (the clicks) and the offline store (the bricks) and integrate the organisation in a single retail store. This is the best possible strategic planning for all the retail firms to operate in the market through the ‘bricks and clicks’ strategy. In this strategic planning, the retail firms can strengthen their customer’s base across the international markets where the physical stores are effective to attract the customers in the market and the online activities are important to expand the service and establish the organisation in the global retail sector. In the recent era of globalisation, the organisations focus on integrated business, were the entrepreneurs are looking for grabbing the market opportunities of high customers base and expansion of e-commerce and thus all the organisational leader aim at following the ‘bricks and clicks’ strategy in order to secure future sustainable development (Dimitrova and Kaneva, 2018).

The ‘bricks and clicks’ strategy is sustainable strategic planning as compared to other business model, which provides a scope to the retail firms to establish the brand in the market through offline as well as online activities. By utilising the internet and the latest technological advancement, the organisations try to enhance innovation and creativity in order to attract the audiences across the international markets and retain them for long run to run their business operational activities strategically (Yue, C. and Yue, Z., 2016). Hereby, the ‘bricks and clicks’ strategy is considered to be the effective and best strategic planning of the retail firms to establish the brand successfully and secure sustainable development in near future by operating through the expansion of physical stores as well as online activities through utilising e-commerce platform which in turn produce a scope to the firms to strengthen their customers base and enhance profitability for long run (Turban et al., 2015).

We are increasingly hearing the term Omni-channel retailing. What does this mean and how can business exploit this new phenomenon

Omni channel retailing is a business model in which the retail firms utilise all the existing channels for making the system completely integrated to offer the best possible services to the customers. In this regard, Omni-channels strategy provides a scope to the retail firms to utilise the channel and improve their experience to serve the customers in a better and unique way. In this regard, the Omni-channels retailing is effective for the organisations to enhance the customer’s experience by making the system integrated by using all the available channels for better marketing management (Verhoef, Kannan and Inman, 2015). The social media channels are utilising efficiently, where in the recent era of digitalisation, the retail firms use Facebook, Pinterest, Twitter, Blogs, YouTube and Instagram for successful marketing. Through developing effective content and uploading it on Facebook as well as creating own Facebook page, the organisations try to attract the audiences and build trust and loyalty among them so that the buyers can make effective purchase decision.

Additionally, YouTube is another channel, where the retailers try to upload effective videos for sharing adequate information and organisational data with the customers for improving understanding about the availability of the products and enhancing the branding activities in the market. Uploading effective content on Twitter and Blogs as well as uploading the pictures of products and services and sharing the pricing offers through these channels are effective for successful marketing, where the retailers are trying to grab the market opportunity and attract the audiences for better services (Beck and Rygl, 2015). On the other hand, the retailers are utilising the new phenomenon of Omni-channel by creating own website which is effective for retaining long term customers and attracting them by delivering high quality products and services.

Moreover, creating mobile application with proper information and pricing offers is also another technique, where the customers can review the available products and make comparison to the process of the products as well as make effective purchase decision with one click option and secured payment system. On the other hand, there are some retailers, who invest adequate amount of resources on designing the company website, which is also effective to retain the customers and build trust and loyalty by providing efficient services to all the customers (Bernon, Cullen and Gorst, 2016). Apart from that, there is social campaigning and sending emails to the trustworthy long run customers that are also effective strategic planning, where the retailers utilise different channels for successful promotion of the products and retention of the customers in long run. Hereby, the multinational retail firms are utilising the technology of Omni-channel retailing for attracting the audiences and enhance their profitability by strengthening their customer’s base.

Why are online travel services such a popular internet application? Why do so many websites provide free travel information

In the recent years, there is high growth on travel and hospitality, and internet is utilised well in the travel and hospitality sector across the globe. There are increasing numbers of travel agencies utilising the platform of social media as well as internet for sharing their information and news about the travel and cost to update the customers who prefer travelling to attractive destinations. Hereby, the travel agencies try to utilise the internet applications of creating own webpage, social media marketing and social campaigning for sharing their latest news and information (Bernon, Cullen and Gorst, 2016). Here, the agencies are willing to share their information about the holiday packages, adventure travelling, different destinations and tourism planning in order to share the information with the customers, so that the individuals can get clear and concise information. There is sustainable increase in the travel online services by utilising the latest internet application in order to enhance the marketing tactics and promote the organisational service across the global tourism sector, so that appropriate branding and positive and image can be enhanced well in the market where the agencies can get the opportunity to attract the individuals who love to travel.

