THE IMPACT OF E-COMMERCE ON EMERGING MARKETS

THE IMPACT OF E-COMMERCE ON EMERGING MARKETS

CHAPTER ONE

INTRODUCTION

1.1   Background of the Study

The true driving force behind the Internet revolution was the fundamental shift in market power from the seller to the buyer. Customers’ expectations have changed significantly in the new economy. The secret to business success will be its ability to recognize this distinction and capitalize on it. The internet, the web, and other developing computing and communication technologies have completely changed how business is done by removing geographical and temporal borders and by establishing new virtual communities of suppliers and customers who have different needs for goods and services. E-commerce merely comprises a portion of e-business. In the past, businesses had websites where they could showcase their goods, etc. Then, in addition to the e-commerce system that is currently in place for sales, they began to use it as one of the distribution channels. The term Electronic commerce or e-commerce consists of any business activities carried on with the use of electronic media, that is, computer network. It entails carrying out business using electronic media and information technology, such as electronic data interchange (EDI). In simple words, Electronic commerce entails purchasing and selling of goods and services over the World Wide Web. With the touch of a mouse, customers may buy anything, from a car to a cake, while resting comfortably in their own rooms and sending it to someone who is located far away.

Usually, the requested products are delivered through a shipping method. Every highly reputable bank now conducts transactions electronically, and computers are used for more than just the idea of automating transactions. All commercial applications now move to the idea of e-commerce, which is one of the key elements in carrying out fraudulent bank transactions. Any new idea or technology would only be accepted in the business world, which is characterized by intensely competitive and unstable market conditions, if it offers significant advantages to everyone involved. Ecommerce offers several particular advantages.

First, mobility enhances organization and the bottom line. And secondly extended market share, some component can be handled by numerous consumers at the same time.

1.2   Statement of the Problem

According to a research by the United Nations Conference on Trade and Development (UNCTAD), SMEs stand to benefit the most from advances in productivity brought on by e-commerce, despite generally lagging behind in IT. But by avoiding e-business, SMEs actually run the danger of passing up chances to increase efficiency and profitability.

1.3   Objectives of the Study

1. To investigate how e-commerce contributes to the economic progress of developing nations.
2. To determine how e-commerce and emerging markets are related.
3. To determine the important influence of e-commerce on emerging markets.
4. To evaluate the impact of e-commerce on development.

1.4   Research Questions

1. Does e-commerce support the economic growth of poor nations?
2. Is there a relationship between e-commerce and emerging market?
3. How does e-commerce significantly affect the rising market?
4. Can e-commerce have an impact on how an economy grows?

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

Several have lauded e-commerce as a chance for emerging nations to establish themselves more firmly in the global economic system. E-commerce has the potential to significantly contribute to developing nations’ increased access to trade benefits. E-commerce does not require the merchant to invest in infrastructure, storage space, insurance, or any of the other necessities needed to operate a business from a physical location. The only requirement is a customer-facing web storefront that is well-designed. Additionally, because e-commerce has significantly lower operating costs than traditional retail, profit margins might be higher.

1.7   Scope/Limitations of the Study

This study uses the konga online store as a case study to examine the effects of e-commerce on developing markets.

Study limitations

1. Financial limitations – A researcher’s ability to find relevant materials, literature, or information and to collect data is often hindered by a lack of funding (internet, questionnaire and interview).
2. Time limitation – The researcher will conduct this study in addition to other academic assignments at the same time. As a result, less time will be spent on the research project.

1.8   Definition of terms

It involves the exchange of money or data as well as the purchase and sale of goods and services over an electronic network, typically the internet. These business dealings can be between businesses, between customers, between customers and other customers, or between customers and businesses.