Addis Ababa University

College of Business and Economics

Department of Management, Class of Masters of Business Administration

Sources and Methods of Data Collection

Group Name ID

1. Feven Admassu GSE/0539/17

2. Gelila Yitayew GSE/3363/17
3. Gemechis Bayisa GSE/9905/17
4. Hanan Nesru GSE/7465/17
5. Hanna Mitiku GSE/0292/17
6. Haymanot Getachew GSE/0431/17
7. Hermela Ephrem GSE/5348/17

Proposal Title: The Impact of E-Commerce on Traditional Retail Businesses

Abstract
This study examines the transformative impact of e-commerce on traditional retail boutiques,
highlighting shifts in consumer behavior, market trends, and business models. The rapid rise of
online shopping has significantly reduced foot traffic and sales for physical boutiques, posing
challenges in adapting to digital platforms and evolving consumer expectations. This research
identifies the critical need for traditional retailers to adopt hybrid models that integrate both
online and offline channels, emphasizing the role of technology in enhancing customer
experiences and retaining loyalty. By analyzing consumer preferences and market dynamics, the
study uncovers sustainable strategies for boutiques to remain competitive in the digital era.
Additionally, it addresses the long-term implications of e-commerce growth on the retail sector,
offering practical insights for stakeholders and policymakers. The findings aim to foster
innovation and support the continued relevance of traditional boutiques in an increasingly digital
economy.
this research proposal aims to investigate the impact of e-commerce on traditional enterprises in
Addis Ababa, Ethiopia, focusing on its effectiveness, associated risks, and broader implications
for business operations by 2025. Utilizing secondary research methodologies and a review of
existing literature, the study seeks to establish a comprehensive understanding of the essential IT
infrastructure required for successful e-commerce integration in the Ethiopian context.

Preliminary findings indicate that e-commerce has the potential to significantly enhance revenue
diversification and facilitate global market expansion for local businesses. However, challenges
such as concerns about fraud and potential service disruptions must also be addressed. The rapid
growth of e-commerce in Addis Ababa serves as a case study, offering insights into emerging
trends, including the integration of artificial intelligence, the rise of mobile commerce,
blockchain technology, and the adoption of crypto currencies.

Additionally, the research will explore critical policy issues relevant to Ethiopia, including
consumer protection, cross-border trade regulations, and taxation frameworks. Ultimately, this
study aims to illuminate the transformative effects of e-commerce on traditional business models
in Addis Ababa, providing valuable insights for scholars, entrepreneurs, and policymakers as
they navigate the evolving landscape of technology and commerce in Ethiopia by 2025.

Introduction
The rise of e-commerce has reshaped the retail landscape, challenging traditional businesses to
adapt or risk obsolescence. This research investigates how the growth of online shopping has
impacted boutiques stores, focusing on competition, operational strategies, and consumer
preferences.

Traditional retailers are at a crossroads where innovation is no longer optional but necessary for
survival. This study highlights the urgency for these businesses to evolve and remain relevant
amidst fierce competition from online platforms. By analyzing historical trends and recent
developments, the research underscores the critical areas requiring attention from traditional
retailers.
Statement of Problem
Traditional retail businesses are experiencing declining foot traffic and sales due to the growing
dominance of e-commerce. Many struggle to adapt to changing market dynamics, leading to
closures and economic consequences. This study addresses the pressing need to understand these
challenges and explore potential solutions. The key problem is identifying sustainable strategies
that traditional retailers can adopt to compete effectively in a digital-first world.

Research Questions

1. How has the growth of e-commerce affected traditional retail businesses?

2. What strategies can traditional retailers adopt to remain competitive?
3. What are the long-term implications of e-commerce growth on the retail sector?
4. How do consumer preferences influence the success of traditional retailers in the digital
era?

Hypothesis

 H1: The rise of e-commerce has significantly contributed to the decline in sales and foot
traffic in traditional retail businesses.
 H2: Traditional retailers that adopt hybrid business models integrating both online and
offline channels perform better than those relying solely on physical stores.
 H3: Consumer preferences for convenience and accessibility are the primary drivers of e-
commerce growth, impacting traditional retail operations.
 H4: Retailers that invest in technology and personalized customer experiences are more
likely to retain loyal customers.