There are many websites related to travel news and updates, where the travel agencies are willing to provide free travel information to the customers in order to promote their webpage and attract the audiences for long run. Strengthening the customer’s base and securing future sustainable development are the major benefits of providing the latest information and sharing proper information about the travel destination and tourism planning. Moreover, free travel information is effective to attract the audiences and influence the travel planning of the customers across the globe (Liu, Tan and Mookerjee, 2018). The organisations also have the opportunity to establish the company in the market sustainably and it is also effective for them to share the information a free of cost to improve trust and loyalty and also for successful branding. Additionally, the travel agencies try to provide proper information to the customers so that they can target the customers and interact with them for sharing further knowledge and information about the tourism plan. It in turn helps to build strong relationship with the customers and retain them for long run to have good experience in tourism.

Compare the advantages and disadvantages of distributing digitisable products electronically versus physically

The products that are transmitted to digital format and delivered over the customers through internet are known as digital products. As per the perception of the buyers and sellers and also the customers, there are some advantages and disadvantages of digitalised products.

The advantages of distributing digitisable products electronically are,

There are some customers who prefer online transmitted strategy for getting the products where for example, the customers can download the CD ROM containing software directly from the company webpage immediately after the purchase.

The customers can get the safe products as see on the online webpage display section

Easy transfer is possible

No damage is another advantage.

From the perspective of the sellers, the sellers try to reduce the cost of manufacturing, storage and distribution in order to enhance the profitability and in this regard, the sellers prefer digital transaction as compared to physical transaction strategy in order to reduce the cost of storage and distribution, so that it is possible to maximise its profitability (Beck and Rygl, 2015).

On the other hand, the disadvantages of distributing digitisable products electronically are,

Complex process for the beginners, where the customers cannot understand the transfer procedure

Illicit trade

Repositioning becomes complicated where divergence between the production and consumption raise difficulties of the organisations.

Stacking due to complexity of arrangements of the process

Initial cost of setting up of distributing digitisable products electronically is high

The digital delivery system is replaced well and enhances the traditional delivery method in order to make the business profitable and enhance the distribution process successfully. The advantage is that the digital content can bypass the traditional retail channel with latest technology, where the use of physical transaction can be deteriorated as there is high demand of digital transmission system due to easy distribution and time effective process.

Reference List

Abhishek, V., Jerath, K. and Zhang, Z.J., 2015. Agency selling or reselling? Channel structures in electronic retailing. Management Science, 62(8), pp.2259-2280.

Beck, N. and Rygl, D., 2015. Categorization of multiple channel retailing in Multi-, Cross-, and Omni‐Channel Retailing for retailers and retailing. Journal of Retailing and Consumer Services, 27, pp.170-178.

Bernon, M., Cullen, J. and Gorst, J., 2016. Online retail returns management: Integration within an omni-channel distribution context. International Journal of Physical Distribution & Logistics Management, 46(6/7), pp.584-605.

Dimitrova, V. and Kaneva, M., 2018. Electronic Commerce and Gross Domestic Product Growth in Bulgaria. In 5 th International Multidisciplinary Scientific Conference on Social Science & Arts, SGEM (pp. 297-304).

Liu, D., Tan, Y. and Mookerjee, V., 2018. When ignorance can be bliss: Organizational structure and coordination in electronic retailing. Information Systems Research, 29(1), pp.70-83.

Panda, R. and Swar, B.N., 2016. Electronic Retailing: A Review of Determinants of'Online Shopping Intentions’ in India. Indian Journal of Science and Technology, 9(15), p.4.

Renko, S. and Popović, D., 2015. Exploring the consumers' acceptance of electronic retailing using technology acceptance model. Poslovna izvrsnost, 9(1), pp.29-41.

Turban, E., King, D., Lee, J.K., Liang, T.P. and Turban, D.C., 2015. Retailing in electronic commerce: Products and services. In Electronic Commerce (pp. 103-159). Springer, Cham.

Verhoef, P.C., Kannan, P.K. and Inman, J.J., 2015. From multi-channel retailing to omni-channel retailing: introduction to the special issue on multi-channel retailing. Journal of retailing, 91(2), pp.174-181.

Yue, C. and Yue, Z., 2016, September. A soft approach to evaluate the customer satisfaction in e-retailing. In International workshop on Mathematics and Decision Science (pp. 282-296). Springer, Cham.

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