Q1.

Highlight the significance of technology in today’s electronic business

environment.

Information technology drives innovation and innovation is the path to business success. Innovation
in business has the same impact that steam had on the industrial revolution. The enormous potential
brought in the development of a business, stimulated the appearance and promotion of new concepts,
such as electronic business (e-business) and electronic commerce (e-commerce). Nowadays the
formula for business success is simple, drive innovation with information technology. So, the first
thing startups in any industry try to figure out is how to make smart IT recruiting choices. Without a
backbone of information technology, a business is not going to go far. Information technology fosters
innovation in business. Innovation results in smarter apps, improved data storage, faster processing,
and wider information distribution. Innovation makes businesses run more efficiently. And innovation
increases value, enhances quality, and boosts productivity. The significance of IT can be summed up
in the following way:

1. Information technology has given business the tools to solve complex problems.
2. Information technology allows businesses to make better decisions.
3. Information technology has improved marketing.
4. Information technology has improved customer support.
5. Information technology has improved resource management.

Q2. What are the key characteristics of an e-commerce business and the
different techniques used in finding New Business opportunities?

An e-commerce website with products to sell and a shopping cart so customers can easily buy them is
not enough to ensure that the e-commerce business will succeed. There are many more aspects to e-
commerce than the purchasing transaction. Some of the key characteristics that is necessary for an e-
commerce business to possess are as followed:

. Create a Great Product:

It may seem obvious, but the single most important factor for creating a successful ecommerce
business is to start with a great idea and a great product. That product must address the needs of the
customers in the current market conditions, in order to succeed. Firstly, businesses need to find out
what their customers are seeking in order to satisfy their shoppers’ needs. After a quality product is
created or found that people actually want or need, online businesses can then take advantage of the
marketing opportunities available to them online.

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. Surpass the Competition with Innovation:
Most businesses are familiar with the competitive process offline; however, in the ecommerce world,
competition is on a completely different playing field. There are ecommerce giants such as
Amazon.com that take over every industry. They are aggressive and far-reaching. How do you
compete with a business like that? It is simple: offer something different. Create a niche for your
online store that focuses on superior customer service, video demonstrations, specialized resources or
customized products. Use your imagination to harness the power of online benefits to make your
business stand out and succeed.

. Hire a Dedicated Team:

Even the smallest ecommerce businesses need a dedicated team for maintenance, support, fulfillment,
IT, etc.… Many people think that ecommerce is simply a “set and forget” endeavor. On the contrary,
online business requires upkeep just like any other business. Selecting the right people for your team
can either make or break your business.

Another key characteristic of a successful e-commerce business should be to create positive customer
experience by convincing customers that the company is trustworthy. On the other hand, some of the
techniques used by e-commerce businesses to establish growth in the business environment are as
followed:

 Content Marketing
 Social Media Marketing
 Search Engine Optimization
 Pay-Per-Click Marketing
 Launch Stores on Multiple Platforms
 Retargeting or even the use of VR technology

Q3. What are the current challenges of e-commerce in Pakistan and discuss
the ways to deal with these challenges?

Over the years doing business online has become very common and convenient around the world.
Organizations are no longer only displaying their product online, but trades are taking place for
products as well as services. In the recent years, businesses in Pakistan have also taken route for e-
commerce websites. This for some businesses has worked out; yet others face certain challenges to

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operate through a business website. Here are the five major challenges faced by e-commerce
businesses in Pakistan:

. Literacy Issues:
There is yet a very larger proportion of Pakistani population that is not literate. Without the
knowledge of existence of a thing such as “e-commerce website” one cannot access or avail it. With
only a certain proportion of this entire population using internet; there is yet an even smaller
proportion that would shop online. With the high operating costs of online business this problem
shrinks the market even further.

. Lack of Trust:
As the e-commerce website practice and use is somewhat new to the citizens of this country; its
acceptance is still building up. People are now starting to look for merchandise online and even
willing to purchase it. The only hurdle here is lack of trust. Without taking a look at the product first
people drop their buying decision often; unless it is a brand they trust and have used several times in
the past.

