International Journal of Science Technology & Management

Volume No.04, Special Issue No.02, February 2015

www.ijstm.com

ISSN (Print) 2394-1529, (Online) 2394-1537

EMERGING TRENDS AND ADVANCED SWOT

ANALYSIS OF E-COMMERCE IN INDIAN CONTEXT
Mohd Asim Khan1, Preeti Sagar2
1

Department of Business Administration, BULMIM, New-Delhi, (India)

Department of Computer Science, M.J.P. Rohilkhand University, Bareilly, U.P. (India)

ABSTRACT
E-commerce (electronic commerce or EC) is the buying and selling of goods and services, or the transmitting of
funds or data, over an electronic network, primarily the Internet. This paper introduces about new emerging
trends in ecommerce which can enhance economic growth, increase business opportunities, competitiveness,
better and profitable access to markets in India. A new approach concerning Internet marketing in Ecommerce; showing how advertisers need this innovation to be successful. ECommerce is emerging as a new
way of helping business enterprises to compete in the market and thus contributing to economic success. In this
research paper we will discuss about Advanced SWOT Analysis of Ecommerce in Indian oriented which will
comprise of strengths, weaknesses, opportunities and threats faced by ecommerce in current scenarios in India.
India is an emerging economy and how e-commerce had played a vital role in the growth of the businesses and
overall economic development.

Keywords: E-commerce, Emerging Trends, India, Internet Marketing, SWOT.

I. INTRODUCTION
Internet marketing (IM) is also known as digital marketing, web marketing, online marketing, or e-marketing.
At the name states, it is the advertising of products or services over the Internet. However, it also implies
marketing through the wireless media and through e-mail. Electronic Customer Relationship Management
(ECRM) systems are also categorized under Internet marketing. IM can be creative, as well as, technical through
its design, development, advertising, and sales over the Internet. The number of Internet users around the world
has been steadily growing and this growth has provided the impetus and the opportunities for global and
regional e-commerce. However with Internet [1][2][3], different characteristics of the local environment, both
infrastructural and socioeconomic, have created a significant level of variation in the acceptance and growth of
ecommerce in different regions of the world.
E-commerce in recent times has been growing rapidly across the world. According to Report of Digital
Commerce, IAMAI-IMRB (2013), e-commerce industry in India has witnessed a growth of US$ 3.8 billion in
the year 2009 to US$ 9.5 billion in 2012. E-commerce means sale or purchase of goods and services conducted
over network of computers or TV channels by methods specifically designed for the purpose. Even though
goods and services are ordered electronically, payments or delivery of goods and services need not be conducted
online. E-commerce transaction can be between businesses, households, individuals, governments and other
public or private organizations. There are numerous types of e-commerce transactions that occur online ranging

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from sale of clothes, shoes, books etc. to services such as airline tickets or making hotel bookings etc. This
paper emphasizes on how e-commerce gradually forms part of our daily lives. It concerns different aspect of
advertising in terms of electronic commerce.

II. RELATED WORK

The E-Commerce market is thriving and poised for robust growth in Asia. Their success depends on their
understanding of the market and offering various types of features. The e-commerce market in India was worth
about $2.5 billion in 2009, it rose to $8.5 billion by 2011. According to the latest research by Forrester, a leading
global research and advisory firm, the e-commerce market in India is set to grow the fastest within the AsiaPacific Region at a CAGR of over 57% between 2012-16. The report, titled Asia Pacific Online Retail
Forecast, 2011 To 2016, has been issued by Forrester Research Inc. Analyst Zia Daniell Wigder, with Steven
Noble, Vikram Sehgal and Lily Varon. Zia and Manish (2012) proposed that e-commerce revenues in India will
increase by more than five times by 2016, jumping from US$1.6 billion in 2012 to US$8.8 billion in 2016.
Previous paper gives an overview of the future of e-commerce in India and discusses the future growth segments
in Indias e-commerce. Also find out various factors that would essential for future growth of Indian ecommerce. And represent the various opportunities for retailers, wholesalers, producers and for people. The
present development would be a valuable addition to researcher and academicians; and useful theory for
practitioners, advertisers, and entrepreneurs.

