Argos’s knowledge management has many objectives

Argos knowledge management has many objectives these include, retaining key talent/expertise, improving profit and in return revenue, increasing customer satisfaction, faster time to market their products, defend market share with new products’, reduces costs, developing new products/services and reintegrating new market segments.

Argos’s main target in relation to knowledge management

Argos’s main target in relation to knowledge management would be based on the company’s performance, innovation, competitive advantages and ways to enhance the current e-commerce website (www.argos.co.uk).

Argos growth and importance of knowledge management

Argos has grown rapidly over the years and now has a well established reputation throughout the U.K and ROI with the help of knowledge management and will continue to do so in the future.  Therefore knowledge management has proved to be a fantastic implementation idea for argos.co.uk and generates a lot of extra revenue for the business.  The key is always keeping on top of information flowing in every direction no matter how big or small.  Although this has been a huge success to-date for Argos, it is very important Argos keeps knowledge management up-to-date within all sectors of their business, ensuring a smooth operation for all throughout.

Argos contributes to the growth in organisational range throughout all channels/markets.  This is gained using knowledge management, another factor helping to expand/help growth within the retail giant.

Knowledge takes a long period of time to gain and lots of experience is required.  If an Argos employee was to retire and knew the ins and outs of everything, which no one else had experience/knowledge of and then one day they decide its time to retire or leave the job the company is left with a major problem, which could be detrimental to the business in so many ways.

As the open market is becoming increasingly competitive and the speed of innovation is developing rapidly, knowledge must evolve at even quicker rates, to always keep ahead of the game.

Business such as Argos organise their business to be very much so focused on creating value for money in relation to everything they do, making life a whole lot easier for both the business and consumers.

Why is knowledge management difficult to companies such as Argos?

Currently there are many problems associated in relation to finding out knowledge assets and in return being able to identify the correct knowledge to represent/implement, also having an effect in cost (implementing knowledge management efficiently and effectively in a cost-effective manner).  Argos needs to have a enterprise-wide vocabulary, the purpose of this is to ensure information flowing within the business can be understood easily and not have many interpretations (clear to understand).  Finally being able to, share existing knowledge sources and future ones amongst different applications and various user types.

How to manage knowledge

Knowledge management throughout Argos is covered throughout four main topic areas, these are as follows:

Identifying knowledge assets company possesses

Reviewing use of knowledge ensuring added value

Analyse how the knowledge can add value

Specifying what actions are required to reach a better usability service

Bibliography

http://www.library.nhs.uk/KnowledgeManagement/

http://www.aiai.ed.ac.uk/~alm/kam.html

http://www.stevedenning.com/knowledge_management_and_ebusiness.html

The Main types of online marketing communications that Argos does and could use for traffic building are as follows:  Search Marketing, Online PR, Online Partnerships, Interactive ads, Opt-in e-mail and Viral Marketing (electronic word of mouth, all paid for).  

Search Marketing

Search Engine Optimisation (SEO), this involves Argos controlling the quality and volume of traffic to their website (argos.co.uk) from a search engine.  In other words the higher up the rank the Argos website is the more visitors the site will receive.  As more people will see the website this will attract more potential customers and bring in more revenue to the business.

Pay Per Click (PPC), this is an Internet advertising model, which Argos uses.  Argos would be the advertisers and only pay if a user clicks on their link/advertisement within search engines such as Google.  This method also allows Argos to measure the success rate and maximise the Return on Investment (ROI).

Trusted Feed, this basically works by allowing a trusted ‘third’ party usually a search engine marketing company such as Google, Msn, Ask and enthusiastically embraced by the like of Argos, Amazon, e-Bay and more.  It also allows a website such as Argos to ‘feed’, its entire website in the form of a database, directly into search engines own database.  Paid-for and free results are displayed together in the listings again this is thanks to Trusted Feed.  There is an advanced cost-per click which Argos must pay as a website.

Online PR

Media Alerting Services, this allows Argos’s customers’ to stay up-to-date with all the latest price drops, catalogue clearance and new products Argos has to offer.

Online Partnerships

Argos runs an Affiliate Program, basically if you become an Argos Affiliate and one of your visitors’ to your site clicked on an Argos.co.uk via your link and further bought a product, Argos in return would pay your commission (3% on every Argos.co.uk product) as a form of reward for bringing custom to them.  All orders and deliveries’ handled by Argos.  Argos Affiliate links are provided by Argos and its free to join.

Other online business Partners of Argos.co.uk are as follows: Argos gift card and Argos Spares.

