THE O2O BUSINESS MODEL OPERATION OF THE RETAIL INDUSTRY IN THE UK

CHAPTER 1. INTRODUCTION

1.1 Background of the Study

There has been a significant advancement in e-commerce filed in the UK and around the globe. In the UK, most businesses are increasingly relying on online space as a result of the increase in internet connectivity and access to smartphones and computers (Meyer, 2020). Despite the growing influence on e-commerce, the platform is only expected to contribute to about 18% of all global retail sales by the year 2020 (Gilliand, 2017). The above data shows that in contrast to the growing space of e-commerce, most customers prefer to buy their products from stores where they can physically access the goods before making payments.

However, the growth of the e-commerce sector has been worrying about traditional retailers who have been losing some of their potential market segments to the e-commerce platforms (Xue et al., 2014). Despite the high market command by traditional retailers, they still fear that online business platforms could threaten their future performance. Faced with the above challenge, most of these businesses have adopted an approach called Online to Offline (O2O) method (Gilliand, 2017). The above approach is used by offline corporations to draw more customers from the e-commerce platforms to buy from the physical stores. Therefore, offline stores in the UK have developed many O2O strategies that seek to maintain their performance and sustainability. The development of the above method has, however, been used to achieve the concept of establishing a co-shared market segment but not create competition (Babu, 2016).

1.2 Statement of the Problem

Researchers have focused on analysing how increased adoption of e-commerce in the UK created anxiety regarding the future of the traditional business, which is conducted offline. Further, the past researches have revealed how most offline corporations are adapting to a changing environment that poses competition as a result of online-based companies. However, there have been limited studies on how both the online and offline businesses can co-exist, while still providing goods and services to the expansive markets.

1.3 Justification for the study

The research was carried out to provide more insight and explanations based on the findings of previous researchers on the above topic. The researcher needed to expand on the existing knowledge by analysing how the business rivalry between online and offline businesses can be reduced through appropriate corporate practices.

1.4 Research Aim

The study’s main aim was to analyse the current O2O business model operations for the retail industry in the UK.

1.5 Research Questions

The researcher developed the following research questions:

1. What is the extent of the development of e-commerce in the UK?
2. How has the evolution of e-commerce affected offline retailers in the UK?

• How have retail businesses in the UK implemented the O2O model?

1.6 Research Objectives

The following research objectives were used:

1. To analyse the current trends and data regarding e-commerce adoption in the UK.
2. To evaluate how e-commerce has created an imbalance within the traditional retail sector in the UK.

• To analyse the current state of O2O implementation in the UK.

CHAPTER 4: RESULTS

4.1 Introduction

Chapter 4 provided a detailed presentation of data that had been used by the researcher based on the adopted methodology. Specifically, the results section was focused on the mixed-method approach of data from both the primary and secondary sources. As aforementioned in the proposal, the mixed-method approach was used in the methodology of this research to make sure that sufficient data is acquired and that adequate insight can be picked up into the model of the business in the standpoint of online-to-online e-commerce.

4.2 Secondary Data Analysis

The researcher analysed different data which were obtained from various reputable sources. The analysis was based on different topic areas.

4.2.1 Current state of the development of e-commerce in the UK

First, the researcher obtained data on the state of e-commerce in the UK as compared to other e-commerce players globally. Since e-commerce has been adopted globally, the researcher wanted to establish how the US has managed to select the online-based business model compared to other major global players. The data below shows how the UK e-commerce sector has managed to grow in comparison to other global players such as the US and China.

Figure 1.0: Global e-commerce markets by country in 2018 (£ billion)

Source: Xu, Alhindi, Ishizaka and Read (2016)

Based on the above data, the researcher established that China remains the leading global e-commerce giant. The data shows that China’s e-commerce business currently accounts for over 23% of the total global e-commerce business. The figure, however, indicates that the UK is also a major e-commerce giant as it also accounts for 19.1% of the entire global e-commerce business. The other major e-commerce players, based on the data include South Korea, Denmark, the US, and Germany.

The total e-commerce sales in the UK were examined based on the established revenue generation over the years. Data obtained provided detailed information regarding the trends in the growth of e-commerce revenues in the country. The figure below shows the results of the data.

Figure 2.0: e-commerce sales in the UK

Source: Allen, Piecyk and Piotrowska (2017)

Based on the above data, it was established that between 2014 and 2018, progressive growth in the volume of sales conducted through the use of online platforms. The data shows sustainable growth which is likely to continue as a result of the increasing awareness and adoption of e-commerce. The information also indicates that the sales volume generated as a result of e-commerce sales are high, signalling the success of the e-commerce sector in the country.