2.1 Use of Internet for Marketing Success

Because Internet grew in only five years [4] and there are no barriers for time or location, marketing online has
become the new era in E-commerce with petty variable cost per customer [5]. Marketers use full color
advertising that appeal similar to both -young and old- to attract people all over the world. The Internet is now
considered as a much greater resource than traditional means of advertising [6]: E-mail use to transfer text and
multimedia messages, List serves [4] latest information sent on specific themes to groups/managers,
Newsgroup electronic conferencing leading to the development of ideas, as well as, worldwide networking
opportunities [7], File transfer protocol (FTP) high speed file transfer as a virtual fax, WWW menu-driven
access to host resources [8], etc. A well designed Web site can lead to an interesting, low cost means for sales
promotion to worldwide customers [4]. Marketers should also refer to the AIDA model - Attention, Interest,
Desire and Action - to successfully attract customers by introducing the right advertising on Internet [4].

III. E-COMMERCE
E-Commerce [9][12] is the ability of a company to have a dynamic presence on the Internet which allowed the
company to conduct its business electronically, in essence having an electronic shop. Products can be
advertised, sold and paid for all electronically without the need for it to be processed by a human being. Due to
the vastness of the internet advertising and the website can be exposed to hundreds of people around the world
for almost nil cost and with information being able to be changed almost instantly the site can always be kept up
to date with all the latest products to match with consumers demands. The biggest advantage of E-Commerce is
the ability to provide secure shopping transactions via the internet and coupled with almost instant verification
and validation of credit card transactions. This has caused E-Commerce sites to explode as they cost much less
than a store front in a town and has the ability to serve many more customers. In the broad meaning electronic

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ISSN (Print) 2394-1529, (Online) 2394-1537

commerce (E-Commerce) is a means of conducting business using one of many electronic methods, usually
involving telephones, computers (or both). E-Commerce is not about the technology itself, it is about doing
business using the technology.

3.1 Types of E-Commerce

Waghmare G.T. (2012) [10] has defined the following types of e-commerce:
(i)

B2B E-Commerce

Companies doing business with each other such as manufacturers selling to distributors and wholesalers selling
to retailers. Pricing is based on quantity of order and is often negotiable.
(ii) B2C E-Commerce
Businesses selling to the general public typically through catalogs utilizing shopping cart software. By dollar
volume, B2B takes the prize, however B2C is really what the average Joe has in mind with regards to
ecommerce as a whole. Eg. indiatimes.com.
(iii) C2C E-Commerce
There are many sites offering free classifieds, auctions, and forums where individuals can buy and
sell thanks to online payment systems like PayPal where people can send and receive money online with ease.
eBay's auction service is a great example of where customer-to customer transactions take place every day.
(iv) Others
G2G (Government-to-Government), G2E (Government-to-Employee), G2B (Government-to-Business), B2G
(Business-to-Government).

3.2 E-Commerce Process

The process of e-commerce takes place under the following steps as shown in the Fig.

As a company and a customer browses through internet to acquire his/her required products information and
when he/she is completely satisfied by products features, its competitive advantages, comparing it with other
products then he/she places an order for the product for which he/she has set up his/her mind to buy and for this
purpose he/she chooses online transaction option and the selling company notifies him/her that they have got the
required payment and now they will fulfill his/her order and it will be delivered very soon.

IV. EMERGING E-COMMERCE TRENDS

Businesses need to be able to combine globalized product offerings, with a localized E-commerce experience through local language, payment options, and marketing offerings [14][15].
(i)

Getting Global while staying local.

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ISSN (Print) 2394-1529, (Online) 2394-1537

Businesses need to be able to combine globalized product offerings, with a localized E-commerce experience through local language, payment options, and marketing offerings.
(ii) Mobile payment became easier.
(iii) Mobile POS and showcase using iPad/ Android
The goal is to enable each and every store colleague to transact, checkout and take payments without going to
the tills. Apple started this trend and most retailers do see significant advantage in this approach as one can not
only access the entire product range, but also drive assisted conversations. With iOS 6 and Android 4.2
Jellybean, the features one can enable in the customer assisted app are endless, starting from basic tools such as
using the camera for barcode scanning to doing a virtual makeover for customers in store.
(iv) Advanced website browsing on mobile/iPad/tablets
Consumers expect the site to work like any app. Responsive design is the mantra for any website.
(v)

