Kamal Report Compiled 40916

To Explore Opportunities and Challenges for Under Developing E-commerce 1
To Explore Opportunities and Challenges for Under Developing E-commerce
A Project Proposal Submitted
By
Kamal Nasir Khan (40915)
To
Department of Business Administration
In Partial fulfilment of
The requirement for the
Degree of
MASTER OF BUSINESS ADMINISTRATION

In
Marketing
This Project has been
Accepted by the faculty
FACULTY OF BUSINESS ADMINISTRATION
Dr. Irfan Hameed

Advisor
Table of Contents Page
1. Introduction ………………………………………………………… 3
1.1. Background
1.2. Project research problem
1.3. Purpose of the research
1.4. Research questions
1.5. Significance of the project
2. Project related literature summary …………………………….…… 8

3. Planned research methodology …….…………………….………… 23
3.1 Method
3.2 Approach
3.3 Data Collection
3.4 Ethical considerations
3.5 Schedule for completion
References ……………………….………………………………..……. 27
Appendix A ……………………….………………………………..…… 32
Appendix B ……………………….………………………………..……. 38
Chapter 1: Introduction
1.1 Background
Online Shopping in Pakistan has stood quite as a problem for eternities as modern
day customers across the globe do not find it so easy to rely on such enterprises.
Ghaznavi (2013) noticed that the trend of e-commerce in Pakistan has been present for
quite a while, and is continuing to gain importance with expected growth in the coming
years. Moreover, Chishti (2013) reasons that it is primarily the significance and growth of
social media that has triggered the need and given rise to online shopping. It was in 2016
that a team of intellectual minds came forth together and executed the concept of an
online shopping website, named MyGerry’s, which paved the way for show-casing
premium brands and top-quality products just at the touch of a button. The primary
reason why MyGerry’s entered the market was to change the way that Pakistani people
think when it comes to online shopping, hence setting up a base that could certify that
customers of Pakistan will be offered the most excellent products.
MyGerry’s is here to make shopping convenient and hassle free for its customers; hence
with this online store, all that customers have to do is search for their favorite items in the
search bar and order it right away. Home shopping can be done at the comfort of your
lounge or bed; hence the popularity of such sites is steadily increasing. The best part
about MyGerry’s is that they frequently come up with exciting deals for their customers,
making it even more interesting for customers to shop and avoid wasting time by
browsing for items from aisle to aisle as is done in traditional markets.
1.2 Project Research Problem
E-commerce persists to grow in the evolving markets, and there are several e-
commerce studies around the world which denote that additional growth and
advancement in online based transactions is bound to increase all over the world in 2017.
Online shopping is the primary means of e-commerce where customers can contact e-
vendors directly and purchase products and services through an online based store
(Chaffey, 2009). There are two recognized categories of e-commerce: business-to-
consumers (B2C) and business-to-business (B2B) that are in practice across the world
(Owens, 1999). Just like all over the world, the trend of e-commerce has significantly
progressed and emerged in Pakistan at a shocking rate and a lot of existing and new
businesses, organizations and customers have sprung up. The industry of e-commerce
continues to boom across the region, with Flipkart, the leading online shopping website
in India, producing a record of $1 billion US Dollars investment, and China’s Alibaba
having a total market capital over $250 billion US Dollars. Although Pakistan is a late
participant into the growing era of e-commerce, there has been a massive increase in the
trend of online shopping and many other e-commerce businesses. Roughly $30 million
US Dollars are being expended on online buying, which clearly indicates a growing and
positive image for Pakistan’s e-commerce market. It was also expected in that the e-
commerce market of Pakistan will reach close to $600 million US Dollars till 2017
(Ahmad, 2015).
Since the entire world is become more tech-savvy and wants to adopt the convenience
factor in their lives, online shopping stores have stepped into the market to make lives
easy. MyGerry believes in the same agenda, so be it the major cities of Pakistan such as
Lahore, Karachi or Islamabad or even the mini cities such as Bahawalpur and Kot Addu,
the shopping experience from home and scrolling through products online should be
accessible for everybody across the country. The trend of online shops and e-commerce
businesses has taken quite a turn in underdeveloped countries, including Pakistan. The
market is strongly competitive and evolving at full speed, so in order to keep up with
customers MyGerry’s needs to provide superior customer services it is necessary to gain
an insight of emerging customer needs, maintain and take over its competitor’s customer
base, as well as understand the challenges and opportunities that the business can
implement to experience continued growth.
1.3 Purpose of the Project
The primary reason of conducting this research is to explore the underlying
opportunities and the forthcoming challenges that e-commerce brings with itself, how
such opportunities and challenges can be coped up with in the newly developing and
underdeveloped markets, and how it has a significant impact and can ultimately bring
about improvements in the development of MyGerry’s business venture. It is a good idea
for organizations to analyze the possible opportunities that they can take advantage from,
as well as keep track of challenging circumstances that does not hinder the progress and
growth of firms. Because e-commerce is fairly in its growth stage and a lot of other
prospective companies can take advantage of entering the business, the research also
recommends way in which MyGerry’s should focus on not only sustaining in the market,
but to develop its business even more.
1.4 Research Questions
1. What are the different kinds of e-commerce businesses that exist in
underdeveloped and developing countries?
2. What kind of emerging market and business opportunities can MyGerry’s benefit
from?
3. What kind of technological challenges does MyGerry’s need to watch out from?
4. Recommend how such opportunities and challenges can aid in further business
development of MyGerry’s.
1.5 Significance of the Project
MyGerry’s focuses on providing a fast-track and hassle free online shopping
experience for modern day customers who are working their way towards an easy life. It
deals with product categories of all kinds, so there is something of interest for all age and
income groups. With an increasing importance of e-commerce, MyGerry’s should focus
on exploring the possible opportunities and challenges that it can be faced with in this
fast-changing world. The management team of MyGerry’s can benefit from an increased
customer base and business development. This research is explanatory by nature and will
explore the possible opportunities and challenges of under developing e-commerce. It
will talk about the ways by which MyGerry’s can increase and maintain its customers, as
well as further develop its business.

