- Argos online shopping
Argos is now doing business online and over the phone. They are now supplying over 130 million customers a years throughout their store and are getting 26% of sales in the Internet channel only. The organisation has 4 millions customers that are buying both online or over the phone. Argos website was the mainly checked high street trade website in the United Kingdom in 2008.
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As the technology is growing, Argos simplifies the business process to their customers. Giving them choices of making their shopping either online. With the online shopping, customers will be able to make the shopping on their home. They will pay for the bill via the Internet and given the choice of getting it delivers or pick up in one of the Argos convenience store. All the information that the customers will need about the products or services can be easily find on the website or the different social networking such as face book, tweeter and many more, the details can be in front of you in a minute. It is very time-saving and effective way of purchasing goods.
Figure 2: mobile phone shopping
Source: ()
The online shopping creates avoidance for long queue and the stressed of parking around the store. Argos customers can easily go through the online site or visit to different Argos stores and search the product if not available on their nearest store.. Sometimes customers can avail a bit cheaper than buying on the store. By opting for the online shopping Argos customers can easily compare Argos price to their competitors online and make a quick comparison of prices or products. On the Argos website when customers are looking for a product, they will have other products similar to what they are looking for available on the page or on another link for you to click on just in case you are interested.
The good advantage for this aspect of purchasing is that customers are not particular anymore of the opening and closing time of its stores. With regards to the return services, Argos set the policy of 30 days if buyers are not happy or satisfied with the item or if it is faulty.
Argos competitive advantage towards their major competitors like Tesco, Asda, Pc World, Curry’s and online retailer Amazon with the internet presence is the value of low-cost product, integrated multi-channel capability, size of stock it carries which gives it a buying leverage and the ability to by-pass intermediaries in sourcing some other products.
“The internet now accounts for 26% of Argos sales; of this, £700m or around 17% of Argos sales are from customers using the online Check & Reserve service.”
Figure 3: Flow-chart of Argos
Catalogue Shopping
Online Shopping
Mobile Phone Shopping
With smart phone’s buyers can download Argos application and take a look of the products offered
Customers open Argos website using computers at home or wherever they are and get chances for discounted products
Customers see the catalogue at home
Once they have chosen what they want, customers has to visit designated Argos shops
It’s easy to scan on products and click on what they like and gather in a shopping basket
Glance over the goods and take a pick on the product
Make a purchase and pay using credit cards with PayPal and choose see the options delivery or pick up
Make a purchase and pay using credit cards with PayPal and see the options delivery or pick up
They have to travel all the way to the shop, spend for fare or drive their car consuming gas
Shop scenario, buyers queued if there are a lot of customers
Products delivered and have it on hand
Products delivered and have it on hand
Some conditions, if products are unavailable in the shop, buyers has to go other branch of Argos
Any types of purchases, customers are given chances of at least 30 days to return faulty or unwanted products.
Take a long queue again and eventually have it on hand
Part 2) Critically assess how the organisation has employed e-business technologies to perform its key business process
Argos uses a mixture of different channels for advertising their products and services such as television, radio,mobile,website, newspapers, magazines and posters or billboards. These channels are the most effective and efficient from time to time. These all methods of buying goods seem to be very appreciated by the English people. Argos maintains a broad network of stores and distributes its catalogue to more than two-thirds of all UK households.
Since its beginnings in the 1970s, Argos has been observed for its innovative use of technology. Computer systems have always had a huge impact on the way Argos functions as a retailer. Argos has used ICT to monitor stock levels, to identify market trends early and to avoid stock out situations. Their electronic point-of-sale systems (POS) have led to great accuracy in the conduct of financial transactions. New technologies have had a profound impact on internal communication as well as on the way in which Argos communicates with customers and suppliers. A very important element in this context is the feedback, which Argos can collect through its various communication channels. Argos has implemented an innovative system of regular customer feedback sessions in which customers are invited to attend "open evenings" to make suggestions of how services could be further improved. The systematic use of e-mail and Intranets in all stores, distribution centres and head offices since September 2000 has increased the speed and the volume of the two-way-communication.
The business model of Argos is a multi-channel approach: customers are offered different types of outlets for shopping. Prior to the introduction of the new e-channels, the customers could only browse the offer in the catalogue or directly at the store. Now they can browse the offer on their mobile phone, on the Argos website and on television. Customers with access to the Vodafone service can select Argos from the Shopping Menu and, via the main menu, browse the catalogue, check availability reserve in store or pay for home delivery.
Argos customers can, since December 1999, place orders and buy goods through their digital television sets. Combined use of different channels is possible, as customers can for example browse and purchase goods from the catalogues and use the "Click & Collect" service via the website. Fast technological developments and the spread of Internet access in households induced Argos to make an early start in online retailing. The Argos website was launched in 1995 and has been continuously developed since, with many features and services being added.
