Module Code: BMG814 (54869)

Module Name: Digital Landscape

Module Tutor: Dr. Bobbi Sharma

CW1b: M-Commerce

Student ID: B00780543

1. What e-commerce services are provided by m-commerce?

There is an important difference in the behaviour between the E-commerce and M-

commerce consumers, for example; imagine this scenario, you are already at home,
after a long day of work and you use your free time to pay the bills of your home, to do
this, you use your PC, this is a clear behaviour of a E- commerce consumer.

E-commerce are all the commercial transactions that involves the Internet (Zakaria
Maamar, 2003, p.252), these transactions are increasing, according to eMarketer, in
2018, 11.9% of purchases were made electronically and in 2019 they were 13.7%, this
means an increase of 15% in the entire category

Following the same example above, you are at Farringdon station, going to Sutton
station on your way to work, you remember that you must make an electronic
transaction to another account and that you must also pay the bill for your credit card,
Then you grab your phone, log in to your bank's App and start making the transaction
and pay the bill at that exact moment.

The previous example corresponds to an M-commerce consumer using M-baking

services, according to (Turban et al., 2015, p.257), M-commerce is an electronic
transaction, which happens on a mobile device, it is say that M-commerce is an
extension of E-commerce, according to official figures 5.2% of electronic purchases
are made through mobile devices (Statista), M-commerce consumers prefer to use
App because they have more credibility than a normal browser (Local sphere).

In summary, one of the E-commerce services provided by M-commerce is M-banking,

which allows the user to make transactions, pay bills, security notices and receive
account statements (Will Jones, 2014, p.301).
2. Discuss the role of m-commerce in retailing.

Consumers are increasingly using their mobile devices to create a bridge between
retail stores and the online world, Intelex describes it very well in the video ", the use
of Mobile Commerce is changing the shopping experience", the use of mobile phones
is changing consumers' purchasing behavior, since they now use their mobile devices
to find the features that are most appeal to them, such as price, quality and location,
after finding the service store that best suits them, in order or what they are looking
for, they make the purchase for the app chosen by them and finally they go to a brick
store to redeem their purchase made through a mobile device (Anne Bouverot, 2013,
p.5).

Around 29% of people in the United Kingdom with mobile devices use it to make
purchases of products or services (Intelex, 2016); A clear example of the role of M-
commerce in retail purchases, is the application of Groupon in the beauty and health
sector, this application works based on your current location (Groupon, 2019).

Based- location, m-commerce (l-commerce) refers to the use of location systems such
as GPS-enabled devices to find where a customer with a mobile device is located and
provide advertising on relevant services near them (Turban et al. al., 2015, p.280), the
above is what the Groupon App does.

Here we can see a practical example, I logged in to my groupon app and went to the
beauty sector, the app knows that my location is near to bank station and therefore,
the App shows me all the coupons of my interest, near to this sector, after the above I
choose a yoga course which the app tells me is 0.7 miles from my current location, in
London bridge, I finally make my purchase and I go to the retail store to redeem my
coupon (Groupon, 2019).
3. Why is m-commerce such a fragmented market?

The mobile commerce markets are fragmented by the competition between them and
the intention of each company to have a latent differentiator, innovation is the devices
is becoming faster and more efficient, there is development of applications only
available for Android as well as for IOS. (The guardian, 2013).

Samsung and Apple market leaders are now competing with Huawei, that is, the
fragmentation is increasingly growing, and the competition harder; Apple and
Samsung are now struggling with the new manufacturers that offer an excellent cost-
benefit, as they are: OnePlus, Huawei or Xiaomi. (Tecno news, 2018)

According to official figures, Samsung now has a 19% share, Apple has 14% and
Huawei is about to reach 9%; that is, the more competition there is in the market, the
more fragmented the industry is (bgr, 2018).
4. Why do retailers spend much of their IT budget on m-commerce?

The budget of the information technologies is the money that is spent in the information
technology system of an organization, this budget has become central for the business
results (Searchcio, 2015), therefore the retailers of the United Kingdom spend almost
a quarter of IT budgets to implement and improve e-commerce and mobile commerce
platforms (Computer weekly, 2011).

The mobile participation of e-commerce retail sales transactions in the United

Kingdom for the year 2018 was 55% (Statista), this gives us a clear example of the
importance of m-commerce in retail sales and the demand that it has, now consumers
demand a perfect experience in multi-channel platforms, such as the fact of being able
to access product information through smart phone devices (Computer weekly, 2011).