4.2.2 The implemented O2O model in the UK

Data on how the O2O model has been implemented within the UK was also used within the research. The data was aimed at creating an understanding of how the online and offline business co-exists and compete for customers amidst the growing competition and customer numbers.

First, comparative data showing the different information regarding the current state of online and offline sales within the UK was used. The data sought to provide insight into the current level of the market share of the online and offline business as well as to show the potential of each of the approaches in creating better options for the customers. The data below shows the results of the study.

Figure 6.0: Sales by the online and offline store in the UK (2008- 2017)

Source: Buckley (2020)

Based on the data obtained above, it was established that offline sales, mostly done in physical stores, remain high in the UK. The data shows that despite the growth and popularity of e-commerce in the UK, most customers still prefer to make their purchases from online stores. However, Figure 6.0 above also indicates that despite the broader market share enjoyed by offline business owners, the online space has been growing exponentially. Consequently, the offline business has been slightly losing some revenues to the e-commerce business sector.

4.3 Qualitative Primary Data Analysis

The analysis of primary data which was obtained from interviews and questionnaires were presented to the respondents were also undertaken. The researcher issued a 5-point Likert scale questionnaire (1 = strongly disagree, 2 = disagree, 3 = neutral, 4 = agree, and 5 = strongly agree) via email and/or social media to 100 consumers in the UK. This was done to establish the customer value drivers of O2O e-commerce as well as customer opinions around O2O e-commerce and the relative roles of offline stores and e-commerce. Additionally, the analysis of primary data was based on the responses to semi-structured interview questions by a sample of 10 most important UK retailers with the highest sales and most significant O2O e-commerce offerings in the UK.  The analysis was based on the responses provided and the different themes which were used.

• The adoption of e-commerce in the UK based on the respondents’ demographic information

First, the analysis of the preference for customers for online and offline shopping to gather data on the above issue was undertaken. Using the 5-point Likert questionnaire (refer to Table 1 in the Appendix section), the researcher was able to establish all the respondents’ O2O experience based on their diverse personal demographic information such as sex, age, and occupation/profession. Their experiences with the O2O business model were presented either as percentages and frequencies as follows:

Table 1 (a): Summary of the respondents’ personal experience with the O2O business model based on sex (n=100)

Table 1 (b): Summary of the respondents’ personal experience with the O2O business model based on age (n=100)

Table 1 (c): Summary of the respondents’ personal experience with the O2O business model based on occupation/profession (n=100)

Based on the findings in Table 1(a) above, the research comprised of more female respondents (76.00 per cent) out of 100 respondents. There were only 24 male respondents, representing 24.00 per cent of the total sample of respondents. Furthermore, the findings established that in the UK, female consumers are not only more familiar with online shopping, but are also more interested in conducting their shopping online than males. On the other hand, Table 1(b) above shows a summary of the respondents’ personal experience with the O2O business model based on their age. Based on the findings in Table 1(b), the researcher established that consumers aged below 40 years had a higher affinity for online shopping (88.1 per cent). This implies that, in the UK, consumer attitudes towards online shopping has been actively embraced by youthful consumers (below 40 years old). Additionally, the study established that senior citizens (above 50 years old) in the UK have a very poor affinity to e-commerce than middle-age consumers (0.00 per cent).

Table 1(c) shows a summary of the respondents’ personal experience with the O2O business model based on their occupation/profession. It is important to note that the Occupation/profession group was split into four categories; students, the employed (which consisted of government and company employees), the self-employed/unemployed, and the retirees. Based on the research findings, it was established that, in the UK, employed consumers have embraced e-commerce the most (60.00 per cent), followed by students (28.00 per cent), and lastly the unemployed/self-employed (12.00 per cent). It is noteworthy that retirees are insignificantly interested in e-commerce, implying their strong bias towards offline shopping.