Argos is taking great care that the website must be very user friendly, and that the services offered have real practical value for customers. For example, the site shows the delivery time for every product offered. Products can be delivered to any address in England or Ireland. Argos is also concerned about online security. They only accept orders that are placed using the Secure Socket Layer (SSL) standard to prevent customers from inadvertently revealing personal information by using insecure connection. During payment, the company asks for the card billing address as an additional security check. No credit or debit card details are stored once the customer’s order has been processed. Online customers can register to receive an electronic newsletter that informs about special offers and promotional deals. As a matter of principle, there are no differences in products and in promotions between the physical stores and the website.
The customers can check stock availability and reserve goods through the "Ring & Reserve" call centre and the "Text & Take Home" (SMS) services using, respectively, their fixed or their mobile phone. Argos has recently teamed up with Vodafone Live! Argos gives customers the opportunity to view the catalogue on their mobile phone. As with Internet purchases, they can pick up the goods at the store or can make use of the home delivery service. None of these new sales channels are related to any specific warehouses, but are based on the existing Argos infrastructure.
A major problem for Argos to set up this strategy was to efficiently manage the flow of merchandising from an extensive base of more than 750 suppliers to any of the distribution centres throughout the UK. Argos selected UPS Supply Chain Solutions for this purpose, more specifically a solution called "Nominated Carrier Scheme". This system helps Argos to ensure merchandising is in the right place at the right time. This supply chain solution by UPS receives, validates and handles consignments from several hundred Argos suppliers. UPS checks that the order is correct, consolidates it with other orders and then sends it to Argos’ own distribution centre for the final delivery.
This system works through direct computer links. It electronically validates the merchandise against the Argos orders, confirms that the merchandise is ordered and ensures that delivery occurs at the correct time. The UPS scheme, consolidating goods for delivery in only one lot instead of sending five or six separate loads, offers strong financial and organisational advantages to both Argos and its suppliers.
Part 3) Make recommendations on how the organisation should enhance its use of e-business technologies to enhance its international use.
Argos was overly dependent in the United Kingdom market. Merely, the organisation focuses on their strategic plans and applies it within the nation. Argos e-commerce retailing business has been successful since the financial economic status of the country is stable and customers have been dedicated in online purchasing. However, creating a presence in the international market for expansion has a huge impact in sales and profits the organisation.
The biggest challenge of global e-business is localizing to a new market prospect. Considerations are mostly highlighted in terms of communication, the markets customs and culture to be effective.
“You have to have something unique and differentiable as far as a product to get attention”. (Begin, 2010)
The biggest challenge for the organisation is to establish awareness in the chosen market and their business practices. A common problem is that how to translate the language in order for the new target market understands the nature of the business and goods and services provided online. For instance; Argos would start operating in Asia or other European countries, wide range of languages should be in the content page to make it less complex for the people to comprehend. Moreover, customer service representative should be able to speak the language and communicate properly; concisely and knows accurate translation which could pass the message to the customers in a simple manner with regards to the payment method and giving of deep discount to a certain product.
For Argos to generate effectively in a target market, it would be recommended to find a local partner who understands local customers well.
It is a business venture for a retailer to operate internationally but the benefits of selling far outweigh the challenges. The internet has no boundaries, getting access to reach out to international buyers. Argos website can be appealing to foreign customers by willingness to accept international orders of their product, the website has a multi-language toggle, list of products in local currency and offering clear information on shipment, costs, return policies and countries served. International customs, currencies, taxes and regulations should be understood.
Beal, V. (2010). Going Global with Your Ecommerce Business.Ecommerce-Guide. 0 (1), 1.
Conclusion:
As time went by, various technological advances guided the evolution of ecommerce. Retail marketing is one of the ideal ways to purchase online. The creativity of e-commerce business makes life easier and accessible. The more competitions, marketplaces, faster transactions, innovative technologies make activities between customers and producers more active. The future is faster as it holds more than in the past.
The e-business and e-commerce offer a great impact in the human lives, very far-reaching and prominent in the present time. Globalisation of the business arises because of the revolutionary digitalisation of technology. For organisation like Argos in the retailing industry, the competition is very tight and many people wanted to involve in online business.
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Last accessed 14th May 2012
http//: last accessed 15th May 2012
- Daily Mail article. Available:
. Last accessed 12th May 2012
- Argos History. Available:
last accessed 10th May 2012
Ulster Business School
Department of International Business
Msc International Business
E-Business BMG814
2012
Student names: Banga, Caroline
Edullantes, Hazel
Patel, Bhavna
Tutor: Professor John Matikas
QA Business School