E-Commerce-SWOT Analysis

Transcription

1 Internatinal Jurnal f Management and Cmmerce Innvatins ISSN (Online) Vl. 2, Issue 1, pp: ( ), Mnth: April September 2014, Available at: E-Cmmerce-SWOT Analysis Ms. Dhanashri Patil Assistant Prfessr, BIIB, Pune Abstract: This research paper describes the inventin and accessibility f internet cnnectivity and pwerful nline tls has resulted a new cmmerce area that is e-cmmerce deals with selling and purchasing f gds and services thrugh internet and cmputer netwrks. E-cmmerce can enhance ecnmic grwth, increase business pprtunities, cmpetitiveness, better and prfitable access t markets. E-Cmmerce is emerging as a new way f helping business enterprises t cmpete in the market and thus cntributing t ecnmic success. In this research paper we will discuss abut advanced SWOT Analysis f E-Cmmerce which will cmprise f strengths, weakness, pprtunities and threats faced by e-cmmerce in current scenari. Keywrds: E-cmmerce, cmpetitive advantage, Internet. I. INTRODUCTION E Cmmerce stands fr electrnic cmmerce and caters t trading in gds and services thrugh the electrnic medium such as internet, mbile r any ther cmputer netwrk. It invlves the use f Infrmatin and Cmmunicatin Technlgy (ICT) and Electrnic Funds Transfer (EFT) in making cmmerce between cnsumers and rganizatins, rganizatin and rganizatin r cnsumer and cnsumer. With the grwing use f internet wrldwide, Electrnic Data Interchange (EDI) has als increased in humungus amunts and s has flurished e-cmmerce with the prlific virtual internet bazaar inside the digital wrld which is righty termed as e-malls. We nw have access t almst every knick-knack f ur daily lives at cmpetitive prices n the internet. N matter ne is educated r illiterate, an urbane r a cuntryman, in India r in U.K; all yu need is an internet cnnectin and a green bank accunt. With e-cmmerce then, yu can buy almst anything yu wish fr withut actually tuching the prduct physically and inquiring the salesman n number f times befre placing the final rder. Here is a beautiful picture depicting hw has human life evlved t adapt t the digital wrld and hence trading ver the internet. As seen, frm pizza and ptted plant t pair f shes, we have everything n sale n the internet available in tempting ffers..!! Snapdeal.cm, Amazn, ebay, Naaptl, Myntra, etc are sme f the mst ppular e-cmmerce websites. Research Publish Jurnals Page 226

2 Internatinal Jurnal f Management and Cmmerce Innvatins ISSN (Online) Vl. 2, Issue 1, pp: ( ), Mnth: April September 2014, Available at: Basically e-cmmerce is the buying and selling f gds and services n the internet and n different nline netwrks especially Wrld Wide Web. The develpment f e-cmmerce has led t cmpanies mving much f their business effrts t nline envirnments. Dt cm craze has stimulated a glbal cmmercial envirnment which is nw being explited by many firms wh are engaged in e-cmmerce. Advanced SWOT Analysis f E-cmmerce Strengths Bundary less (glbal lcatin) Time saving N time cnstraints Price/prduct cmparisn Cst effective Direct cmmunicatin with cnsumer Imprved custmer interactin Flexible target market segmentatin Simple and easier exchange f infrmatin Lwers transactin cst Easy arrangement f prducts Faster buying prcedure N physical cmpany set up Easy transactins Niche prducts Lw perating cst Time saving N time cnstraints Price/prduct cmparisn Cst effective Direct cmmunicatin with cnsumer Imprved custmer interactin Flexible target market segmentatin Simple and easier exchange f infrmatin Lwers transactin cst Easy arrangement f prducts Faster buying prcedure N physical cmpany set up Easy transactins Niche prducts Lw perating cst Weaknesses Security Fake websites Fraud Fewer discunts and bargaining Lng delivery timing Research Publish Jurnals Page 227

3 Internatinal Jurnal f Management and Cmmerce Innvatins ISSN (Online) Vl. 2, Issue 1, pp: ( ), Mnth: April September 2014, Available at: N idea abut quality and physical cnditin Of The prduct Limitatin f prducts Lack f persnal services Mre shipping cst Limited expsure Limited advertising Custmer s Satisfactin Opprtunities Changing trends New technlgies Glbal expansin High availability (24 hur and seven days a week) Wide business grwth Cut dwn n lcal cmpetitin Advertising Threats Cmpetitrs Changes in envirnment, law and regulatins Innvatin Privacy cncerns Fraud Risk Strengths 1. Bundary less (glbal lcatin) E cmmerce can be dealt glbally as n specific bundary is required.it enables all the cmpanies t expand them t glbal level. 2. Time saving It saves time and transprtatin. Because there is n need t g anywhere physically. 3. N time cnstraints It can be used anywhere any time as there is n time cnstraints. 4. Price/Prduct cmparisn Helps cnsumers t cmpare price and prduct effectively and efficiently. 5. Cst effective Reduces lgistical prblem and puts a small business n a par with giants. 6. Direct cmmunicatin with cnsumer Scial netwrking sites, nline adverting netwrks can be mediums t buzz abut nline stre. 7. Imprved custmer interactin Quick feedback and cmment frms are main features t interact with custmers. 8. Flexible target market segmentatin Target market segment is imprtant feature f ecmmerce.it is very flexible and anytime can be mdified. Research Publish Jurnals Page 228

