“E-COMMERCE GROWTH IN INTERNATIONAL MARKET ”

A SYNOPSIS

Submitted to the Uttaranchal University in partial fulfilment of the

requirements for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by

DEEPAK RANA

(Enrollment No.: UU20190000108)

Under the guidance of

Dr. Ashulekha Gupta

(Batch: 2020-22)

FACULTY OF MANAGEMENT & BUSINESS STUDIES

UTTARANCHAL UNIVERSITY, DEHRADUN

E-COMMERCE GROWTH IN INTERNATIONAL MARKET -

1. INTRODUCTION :

With the advancement of technology, particularly the Internet, the world has discovered a new
path of opportunities, switching the transactions of traditional business models into a better
model far superior in terms of efficiency, productivity, profitability and competitiveness. This is
where e-Commerce comes into the picture in which is simply a short form for “Electronic
Commerce”. E-Commerce is generally the “in-thing” today, which concept covers the global
information economy which includes electronic trading of goods and services, electronic fund
transfer, online procurement, direct marketing, electronic billing, etc, through the internet via
the computer. E-Commerce does not change the core of businesses, which is to generate
profitability from transactions, but it is to change the mindset of how to go about generating
profits through an efficient manner. With e-Commerce transactions, it is a Win-Win situation
for the parties (both buyers and sellers) participating in it. It offers distinguished benefits such
as less overhead expenses, larger advertising market exposure, and reduces middle man
participation and all these benefits are easily understood and quantifiable. E-Commerce itself
is categorized into several sections. Among the sections are Business-To Business (B2B),
Business-To-Consumer (B2C), and Business-To-Government (B2G).
2. Rationale of the study:

Doing business - Electronically :-

It is the exchange of information, goods, services or money through the use of computers with
customers (Business to Customer) or with other businesses (Business to Business). Whether
you are marketing or selling products or services to your customers, or communicating
inventory data to your suppliers, you are taking part in e-commerce.

E-commerce can be defined by various electronic activities from web page creation to supply
chain management:

 • customer orders (buying and selling)

• invoicing
• fund transfers
• inventory control
• customer service
• market information research

With the advancement of technology, particularly the Internet, the world has discovered a new
path of opportunities, switching the transactions of traditional business models into a better
model far superior in terms of efficiency, productivity, profitability and competitiveness. This is
where e-Commerce comes into the picture in which is simply a short form for “Electronic
Commerce”. E-Commerce is generally the “in-thing” today, which concept covers the global
information economy which includes electronic trading of goods and services, electronic fund
transfer, online procurement, direct marketing, electronic billing, etc,

through the internet via the computer. E-Commerce does not change the core of businesses,
which is to generate profitability from transactions, but it is to change the mindset of how to go
about generating profits through an efficient manner. This simply means obtaining information
at our fingertips, without wasting time, money and effort, and also to conduct real time
transactions in a “borderless world” 24 hours a day, 7 days a week. With e-Commerce
transactions, it is a Win-Win situation for the parties (both buyers and sellers) participating in it.
It offers distinguished benefits such as less overhead expenses, larger advertising market
exposure, and reduces middle man participation and all these benefits are easily understood
and quantifiable .
E-Commerce itself is categorized into several sections. Among the sections are Business-To
Business (B2B), Business-To-Consumer (B2C), and Business-To-Government (B2G).

3. Literature Survey:

E-commerce has transformed the way business is done in India. The Indian E-commerce market
is expected to grow to US$ 111.40 billion by 2025 from US$ 46.2 billion as of 2020. By 2030, it is
expected to reach US$ 350 billion.
-By 2021, total e-commerce sales are expected to reach US$ 67-84 billion from the US$ 52.57
billion recorded in 2020.
-India’s e-commerce market is expected to reach US$ 111 billion by 2024 and US$ 200 billion
by 2026.
-Much of the growth for the industry has been triggered by an increase in internet and
smartphone penetration. As of July 2021, the number of internet connections in India
significantly increased to 784.59 million, driven by the ‘Digital India’ programme.  Out of the
total internet connections, ~61% connections were in urban areas, of which 97% connections
were wireless.
 Market Size

- The Indian online grocery market is estimated to reach US$ 18.2 billion in 2024 from US $1.9
billion in 2019, expanding at a CAGR of 57%. India's e-commerce orders volume increased by
36% in the last quarter of 2020, with the personal care, beauty and wellness (PCB&W)
segment being the largest beneficiary. India's consumer digital economy is expected to
become a US$ 800 billion market by 2030, growing from US$ 537.5 billion in 2020, driven by
strong adoption of online services such as e-commerce and edtech in the country.

