To What Extent Is It Inevitable That Businesses That Fail To Invest In E Commerce Will Lose Market Share To Competitors That Do Invest? (40 Marks)

951 words - 4 pages

To what extent is it inevitable that businesses that fail to invest in e-commerce will lose market share to competitors that do invest? (40 marks)

In this essay I will be discussing the extent to which businesses that do not invest in e-commerce lose market share to competitors that do invest. E-commerce is the trading of business online rather than through physical stores. There are several businesses that trade solely online. For example ASOS, whereas most businesses trade online as well as owning physical stores, these include Topshop, Next, etc. I will use these businesses to discuss to what extent is it inevitable that businesses that fail to invest in e-commerce will lose market ...view middle of the document...

This therefore proves that if you do not invest in e-commerce the business will inevitably lose market share.

However, whether a business loses market share because they did not invest in e-commerce depends on the type of business. This is true for Primark who are best known for fast fashion. Catriona Campbell who is the director of customer experience believes ‘Primark considers its pricing point difference as being unsuitable for e-commerce’ and therefore do not invest in e-commerce. Although Primark do not invest in e-commerce, they hold a huge percentage of market shares, taking in enormous profits. Therefore, it shows that it is not necessary to invest in e-commerce in order to succeed and gain market share because Primark have huge amounts of market share and do not invest in e-commerce. Furthermore, Primark have no direct competitors, which also shows that they do need e-commerce in order to compete. Therefore, this proves that it is not inevitable that businesses that fail to invest in e-commerce will lose market share to competitors that do invest.

Furthermore, I believe that it is not inevitable that a business that fails to invest in e-commerce will lose market share to its competitors who do. This is because there are other ways to sell products, for example a retails tore. By owning a retail store and not investing in e-commerce and all the technology needed to invest into e-commerce, the business is saving a lot of money in the short term. This money can then be reinvested into other more productive things such as advertisement, or logistics and distribution, two other very important factors in the success of gaining market share or even just the success of a business. By investing in advertisement, the business...

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