4 Internatinal Jurnal f Management and Cmmerce Innvatins ISSN (Online) Vl. 2, Issue 1, pp: ( ), Mnth: April September 2014, Available at: 9. Simple and easier exchange f infrmatin Imprves infrmatin sharing amng merchants and custmers. 10. Lwers transactin cst Things can be autmated in a well implemented nline stre. If dwnlad facility is available then distributin cst can be cut ff. 11. Easy arrangement f prducts Prduct can be arranged in the shelves within minute s.with nline stre it is quite easy. 12. Faster buying prcedure E cmmerce means better and quick custmer services.nline custmer services make custmer happier. Due t absence f intermediaries fr buying prducts.s buying prcedure will be fast and quick. 13. N physical cmpany set up E business is cst effective because n physical set up is required. 14. Easy transactins Financial transactins thrugh electrnic fund transfer are very fast and can be dne frm any part f the wrld. 15. Niche Prducts Almst everything can be sld n internet.even if prducts targeted t smaller markets the buyer easily find ut thrugh internet. 16. Lw perating cst It can be started and cntinued with very lw investment.staff cst is very lw. Weaknesses 1. Security Security matter cnfuses custmers especially abut the integrity f the payment prcess. 2. Fake Websites Make fake websites are available n net which prmises better service & secure dealing.these web site can nt nly disagree ecmmerce but als bring bad name t ecmmerce. 3. Fraud Persnal & financial details prvided fr trading purpse are misused by hackers their persnal undue internet. 4. Fewer discunts and bargaining Hardly nline businesses ffer discunts and bargaining cannt be pssible. 5. Lng delivery timing The task f delivery is usually utsurced; wh des nt care abut the timing f the seller.they prvide their services as per their wn cnvenience.smetime the delivery time may extend t days r weeks which cannt wait fr. 6. N idea abut quality & physical cnditin f the prduct Prducts whse chice is merely depend n its physical cnditin f the prduct with need persnal tuch befre selectin are nt suitable fr ecmmerce business. As nline prducts cannt be tuched; wear; r sit n the prduct. 7. Limitatin f prducts Limited number f prduct can be available. 8. Lack f persnal services Physical prducts can be available but lack in persnal services which are intangible. 9. Shipping cst is mre Shipping cst increases if we rder nline. 10. Limited Advertising Limited advertising pprtunities are available because in ecmmerce ne can nt g fr mass advertising. Research Publish Jurnals Page 229

5 Internatinal Jurnal f Management and Cmmerce Innvatins ISSN (Online) Vl. 2, Issue 1, pp: ( ), Mnth: April September 2014, Available at: Limited expsure In develping areas where internet is nt accessible will have n r little expsure t ecmmerce. 12. Custmers satisfactins There is n interactin between custmer & the seller. Therefre the scpe f cnvincing the custmer des nt exist. Many times custmers prefer t buy the prduct by reaching persnally t the market rather than purchasing thrugh internet. Opprtunities 1. Changing trends Ecmmerce is fast and effective even financial transactins can be made frm any part f the wrld. Peple f tmrrw will feel mre cmfrtable t buy prducts thrugh internet nly. 2. New technlgies Daily Number f internet users is increasing. Peple fess mre cmfrtable t shp nline. 3. Glbal expansin Ecmmerce can be perated anywhere any time withut any interruptin. 4. High availability (24*7 days in week) Alng with each and every click f the muse business is in peratin. 5. Wide business grwth E business has wide scpe and brader visin t grw. 6. Cut dwn n lcal cmpetitin Online custmer services is a cmpetitive advantage fr the cmpany. 7. Adverting Adverting is cst effective as cmpare t cnventinal ffline system. Threats 1. Cmpetitrs Cmpetitin is increasing day by day big cmpanies have already entered in this field. They are marking peple habitual at the cst their cmpanies. 2. Changes in envirnment, law and regulatins Change in trends fashin and fad can distress e cmmerce side by side change in law and regulatins can als affect it. 3. Innvatin Custmers nw a days are always in search f innvative prducts.innvatin can be either in prduct, place, prmtin and price. 4. Privacy cncerns Fears that infrmatin can be misused lead t spam r identity fraud. 5. N direct interactin In e cmmerce there is n direct interactin f custmer and the seller. That why bargaining des nt exist. Peple prefer t buy physically a cmpare t nline. 6. Fraud Persns using unfair means t perate e cmmerce can damage the cnfidence and faith f cmmn peple. 7. Risk Nature f fraud and risk is different because when as custmer relies n unseen set up, he trusts and makes transactins. In such a way he is ready t face risk. Research Publish Jurnals Page 230

6 Internatinal Jurnal f Management and Cmmerce Innvatins ISSN (Online) Vl. 2, Issue 1, pp: ( ), Mnth: April September 2014, Available at: II. CONCLUSION A develping cuntry can be ratinalized and mechanized if it intrduces e cmmerce effectively and efficiently.it will enhance its utput and gives cmpetitive advantage. Infrmatin technlgy (IT) has bsted e cmmerce wrldwide.nw it s easier t enter t a new market and ne can evaluate his/her prduct and cmpany s perfrmance.it reduces business verhead and enhances business management. REFERENCES [1] Emarkerter.cm/prducts/reprt.php?esaia/welcme.html> [2] P.Timmers, Electrnic cmmerce strategies and mdels fr business t business. Research Publish Jurnals Page 231