E-Commerce Adoption

 

As an E-Commerce consultant, you are asked to prepare a report of 2250 words (+/- 10%) on an E-Commerce solution for FreXs Ltd. Your aim is to

persuade the company’s owner to adopt an E-Commerce strategy and invest in Information Technology (IT) more extensively to automate its business

activities/processes. Your work should therefore address at least the following:

• How can E-Commerce adoption help FreXs Ltd with its future expansion plans?
• What would be the key challenges for the company if decided to adoption an E-commerce strategy?

Case Study – FreXs LTD
FreXs Ltd is a family owned retailer, which was found in 2010 by James Anderson. The company started out as a single shop, but has grown over the past six

years to encompass 25 different shops in London. The company is continuing to grow and is planning to open 10 more shops next year: 6 shops in Coventry

and 4 shops in Birmingham. Initially the company supplied only locally sourced fruit and vegetables, but over the years it has sold an ever wider range of

fruit and vegetables as well as flowers, bread, biscuits, milk and so forth. As the company has expanded, it has invested in its own warehouse but the

perishable nature of much of what it sells means it relies on daily deliveries or trips to the wholesalers. Altogether, the company employs 100 people; 85

work in the 25 shops, 10 in the company’s own warehouse, and 5 in a small head office that responsible for managing the business financial accounts as

well as dealing with the customers’ enquiries. The owner of the company retains an active role in the business, primarily moving stock between the shops

so that none of them run out of essential items such as potatoes and setting prices so that items sell before they perish. Considering the company’s future

expansion plans, it is expected to open another warehouse and hire more employees in order to run the business smoothly. The company does use

Information Systems (IS) in some of its activities. Customers pay at electronic tills, and the company has a basic website that lists the location of its shops.

Some suppliers and customers have tried to persuade the company to use technology more extensively, but the owner-founder has resisted because he is

unsure about how his business can benefits from IS. He is aware that other small retailers have begun to use technology, to settle their accounts as well as

to collect data so that sale figures and trends can be analysed, but is concerned that the widespread use of technology would require lots of investment as

well as extensive training of his staff.