4.3.2 Summary of respondents’ experience in e-commerce

Based on the100 respondents’ feedback, the UKs consumer experience in e-commerce as well as the consumption frequency was presented as percentages as illustrated in Table 2(a) and Table 2(b) below respectively:

Table 2(a): The UKs consumer experience in e-commerce based on respondents’ feedback (n=100)

Table 2(b): Frequency of shopping online (n=100)

According to Table 2(a), a majority of the UK consumers had had any experience in online shopping (82.00 per cent), implying that only 18.00 per cent were still stuck to offline shopping. Table 2(b) shows that even though a majority of the consumers purchased a product online, 50.1 per cent of the respondents had done their shopping online once a month. 30.00 per cent of the respondents did their online shopping once in a week as is 5.5 per cent who shopped daily. The researcher further established that 14.4 per cent of the UK consumers do their shopping online occasionally.

4.4 Qualitative Data Analysis

The study was also analysed based on the evaluation of primary qualitative data. Several primary data collected by the researcher were subjected to the analysis, and all the results were presented below:

The researcher analysed the current preference for e-ecommerce among customers. The study used data obtained in the study to analyse the number of customers who prefer to use e-ecommerce as compared to making purchases from the stores. The results of the above data are represented in the table below:

Table 1.0: Preference for online and offline store purchases

Source: Author

Based on the above study response, it was established that majority of the respondents prefer making offline purchases. 60% of the respondents noted that they would choose to buy their products from offline stores instead of using the online ones. On the other hand, the results of the study showed that about 25% of the respondents would prefer purchasing from both the offline and the online stores. The above percentage represented those who saw value on both methods. However, the results of the study also revealed that only a small number of respondents preferred to use online-based platforms. Even though the online space is increasingly growing, the data only showed that a small number of people had adopted the above approach. However, the above data could likely change in future since the online space is still growing, and more people are embracing the approach. People are likely to move from the use of offline stores and adopt online stores as a result of the level of convenience.

The researcher also obtained data regarding the volume of sales by both online and offline stores within the UK. The above data was used to develop an understanding of customer preference regarding online and offline stores. The results below show the findings.

Figure 2.0: Online and offline stores preference

Source: Author

Based on the above data, it was established that offline stores are still preferred as compared to online stores. 85% of the total market prefer to do offline shopping by walking into physical stores and making purchases for their products. Only 15% of the overall market prefer to use online stores for doing shopping.

The analysis of the demographic data of the respondents was done to understand how different factors such as age and sex affect the purchasing behaviour of buyers within the online and offline stores. First, the analysis of how gender affects online and offline buying behaviour was undertaken. The results below show the above analysis results.

Table 2.0: Gender-based online and offline buying behaviour

The values obtained from the above data were represented in the figure indicated below:

Figure 3.0: Online and offline buying behaviour based on gender identities

Based on the above data, the study established that offline buying was still preferred, both by male and female buyers. However, the data also indicated that more male buyers used online stores as compared to female buyers. The figures also showed that whereas 60% of the male buyers would prefer to use offline stores, a higher number of female buyers of about 70% would prefer to use offline stores. The above data indicated that more females are likely to be connived to shift from the online to offline platforms as opposed to males. Overall, the data indicated that the use of offline stores was still high among males and female buyers.

The researcher also established the penetration rate of online to offline markets in the UK. The above data was derived to indicate the success of the strategies being used by online businesses to attract more customers who already adopted online buying habits. The data below shows the above results based on the age of the respondents.

Figure 3.0: Penetration rate of offline to online purchases based on customer age

Source: Author

Based on the above data, the researcher established that older people have a higher rate of penetration of offline purchases as compared to younger people. The above results show that a higher number of people who are over 56 years are shifting to the use of offline marketing as compared to the younger generation of people between the ages of 15 and 35 years. Based on the above results, the researcher established that age affects market penetration from online to offline customer bases.

The researcher also examined the payment approach used by most of the online-based buyers to assess their effectiveness and determine whether they contribute to the growth or decline of e-ecommerce. The data below shows the results that were derived:

Table 3.0: Preferred payment methods by e-commerce users

The above data was represented, as shown in the figure below:

Figure 4.0: Preferred e-ecommerce payment methods

The above data provides information regarding the most preferred payment method for online stores. The data indicated that the e-wallet platform was widely accepted as a payment method. Based on its popularity, most of the e-stores have adopted the use of e-wallets to enable customer payments. The data also showed that most customers also preferred cash on delivery and direct bank transfers. However, only a few customers preferred using their cards a means of making payments.

Data regarding the growth of the e-commerce sector in the UK based on different industries were also obtained. The use of e-commerce as a way of reaching to the potential market is practised across the various sectors was also a significant focus in the study. The data below shows the results of the study.