Facebook

Facebook has more than 850M+ subscribers, and it is a known fact that number grows by 20% or more every
year in emerging countries. Companies will take more and more advantage from the various set of data about
users daily activity using Facebook Connect, like offering promotions on products which they most commented
on or identifying what their friends mostly like and recommending the same when they visit the store.
(vi) Push notifications
Current reactive nature of pull browsing is changing very quickly to push browsing, whereby marketers are
reaching out to consumers with more relevancy than before to pull them to buying things.
(vii) Less importance to conversion ratio over customer engagements
Currently conversion ratio (visitors/orders) is of paramount importance. Customer engagement and making sure
people have an emotional attachment with the product is key. This means attracting consumers to the website
with no intention of buying on site, eventually driving more visitors on the site rather than conversion ratio
improvements. This eventually creates brand affinity and has in turn positive impact on conversion and average
order value (AOV) in other channels.
(viii) Personalization
Personalized recommendations or targeted content is the key medium to surface any content. There are two
distinct sets of consumers; one who expects the retailer to make use of cross domain data and others who wary
of their data being shared between sites.
(ix) Multi-channel
Consumers will expect a seamless shopping experience. A product added in a basket at home is expected to be
found in the basket when you go to the store or if you call up the call center. This will drive investment by IT
directors in commerce packages, CRM systems and more importantly integrating commerce system with POS.

V. TOP MOTIVATORS FOR SHOPPING ONLINE

India is an emerging e-commerce user for internet marketing. Times of India (February 12, 2013) [11] has
published that top motivators for shopping online which include cash back guarantee, cash on delivery, fast
delivery, substantial discounts compared to retail, and access to branded products, while barriers include
inability to touch and try products before purchase, fear of faulty products, apprehension of posting personal and
financial details online and inability to bargain.

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ISSN (Print) 2394-1529, (Online) 2394-1537

VI. ADVANCED SWOT ANALYSIS OF E-COMMERCE

SWOT analysis is about concentrating on various aspects of e-commerce emerged in Indian originated website
Flipkart i.e., focusing on strength, weaknesses opportunities and threats for the Flipkart to the targeted markets.
Strengths
Boundary less (global location)
E-commerce can be dealt globally as no specific boundary is required. It enables all the companies to expand
them to global level.
Time saving
It saves time and transportation. Because there is no need to go anywhere physically.
No time constraints
It can be used anywhere any time as there is no time constraints.
Price/Product comparison
Helps consumers to compare price and product effectively and efficiently.
Cost effective
Reduces logistical problems and puts a small business on a par with giants.
Direct communication with consumer
Social networking sites, online advertising networks can be mediums to buzz about online store.
Improved customer interaction:
Quick feedback and comment forms are main features to interact with customers.
Flexible target market segmentation
Target market segment here in e commerce is flexible can be modified any time.
Simple and easier exchange of information
Improves information sharing among merchants and customers and enables prompt quick just in time deliveries.
Lowers transaction cost
Things can be automated in a well implemented online store. If online download facility is available then
distribution cost can be cut off.
Easy arrangement of products

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ISSN (Print) 2394-1529, (Online) 2394-1537

Products can be arranged in the shelves within minutes. With online store it is quite easy.
Faster buying procedure
E-commerce means better and quick customer services. Online customer services make customer happier. Due
to absence of intermediaries for buying products. So buying procedure will be fast and quick.
No physical company set up
Doing e-business is cost effective because no physical set up is required for that.
Easy transactions
Financial transactions through electronic fund transfer are very fast and can be done from any part of the world.
Niche Products
Almost everything can be sold on internet. Even if products targeted to smaller markets the buyer will be
somewhere on net.
Low operating cost
It can be started and continued with very low investment. Staff cost is very low.
Strong Brand value
Flipkart is a company which has entered into online E-Commerce industry very early. It has strong brand value
in India.
Own Online payment gateway solution
Developed its own payment gateway solution provider, where customers can save their credit card details,
Payzippy.

Own Logistics Arm E-kart

Developed its own logistics arm E-Kart, which has been initially used for in-house deliveries.
Own Marketplace model
Own marketplace model where sellers need to register in this platform and buyers can negotiate with the sellers
on varied service levels and it also helps company to reduce its own inventory. Flipkart will just deliver those
products.
Weaknesses
Security
Security matter confuses customers especially about the integrity of the payment process.
Fake websites
Fake websites can not only disgrace e-commerce but bring bad name to e-commerce also.
Fraud
Concerns about misuse of financial and personal data is a great weakness in e-commerce.
Fewer discounts and bargaining
Hardly online businesses offer discounts and bargaining cannot be possible.
Long delivery timing
Delivery time can be in days or weeks which one cannot wait for.
Limitation of products
Limited number of products can be available.
Lack of personal services
Physical products can be available but lack in personal services which are intangible.