. Costs and Delivery:

The major purpose of having an e-commerce website is to cut down the cost of business while being
able to satisfy the customer just as in any physical professional environment. For merchandise based
businesses meeting this criterion is quite a hurdle to their sales and operations. It takes quite a fortune
to even still to run a website, maintain inventory stock, market products and deliver the request. But
when it comes to maintaining the credibility; product delivery is a spoiler. Our transportation system
is somewhat unreliable. As long as a business is employing the services of local transport companies
it cannot guarantee a time based delivery to customers. With fewer sales only the more costs are
incurred.

. Payment Issues:
Profits are what the businesses are working for; but for online businesses convincing people to trust
their payment methods is a major issue. Most online businesses and e-commerce websites in Pakistan
demand online payment before the delivery of product or service. Firstly there is not a very large
proportion of population in Pakistan that owns a credit card. The general practice here is to pay with

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cash so people who are even aware of the service do not bother to avail it. Without a credit card online
payments cannot be made and hence is a loss of sale for the business. Unless it is an expensive item
that requires amount to be transferred to an account most businesses prefer credit card payments. On
the other hand people who do own a credit card do not trust websites to keep their data safe unless it is
a renowned brand that they have dealt with before and trust completely.

Issues of security/privacy can be overcome by sending out a textual or/and email message to the
customer to validate his/her identity. And when a COD purchase is issued, an automated call or
Interactive Voice Response (IVR) can be dialed out to the customer and ask him/her to validate the
delivery address. This would not send out the wrong message to the customers that they are being
doubted, and it would fulfil your purpose as well. Since there are so many people who aren’t aware of
such businesses or the e-commerce tech, it is important for such businesses to raise awareness
amongst people regarding the benefit of such technology and convince them towards such e-
commerce websites. While in order to minimize the issue of payments, e-commerce websites can
keep the shopping cart software updated, require Address Verification (AVS) Card Code Verification
(CVV) in payment gateway or require strong passwords from your customers etc.

Q4. How e-commerce and social media is an effective marketing tool.

Social media marketing is a form of internet marketing that involves creating and sharing content on
social media networks in order to achieve your marketing and branding goals. Social media
marketing includes activities like posting text and image updates, videos, and other content
that drives audience engagement, as well as paid social media advertising. Social media marketing is
itself a subset of e-commerce. Social media is a powerful tool for ecommerce websites. The ability to
not only direct shoppers toward a new product or an attractive deal, but to engage with them and
create a sense of community. The following points summarized below show how social media is an
effective tool for online businesses:

. Social media is cost-effective:

Most social media advertising is cheaper than traditional advertising, so you don’t have to spend a lot
of money to reach more people, increase your audience, and grow your business. Take advantage of
the low-cost advertising features offered by the social networks to promote your content and special
offers.

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. Social media reaches all ages and demographics:
Social media marketing is the biggest example of mass segmentation i.e. targeting those people whose
needs are according to your business product. No matter how young or old your target audience may
be, Social Media Marketing is a perfect platform to generate awareness amongst the target audience
regarding your business product.

. Social media lets you share a lot about your business:

Social media sites are becoming the go-to place for consumers who want to learn more about a
business. That’s because these sites allow businesses to offer the most up-to-date information about
anything from products, services, or upcoming events.

. Social media is perfect for customer service:

Customer service is a top priority for all businesses. But along with the two-way communication that
social media provides, it also offers a unique opportunity to step up your customer service game and
provide instant gratification to your target audience, and by monitoring social media for customer
feedback and offering a response, you can drive real business results.

. Increases brand loyalty:

Social media is more than a sales pitch. Instead, it facilitates two-way communication that allows you
to build meaningful relationships with current and potential customers. This makes them more
confident in their decision to trust your business, and it encourages them to choose your brand in the
future.

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