- According to Grant Thornton, e-commerce in India is expected to be worth US$ 188 billion by
2025.
With a turnover of $50 billion in 2020, India became the eighth-largest market for e-
commerce, trailing France and a position ahead of Canada.

According to NASSCOM, despite COVID-19 challenges/disruptions, India's e-commerce market

continues to grow at 5%, with expected sales of US$ 56.6 billion in 2021.
Propelled by rising smartphone penetration, launch of 4G network and increasing consumer
wealth, the Indian E-commerce market is expected to grow to US$ 200 billion by 2026 from US$
38.5 billion in 2017. Online retail sales in India is expected to grow 31% to touch US$ 32.70
billion in 2018, led by Flipkart, Amazon India and Paytm Mall.

After China and the US, India had the third-largest online shopper base of 140 million in 2020.
Indian consumers are increasingly adopting 5G smartphones even before roll out of the next-
gen mobile broadband technology in the country. Smartphone shipments reached 150 million
units and 5G smartphone shipments crossed 4 million in 2020, driven by high consumer
demand post-lockdown. According to a report published by IAMAI and Kantar Research, India
internet users are expected to reach 900 million by 2025 from ~622 million internet users in
2020, increasing at a CAGR of 45% until 2025.
In October 2021, the e-commerce sales reached US$ 4.6 billion, supported by the festival
season in India.

4. The objectives of the Study:

- One industry where the digital transitioning and the importance of e-commerce is
particularly pronounced is the retail industry. Digital modes of establishment, such as
commercial websites, are substantially replacing or complementing physical modes of
establishment in this industry. Consumers now make new demands, such as self-service
alternatives, attractive online sales platforms, convenient payment options, and quick and
cheap deliveries . E-commerce, here defined as the “trading of goods or services over
 computer networks such as the Internet” , created new international business opportunities
for retail SMEs.

- The purpose of this study is to examine, by using effectuation theory, the processes by which
retail SMEs develop international e-commerce in foreign markets. By examining this, we seek
to fill the gap in international entrepreneurship research relating to how companies use
digital sales efforts to pursue international opportunities 

- This study makes a theoretical contribution to international entrepreneurship research by

providing more granular insights into the actual drivers of e-commerce internationalisation .

An effectuation perspective on international e-commerce

Smaller companies may not be able to plan internationalisation according to rational schemes
and market forecasts due to resource constraints and heightened uncertainty . Effectuation,
rather, suggests a procedural perspective on opportunity exploitation, which may be especially
relevant in new business settings: such as internationalisation through e-commerce.
Effectuation theory builds upon the idea that companies attempt to control risk and deal with
uncertainty by using four entrepreneurial principles . The first principle involves building upon
resources that are within the reach of the company: that is to say, building business of
resources that they actually can get hold of rather than using resources that perhaps would be
ideal, yet are difficult to access. The second principle involves leveraging external resources: for
example, by taking an active role in engaging with stakeholders to develop the markets they
operate in . From this perspective, the company and market are not separate, yet are actually
intertwined in market-shaping processes. Through networks of suppliers and customers, for
example, companies can develop relevant capabilities, detect opportunities, and access
knowledge about foreign markets which, in turn, are used to move the ventures forward .
Furthermore, the use of external resources is also a way for entrepreneurs to mitigate risk by
distributing labour and investments among multiple actors.

Government initiatives

Since 2014, the Government of India has announced various initiatives, namely Digital India,
Make in India, Start-up India, Skill India and Innovation Fund. The timely and effective
implementation of such programs will likely support growth of E-commerce in the country.
Some of the major initiatives taken by the Government to promote E-commerce in India are as
follows:
 As of November 2, 2021, the Government e-Marketplace (GeM) portal served 7.96
million orders worth Rs. 152,315 crore (US$ 20.40 billion) to 55,433 buyers from 3.06
million registered sellers and service providers.
 As of October 11, 2021, the Government e-Marketplace (GeM) portal served 7.78
million orders worth Rs. 145,583 crore (US$ 19.29 billion) to 54,962 buyers from 2.92
million registered sellers and service providers
.
 In a bid to systematise the onboarding process of retailers on e-commerce platforms,
the Department for Promotion of Industry and Internal Trade (DPIIT) is reportedly
planning to utilise the Open Network for Digital Commerce (ONDC) to set protocols for
cataloguing, vendor discovery and price discovery.

The department aims to provide equal opportunities to all marketplace players to make
optimum use of the e-commerce ecosystem in the larger interest of the country and its
citizen.