Interactive ads/banners

Types of advertising which usually contains text, photographs etc.  Designed to catch the readers’ attention and make them want to look at something in greater detail (gets the Argos customer interested or drawn in).

Rich Media

Type of advertising, which usually contains text, photographs etc.  Designed to catch the readers attention.  Argos may use a mixture of text, audio, video to enhance presentation and interact better with customer online at Argos.co.uk

Sponsorship

Argos have had hotlink ads through Panasonic (Panasonic suppliers to Argos), enabling customer to place orders, this is increasing the chances of notifying more people through advertising and selling more products.

Opt-in e-mail

Argos operates an opt-in e-mail (electronic newsletter), used to send e-mail to potential customers/customers who have expressed an interest within a product/service.  They do not have to buy anything.  E-mails are sent automatically to persuade potential customers/customers to try a product/service.  These potential customers/customers have given permission to Argos as an organisation to contact them.  This is crucial within a retail environment for both first-time and repeat purchases.

Viral Marketing

Argos had a online viral campaign (2007) which was extraordinary, dominated by a giant sweet jar, standing over 2 metres tall, it highlighted Argos’ range of over 18,000 products and drove awareness of Argos.co.uk during Christmas (2007).  This was carried out in the form of a interactive 3D game.

Incentives

Throughout the year Argos.co.uk offers customers who spend £50 a free £5 electronic gift voucher and over £100 a free £10 electronic gift voucher.

Also if a customer uses an Argos card online through the Argos website or in store depending on the value of their purchases can get interest free credit for up to 9 months (3, 6 or 9 months interest free credit).

Media Mentions

The website is promoted in a wide range of resources such as, TV, radio, newspaper, bill-boards and in-store.

Bibliography

http://www.weboptimiser.com/resources/why-trusted-feed.html

http://www.guava.co.uk/search-engine-marketing/pay-per-click/

http://www.argos.co.uk/static/StaticDisplay/includeName/Affiliate.htm

http://www.brandrepublic.com/News/86330/

http://www.brandrepublic.com/MarketingDirect/Features/CaseStudies/813076/Argos—Big-idea-brings-big-returns/

http://www.homeretailgroup.com/home/media/argos/corpnews/2007/2007-10-10/

I have been asked to pay particular attention to ‘paid for’ results.  These are results which appear on the far right within your search engine in a separate column and you would pay the likes of Google or Ask for this privilege, and it can be rather expensive if the ad is clicked constantly.  Sponsored links or paid ads what ever you want to call it can slo have a background colour, the main ones are light blue and a light yellow colour.  In simple terms you are paying Google and Ask.  In return whenever a search engine users types the likes of ‘Toys, Furniture, Games Console etc’ into the search engine facility it relates the paid for ads with the key word the user has typed.  You may even say that it is pushing a website up the ranks, so that it has a better chance of someone discovering it, creating more traffic and in return hopefully more sales and generating extra revenue for a company such as Argos.

I typed ‘toys’ into the Google search engine and then clicked return.

The above shows the results of my Google search.  The sponsored links are located at the top and far right as I have shown.  Argos is the 2^nd option down the sponsored link ads for ‘toys’.

Amazon was 8^th in the sponsored Links as shown above.

I am now going to try Ask search engine using exactly the same search, to see if the results change.

I have typed the identical search from Google into Ask.

Argos are attracting more customers by placing their ads on Google.  It enables them to connect with potential customers and they only have to pay when someone clicks on their ad, there is no charge for the ad being displayed.  It is a simple process, Argos would create ads, chose keywords, this would be words or phrases related to the business.  There ad would then appear on Google using one of Argos’s chosen keywords, this ad may appear next to the search result and in return advertising to an audience which is interested in a particular product/service.  The customer/potential customer can click on your ad to find out more or make a purchase.

Super computer-level power can be assed using computing at the scale of the clouds.  The resources within these clouds can allow users to see the information they want, as and when they require it. (E.g. laptop, iPhone, Blackberry).  This may also be described as “on demand computing”.

Enormous amounts of data can often be sorted out using cloud computing (made up of thousands of servers, based in data centre).  Cloud computing is more or less buzzwords, which are used to repackage utility computing and grid computing.

Cloud computing also allows companies and users to pay for service and storage that they require and when they require it.

There are companies out there who provide business solutions to large corporations; this is the likes of SAP.  SAP basically would host an individual company’s data such as Argos in their data SAP centre.  Basically there job is to provide Argos with software applications, which would link the company to their data.  Argos use the SAP customer ordering system this may also be known as SAPCO and is used both online through the website and in store.

