Key Drivers of E-Commerce-Btechnd
Identify one country in Europe and one country in Asia. Using the measures for the key drivers of e-commerce, draw the table to compare the degree of advancement of e-commerce in each of the two countries
|Key drivers||China (Asia)||UK (Europe)|
|Internet penetration||In 2016, 52% of total population uses internet.||In 2016, 86% of total population uses internet.|
|Mobile penetration||China has highest mobile penetration. 50% of online population of China access internet through mobile.||In 2016, 80% of total population uses mobile in UK|
|Rise of middle class||China and India make up to 37% of global middle class. Asia makes up to 64% of global middle class.||Middle class made up to 25% of total population|
|Increasing logistics options||Logistics companies have increases as the demand for products have increased with e-commerce||FTA manages the logistic infrastructure development in UK– all modes of transport such as rail, road, sea and air.|
|Growth in supply of new ecommerce players||The growth of monobrand sites and blogshops has increased||The growth of new ecommerce players such as Blogshops, monobrands, etc has increased.|
Discuss the global impact of e-commerce on our society
Positive impact of e-commerce on our society-
Convenience- Online shopping is convenient and can be done anywhere and anytime.
Disabled and elderly- it is easy for disabled and elderly person to do shopping online.
Time saving- it saves the time to travel to nearest store
Price comparison and information availability- internet provide opportunity to compare the features and price of different product and service provider
24 x 7 – e-commerce provide opportunity to shop anytime and anywhere.
Greater choice- online shopping gives wider choice to customers.
Global market place- you can also purchase a product which is not sell locally on stores but is available online (Hennig-Thurau.et.al, 2013).
Negative impact of e-commerce on society-
Unemployment- the organizations are shifting to virtual organization and there is need of very few employees.
Uncertainty- some customers feel it unreliable to fill their bank details online.
Returns and complaints- sometimes the product which is arrived is found damaged. Sometimes the image of products is misleading.
Delivery- the delivery of product purchased online takes at least 7 to 10 days to be delivered. Customer cannot receive the product immediately ( Malthouse and Friege, 2013).
There is potential for new entrants entering in online website segment. For instance, Lyst is an online website founded in 2010 that aggregates department stores, boutiques and brands. Its headquarters are located in London, UK. The company has greatest designers and customize the product on customer demand. Currently, the company is getting sales of $1 million every month. The growth rate of company is very high. The company saw a growth rate of 100% in 2012 (Luckett, and Pomirleanu, 2010). The company launched its mobile app in 2013. The traffic of company website on mobile devices has increased to 25%.
The growth rate of Lyst is high but it has to compete with existing players for market share. In 2013, Lyst was among the 50 brightest companies of UK. Lyst plans to expand its market internationally by building different websites for different countries. One of the foreign markets identified by Lyst is China. The company is planning to expand via both mobile devices and websites. Lyst is maintaining its market presence by keeping the promotion budget low but creative so that it can differentiate itself from leading brands (Ganesh and Reynolds 2010). The strategy of company is to develop a long term brand image in consumers mind. Lyst is also planning for organic acquisition, global communication, brand marketing and increasing performance to sustain in this competitive environment.
What are the current procedures and legislations ecommerce companies are requiring to integrate into their organisation?
In UK, e-commerce regulations came into force in 2002 called as Electronic Commerce Regulations, 2002. The aim of this law was to harmonize and clarify the online business to boost confidence of consumers. This regulation covers all commercial websites. This regulation refers Information Society Service as a service which provides remuneration at a distance, electronic equipment to process and storage of data. It provides tool to access, search and retrieval of data.
The regulation do not provide the place, location or address where a consumer can sue but it provides the law which apply in the case of circumstances of dispute. The regulations do not apply to betting, taxation (Oliveira and Martins2010), lotteries or gaming, activities of public notary, data protection, cartel laws and representation of client interest before court. The service provider in e-commerce is required to disclose minimum information which include the name of service provider on the site, geographic address, e-mail address, details of registration number, particulars of relevant supervisory authority, a VAT number, detail of professional body and prices of products and services on website including tax and delivery cost.
Thus, companies operating in e-commerce business are required to disclose their certain information; follow Electronic Commerce Regulations, 2002 and regulations of Information Society Services (Syverson and Emre 2010).Order Now