Chapter 2: Project Related Literature Review
2.1 E-Commerce
E-commerce took a start in the year of 1995. It was the first time ever that
consumer required the need for digital goods, and that they could be easily delivered
through a digitized network (Laudon & Laudon, 2013). Online shopping is the primary
means of e-commerce where customers can contact e-vendors directly and purchase
products and services through an online based store (Chaffey, 2009). Quite basically,
(Kalakota & Whinston, 1997) stated that electronic commerce (e-commerce) is referred
to the “purchasing and selling of products, services and information through means of a
computer network.” (Bloch, Pigneur, & Segev, 1996) supported this statement by
including that e-commerce is a “support for all kinds of business contracts that are dealt
by means of a digitized infrastructure.” The internet takes it origin from the United States
and since then has received a substantial amount of acceptance all over the world so
much that is almost at par with multinational products like Coca-Cola. The Dot.com US
based companies such eBay and Amazon have paved the way for creative, novel and
innovative online based services which never existed before. The huge amount of success
generated by such organizations led the way for other businesses, including the most
renowned traditional businesses in The West such as Tesco, Walmart and others in retail
sector; Dell in the manufacturing and PC industry; Bank of America, Fargo HSBC, etc in
the banking sector, and Cisco in networking. (Bakos, 1998) emphasized that a firm
without a website in the modern world is definitely not up-to-date.

