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THE IMPACT OF E-COMMERCE ON EMERGING MARKETS

CHAPTER ONE

INTRODUCTION

1.1   Background of the Study

The Internet revolution was really about people customer and fundamental shift of market power from the seller to buyer. In the new economy customers’ expectations are very different than before. A company understanding of this difference and its ability to capitalize on it will be the key to success. The web, the internet and emerging computing and communication technologies have redefined business erasing traditional boundaries of time and geography and creating new virtual communities of customers and suppliers with new demand to product and services. E-commerce only forms a fragment of e-business. Earlier companies had web sites displaying the company products etc. then they started to use the e-commerce as one of the distribution channel in addition to the existing system for sales that is e-commerce.

The term Electronic commerce or e-commerce consists of all business activities carried on with the use of electronic media, that is, computer network. It involves conducting business with the help of the electronic media, making use of the information technology such as Electronic Data Interchange (EDI). In simple words, Electronic commerce involves buying and selling of goods and services over the World Wide Web. Customers can purchase anything right from a car or a cake sitting comfortably in his room and gift it to someone sitting miles apart just by click of a mouse. Shipping method is generally used for the delivery of the goods ordered. Every Bank which is highly leading now performs their transaction through computer and computer is not only the concept can make off the transaction automatic. All the commercial application now transfers to the concept of e-commerce and is one of the very important aspects for carrying bank transactions falsity. In the commercial world surrounded by highly competitive and volatile market conditions, any new concept or technology would be acceptable only if it provides strong benefits to all concerned. E-commerce offers some distinct advantages. First, portability improves bottom line of and organization. And secondly expanded market share, some component can be handled by multiple customers at the same time.

1.2   Statement of the Problem

A study by the United Nations Conference on Trade and Development (UNCTAD) has shown that SMEs, while generally lagging in ICT, have the most to gain from increases in productivity thanks to e-commerce. SMEs, however, actually run the risk of missing opportunities in both productivity and profitability by not engaging in e-business.

1.3   Objectives of the Study

1.   To study how e-commerce aid in the economic development of developing countries.

2.   To identify the relationship between e-commerce and emerging market.

3.   To identify the significant impact of e-commerce on emerging market.

4.   To assess the influence of e-commerce in developing an economy.

1.4   Research Questions

1.   Does e-commerce aid in the economic development of developing countries?

2.   Is there a relationship between e-commerce and emerging market?

3.   What significant impact does e-commerce have on emerging market?

4.   Can e-commerce influence the development of an economy?

1.5   Research Hypotheses

Ho:   E-commerce has no significant impact on emerging market.

Hi:   E-commerce has significant impact on emerging market.

1.6   Significance of the Study

E-commerce has been hailed by many as an opportunity for developing countries to gain a stronger foothold in the multilateral trading system. E-commerce has the ability to play an instrumental role in helping developing economies benefit more from trade. Unlike the requirements necessary to run a business from a physical building, e-commerce does not require storage space, insurance, or infrastructure investment on the part of the retailer. The only pre-requisite is a well-designed web storefront to reach customers. Additionally, e-commerce allows for higher profit margins as the cost of running a business is markedly less.

1.7   Scope/Limitations of the Study

This study is on the impact of e-commerce on emerging markets using konga online store as a case study.

Limitations of study

1.   Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

2. Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

1.8   Definition of terms

E-commerce: It is the buying and selling of goods and services or the transmitting of funds or data, over an electronic network, primarily the internet. These business transactions occur either as business-to-business, business-to-customer, customer-to-customer or the customer-to-business.

Emerging Market:Is a country that has some characteristics of developed market but does not meet standards to be a developed market.