The biggest cloud network that most people would know and use is windows live services including e-mail, instant messaging and storage.

Benefits of cloud computing

Basically you do not have to maintain infrastructure for any applications.  This saves electricity costs and labour costs.  Another great advantage being you can access an application wherever you go and on the move.  Companies either big or small have no need to buy individual servers for any new software applications.  Servers will prove to run more efficient as memory is distributed throughout the cloud network.  Cloud computing is much more useful/beneficial toward large organisations/companies, which are required to process a vast amount of computer related power.  In saying that it can be used in a much smaller scale (individual) to access the likes of Windows Live features.

More benefits include

• Free up Internal Resources
• Easily Implemented, without need of purchasing hardware or software licences
• Scalability, enormous and organisations can add and subtract capacity as the network loads dictates
• Quality of service, vendor can provide 24/7 customer support and offer immediate responses in emergency situations
• Skilled Practitioners, vendors are reputable and offer customer reliable service
• Security, improved die to data be centralised, but in return raises concern over loss of control around sensitive data
• Performance is consistent and monitored

Problems of cloud computing

• Depending on application or the vendor, you are always dependent on others keeping data intact and application functional.

• Application changes may happen either without your consent or knowledge, therefore there is a security risk of personal data be lost or stolen.  Basically the data is in the hands of a 3^rd party resulting in not directly in the user/owners hands.

• Cloud computing requires an Internet connection and sometimes signal may be weak and can cause problems within/throughout applications. 

• I do not like the fact that your personal data may be stored in file severs in one country and processed by severs in another, perhaps even at the other side of the world (worldwide).  Can be affected by bandwidth being insufficient or even a high network load.

http://www.wikinvest.com/concept/Cloud_Computing

http://www.webhostingunleashed.com/features/cloud-computing-benefits/

http://www.zenofnptech.org/2008/08/what-is-cloud-computing.html

http://education.staffordshire.gov.uk/NR/rdonlyres/622E825F-D072-4B47-9E28-F3CE3B6F09CA/81723/GuidetousingArgosCardsAug08.pdf

Strategy for management of upstream and downstream supply chain Argos.

Upstream Supply Chain basically all Argos’s transactions, dealing with other intermediaries and suppliers (same as buy side e-commerce).

Downstream Supply Chain basically all Argos’s transactions, dealing with other intermediaries and customers (same as sell side e-commerce).

Argos has a supply chain, minimum number of networks, its suppliers and customers.  Argos supply chain management consists of materials, processes, human capital and information between suppliers and customers ensuring maximum customer service for all.  This creates great advantages to business, reduces data errors to 0,reduces order lead time, improves management control and benefit functioning of supply chain.

There are two types of Supply Chains (Push and Pull)

Although in my opinion I feel Argos operates a Pull system because of its customer demand/satisfaction emphasis.  

Pull Model, advantages for Argos, very forceful, because planned level of production/service delivery not dependant on forecasts (maybe inaccurate).  Operated in response to Argos customer demands and also emphasises on delivering value to their customers.

Downside of pull model from Argos customers’ point of view, in the troll on the market, being 1^st mover could experience pain.

Argos have ethical trading conditions in their supply chain.

Vertical integration

Amount of supply chain activities Argos undertakes and have controlled access within the company.  Argos has distant relationships with its suppliers.   Argos business carries out the work by themselves, e.g. updates the Argos web site.  Therefore they don’t have to pay anyone else to carry out maintenance within the website. 

Disintegration

Argos has a wide range of network suppliers, also using disintegration Argos is outsourcing all the time.  Argos here basically focuses on any core capabilities and most importantly cost reduction.  Argos ways up all options available, such as whether to pay another company to maintain/update the Argos website.

Virtual integration

Argos have a majority of supply chain activities, they control these outside their business using linked third parties.  Argos also has a close relationship with all its suppliers (Sony, Samsung, Fisher-price etc).  They have suppliers who assembly component parts.  Argos uses a dot-com approach within their virtual integration.

Partnership Management

Argos does not have any partners.  Home Retail group de-merged from its parent company GUS plc, October 2006.  Argos is a solo company and therefore does not have any shareholders but in saying this have shareholders in a different form, e.g. a long time serving employee may have some shares in the business, but this does not affect the company in terms of decision making.  Shareholders are brought in when the company needs money, basically they sell pat of the business in this process.