 National Retail Policy: The government had identified five areas in its proposed national
retail policy—ease of doing business, rationalisation of the licence process, digitisation of
retail, focus on reforms and an open network for digital commerce—stating that offline
retail and e-commerce need to be administered in an integral manner.

 The Consumer Protection (e-commerce) Rules 2020 notified by the Consumer Affairs
Ministry in July directed e-commerce companies to display the country of origin
alongside the product listings. In addition, the companies will also have to reveal
parameters that go behind determining product listings on their platforms.

 Government e-Marketplace (GeM) signed a Memorandum of Understanding (MoU) with

Union Bank of India to facilitate a cashless, paperless and transparent payment system
for an array of services in October 2019.

 Under the Digital India movement, Government launched various initiatives like Umang,
Start-up India Portal, Bharat Interface for Money (BHIM) etc. to boost digitisation.

 In October 2020, Minister of Commerce and Industry, Mr. Piyush Goyal invited start-ups
to register at public procurement portal, GeM, and offer goods and services to
government organisations and PSUs.

 In October 2020, amending the equalisation levy rules of 2016, the government
mandated foreign companies operating e-commerce platforms in India to have
permanent account numbers (PAN). It imposed a 2% tax in the FY21 budget on the sale
of goods or delivery of services through a non-resident ecommerce operator.
 In order to increase the participation of foreign players in E-commerce, Indian
Government hiked the limit of FDI in E-commerce marketplace model to up to 100% (in
B2B models).

 Heavy investment made by the Government in rolling out fiber network for 5G will help
boost E-commerce in India.
 

5. Research Methodology for Proposed Research Work

 Statement of Research Problem

Based on the study problems and the literature review, the research hypotheses:
-E-commerce benefits have a positive direct effect on supply chain management.
-E-commerce benefits have a positive direct effect on e-marketplace usage.

 Research Design
Research design particularly describes the knowledge creation process and methods applied in
detail. It can also be understood as an action plan for the whole research process. The research
design of this study complies with the traditional action research methods according to which
the
research process is understood as a cycle that consists of a pre-step and three core step
activities:
planning, action and fact-finding. The different steps in the research cycle of this study are
labeled
(1) pre-understanding, (2) planning and action, (3) fact-finding and analysis and finally
(4) theory building

 Data Collection Strategy

The data collection method will be both from secondary and primary source. Secondary source
will be through various research articles and primary source will be through self administered
surveys and internet .

In this study, empirical research is used to document the practice of Supply Chain Management
in Indian Electronics & Telecom industries. Surveys are fairly common in empirical research.
The term “empirical” (which means knowledge based on real world observations) is used
here to describe field-based research, which uses data gathered from naturally occurring
situations on experiments. Empirical research provides a powerful tool for building or
verifying the theory.

 Sampling Design

Case studies typically combine data collection methods such as archives, interviews,
questionnaires and observations. The research material includes (1) personal
observations and notes, (2) interviews and presentations, (3) standard documents, (4) key
operational performance measures and (5) archived records of customer’s business situation.

 Planning of analysis of Data

My research is cross sectional in nature hence it becomes important that market research at
international level , making is the most important step as majorly 80% of the data collected will
be through a self administered research method,surveys sources and through data collection .

 Plan about time scheduling of Research

The research will be conducted in the month of December to January 2021 – 2022, hence I have
approximately one and a half month and since data collection takes maximum time so I will be
preparing a secondary data sorces surveys to target my sample. Data analysis will take another
week and the rest time will be for literature review and writing the report.

6. Tentative Chapter Scheme:

The structure of my dissertation will be as follows

Title page
Certificate of the company
Preface
Acknowledgement
Table of contents
List of tables
List of figures
List of Abbreviation
Chapter 1  Introduction of SMM and WOM
Chapter 2  Rationale of the study
Chapter 3  Literature Survey
Chapter 4 Objectives of the Study
Chapter 5 Research Methodology
Chapter 6 Findings
Chapter 7 Conclusions
Chapter 8 References

7. References/Bibliography:

1.https://www.ibef.org/industry/ecommerce.aspx
2.https://www.sciencedirect.com/science/article/pii/S1090951620300936
3.https://www.diva-portal.org/smash/get/diva2:1447822/FULLTEXT01.pdf
4.https://www.researchgate.net/publication/267842999_Research_Methodology_in_Supply_C
hain_Management_for_Modeling_and_Integration_in_Indian_Electronics_Telecommunicatio
n_industry
5.Thinking Strategically about Selling Online — Ascenda
6.Online shopping gets more convenient - BBC News