Literature Gap

While several studies have explored the growth of e-commerce and its advantages, there is
limited research on how small and medium-sized traditional retailers are adapting to this trend.
Existing literature often focuses on large-scale businesses or fails to address specific strategies
that can bridge the gap between e-commerce and physical retail. Furthermore, there is scant
analysis on the long-term viability of hybrid retail models and their impact on consumer loyalty
and satisfaction. This study aims to fill this gap by examining the unique challenges faced by
smaller retailers and identifying practical, scalable solutions for their sustainability.
General Objective
To assess the impact of e-commerce on traditional retail businesses and explore strategies to
ensure their sustainability.

Specific Objectives

1. To analyze the challenges traditional retailers face due to e-commerce growth.

2. To identify successful adaptation strategies employed by brick-and-mortar stores.
3. To evaluate consumer preferences and their influence on retail trends.
4. To examine the role of technology in bridging the gap between e-commerce and
traditional retail.

Significance of the Study

This research provides valuable insights for retailers, policymakers, and stakeholders in
understanding the evolving retail ecosystem. It aims to aid traditional businesses in developing
strategies to compete in the digital age. By offering practical recommendations, this study aspires
to contribute to the economic sustainability of small and medium-sized retailers and foster
innovation within the retail sector.

Delimitation
The study focuses on small to medium-sized traditional retail businesses within urban areas and
excludes multinational corporations with established online presence. It limits its analysis to
markets where e-commerce penetration has had measurable effects on traditional retail.

Limitation
The research may face constraints such as limited access to proprietary data from retailers and
the rapidly evolving nature of e-commerce trends. Additionally, regional differences in consumer
behavior may pose challenges in generalizing findings across diverse markets.

Conceptual Framework
The study will adopt the Diffusion of Innovations theory to examine how traditional retailers
adopt and integrate new technologies and business models to remain competitive. The research
also incorporates the Technology Acceptance Model (TAM) to evaluate how retailers and
consumers perceive and embrace digital tools and platforms.

Methodology
A mixed-method approach will be employed, including:

 Quantitative Analysis: Surveys of retail consumers to understand shopping preferences.

 Qualitative Analysis: Interviews with traditional retail business owners to explore their
challenges and strategies.
 Secondary Data: Review of market reports and industry statistics.
The study will use purposive sampling for interviews and a structured questionnaire for
surveys to ensure comprehensive data collection.
Ethical Consideration
The study will ensure confidentiality and anonymity for all participants. Informed consent will
be obtained, and the research will adhere to ethical guidelines for data collection and reporting.
Participants will have the right to withdraw at any stage without penalty.

Conclusion
This research aims to bridge the knowledge gap surrounding the impact of e-commerce on
traditional retail. By exploring both challenges and opportunities, it intends to offer actionable
insights for retailers to thrive in a rapidly evolving digital marketplace. The findings are expected
to benefit not only businesses but also policymakers and researchers striving to understand the
dynamics of modern retail.

References

1. Brynjolfsson, E., Hu, Y. J., & Rahman, M. S. (2013). Competing in the Age of
Omnichannel Retailing. MIT Sloan Management Review, 54(4), 23–29.
2. Chaffey, D. (2021). E-Business and E-Commerce Management: Strategy,
Implementation, and Practice. Pearson Education.
3. Verhoef, P. C., Kannan, P. K., & Inman, J. J. (2015). From Multi-Channel Retailing to
Omni-Channel Retailing: Introduction to the Special Issue on Multi-Channel Retailing.
Journal of

1. Statista. (2023). E-commerce worldwide - Statistics & Facts. Retrieved from

www.statista.com
2. Kotler, P., & Armstrong, G. (2020). Principles of Marketing (18th Edition). Pearson.
3. Laudon, K. C., & Traver, C. G. (2020). E-commerce 2020: Business, Technology, and
Society. Pearson.
4. Deloitte. (2021). Retail Trends 2021: Adapting to a New Reality. Retrieved from
www.deloitte.com
5. "The Impact of E-Commerce on Traditional Retail Business: A Study of How Online
Shopping is Transforming the Retail Landscape." (2023). NewsNowNation. Retrieved
from www.newsnownation.com
6. "The Rise of E-Commerce and Its Impact on Retail." (2024). Medium. Retrieved from
www.medium.com