Value Chain

Basically this takes into consideration the value (benefit of each product, what it costs and the benefit of each interface between individual products which Argos sales to its customers and cost).  This is a fairly simple process, start product/service worthless as nothing being created, as manufacturing process tacks place, this increases value right up until the end product.  The likes of argos.co.uk website its worthless until customers start buying product(s)/service(s).  many transactions flowing daily, generating a profitable service.

Procurement and fulfilment strategies

Procurement basically resources all goods and services at a low as price as possible by a business organisation.  Argos must remain competitive throughout their trading habits and keep everything consistent, e.g. offer leaflets once every 2 months.  All factors must be taken into consideration by Argos, e.g. price of item, postage costs, interest, fluctuation (up/down).

Fulfilment basically is the name given to how companies carry out their dealing with customers in terms of orders.  This starts from Point of Sale (POS) until product/service arrives at customers’ front door.  Many organisations use their own courier (Argos, Famac, Parcelforce).

For Argos to preserve a 1^st class service, their strategy needs to work closely with both suppliers and customers.

Threat of substitute products

Substitute products being much cheaper and perhaps equal in design, quality and can satisfy same basic need.  The buyers have a great choice and are not limited to one company such as Argos to purchase their wanted product(s); they have many sources in which to do this. (E.g. A kettle at £49.99 and one at £9.99, Product-to-product specification).  Perhaps even products which consumers don’t need and can do without (insurance as all electrical products come with a standard 12 month/year warranty or experience packages (cars, flying, paintballing, go-karting vouchers, it would be nice but certainly it’s not essential to have.

If you can beat them join them.  A way to get round this is have your own range, e.g. Argos Value Range.  Businesses such as Argos, can claim that the product they are selling is better than substitute products as they have a proven track record, genuine, original and in return have a slightly dearer price.

Argos can use their name and reputation as a means of selling different products, e.g. If Argos is selling it, the product must be good (customer saying/thinking).

Argos also plays on the fact they have an established good customer service policy, e.g. returns policy and customer satisfaction.  Therefore any new competitor to the market will not have established this (Argos has longer experience within this area).

The threat of the entry of new Competitors

Existing and potential competitors can influence the average industry profitability.  Entry barriers only exist whenever it becomes difficult or non- economical for a company to replicate (duplicate) the current position.  E.g. many benefits would be associated with bulk buying (Argos buying thousands of same product), investment into technology, how they choose to cannel their distribution creating easier access for competitors (Amazon, Curry’s, Woolworths, E-bay), may be contract costs involved and finally certain products/brands, which cannot be copied, exclusive to one company (e.g. Argos Value Range or certain fisher type products (exclusive to Argos))

The intensity of competitive rivalry

This is the most valuable and most obvious contribution of the ‘five force’ areas for Argos to consider.  As there are many competitors (head-to-head competition).  Habit of driving costs down, e.g. a particular model of Samsung TV, agreed with manufactures only supply to Argos.  No need to be competitive as only company selling this item. Can advertise claims, cheapest you can get anywhere and they don’t tell people that it’s not available to buy anywhere else (Innovation).

Argos must price product correctly, e.g. if a product is to expensive no body will buy, if product is cheap, company wont make profit but will beat competitors.  Argos has to get this right to survive in a successful wealth background.

Price an item not to make profit, classified as a lost leader, gets customers interested in other products, which have profit margins, e.g. Toaster selling for £3.74 for a two week promotional period.

An example outside Argos would be the current rising cost of fuel and attitude of oil companies and retail suppliers.

The bargaining power of customers

Bargaining power of customers cut down in Argos case as Argos produce a catalogue and flyers that are widely distributed throughout the United Kingdom with prices widely known.

Currently in a recession, every customer knows that overall sales are down, the customer can be more aggressive in buying stance (only buy product if there is a reduction in price)

Seasonal goods (tents, Christmas merchandise, patio sets), because it’s out of season they may be bought at a much lower cost, resulting in a higher profit margin.

The bargaining power of suppliers

Argos source products which they stock/sell and ensure customers get what they want, at a price they see at a good value.  This in return results in a higher profit margin and passes better value to the customer.  Any decision made by Argos is unpinned by choice, value and convenience.  E.g. TV manufactures Samsung, Sony any product under warranty to be serviced by themselves, extra cost to Argos as a company.  Might demand that Argos is not allowed to sell product under certain price or they will refuse to sell them the product.  They may demand that spare parts are only available from their firm and at an expensive price.

Suppliers have already got a lot of bargaining power as they are usually manufacturing merchandise in vast quantities and therefore can dictate where to buy a bit/part from a particular source (cheapest supplier for large quantity of items).  Argos is a high power company as they have many channels and a well known reputation nationwide. 