In the Indian context, the market trend of e-commerce has witnessed a substantial
percentage of growth in a span of just 5 years. Due to the rise of novel and improved
marketing tactics, this digitized market is anticipated to surge rapidly. According to the
IMRB and IAMAI, (Digital Commerce Report, 2016) the market of e-commerce in India
was estimated to be at INR 125,732 crore in year 2015, and was expected to rise to INR
211,005 crore in 2016, which goes to show that in a span of 4 years, from 2011 till 2015
the market increased by 30%. The biggest gain of e-commerce is its facility of providing
safe and secure online transactions through the internet and it is also paired with
immediate validation and verification of credit card deals. Times of India (2013)
published the leading motivating factors for online shopping which consists of cash on
deliveries, cash back guarantee, fast delivery, and access to top-notch branded products,
and significant discounts. While the leading barriers include the lack of ability to feel and
touch a product, powerless to test the items before purchase, fear of displaying personal
and financial information on the internet, apprehension of faulty items, and the failure to
bargain. The Indian consumers have been undergoing the primary phase of the learning
curve of superior technology usage in order to finish the purchasing cycle, be it by means
of payment or ordering. The internet is a medium that can offer customers the latest price
information, product types and availability, their substitutes, and so on.
As per (McDougall & Levesque, 2000) the customers can have access to substantial
amounts of information on which they can do their decision making; (i) Comparing
prices – (Kapurubandara, 2009) emphasized the online shopping places have raised a
fierce competition between sellers and there are price wars going on all the time.
However, this gives customers a chance to take their decisions from a broad spectrum of
choices; (ii) Online Deliveries – the acquisitions are easily delivered by means of online
mediums like e-books, e-tickets, etc. (Efendioglu, Yip, & Murray, 2004) even laid focus
on the point that the entire business cycle can be managed through a network that
provides immediate access to products; (iii) Time savings – Parents who work can
conveniently balance their tough schedules at office and shop online without wasting
time and effort.
2.2 Opportunities for E-commerce
Because of the changes in the ICT landscape, e-commerce is now a part of
numerous emerging business markets and budding economies (UNCTAD, 2015). E-
commerce is transforming in a way by which companies can not only interact with each
other but with governments and consumers as well. The technology design to enhance the
commercial dealings by means of internet have progressed quickly, but a perfect word of
secure and painless transactions is yet to be achieved, as unanswered privacy concerns of
customers are hindering the extensive development of such technologies (Avila, Alberto
and Violeta, 2007). The increasing amount of smart phones and tablet devices make it
easier to use the internet, and when paired with enormous customer assurance the e-
commerce will undoubtedly continue to expand and prosper.
2.2.1 The role of Government
(Owens, 1999) clearly stated that there are two recognized categories of e-
commerce that are in practice across the world: business-to-consumers (B2C) and
business-to-business (B2B). (Owens, 1999) stated that roughly 80% of e-commerce
activities in the United States are carried on between businesses, exclusive of government
transactions. He also debated that multinational organizations around the world are using
innovative technologies to globally link their business units and subsidiaries. At the same
period, small and medium companies are also making use of internet services to exploit
opportunities in global markets. The government support for e-commerce businesses is
one of the most significant factors that lead towards new and emerging business
opportunities for such businesses to develop. With respect to the Malaysian context, the
government has been encouraging the trend of online businesses by making an attempt to
exempt taxes on products that are not worth more than RM 1,200 and are bought by any
medium of e-commerce falling under the Digital Free Trade Zone. The incentive is
granted by the government in order to improve the booming sector of e-commerce in
Malaysia as it has long-run outcomes because of its cross-border nature. As per the DHL
report, cross-border e-commerce is well thought out to be one of the emerging and
biggest opportunities in the retail markets (CFO Innovation, 2017). The DHL report
signifies that this kind of e-commerce is anticipated to increase at a rate of 25% per year
between the period of 2015-2020, with predicted revenues ranging between $300 billion
and $900 billion US Dollars (CFO Innovation, 2017).
2.2.2 Emerging Business Markets
As creative as e-marketing/internet marketing (IM) can be, it is also quite
technical by means of its development, design, sales and advertising spread across the
internet. The widespread users of Internet over the world have been rising steadily and
this growth has stirred motivation and provided ample opportunities for regional and
worldwide e-commerce. The distinctive infrastructure and socioeconomically borne
characteristics of local environments has created a major variation in the growth and
adoption of e-commerce in various regions across the globe. But despite of all this,
because of the new and emerging business market opportunities the e-commerce
continues to grow rapidly internationally. The market for e-commerce continues to thrive
and it is hovering for a vigorous growth in Asia. The success is based on a complete
understanding of the market companies are operating in and the distinctive features they
will be offering. India is a relatively emerging business market for e-commerce and e-
marketing. Vast opportunities for wholesalers, retailers, people and producers were also
presented. They also figured out several predicting factors that could grow the market for
e-commerce in India. Particularly in Pakistan there are very few firms that are
incorporating the concept of e-business for online promotion and sales, with respect to
B2C markets. The number of internet user rose to approximately 10.3 million in Pakistan
ever since LTE and 3G were launched. It is well anticipated that approximately in the
next 5 years 28% of the Pakistani community will have access to Internet. However, with
the presence of so many rapidly emerging online businesses and existing organizations
having an expectation of better performance and increasing growth rates, a widespread
gap lies in terms of exploiting the potential of e-commerce and competing with the chief
local players (Junaid, 2015).

