Brick and Click organisation – Asda
The term Brick & Click is used to specify that an organisation has a shop ( ‘brick’ a physical presence) in addition to an online (‘click’ which means it also have an internet presence). In this criterion I will be talking about ASDA and evaluating its ecommerce side to the organisation.
Asda is a British supermarket chain which sells various goods from groceries and electronics to toys and financial services, the organisation which I have researched and is a profit generating company. The company’s online presence first started back in 1998; it has now almost expanded across the whole of the UK. The company employs more than 150,000 workers across their 532 stores within UK with a headquarters based in Leeds.
The introduction of ecommerce in ASDA will have a major effect on its customer base as they’ll be able to sell and deliver products across the whole of the United ...view middle of the document...
Additionally, ecommerce trading is extremely easy to start off and requires less start up and running costs to maintain, in this case, ASDA don’t need to purchase a large store with products hung on the wall Meaning there will be no need in hiring lots of workers to keep your shop running, as the website automatically deals with customer itself. Although ASDA’s brick store will still need to carry on hanging the products on the wall to allow trading through the store showing that there’s a definite advantage for ASDA that they don’t need to invest millions to start trading online. But there are a few data handling and security issues with trading online as there is an extremely high risk of the system data being destroyed by hackers and crackers through viruses, so while so costs are staying low, money will need to be injected to buy security software to maintain their virus-free database. In addition, ASDA must also be aware of law and regulation about data handling so when handling customers information it must stay secure and cannot be passed onto third party organisations without the customer do so, or they may face large fines.
ASDA has to also make sure that all their employees are trained to make sure they know the about the laws and regulations about customers online details. There will also be IT professionals needed in keeping the ecommerce site running and maintained, all these add to the increase in ASDA’s running cost which is a disadvantage to the ‘click’ e-commerce side of ASDA.
An advantage of ASDA now operating as an ecommerce site is that they will now be able to sell goods to anybody in the UK and Ireland which fundamentally means more customers. A larger customer base means more sales and which would result in higher profits for the company. Without ecommerce in place they’d only be able to sell gods to those who live near or passing their stores. In addition, almost all of the ASDA stores nationwide are open 24 hours, except for Saturdays and Sundays due to strict trading hours. But during the week the selling time is flexible which enhances sales as customers can buy products when they want.