From looking at terms and conditions for purchasing on Argos website, I feel that they are fairly standard and overall satisfactory for all.

Terms and Conditions

• Register and Password
• Delivery only UK Mainland and Northern Ireland
• Video games are age restricted (legally)

Most goods when purchased have a 30day money back guarantee although this does not apply to the likes of mobile phones, mp3 players, digital cameras and gift vouchers.  The company can justify these actions as someone may purchase a camera for the likes of a wedding then return it a few days later.

If any difficulties occur methods to resolve these are as follows, e-mail, phone, letter form or in store.

I feel Argos’s E-Environment terms and conditions are just as good as its fellow competitors (Amazon) and in some case better (E-Bay).

Registration process for Argos

Website offers secure online shopping and security measures to avoid credit card details stolen, hacked into and personal identification stolen.

When accessing ‘Login’ or ‘checkout’ pages through browser this automatically goes into a secure mode and use standard security protocols (happens before any personal information or payment details are entered in by the user).  You can check for this facility by looking for a key icon, which would be situated on the grey bar at the bottom of your screen or by a locked padlock (image found on screen).

This helps keep the information secure from unauthorised access from other Internet users.  Basically encryption creates billions of code combinations and this is to protect transactions made with the Argos website (this in done in an individual basis, per each transaction).  Most recent browsers offer 128 bit encryption resulting in customer details being kept as safe as possible all the time.

Argos only accepts sales to those using a Secure Socket Layer (SSL). 

Cookies

A cookie is basically an element of data, which Argos can use to send to send to a customer/potential customers web-browser and stored on their computer system.  The purpose, to see who has seen which advertisements, pages, frequent page visited and determines most popular pages of the website.

Allows us to make website more users friendly and can also have permanent cookies allowing us to save password on website resulting in users not needing to remember.

Bibliography

http://www.argos.co.uk/static/StaticDisplay/includeName/privacyPolicy.htm

http://www.argos.co.uk/static/StaticDisplay/includeName/TermsAndConditions.htm

http://www.argos.co.uk/static/StaticDisplay/includeName/Security.htm

Reach for argos.co.uk, percent of global Internet users who visited the site.  Yesterday was 0.082%, 1 week Average 0.0647%, 3 month Average 0.0605% and a 3-month change is up 16%.

Reach in simple terms measures the number of web users who visit an individual site.  It measures all global Internet users (measured by Alexa) E.g. www.argos.co.uk

http://www.alexa.com/data/details/traffic_details/argos.co.uk

Above we have a daily traffic rank trend for Argos and this is done out in terms of web users who have visited the site.  As you can see the trend is rising most of the time and the all time high was towards the end of July and the low being May.  This is based on a 6-month timescale. 

Traffic rank monitors millions of web users and data got from others to find out various traffic data sources.  This information in return is counted, sorted, computed and giving a traffic rank.  It is a complicated process.

Traffic Rank for argos.co.uk, (Alexa traffic rank based on a combined measure of page views and users (reach).  Yesterday was 891, 1 week average 1, 125, 3 month average 1, 213 and a 3 month change is up 276. 

http://www.alexa.com/data/details/traffic_details/argos.co.uk

Above we have the daily page views in terms of percent over a 6-month timescale.  As you can see the percentage is up and down but in general stays around the same level, the month high is in July and the lowest being recorded in June. 

Page Views per user for argos.co.uk (the number of unique pages viewed per user per day for this site.  Yesterday 9.1, 1-week average 8.61, 3 month average 9.01 and a 3-month change is down 10%.

Page views takes into consideration the amount of pages viewed by individuals who visit the site (www.argos.co.uk).  Individuals who access the same web page multiply times on the same day are only counted once regardless of how many times it is viewed.

 http://www.alexa.com/data/details/traffic_details/argos.co.uk

I discovered that 94.4% of argos.co.uk users came from the United Kingdom.  A few more popular being India, 0.8%, United States 0.6%, Ireland 0.5% and Pakistan 0.3%.

Argos.co.uk traffic rank in order of countries: United Kingdom 39, Ireland 845, Pakistan 3452, India 10, 352 and United States 74, 160.

I have also carried out some research into some of my competitor’s sites also, this can be found below. (Amazon and Curry’s)

 Amazon

 http://www.alexa.com/data/details/traffic_details/amazon.co.uk

Reach for amazon.co.uk (percent of global Internet users who visit this site).  Yesterday 0.271%, 1-week average 0.262%, 3 month average 0.2622% and 3 month change is down 9%.

