IKEA store

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  • Words: 746
  • Category: Ikea

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The last few decades have seen the transformation of business process in Internet based process. The Internet has changed the business modes. The concept of geographical boundaries is no more a major concern for the companies to reach the potential consumers.

The time saving business process not only include the exchange of information and documents but also goods and services can be bought and sell in a time saving fashion. With such enormous benefits being provided the use of Internet has also posed some challenges to the customised methods of business.The Companies that understand the benefits of introducing Internet based business techniques are transforming their business processes to Internet based business. This trend has also effected the process of traditional retailing through outlets. There has been a considerable research on the effects of online sale on traditional business methods and consumer behaviour for example (Sindhav and Balazs, 1999; Reardon, 2002). The main aim of this report is to summarise what has been written so far about on line sale and its impact on the IKEA store.

It will also underline the ethical and legal issues related to the security measures of information. Last two decades have seen multi-fold progress in the use of Internet (USIC and IITA, 2000). Nua Internet Surveys have reported an increment in the number of Internet users globally, statistics state the users are increased in all regions of the world from 171 million in 1999 to 304 million in March 2000, an increase of 78 percent (USIC and IITA, 2000). The accessibility of the consumers to different products and services has also been increased.In order to respond to the changing needs of the customers businesses are also applying new techniques to capture a vast market, (Ram et al.

, 1999). Through Internet the competition has also increased which put pressure on the manufactures to keep the prices low. (ISPO, 1997). Furthermore, the businesses, which are using on line selling approach, do not have to face the geographical constraints; a large no of customers can be addressed with undertaking a single effort.The advantages attached to the notion of Internet have made it the most important driving force of the business revolution. Like all the other Internet based business processes online shopping is gaining popularity among people due to its characteristics of easy access, 24 hours availability, current Information and price reduction.

In the busy world of 21st century the tradition of on line shopping has become necessity. The increase in the importance has also given rise to different challenges, which need to be addressed in an effective manner.Service providers are driven and motivated by the consumer. A greater dependency upon such interactive services offers providers with the foundation for forming further online retail outlets for customers to integrate into their lives. E- Retailing: Retail chains became serious about the internet when they realised that if they did not follow their customers online, they risked forfeiting them to more fleet-footed competitors.

Major offline retailers migrated to the Internet to catch the wave of high e commerce growth.(Grau, 2006) “On line retailing is gaining importance in most parts of the world. Hyman, chairman of Verdict Research, the leading retail consultancy, told Cantos, the online PR service, that figures show that online shopping is now almost equal in value to that of department store sales. He also said that traditional department stores would have to adapt to the new retail environment.

Online retail grew approximately 30 percent last year, according to Verdict.The company believes that growth will slow but continue as more people acquire high-speed Internet connections and make increasingly more Internet purchases. Hyman pointed out that online spending did not signify a new source of income for retailers. He said that the “key thing about online shopping is that the majority of sales made online are sales that would have been made in mainstream retailing. It’s helping to make life far more competitive in the retail sector than it was before because most of the people in the retail sector are now having to add an additional channel…the Internet.

” Hyman argues that “pure players”, whether they be department stores or retailers, have suffered. “I think the truth is that most pure players have not been successful,” he said. “Most of them have not made money and an awful lot of them have gone to the wall. ” The message is clear.

To be able to compete in today’s market, one needs to offer both physical and online retail capabilities. ” (Online retail challenges traditional retailers)

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