MGT603 GDB Solution Fall 2012

In strategic management point of view, how e-commerce acts as an instrument for Pakistani organizations to become successful in competitive world? Discuss with logical points.

Solution:

E-commerce is a new way of doing business, many
countries have yet to draw up a proper set of operating principles to govern legal, regulatory, and enforcement  issues. There is a gradual evolution of commercial international practices. E-commerce is a new world for the Pakistani business and financial sector entities
In Pakistan, mostly all governmental organizations do not have a computerized system. Furthermore, these organizations are lacking
of skills/qualified staff to manipulate such a computerized system. Both reasons are a mayor obstacle for a  paperless environment and subsequently for the recognition, validation and common use of electronic transactions, messages, documents, etc.

There is a current lack of domestic laws dealing with e-commerce.

E-commerce stands for Electronic Commerce. With the revolution of internet, the usage of internet has increased a lot. It has changed the overall working and living style of the people. It has a great impact in many fields of life. It has converted the world into a global village.

E-commerce is basically means doing the business online. It includes selling, buying, advertising and contacting buyers and users through internet. In the more detail we can describe E-commerce is using the techniques and tools of internet in ones business for several purposes like offering a retail shop online, like choosing a product from visiting the online store and then making payments online. Order can be placed for some products and they are delivered to the door steps of the user and payment can be done by cash.

  • The trend of e-commerce can be observed as the fastest growing business of the world. To start speeding up E-commerce business in Pakistan, we should recognize e-commerce activity takes place in the USA that is almost 78 per cent. As the January 2000, over 110 million people have internet access there compared to 279 million the world over.
  • The numbers of internet users are speeding more and more time in all around the world and same is the trend can be observed in Pakistan. In 1995, almost .01% of Pakistan population use internet but in 2010 this rate goes high and now it’s almost 15.1% of the total population. People are getting more aware about the internet usage and Pakistan businessmen can make good opportunity out of it.
  • As far as E-commerce in Pakistan is concerned, a research was conducted to find some hard realities. According to the result of research a significant number of Pakistan population do not have internet which is a basic ingredient of e-commerce. Another result was concluded that people are insecure about misuse of credit cards for online transactions. Despite of all this, the research findings suggests that online stores are the best options for your shopping as they are time, money and other resource saving.

Research Findings

1) Do you use internet: 65 % people use internet: at least once a week

2) Are you satisfied with downloading speed of internet: 98% were not satisfied?

3) Have you bought Online (if yes then what is frequency): 2% people have bought online out of which 99% people bought only once.

4) Do you feel Secure Doing Online Transaction: 99% people feel insecure doing Transaction Online?

5) Are you satisfied with shipment: 100% were satisfied with shipment?

6) Is it convenient to buy Online: 100 % were saying that purchasing online buying is convenient?

  • Foreign interest in Pakistan’s technology sector has been increasing. Local entrepreneurs have set up around 100 call centers in recent years in Pakistan.
  • As government realizes the importance of e-Commerce, the universities are forced to introduce E-Commerce in their syllabus.
  • No rules have been established on how to tax e-commerce or determine “electronic residence” in Pakistan.

It can be resulted that there is a lot of scope of e-commerce in Pakistan, and most companies are willing to enter into digital world, but at present E-commerce is not expected to increase in near future due to low PC literacy and internet penetration in Pakistani Culture.

 

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