Amazon.co.uk user come from many countries, but the most popular being United Kingdom with 61.7%, United States 7%, Germany 3.1%, India 2.7% and Ireland 1.8%.  These are only a few of the most popular countries using amazon.co.uk

Amazon.co.uk traffic rank in terms of countries, most popular being United Kingdom with 14, Ireland 50, Germany 589, India 645 and United States 1, 275.

 Curry’s

 

 

  

 

 http://www.alexa.com/data/details/traffic_details/currys.co.uk

Reach for currys.co.uk (percent of global Internet users who visit this site).  Yesterday 0.031%, 1 week average 0.0251%, 3 months average 0.01747% and a 3 month change is up 15%

 

http://www.alexa.com/data/details/traffic_details/currys.co.uk

Traffic Rank for currys.co.uk (Alexa traffic based on a combined measure of page views and users (reach).  Yesterday 2, 889, 1 week average 3, 573, 3 month average 5, 278 and a 3 month change is up 1, 523.

 

http://www.alexa.com/data/details/traffic_details/currys.co.uk

 

Page Views per user for currys.co.uk (the number of unique pages viewed per user per day for the site).  Yesterday 4.3, 1-week average 4.25, 3-month average 4.71 and a 3-month change down 2%.

 

Currys.co.uk users come from the following countries, United Kingdom 95%, Ireland 0.8%, India 0.6%, Pakistan 0.5% and United States 0.5%.  These are only a few of the most popular ones.

 

Currys.co.uk traffic rank in there countries, United Kingdom 160, Ireland 1, 923, Pakistan 12, 530, India 55, 227 and United States 269, 455.

 

I have been asked to explore the purchasing aspect of my chosen website and describe the different steps in this process in terms of technology being used. 

 

There are many different ways that an Argos customer can purchase their chosen item these are, in store, online, by phone, by sms followed by in store collection (reserve item(s)).

 

The Argos website offers secure online shopping and security measures are in place to avoid anything bad happening (e.g. credit card details stolen, hacked into, personal identification stolen).

 

As soon as a potential/existing customer accesses the ‘login’ or ‘checkout’ pages their browser will automatically go into a secure mode and use standard security protocols (happens before any personal information or payment details are entered in by the user).  You can check for this facility by looking for a key icon, which would be situated on the grey bar at the bottom of your screen or by a locked padlock (image found on screen).

 

Whenever Argos users have clicked either ‘login’ or ‘checkout’, as I have mentioned above secure mode is enabled meaning all details entered are encrypted.  This helps keep the information secure from unauthorised access from other Internet users.  Basically encryption creates billions of code combinations and this is to protect transactions made with the Argos website (this in done in an individual basis, per each transaction).  Most recent browsers offer 128 bit encryption resulting in customer details being kept as safe as possible all the time.

 

Argos only accepts sales to those using a Secure Socket Layer (SSL).  This type of software prevents revealing any kind of personal information through a secure connection. 

 

I discovered Argos.co.uk uses further online security measures by participating in MasterCard Secure Code and Verified by Visa.  This service is provided by the credit/debit card companies.  For this users will be asked to register, it’s basically an online shopping code identifying the end user.  It’s the online equivalent of a chip & pin process, currently used on the high street to purchase/order items.

 

Online you are able to check the latest prices and availability, reserve your item online, so that it’s ready for in store collection, order extra (Argos Extra) items either for delivery or in store collection.

 

All Argos orders placed on the Argos website can only be delivered to mainland UK and Northern Ireland.

 

Transactions online at www.argos.co.uk

 

The first thing you must do is enter your wed address in (URL) (www.argos.co.uk), select/browse categories, add item(s) to basket, proceed to checkout, your then asked to login if you’re an existing customer or register if you’re a new customer, enter personal details, payment details (still needed to be entered in if you are an existing customer to strengthen security), in some occasions depending on item select a delivery date, Item arrives at your door and finally enjoy.

I am now going to show how to purchase an item using argos.co.uk, logon to the website, next if you know the catalogue number you may type it in if not type in what you are looking for.  I want a 32 Sony High Definition TV.

 

 

 

Using the search facility (internal search engine) at the top of www.argos.co.uk  , I have typed in ‘Sony 32 HD tv’ then clicked enter/return.

 

I entered in my postcode to check the availability of my chosen item at my closest Argos store.  The item was in stock and my screenshot can be found below.

