E-commerce - Cape Peninsula University of Technology

Chapter 4: Data analysis and interpretation Page 54
included e-retailing at the middle or later stage had the privilege to learn from
the doom of other companies and try not to repeat same failed model.
4.3 E-RETAIL IMPACT
According to one of the interviewees, e-retailing has impacted on their
company's general business activities. They had to implement new strategies
and processes in their shops and made sure they worked. They also had to
develop new competencies, such as managing the unfamiliar issues that
arise from partnerships. The experience of outsourcing partnerships with
delivery companies, IT service providers and call centre operators all
presented new challenges to the business. These findings have helped to
have an overview e-retail companies views on the following;
• reasons for moving into e-retail business
• the experience and products and services offered
• impact of e-retailing on existing traditional shop
• e-commerce managers' view on customer loyalty
• impact of e-retailing on business strategy
Reasons for moving into e-retailing
Respondents were then asked what led to the move into e-retailing, 29% said
that it was to increase sales, 43% said it was to improve customer relations
by providing better service, 43% said that the decision was driven by
competition while 14% responded that it was a new concept introduced to
help reduce overhead costs. In this question, the respondents could choose
more than one option and could also add any additional reason. Competition
was one of these reasons and another was because e-retailing is a global
thing, said one of the respondents. Figure 4.1 provides explanation on why
companies embark on e-retailing and it is leadership in what they do over
their competitors.