The study also examined the buying behaviour among shoppers on e-commerce platforms in the UK. The analysis involved an examination of the goods that are most preferred when making online purchases and those that are least preferred. The analysis on the level of preference for specific products was critical in illustrating how offline business can increase their sales by focusing on particular goods. The data indicated below shows the findings of the research.

Table 4.0: Online purchases preferences

The above data was represented in the figure shown below:

Figure5.0: Online customer purchase preferences

Based on the above data, the researcher established that the type of goods determined online purchase for most customers. Products within the manufacturing sector registered the highest online sales. More customers also preferred to buy goods that are considered wholesale. However, very few customers preferred to make online purchases for services such as accommodation and food online. Additionally, few people made online purchases for utilities.

CHAPTER 5: DISCUSSION

5.1 Introduction

The discussion chapter provided a detailed analysis of the results contained within the previous chapter. Specifically, the chapter presented a review of the results while also comparing such results with the information provided in the literature review.

5.2 E-Commerce Trends in the UK

The results of the study established that e-ecommerce has been rising over the years in the UK. Further, the findings showed that the growth of e-ecommerce has been high when compared to other major global economies. The UK was established to be among the leading countries where the e-commerce sector is growing fast. The findings showed that the UK falls behind China as one of the biggest e-ecommerce giants globally. The above data was consistent with the findings of Adams et al. (2014) who noted that online market has been growing in the UK as a result of the growth in the use of the internet and the increasing online space. Yang et al. (2020) also shared similar findings by noting that the growth of e-commerce in the UK has majorly been contributed by the increasing internet coverage and the uptake and use of mobile phones.

The research findings also established that the rate of sales within the e-commerce sector has been rising in the UK. The results also found out that the rise in e-ecommerce sales is linked to the developing uptake for e-commerce products. The data revealed that over the years, more people have been adopting the use of e-ecommerce as an alternative buying platform. The findings showed that the rise in e-ecommerce has been steady and helps in the development of trade and development. The results were similar to those of Tang and Zhu (2019), who noted the rise in e-ecommerce has been consistent over the years. McKenzie and Yip (2018) also acknowledged that e-commerce growth is likely to continue in the future.

The research findings also indicated that more men, when compared to women, use e-ecommerce as an option for making a purchase. The results showed that even through offline purchases are still primarily loved by women who prefer to buy their things offline in comparison to men. The above information was useful in the implementation of the O2O business model. Since women prefer offline purchases more than men, offline stores could consider capitalising on the women with the view of increasing their sales volumes. The above study findings were similar to those of Gilliand (2017), who acknowledged that online purchase is undertaken by both men and women but with a difference in the level of preference. The findings also matched those of Chung et al. (2017). They noted that more offline companies are focusing on a specific gender-based marketing strategy with the view of increasing their income. The author referred to women who make more purchases offline when compared to men.

5.3 E-commerce and Traditional Retails Sector in the UK

The researcher also analysed data regarding the existing relationships between e-ecommerce companies and offline players in the UK. The data obtained by the researcher provided details on the push by offline stores to gain more customers online. The study findings revealed that some customers make purchases online, while others make their purchases offline. Further, the results showed that some of the customers use both offline and online options to make their purchases. Adams et al. (2014) shared similar findings by mentioning that both online and offline businesses in the UK strive to gain a share of the market. Yang et al. (2020) had also noted that the growth of the UK retail market had been characterised by a dynamic buying behaviour where the customers have the option of making their purchases online, offline or using both.

Different factors were cited to be responsible for the adoption of either offline or online-based purchases. The findings established that online purchases were mainly preferred by customers based on their convenience. The study outcome found that the customers had the ease of viewing the good online, confirming their specifications and making their orders remotely. Therefore, such customers did not have to take their time to visit the physical store to receive their goods physically. The above findings were shared by Nguyen (2017), who noted that the preference for online shopping was due to the high flexibility associated with the above method. Kang et al. (2020) had also shared similar views by noting that unlike offline purchases, customers do not have to physically go to a store to buy goods as they can do that from any region in the UK.

The study findings also showed that offline purchases were still more preferred when compared to online shopping. The results revealed that customers who use offline purchase believe in undertaking the physical inspection. Further, such customers had had bad experiences with online purchases. Such challenges had included the delivery of the wrong package or the receipt of defective or substandard product. The above findings were similar to those of Xiao et al. (2019), who had mentioned that offline-based purchases provide customers with the opportunity to inspect their goods and confirm their quality and convenience physically. Chee et al. (2014) had also mentioned that customer convenience while making an offline purchase is guaranteed since they can walk away with their product immediately after making the purchase. The above approach is different from online shopping, where the customers have to wait for some time before the delivery can be made.

