The paper "Argos Enter the Chinese Market" is a worthy example of a research paper on marketing. The chief area of investigation of this paper is to check out the role played by the ARGOS (Agricultural Research Group on Sustainability) by the process of entering the market. This paper concentrates on the continuous growth of the retailing market of China and thereby tries to find out the contributions as forwarded by Argos. Argos is part of Home Retail Group, and it sells an excess of 17,000 general merchandise products for the homes.
All these products are set out in its twice-yearly 1,700-page catalog on the internet. Customers from every corner of the world can purchase products through its network of over 700 stores. They can order them online or over the phone. It also has the facility of picking up the purchased materials from a store branch of any choice or can have them delivered at home directly. The online market of China, on the other hand, is chiefly dominated by Taobao. It is not only the most popular but also has got a very good reputation for is services and products.
Taobao is the biggest website of shopping in China; there was a lot of information about suppliers. It is already making a huge profit and is exceptionally doing well. CHAPTER 2: LITERATURE REVIEW 2.1 Introduction This chapter highlights the financial status of Argos and also will check the retail market of China on the basis of online selling. 2.2. Financial Condition of Argos The sales of Argos has been up by 2.4% and down 1.4% at Homebase; reported sales of £ 5,607m. The benchmark of Pro forma operating profit is up 8% to £ 359.4m of which Argos and Homebase; reported a profit of £ 305.2m.
Below are the detailed graphs showing sales-continuing operations, benchmark operating profit-continuing operations and pre-tax return on invested capital. 2.3 Strategical Key Elements in Retailing Argos always adopted the strategy of developing world-class, low-cost sourcing capabilities. It is the best way to enable Home Retail Group to deliver even greater value to customers. Added to this there is the facility of delivering end-to-end solutions that give the customers convenient ways to order, pay for and obtain the goods that they want.
The target is to deliver sustainable returns for all its stakeholders. They believe in delivering the growth in total shareholder return which must have some relevance to the top quartile of comparable listed companies over the medium to long-term. The company achieves this by delivering sales and profit growth throughout the group. In the process, there has to be the support of investment programs that give returns in excess of their cost of capital. These objectives get recognized and accordingly the company constructs its long term strategies.
Consistent investment in businesses with competitive advantages is another key factor for the rise of Argos in the retail market. Accordingly, there are regular attempts for achieving the objectives for shareholder return. This data is on a 52-week pro forma basis