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E-COMMERCE
SWOT
ANALYSIS
INTRODUCTION
• This research paper describes the invention and accessibility of internet connectivity
and powerful online tools has resulted a new commerce era that is e-commerce, which
has completely revolutionized the conventional concept of business. E-commerce
deals with selling and purchasing of goods and services through internet and
computer networks. E‐commerce can enhance economic growth, increase business
opportunities, competitiveness, better and profitable access to markets.
E-COMMERCE PROCESSES:
• E- Commerce processes involves the following Steps as show
in figure.
• As a company and a customer browses through internet to
acquire his/her required product’s information and when
he/she is completely satisfied by product’s features, its
competitive advantages, comparing it with other products
then he/she places an order for the product for which he/she
has set up his/her mind to buy and for this purpose he/she
chooses online transaction option and the selling company
notifies him/her that they have got the required payment and
now they will fulfill his/her order and it will be delivered very
soon.
STRENGTHS:
• Boundary less (global location):
E-commerce can be dealt globally as no specific boundary is required. It enables all the
companies to expand them to global level.
• Time saving:
It saves time and transportation. Because there is no need to go anywhere physically.
• No time constraints:
It can be used anywhere any time as there is no time constraints.
• Price/Product comparison:
Helps consumers to compare price and product effectively and efficiently.
• Cost effective:
Reduces logistical problems and puts a small business on a par with giants.
• Direct communication with consumer:
Social networking sites, online advertising networks can be mediums to buzz about online store.
• Improved customer interaction:
Quick feedback and comment forms are main features to interact with customers.
• Flexible target market segmentation:
Target market segment here in e commerce is flexible can be modified any time.
• Simple and easier exchange of information:
Improves information sharing among merchants and customers and enables prompt quick just in time deliveries.
• Lowers transaction cost:
Things can be automated in a well implemented online store. If online download facility is available then distribution cost can
be cut off.
• Easy arrangement of products:
Products can be arranged in the shelves within minutes. With online store it is quite easy.
• Faster buying procedure:
Ecommerce means better and quick customer services. Online customer services make customer happier. Due to absence of
intermediaries for buying products. So buying procedure will be fast and quick.
• No physical company set up:
Doing e business is cost effective because no physical set up is required for that.
• Easy transactions:
Financial transactions through electronic fund transfer are very fast and can be done from any part of the world.
• Niche Products:
Almost everything can be sold on internet. Even if products targeted to smaller markets the buyer will be somewhere on net.
Low operating cost:
It can be started and continued with very low investment. Staff cost is very low.
WEAKNESSES:
• Security:
Security matter confuses customers especially about the integrity of the payment process.
• Fake websites:
Fake websites can not only disgrace e commerce but bring bad name to e commerce also.
• Fraud:
Concerns about misuse of financial and personal data is a great weakness in e commerce.
• Fewer discounts and bargaining:
Hardly online businesses offer discounts and bargaining cannot be possible.
• Long delivery timing:
Delivery time can be in days or weeks which one cannot wait for.
• No idea about quality and physical condition of the product:
Online products cannot be touched, wear or sit on the products.
• Limitation of products:
Limited number of products can be available.
• Lack of personal services:
Physical products can be available but lack in personal services which are intangible.
• More shipping cost:
Shipping cost increases if we order online.
OPPORTUNITIES:
• Changing trends:
Ecommerce is fast and effective even financial transactions can be made from any part of
the world. People of tomorrow will feel more comfortable to buy products through
internet only.
• New technologies:
Daily number of internet users is increasing. People feel more comfortable to shop
online.
• Global expansion:
Ecommerce can be operated any where any time without any interruption.
• High availability (24 hour and seven days a week):
Along with each and every click of the mouse business is in operation.
• Wide business growth:
E-business has wide scope and broader vision to grow.
• Cut down on local competition:
Online customer services is a competitive advantage for the company.
• Advertising:
Advertising is cost effective as compare to conventional offline system.
THREATS:
• Competitors:
Competition is increasing day by day big companies have already entered in this field. They are making
people habitual at the cost of their companies.
• Changes in environment, law and regulations:
Change in trends, fashion and fad can distress E Commerce side by side change in law and regulations can
also affect it.
• Innovation:
Customers now a days are always in a search of innovative products. Innovation can be either in product,
place, promotion and even price.
• Privacy concerns:
Fears that information can be misused lead to spam e mail or identity fraud.
• No direct interaction:
In e commerce there is no direct interaction of customer and the seller. That’s why bargaining does not exist.
People prefer to buy physically a compare to online.
• Fraud:
Persons using unfair means to operate e commerce can damage the confidence and faith of common people.
• Risk:
Nature of fraud and risk is different because when a customer relies on unseen set up, he trusts and makes
transactions. In such a way he is ready to face risk.
CONCLUSION:
• A developing country can be rationalized and
mechanized if it introduces e-commerce effectively
and efficiently. It will enhance its output and gives
competitive advantage. Information Technology
(IT) has boosted e- commerce worldwide. Now it’s
easier to enter to a new market and one can
evaluate his/her product and company’s
performance. It reduces business overhead and
enhances business management.