Based on the findings, the researcher also established that some shoppers have opted to use both online and offline purchase options. The above option provides convenience to such customers since they can enjoy the convenience of online shopping, while also physically inspecting some goods before making payment. Consequently, some of the offline stores in the UK are beginning to adopt both online and offline selling behaviour. The above findings matched those of Xue et al. (2014), who noted that offline and online shopping is currently becoming standard methods of making purchases among most customers. Nguyen (2017) had also noted that more customers were beginning to embrace both shopping practices. Nguyen (2017) had also appreciated that both online and offline stores had started adapting to the changing market outlook by having both online stores, while still using their offline market places.

The analysis also revealed some of the products which are uniquely purchased by customers either online or offline. The results sections revealed that food items and fast-moving goods were mostly ordered online by shoppers. Further, the results showed that the value of the things which were purchased online was not extremely high. On the contrary, the findings revealed that items which cost much money such were mostly purchased within physical stores. Such items included electronics such as fridges. The above results matched those of Wan et al. (2016), who mentioned that customers prefer to purchase smaller items from online stores. Wan et al. (2016) added that the measure of such things would be based on their perceived lower value. Saunders et al. (2019) also revealed that items such as electronics would always require prior inspection, thus forcing customers to purchase such items online mostly.

The analysis of the implementation of the O2O model in the UK also revealed that sales volumes have been rising. The analysis results showed that both offline and online store sales have been increasing over the years. The secondary data analysis also showed the rise in the volume of sales has been consistent, both for the offline and online platforms. However, the results of the research also revealed that the amount of transactions within the offline platforms has been much higher than online platforms. Further, the analysis showed that the rise in the volume of sales has been much higher for the e-commerce sector when compared to the offline stores. The above findings were similar to the vies of Chee et al. (2014), who noted that online sales have been rising much faster when compared to offline sales. Shi et al. (2019) had also mentioned that both online and offline sales have been rising. However, Shi et al. (2019) had also stated that offline sales still count for the most significant percentage of overall sales volumes in the UK.

5.4 The O2O Business Model in the UK

The research findings also examined how gender issues influence online and offline purchase decisions for most of the customers. The results revealed that both genders use online and offline platforms to make purchases. However, a detailed analysis revealed that female buyers prefer conducting offline purchases when compared to male buyers. The findings showed that only a smaller percentage of female buyers use online platforms to buy their goods in the UK. The above results were similar to those of Lu and Liu (2016), who established that buying behaviour on the O2O model varies among males and females. Lu and Liu (2016) noted that female buyers always consider making fewer online transactions when compared to males.

The findings also revealed how payment patterns influence both online and offline purchases. Specifically, the analysis was focused on the payment preferences that are loved by customers within the e-commerce sector. The results indicated that most e-ecommerce customers preferred to make a payment on their products through the e-wallet platforms. The platform was preferred based on its level of security and versatility. Customers also preferred making payment upon delivery of their goods and services. The above patterns pointed out to the mistrust that most e-ecommerce customers have on such platforms.

Further, the results indicated that most customers only prefer making payment once they have confirmed having received the specific goods that they had ordered. However, the findings showed that only a few customers considered using bank transfers and cards as form of payment. The above results were similar to those of Bell et al. (2018), who noted that most e-commerce sites had developed diverse payment platforms that would suit the needs of the different customers. Meyer (2020) had also shared that e-ecommerce sites were adopting e-wallets on a larger scale due to their viability. Meyer (2020) also mentioned that the preference for customer payment on delivery was an indicator of the growing mistrust among customers on e-commerce sites.

The researcher also examined the different purchase preferences for online buyers in comparison to offline buyers. The analysis revealed that specific sets of goods are always preferred when conducting an online purchase, while others are preferred when making an offline purchase. The above findings showed that products within the manufacturing sector are more often bought online when compared to other industries. The results also showed that wholesale goods and those used within the transport sector were also preferred when conducting an online purchase. However, the research analysis revealed that products and services within the accommodation and food industry and those falling under the category of utilities and retail were less preferred. Thus, such goods or services were mostly purchased from offline platforms. The above findings were similar to those of Xue et al. (2014), who noted that online and offline purchase is used when customers seek to buy a specific set of goods. Nguyen (2017) had also stated that suppliers always prefer a particular method when reaching out to their customers. Wan et al. (2016) also presented similar ideas and noted that goods within the retail and manufacturing sector are commonly sold on the online platform due to the high customer base.