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ISSN (Print) 2394-1529, (Online) 2394-1537

More shipping cost

Shipping cost increases if consumers order online.
Limited exposure
In developing areas where internet is not accessible will have no or little exposure to e-commerce.
Limited advertising
Limited advertising opportunities are available because in e commerce one cannot go for mass advertising.
Customers satisfaction
There is no interaction between customer and the seller. Therefore the scope of convincing the customer does
not exist. Many times customers prefer to buy the product by reaching personally to the market rather than
purchasing through internet.
Investor driven organization
Most of the money has been invested by Venture firms like Tiger global and Accel Partners. SO, most of the
decisions that are taken by founders of firm have to been approved by Investors.

Secretive and Political Culture.

Secretive and political culture is followed in this company while they are recruiting hires which is creating
problems in this company.

Focus on expanding customer base rather than pulling profits

Flipkart is excessively focusing on expanding customer base rather than pulling profits in the process having
cash burn.
Opportunities
Changing trends
E-commerce is fast and effective even financial transactions can be made from any part of the world. People of
tomorrow will feel more comfortable to buy products through internet only.
New technologies
Daily number of internet users is increasing. People feel more comfortable to shop online.
Global expansion
E-commerce can be operated anywhere any time without any interruption.
High availability (24/7 a week)
Along with each and every click of the mouse business is in operation.
Wide business growth
E-business has wide scope and broader vision to grow.
Cut down on local competition
Online customer services is a competitive advantage for the company.
Advertising
Advertising is cost effective as compare to conventional offline system.
Online fashion and apparel business
Venture into online apparel and fashion business, where the gross margins are higher.

Providing logistics services to its competitors.

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Offer its logistics services to its competitors in online retail sector with its logistics arm E-kart. With online
commerce sector going to boom in the coming years, online transactions are going to increase. So, if Flipkart
offers its logistics services to its competitors, it can gain money from those transactions.

Growth in online retail sector in India.

India has immense growth opportunity for retail sectors.

Threats
Competitors
Competition is increasing day by day big companies have already entered in this field like Amazon, Snapdeal,
Indiaplaza, Homeshop18 etc. They are making people habitual at the cost of their companies.
Changes in environment, law and regulations
Change in trends, fashion and fad can really distress E-Commerce side by side change in law and regulations
can also affect it.
Innovation
Customers now a days are always in a search of innovative products. Innovation can be either in product, place,
promotion and even price.
Privacy concerns
Fears that information can be misused lead to spam e mail or identity fraud.
No direct interaction
In e-commerce there is no direct interaction of customer and the seller. Thats why bargaining does not exist.
People prefer to buy physically compared to online.
Fraud
Persons using unfair means to operate e-commerce can damage the confidence and faith of common people.
Risk
Nature of fraud and risk is different because when a customer relies on unseen set up, he trusts and makes
transactions. In such a way he is ready to face risk.

VII. CONCLUSION
The Internet network is a marketing channel use by advertisers, marketers, and society to find the right
combination of marketing mix to best suit customers needs. It is important for a company of this era to have
access to the Internet to be more successful. Internet marketing does not only target consumers, but also Internet
advertisements client marketers from companies. This is so because companies prefer to hire specialist in
creating a Web site. E-mail is as famous as direct marketing in supporting e-commerce activities. Most clients
feel that this new media is a success in relation to traditional marketing advertising. But Internet should be used
with other media for a more effective marketing tool. Internet marketing will become even more important in
the future. As more companies will have access to the Internet, they will start doing business over the Internet.
Security will not be an issue anymore because software companies, banks and credit card institutions are
working hand in hand to improve Internet security. Companies like Flipkart need to protect themselves in three
areas: data integrity, confidentiality of data and authenticity by installing firewalls or routers. The marketing mix
plays an important role in IM in e-commerce; deciding what type of advertising best suit customers through the
Web. This is the new era of innovation; where everyone will be interacting on the Web and through this Flipkart

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will enhance its output and gives competitive advantage. Information Technology (IT) has boosted ecommerce
worldwide. Now its easier to enter to a new market and one can evaluate his/her product and companys
performance. It reduces business overhead and enhances business management. A developing country like India
can be more rationalized and mechanized if it utilizes e-commerce effectively and efficiently.

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