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The e-commerce on internet

Recently this year Currys. digital decided to close its 77 out of 177 outlets as their lease expire over the time period of five years. This represents a gloomy picture as the stores shutdown will drive down market share and customers access to Currys. digital (DSGi plc 2008). Opportunities The commerce is shifting on a large scale towards internet. The e-commerce on internet has great potential and advantages. The advantages of going online is it requires fewer employees to manage and less overhead cost which are high in case of stores.

Thus it is a very good opportunity for cost cutting and widening of profit margins. Moreover through internet Currys. digital can expand its business globally thus venturing into foreign markets, looking for new customers and increasing its sales. Currys. digital is part of FTSE4Good Index and Dow Jones Sustainability Index which is a very favorable thing and is adding value to its brand name as its membership in above two indexes shows Currys.

digital continuous efforts toward corporate responsibility and sustainability (Stone 2007). Threats Consumers have become more inclined towards deals, promotions and discounts etc. This attitude of consumers squeezes profit margins in an attempt to attract them. The increase in

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inflation and mortgage payments have resulted in consumers spending less on durable items and therefore Currys. digital is faced with fewer sales. Moreover due to recent global financial crisis, its stock prices are down in London Stock Exchange.

Thus the stock market looks gloomy for future capital raising and expanding business into new areas. Thus it represents a hindrance in the expansion of Currys. digital’s business in this crisis situation (Stone 2007). Currys. digital also has a website where customers can buy the products online. This shift towards e-commerce brings with it new challenges and new competitors such as Best Buy of US. Moreover the traditional competitors are Comet and Makro etc. Political Currys. digital is a re branding of Dixon.

Initially Dixon did not have a favorable reputation in the market as many have accused Dixon of exploiting the customers with unjust high prices by taking advantage of its dominant position in the marketplace. Moreover customer association has also accused Dixon of employing hard selling tactics and giving misleading advertisement information. (Buckingham & Scanlon 2002) Thus the bad name of Dixon has created customers dissatisfaction with Dixon and subsequent government regulations to ensure competitive retail business, fair pricing and controlled marketing activity.

Currys. digital is now faced with the dual task of regaining consumer confidence and assuring them that Dixon is over and Currys. digital is a new retailer with its own unique vision. The second task of Currys. digital is to deal with government regulations which are still in place to maintain competitiveness in retail business so that consumer can get fair prices, better choices and deals. Thus Currys. digital has to be very particular about following the government regulation in order to prevent further governmental actions which may further restrict its business.

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