Prospect of online sales in the future

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The emergence of interactive home shopping is changing the shopping patterns of consumers. With the arrival of digital television and Internet, Teleshopping is going to exceed the sales performance of traditional shopping. Innovative technologies threaten the security of retailers that are reluctant to accept them. Industry watchers believe that Teleshopping may affect the distribution, structure and staffing of retailers. They will change the way that retailers have done, but will not totally replace traditional, location-based commerce. The aim of this research paper is to provide a guide to the future retail scene: why the traditional organisation structure will change; What the new structure will look like; How to manage the workers; What the working environment will like and what impacts it will have.

Introduction

People usually go to High Street for shopping in their leisure time, because the shops there offer them various selections. With the popularisation of Internet, consumers only need stay at home, get connected, and click the mouse, and then they can get a lot of information about merchandises. As a result, the way that consumers’ pursuit the latest news will become more diversified. Now they are not only enabled to select all kinds of products at the same time, but also can save energy and time to do other jobs. As our life going busier and faster, this newly developed way of shopping is warmly accepted by people in an amazing speed.

Over the next decade sales through television and the Internet will grow by upwards of 30 percent per annum. Technological improvements, lower equipment costs, a wider choice of products and an increasing computer-literate population will all help to boost the online retail market in the UK to at least 21 billion a year.1 We will have an online High Street in the very near future!It is a group of partners who provide a series of skills to deliver a service into the market place.

Considering these four types of structures, it seems that the Stable Network is the most appropriate approach to the Teleshopping organisational structure.

Teleshopping organisation operates as permanent companies. Member organisations joint in a flexible network, establishing permanent relationships to produce certain products and services. Even though, Teleshopping organisation is permanent, member organisations remain independent and free to do business outside the Teleshopping organisation. (Hagg et al, 1998)

In a permanent arrangement, the simultaneous production at member organisations creates shared organisational speed. Member organisations share the organisational force only if each of them actively contacts customers to extend the market reach. (Haag et al, 1998) For example, a consumer bought an item on one shopping site. From the consumer began to access to the site to receive the item, this process involves several other member organisation’s distribution, such as some telecommunication authority, delivery companies and banks, ISP.

Accompanied by the organisational structure change, some other aspects have also been changed, such as: Marketing and education changes. Teleshopping operators and information providers, including those providing shopping opportunities, need to work together to expand the marketing support for the services. Education on how can we access Teleshopping efficiently and effectively needs to be improved and expanded. It’s key to position Teleshopping as consumer” rather than computer” or technical products. In the next generation, more people will accept Teleshopping; we should not write off significant portions of the rest of the population by properly marketing to and educating them. (Anon, 1997)

Service and product changes. The quality, quantity and variety of services available via Teleshopping in general need to be enhanced. Specifically, the breadth and depth of merchandise available through Teleshopping needs to be dramatically improved. This involves a little of the chicken and egg” problem. Why should retailers add more merchandise until there is a large number of consumers who use Teleshopping? On the other hand, why should consumers get excited about shopping via Internet until there is a satisfactory mix of merchandise available? Some retailers need to bite the bullet and help make shopping a significant reality by providing the quality and selection of merchandise desired by consumers. (Anon, 1996)

Industry and systems changes.

Organisations such as telephone companies, major media and entertainment companies and small and large retailers need to get more involved with and support the development of OLCISs. Strategic alliances and other systematic working relationships need to be developed. The payback for such activities will be limited in the short run but with the proper support now the benefits to all participants should be significant in the future. (Anon, 1998a)

Ease of using changes.

While the term has been overworked, user friendly” is a necessary ingredient for the expanded use of Teleshopping. All Teleshopping organisations should work together to provide easy-to-use interfaces and enhanced interactivity, Retailers need to make it easy for consumers to do business with them, to get desired information, to place an order and to have the merchandise delivered in a prompt and efficient manner. (Anon, 1999a) If traditional retailers are to avoid being disintermediated, they will need to focus on the process of shopping as a source of entertainment, pleasure and social intercourse, on the tactile and visual appeal of their goods, and on the quality of their service. They will also need to develop a technical infrastructure and products range to capture electronic shoppers. (Kare-Silver, 1998)

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