PESTLE Analysis
Political factors: The issue of red tape affects the E-commerce. For instance in India, red tape affects the multinational corporations. It is argued that politics does not always affect the multinational firms but extreme instances on taxation and restrictions by diverse governments result in great challenges. This results in heavy losses and thus low efficiency. In social factors, changing trends in social set up impact differently on the sales in the E-commerce industry. Again, economic factors such as recession leads to effects on all sectors of the economy. Therefore, E-commerce will not be left unaffected (Gordini 32).
As shown in the figure, the four aspects; social, political, economic and technical affects e-commerce industry. The recession in the country led to massive job losses since companies worked in measures to reduce cost of production. In that case, E-commerce firms were affected in both local and international arena. Their impact in the economy was not greatly felt since most consumers chose direct and quite convenient retail stores. Thus, e-retail markets were adversely impacted by economic slowdown.
FIVE Forces Analysis
Bargaining power of suppliers: The bargaining power of the suppliers in E-commerce industry is relatively low. This is because players set code of conducts and seek to maintain good brand image. Therefore, E-commerce brands are highly cautious in their relationships with suppliers. However, some suppliers may have some influence and bargaining power because of their quality and sizes.
Bargaining power of the buyers: There is high bargaining power in this industry because of the rise of both small and big companies (Shetty 45). The consumers have information on many items. Also, the physical retail brands are always at the convenience of consumers. The bargaining aspects include the quality of products, brand image and prices and services rendered in the organization.
Threat of substitute products: The decision by competitors to offer substitute products threatens the existence and monopoly of some E-commerce firms. It results in heavy losses and in some instances total closure of the firms. This is because the consumers may largely enjoy the substitute products provided at cheaper prices. The following diagram represents the five forces.
Threat of new entrants: There are a large number of entrants into the sector globally because of the high profits generated in online platforms. The entrants enter the industry with different tactics that often excite consumers. Thus, the firms often use massive resources to seek dominance and to maintain the specific usual number of consumers in the industry. It will further influence the industry in many critical ways since this seeks to introduce competitive strategies to the consumers.
Rivalry in the industry: There is massive rivalry in the industry because of the existence of many established firms. The large number of players seeks to establish dominance in the local and international markets.
Five Forces
BPMN and Business Process Design
E-Business Process Modeling and design provides detailed competitive strategies to be used by firms in order to boost sales and increase dominance in the economy. The models and methodologies administered are argued to be prudent in enhancing suitability and increase in production of various items (Shetty 65). The modeling approaches helps to enable practitioners and E-commerce dealers to understand the global markets. The modeling of diverse e-businesses have been effected in ways that could influence upward trajectory of the business. It is thereby prudent to note that e-business had had crucial impact on the economy of different nations.
PESTLE Analysis
SWOT Analysis
Strengths: Accessibility of the markers with ease and lower prices are two greatest strengths of the e-commerce. The digital platforms are easily accessed by large number of consumers globally. Also, these commodities are sold at slightly lower prices thus convincing the consumers to purchase them often (Gordini 22).
Weaknesses: Industry specific aspect of the ecommerce affects the sale of certain goods. Certain products can be easily sold in the industry unlike others. For instance, it is easy to sell books and electronics online rather clothing.
Threats: The only key threat is competition from the new entrants and established entities. It is evident that many firms are venturing into the ecommerce industry because of the massive gains expected from the sector.
Opportunities: The two opportunities are the growing industry and influencers in the industry. They play crucial role in enhancing production and supply of the commodities. Also, they actively engage consumers in the online platforms thus persuading them to purchase certain goods. The growing industry has made simple and quite convenient for consumers to purchase goods online. They are thereby key targets.
E-Commerce UI Design
Works Cited
Gordini, Niccolò, and Valerio Veglio. "Customers churn prediction and marketing retention strategies. An application of support vector machines based on the AUC parameter-selection technique in B2B e-commerce industry." Industrial Marketing Management 62 (2017): 100-107.
Shetty, Adithya D. "E-Commerce Industry Significant Factor for the Growth of Indian Economy." Asian Journal of Research in Social Sciences and Humanities 7.4 (2017): 177-183.