The research findings also showed the current trend involving the business model adopted by businesses in the UK. The study revealed that even though most businesses focus on gaining their customer base either online or offline, most of such companies are adapting to the changing environment. Increased competition has been one of the primary reasons why most businesses are considering adopting both business models to ensure that they remain profitable. For example, the findings revealed that most e-ecommerce shops are now setting up physical stores within some busy areas in the UK, such as London. Such areas offer opportunities for customers who seek to buy goods directly from the stores to do so. Even though most operating physical stores are more expensive due to the increased overhead costs, such stores have helped such e-ecommerce stores to increase their sales and boost their profitability.

On the other hand, offline stores are also beginning to build an online presence within the UK. Such shops are tapping on increasing online sales being witnessed in the UK. The above findings were similar to those of Chee et al. (2014), who had noted that UK business owners are now adopting both O2O approaches while conducting their businesses. Shi et al. (2019) had also shared similar findings and stated that offline enterprises are now building online sales platforms to boost their revenue generation from the online market. Lastly, Meyer (2020) had had also raised similar issues by noting that traditional online stores are also beginning to build physical stores to tap on the increased number of walk-in customers in the UK.

The researcher also established that the use of O2O business models in the UK has been dependent on the needs of specific business and its target market. The above findings revealed that the market is determined by the type of goods sold and the target market. Specifically, the above results showed that when targeting young buyers, most of the UK-based businesses consider adopting an online sales platform. Most young people are exposed to the internet and can effectively find what they want online, review them, and make purchase decisions. On the contrary, the findings also showed that the older generation customers always refer to use the traditional methods of purchases. Thus, most of the stores in the UK that target the older generation will always consider setting up the physical stores with the view of attracting their specific clientele base. Tang and Zhu (2019) had shared similar findings and mentioned that the intended market for businesses would determine the choice for online or offline sales. Yip (2018) had also shared similar research outcome and noted that most of the online companies target young people while the older generation of people is mainly offline buyers.

5.5 Conclusion and Recommendations

The O2O business model is widely being adopted in the UK. Recently, more offline companies have been seeking ways of attracting more online customers to widen their customer base. However, the e-commerce sector has also been increasing its customer base by adopting a more aggressive marketing strategy. The study findings also revealed that, currently, offline purchases are still widely accepted by most of the customers. Such offline purchasing options are likely to remain in place for many years. The findings also showed that customer preferences to make purchases either online or offline depends on different factors. First, the researcher established that the type of good being purchased is a significant issue which customers consider before deciding to either purchase online or offline. The findings showed that expensive products are often purchased offline by customers. The researcher also established that payment options for customers are important determinants of whether to buy online or offline. Therefore, most business will always adopt a suitable payment option that suits the needs of their customers. Lastly, the researcher established that the gender of the buyer also determines their preference for online or offline buying. Females often chose to make offline purchases, while men usually prefer to undertake online purchases. The study outcome also showed that most businesses in the UK are also adopting both offline and online purchasing options. The mixed-method for sales ensures such companies take advantage of an increased customer level. Additionally, the adoption of offline and online business models is reducing the level of business rivalry that has existed in the past. Instead, most businesses are now focusing on building a sustainable business environment and establishing more customer contact.

Based on the study findings, specific conclusions were made. First, it was recommended that particular laws that govern the operation of online and offline store operations should be instituted. Such legislation should focus on reducing the level of rivalry among offline and online operators, with the view of creating a sustainable business environment. Such laws would help to minimise the current animosity that exists between online and offline business in the UK. The researcher also recommended that due to the fast-changing business environment, companies should consider adopting both online and offline models with the view of increasing their market share and boosting sales. The above recommendation was also crucial in helping to reduce the level of competitive rivalry among businesses by providing a more sustainable and equal business environment. Based on the analysis of the results, the researcher also recommended that customer service and the provision of goods and services that meet customer preferences would help in the development of a suitable customer base. Customers are attracted by specific things when making either online or offline purchases. Thus, business owners must ensure that they meet particular customer needs. For example, the online businesses must leverage on convenience, timely delivery and quality assurance. On the other hand, an offline business must provide its services while ensuring product quality and excellent customer service.

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