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E-Commerce Swot Analysis

  • 1.
  • 3. INTRODUCTION • This research paper describes the invention and accessibility of internet connectivity and powerful online tools has resulted a new commerce era that is e-commerce, which has completely revolutionized the conventional concept of business. E-commerce deals with selling and purchasing of goods and services through internet and computer networks. E‐commerce can enhance economic growth, increase business opportunities, competitiveness, better and profitable access to markets.
  • 4. E-COMMERCE PROCESSES: • E- Commerce processes involves the following Steps as show in figure. • As a company and a customer browses through internet to acquire his/her required product’s information and when he/she is completely satisfied by product’s features, its competitive advantages, comparing it with other products then he/she places an order for the product for which he/she has set up his/her mind to buy and for this purpose he/she chooses online transaction option and the selling company notifies him/her that they have got the required payment and now they will fulfill his/her order and it will be delivered very soon.
  • 5. STRENGTHS: • Boundary less (global location): E-commerce can be dealt globally as no specific boundary is required. It enables all the companies to expand them to global level. • Time saving: It saves time and transportation. Because there is no need to go anywhere physically. • No time constraints: It can be used anywhere any time as there is no time constraints. • Price/Product comparison: Helps consumers to compare price and product effectively and efficiently. • Cost effective: Reduces logistical problems and puts a small business on a par with giants.
  • 6. • Direct communication with consumer: Social networking sites, online advertising networks can be mediums to buzz about online store. • Improved customer interaction: Quick feedback and comment forms are main features to interact with customers. • Flexible target market segmentation: Target market segment here in e commerce is flexible can be modified any time. • Simple and easier exchange of information: Improves information sharing among merchants and customers and enables prompt quick just in time deliveries. • Lowers transaction cost: Things can be automated in a well implemented online store. If online download facility is available then distribution cost can be cut off. • Easy arrangement of products: Products can be arranged in the shelves within minutes. With online store it is quite easy. • Faster buying procedure: Ecommerce means better and quick customer services. Online customer services make customer happier. Due to absence of intermediaries for buying products. So buying procedure will be fast and quick. • No physical company set up: Doing e business is cost effective because no physical set up is required for that. • Easy transactions: Financial transactions through electronic fund transfer are very fast and can be done from any part of the world. • Niche Products: Almost everything can be sold on internet. Even if products targeted to smaller markets the buyer will be somewhere on net. Low operating cost: It can be started and continued with very low investment. Staff cost is very low.
  • 7. WEAKNESSES: • Security: Security matter confuses customers especially about the integrity of the payment process. • Fake websites: Fake websites can not only disgrace e commerce but bring bad name to e commerce also. • Fraud: Concerns about misuse of financial and personal data is a great weakness in e commerce. • Fewer discounts and bargaining: Hardly online businesses offer discounts and bargaining cannot be possible. • Long delivery timing: Delivery time can be in days or weeks which one cannot wait for. • No idea about quality and physical condition of the product: Online products cannot be touched, wear or sit on the products. • Limitation of products: Limited number of products can be available. • Lack of personal services: Physical products can be available but lack in personal services which are intangible. • More shipping cost: Shipping cost increases if we order online.
  • 8. OPPORTUNITIES: • Changing trends: Ecommerce is fast and effective even financial transactions can be made from any part of the world. People of tomorrow will feel more comfortable to buy products through internet only. • New technologies: Daily number of internet users is increasing. People feel more comfortable to shop online. • Global expansion: Ecommerce can be operated any where any time without any interruption. • High availability (24 hour and seven days a week): Along with each and every click of the mouse business is in operation. • Wide business growth: E-business has wide scope and broader vision to grow. • Cut down on local competition: Online customer services is a competitive advantage for the company. • Advertising: Advertising is cost effective as compare to conventional offline system.
  • 9. THREATS: • Competitors: Competition is increasing day by day big companies have already entered in this field. They are making people habitual at the cost of their companies. • Changes in environment, law and regulations: Change in trends, fashion and fad can distress E Commerce side by side change in law and regulations can also affect it. • Innovation: Customers now a days are always in a search of innovative products. Innovation can be either in product, place, promotion and even price. • Privacy concerns: Fears that information can be misused lead to spam e mail or identity fraud. • No direct interaction: In e commerce there is no direct interaction of customer and the seller. That’s why bargaining does not exist. People prefer to buy physically a compare to online. • Fraud: Persons using unfair means to operate e commerce can damage the confidence and faith of common people. • Risk: Nature of fraud and risk is different because when a customer relies on unseen set up, he trusts and makes transactions. In such a way he is ready to face risk.
  • 10. CONCLUSION: • A developing country can be rationalized and mechanized if it introduces e-commerce effectively and efficiently. It will enhance its output and gives competitive advantage. Information Technology (IT) has boosted e- commerce worldwide. Now it’s easier to enter to a new market and one can evaluate his/her product and company’s performance. It reduces business overhead and enhances business management.