Evaluating the Use of E-Commerce in a ‘Brick and Click’ Organization That Balances E-Commerce with a Continued High Street Presence [Writer Name:] [Institute Name:] Executive Summary This paper covers an analysis on how the company, Argos, has planned and executed its e-commerce strategy to maintain a valued online and high street presence in the target market…
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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 Argos 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 balance 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
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