 

 

Although my item is not currently in stock at Newtownabbey I have been able to order it for collection.

The above screenshot shows that my reservation has been successful, give me a reservation number appropriate for my order and my store (Newtownabbey) and tells me when exactly my reservation will be held to.  Also shown is the price.  If I had opted for this item to be delivered to my house there was a standard £5.95 delivery charge, regardless of how many items was being delivered.

 

New channels to market e-business are becoming increasing popular and is needed more so now with the latest credit crisis in my opinion.

 

Argos currently has many channels, which they offer to, their customers these include: Internet (online), Shop (Retail), By Phone, SMS (reserve).

 

Strategic choices often carry varying levels of risk, social impact and profitability.  Growth is based on customer satisfaction and reliable products.  Argos has many strategic choices, marketing, merchandising and selling products/services, sourcing and purchasing resources.

I feel perhaps Argos could create their very own personal television programme and this could possible be their most successful channel in the future and to date.  One of the best well known satellite channels to have done this is QVC (Quality Value Convenience).  QVC has been extremely successful marketing their products using this channel method and have reaped the rewards in doing so.  Perhaps they could even take QVC idea of having a Today’s Special Value (TSV) everyday as well as promotional offers offering the customer great saving, generating more profit and growth within their business sector on a major scale.  I think this has great potential and if implemented would be a great success.

 

Bibliography

 

http://www.alexa.com/data/details/traffic_details/argos.co.uk

http://www.alexa.com/site/help/traffic_learn_more

www.trafficdirect.org

http://www.alexa.com/data/details/traffic_details/amazon.co.uk

http://www.alexa.com/data/details/traffic_details/currys.co.uk

http://www.argos.co.uk/static/StaticDisplay/includeName/Security.html

http://www.argos.co.uk/static/Home.htm?sRefURL=http%3A//www.google.co.uk/search%3Fhl%3Den%26q%3Dargos%26meta%3D

Argos basically offers an online shopping facility to the general public and was first found in 1973, now supplying over 18,000 products.  The general idea behind Argos came from a company catalogue, which they produced for promoting all the products they offer to others.  Argos is massive giants and offer value and convenience on general merchandise and products for the home.  Argos is not only an online business model as it has many stores throughout the UK and Republic of Ireland. 

Argos has 707 stores nationwide.  Throughout the financial year Argos sales is now sitting at over 4.3 billion pounds (annual report 2008), this is an annual grow of 3.8%.  The Company is also known as Home Retail Group (HRG) and now is a solo company (2008) after splitting with GUS in 2006.

 Argos has a famous slogan, which is widely known as, ‘Don’t shop for it! Argos it!’

The company employs over 34, 000 people across their business. 

http://www.argos.co.uk/static/StaticDisplay/includeName/AboutArgos.htm

‘Argos’ Internet site is the second most popular Internet retail site in the UK’.

Argos serves over 130 million customers a year and a further 4 million through orders over the phone and online website.

http://www.argosb2b.co.uk/about_us

The above shows a bar graph (appropriate 2008)

http://www.homeretailgroupar.com/hrg/arr07/review/argos/?tab=kpis

Acquisition of Argos by GUS plc was in 1998, they then decided to launch an online website in the same year.

http://www.homeretailgroupar.com/hrg/arr07/_downloads/HRG_Annual_Report_2008.pdf

Between 2007 and 2008 a further 27 stores have been established.  Argos now has a grand total of 707 stores throughout the UK & ROI. 

Argos financial highlights 2008

• Gross margin approximately ahead by 50 basis points
• Expenses for operating are currently up 4%, of which underlying inflation is approximately 3%
• Benchmark/target operating profit £398m (2008), that’s up 11% on 2007 (pro forma £359m), this is a growth of 16%
• Benchmark/target profit before tax was £433m, this is up 15% and Argos reported profit before tax was £426m
• Basic Benchmark/target earning per share in 2008 currently up 16% (33.9p as apposed to 2007 pro forma of 29.3p) shares are 34.0p (basic earning)
• Net cash was increased to £114m in 2008 and closing at 174m
• Benchmark/target pre-tax return invested capital is 12.7%, that’s up 70 basis points
• Final dividend of 10.0p recommended, a full year divided up to 14.7p as apposed to 2007 (13.0p) that’s an increase of 13%

http://www.homeretailgroupar.com/hrg/arr07/_downloads/HRG_Annual_Report_2008.pdf

Argos, statutory 52 weeks to 1^st March 2008 £m = 4,320.9, pro forma 52 weeks to 3^rd March 2007 £m = 4,164.0 and statutory period to 3^rd March 2007 (short period) £m = 3,912.8