The Louis Vuitton company is aware of this impact, for that reason The luxury goods
brand launches the new App of world trade products and services (Louis vuitton App);
In the promotion of this App, it is shown in a video how easy it is to use the application
on your favourite mobile device and try in a very picturesque way (creating bridges
from France to all of Europe) to say how easy it is to buy anywhere in Europe one of
your products, which will reach your hand, without any effort (Louis Vuitton, 2013).
5. Discuss the impact of m-commerce on competition among retailers.

Competition among retailers is evolving, mobile devices are changing the game and
the retailer that does not keep pace on the court will be left behind, official figures
predict that 50% of all Visa transactions will be made through mobile devices in 2020
(The guardian, 2012) and retailers also report that up to 12% of their traffic comes
from mobile channels (eDigitalResearch, May 2011).

The retailer that is aware of the power of M-commerce will have an advantage over
the seller without an IT budget, since the reach with the m-commerce presence is
greater, this translates into more sales, for example if a retail store is affiliated with the
App of groupon, has a greater reach in comparison to a store that only has an
advertising at the entrance of the store (Turban et al., 2015, p.141).

A practical example of this is shown in groupon, if a person wants to look for "salsa
dance classes" in the groupon App, it can be search in the browser, the first one that
appears is "Caramelo Latin Dance", which is a trend in this platform, when you enter,
it is seen that it has more than 1600 coupons sold, in contrast with "la vida loca" a
salsa academy located near to elephant and castle shopping center, this store does
not have an online presence, only has one advertisement and it has an average of 11
students per class; although it has a relatively large ballroom; its scope is small due to
its lack of online presence, here we can see the impact and the competitive
disadvantage that occurs between retailers.
6. What are the difficulties in managing mobile technology?

From the point of view of the user, the difficulties presented in the security of
transactions have a lot to do with security and what privacy the bank provides to the
consumer.

The banks have many security measures if transactions are involved, at the time of
making the transaction, the client goes through a verification process with his mobile
phone and must give a username and password (Turban et al., 2015, p.128);
Bancolombia is an example of these protection systems, whenever you want to make
a transaction through the Bancolombia app, there is a "dynamic key" or "second key",
which are six changing digits that are generated only on the enrolled mobile device
and this key changes its serial every 60 seconds.

But the difficulties are generated when making purchases on unverified platforms, at
the time of making the corresponding transaction someone can clone your information
and use it to make other purchases, hackers are responsible for performing this type
of action, The losses for online banking fraud reached a value of GBP 121.4 million in
2017 (Statista).

This shows that banks and users should continue to develop strategies for greater
protection, in the case of the user never giving information on an unverified platform.
7. What is the future for m-commerce?

The natural evolution of E-commerce is the M-commerce, with mobile devices the
buyers can find the location of a store, compare products, redeem coupons and give
reviews of the products or services purchased (Enterprise Mobility Exchange, 2014);
The forecasts are that in 2019 45% of all ecommerce will be made from mobile
terminals (Integrago, 2018).

One of the advances present in the M-commerce is the augmented reality, KMPG
defines it as "a technology that superimposes a computer-generated image on the
user's vision of the real world, thus producing a composite vision" (E-commerce news,
2018).

One of the clear examples of augmented reality is the case of IKEA Place, an
application launched in 2017 by IKEA that allows virtual accommodation of the
products for sale in any space. Its operation is reduced to a few simple steps: first the
room is scanned, then the desired product is selected in the catalog and finally its
position is fixed through the screen of the device (Ibid.). This App assures users that
the furniture fits and stays well in the room before buying it, saving time and effort.
Amazon has a similar feature in its application called AR View that allows you to view
all types of products in any space, to see if they fit in both volume and style (Ibid.).
In a similar way, Zara has recently climbed the trolley of the mannequins for
augmented reality thanks to a new App that shows, in its shop windows and inside the
stores, real-size models wearing the latest innovations of the brand, creating an
interactive experience and surprising because it will also be possible to acquire the
models through said App (ticpymes, 2018).

It is estimated that the augmented reality - along with virtual reality - in 2018 invoice
17.8 billion dollars worldwide according to figures from IDC, show that this revolution
will go far beyond its mere employment in apps or eCommerce , promising to transform
mobile commerce as we know it today (Ibid.)
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