Positive Impact of

E-Commerce
in Business Sector
Prepared by:
Group name: Epitaph
Monzir Ahmed ID#07103001
MD. Shafenoor Amin ID#09103003
Most. Julia Nisrin ID#09103009
Mukti Akter ID#09103011
Sharmin Akter Shilpy ID#09103013
04 August 2010 1
What is E-commerce?

Definition & History

04 August 2010 2
Overview of Worldwide Internet Users

Internet
Regions Population Users Internet Users Penetration Users %
Dec 31 2000 of 2010

Africa 991,002,342 4,514,400 86,217,900 8.70% 4.80%

Asia 3,808,070,503 114,304,000 764,435,900 20.10% 42.40%

Europe 803,850,858 105,096,093 425,773,571 53.00% 23.60%

Middle East 202,687,005 3,284,800 58,309,546 28.80% 3.20%
North America 340,831,831 108,096,800 259,561,000 76.20% 14.40%

Latin America/Carib 586,662,468 18,068,919 186,922,050 31.90% 10.40%

bean

WORLD TOTAL 6,767,805,208 360,985,492 1,802,330,457 26.60% 100.00%

04 August 2010 3
Unique Features of E-Commerce

 Ubiquity
 Global Reach
 Universal Standard
 Interactivity
 Information Density and Richness
 Personalization

04 August 2010 4
 E-Commerce vs. Traditional Commerce
Items
Sales Channel
Sales Hour /Region
Sales place/method
Customer information acquisition
Marketing activity
Customer support
e-Commerce Traditional Commerce
Enterprise  Internet  Consumer Manufacturer  Wholesaler  Retailer
 Consumer
 Entire world  Restricted area
 24x7  Restricted sales hour
 Market space (Network)  Market space (store)
 Sale based on information  Sale based on display
 Any time acquisition through internet  Market survey and salesman
 Digital Data without no re-entry  Require information re-entry
1:1 Marketing via bi-directional One way marketing to consumer
communication
 Real time support for customer  Delayed support for customer
Dissatisfaction Dissatisfaction
 Real time acquisition of customer  Time different for catching
needs customer needs

Capital
 small  large

04 August 2010 5
Segments of E-Commerce

 Business-to-Business (B2B)
 Business to Consumer (B2C)
 Peer-to-Peer (P2P)
 Consumer-to-Consumer (C2C)
 M-Commerce

04 August 2010 6
Impacts on Direct Marketing

 Product promotion
 New sales channel
 Direct savings
 Reduced cycle time
 Customer service
 Corporate image
 Advertisement
 Ordering System
04 August 2010 7
Impacts on organizations

 Technology and Organizational Learning

 Changing Nature of Work
 New product capabilities

04 August 2010 8
Other Impacts

 Impacts on Manufacturing
 Impacts on Finance
 Impacts on Macroeconomic Business

04 August 2010 9
Benefits
 Catalog flexibility and Online fast updating
 Unlimited Market Place and Business Access
 24X7 operations
 Lower Cost of Doing Business
 Eliminate Middlemen
 Easier Business Administration
 Customers will love it
 More Efficient Business Relationships
 Secure Payment Systems
 Chance for reducing costs
04 August 2010 10
Benefits of E-Commerce to
Organization
 Expands the Marketplace
 Decrease the costs
 Allows customization for products
 Reduces the time
 Supports Business process re-engineering
(BPR)
 Cheaper than value added networks (VANs)

04 August 2010 11
Benefits of E-Commerce to Consumers

 Anytime and anywhere

 More choices
 Less expensive products and services
 Allows consumers exchange of ideas and
experiences
 Substantial discounts
 Quick delivery of products and services
 Virtual auction

04 August 2010 12
Benefits of E-Commerce to Society

 Less traffic on the roads and lower air

pollution
 Beneficial to people in third world countries
 Increases effectiveness and improve quality

04 August 2010 13
Some common disadvantages

 Inadequate inspection facility

 Security
 Legal issues

04 August 2010 14
Technical Limitations to e-commerce

 Lack of sufficient system security, standards

and communication protocols
 Insufficient telecommunication bandwidth
 Ever changing software
 Difficulties in integration
 Additional cost for infrastructure
 Issue of compatibility

04 August 2010 15
Non- Technical Limitations to e-
commerce

 Cost and Justification

 Security and privacy
 Lack of trust and user resistance
 Channel conflict
 Lack of touch and feel online

04 August 2010 16
The hardest parts about E-Commerce

 Traffic
 Return traffic
 Being unique
 Having people make a purchase
 Integrating offline data with online data

04 August 2010 17
The easiest parts about E-Commerce

 Having your website created

 Taking care of orders can be a breeze.
 Easy payment policy

04 August 2010 18
Scenario of E-Commerce in
Bangladesh
 31-7-2002: Online non-financial transaction
 31-7-2003: Intra-bank transaction
 Late May 2006: Establishment of Submarine
cable
 Internet users in Bangladesh
100,000 (2000)
556,000 (2009)
User growth: 456% (2000-2009)
04 August 2010 19
 Thank You

04 August 2010 20