Gross profit, statutory 52 weeks to 1^st March 2008 £m = 376.2, pro forma 52 weeks to 3^rd March 2007 £m =325.0 and statutory period to 3^rd March 2007 (short period) £m = 300.9

http://www.homeretailgroupar.com/hrg/arr07/_downloads/HRG_Annual_Report_2008.pdf

Argos currently is the leader in multi-channel retailing and offer many ways to meet the needs of the customers through three retail brands, in store, shopping at home using catalogues, over the phone and using the Internet.  By using multi-channel such as online and retail premises this increases sales in every direction. 

Competitors to Argos are B&Q, Curry’s, MFI, IKEA, Tesco, Sainsbury’s, ASDA, Amazon, Woolworths, H.Samuel, etc.

Argos is opening on average 30 stores a year.

Global Internet users who visited argos.co.uk, yesterday in terms of percent was 0.061%, 1 week average 0.0574%, 3 months average 0.0599% and 3 months change is up 16%.

Traffic rank for argos.co.uk yesterday 1,198, 1 week average 1,271, 3 month average 1,223 and 3 month change is up 291.

Page view for users for argos.co.uk yesterday was 8.4, 1 week average 8.44, 3 month average 9.03 and 3 month change is down 10%.

Argos.co.uk has many users from various countries, most popular being UK 94.1%, India 0.7%, US 0.7%, Ireland 0.5% & Pakistan 0.3%.

Argos.co.uk traffic rank in Various countries, UK 39, Ireland 844, Pakistan 3,857, India 11,063 and US 66,966.

http://www.alexa.com/data/details/traffic_details/argos.co.uk

I discovered that Argos sales across more than one channel grew to 37%.

Bibliography  

http://www.argos.co.uk/static/Home.htm?sRefURL=http%3A//www.google.co.uk/search%3Fhl%3Den%26q%3Dargos%26meta%3D

http://www.argos.co.uk/static/StaticDisplay/includeName/AboutArgos.htm

http://www.homeretailgroup.com/

http://www.argosb2b.co.uk/about_us

http://www.homeretailgroupar.com/hrg/arr07/

http://www.homeretailgroupar.com/hrg/arr07/review/argos/?tab=kpis

http://www.homeretailgroupar.com/hrg/arr07/_downloads/HRG_Annual_Report_2008.pdf

http://www.alexa.com/data/details/traffic_details/argos.co.uk

In 2007 within the UK 15.23 million had Internet Access that’s 61%, increase of approximately 1 million households since 2006.

40% of UK households in 2006 had broadband Internet Access this has increased a further 11% to 51% in 2007.

 The above image shows households who have access to the Internet (GB)

 The above image shows households who have Internet access (GB and UK)

http://www.statistics.gov.uk/pdfdir/inta0807.pdf

Access to Internet varied throughout the country highest access levels were London (South West) (69%).  The lowest access levels were Northern Ireland, Yorkshire and the Humber (North East) (52%).

The above shows households with Internet access by country and region 2006 and 2007.

I discovered what the most popular and least popular places adults accessed the Internet.  These are as follows: Home in 2006 85% and 2007 87% also at work in 2006 46% and 2007 44%.  The least popular was Internet café in 2006 8% and 2007 4% also Hotspot (wi-fi) 2006 0% and 2007 2%.

http://www.statistics.gov.uk/pdfdir/inta0807.pdf

The above shows adults who accessed Internet by place, UK 2006 and 2007

Mobile devices are also very popular for accessing the Internet, such as: Mobile phone via GPRS & UMTS, laptops (portable computer’s) via wireless connection.  I discovered that most popular mobile device was a laptop using a wireless connection (18%).  The least popular with only 3% was third generation mobile phones.

 The above shows adults who accessed the Internet using a mobile device 2007 (UK)

http://www.statistics.gov.uk/pdfdir/inta0807.pdf

They’re currently are currently 7.4 million users with the UK using mobile Internet technology (12% of all mobile phone users) (report taken 20th feb 2008). 

The above images shows how any million subscribers use mobile Internettechnology and also those who do not.

http://www.yes-no-cancel.co.uk/2008/02/20/some-mobile-internet-usage-statistics/

Bibliography

http://www.statistics.gov.uk/pdfdir/inta0807.pdf

http://www.yes-no-cancel.co.uk/2008/02/20/some-mobile-internet-usage-statistics/

http://www.google.co.uk/