According to (MacGregor & Kartiwi, 2010), the probability of online shopping from
literally anywhere in the world is the most satisfying and frequently cited benefit of e-
commerce, and the most significant perceived benefit of online shopping for customers.
Since the entire search process and making of transactions is a lot faster in online sites,
the consumers may gain from hassle free shopping where the shopping process is quicker
and better in the market-space as compared to the market-place (Efendioglu, Yip, &
Murray, 2004). There is an extensive range of information that consumers can find
online. In his study, (Shaher, 2012) examined that both small and large enterprises are
primarily influenced by the unsuccessful governmental rules such as adequate IT
implementation and poor RandD. This suggests that information technology requires
significant development and attention in Pakistani firms in order to take advantage of
opportunities and maximize market shares vis-à-vis competing rivals. Prior researches
(Tam, 1998; Thatcher, Foster, & Zhu, 2006; Kazunga & Panga, 2015) indicate that they
use the government support as a predicting variable in the literatures associated with
technology adoption (e.g. e-commerce or e-business, e-procurement, e-marketing, e-
government, linked to innovation).
Alongside the many weaknesses and challenges of e-commerce there are also many
opportunities that it brings with itself. There are tons of ways by which e-commerce
technologies and internet can be helpful for small and medium enterprises, which are as
follows (Wikibooks, 2014): (i) it simplifies the entry of SMEs and artisans to the market
overseas, (ii) It enables the marketing and promotion of tropical and agricultural products
in the world markets, (iii) it allows the development and promotion of tourism of
emerging countries on an international level, (iv) it also offers ample opportunities for the
organizations in third world countries to enter the business-to-business (B2B) and
business-to-government (B2G) supply chains, (v) and lastly it aids companies in the
service sector of developing countries by permitting them to work efficiently. Moreover,
(Rose, Khoo, & Straub, 1999) also examined that as much as e-commerce provides vast
opportunities for one-on-one marketing; contrariwise it also reduces and ends the
personalized services (one with human contact) that are mostly characterized in the
traditional commerce businesses in developing countries.
E-commerce is relatively effective and faster as customers can carry out transactions
from basically anywhere in the world. The trends are changing now and modern day
customers tend to feel more at ease and comfort when purchasing products from the
internet. The present day situation is about customer convenience, which is the basic trait
of e-commerce. The number of daily users of online shopping is increasing steadily.
More and more people are switching to the new medium of shopping as they feel more
comfortable while shopping from home online. E-commerce has the ability to work from
any part of the world without absolutely any interruptions, and the scope and vision of e-
business is unlike any other marketing medium, and e-commerce businesses have a
vision to outgrow themselves with time as they are provided with greater opportunities.
The best thing about e-commerce is that any form of business is easily accessible and
available on each and every mouse click. More and more traditionally operating
companies are switching to e-commerce marketing as online customer services is a

growing and significant competitive advantage for majority of the firms. Also,
advertising costs much less as compared to the brick-and-mortar firms.
2.3 Challenges of E-commerce
Furthermore, advancement of such technologies has its consequences too, and a
lot of security and privacy related issues spring up aside from the technological
associated challenges, cultural barriers, lack of trading partners and government aid, and
poor top management assistance, few opportunities on price negotiations, and language
differences (El Gohary, Trueman, & Fukukawa, E-Marketing and Small Business
Enterprises: A review of the methodologies, 2008). (MacGregor & Kartiwi, 2010)
however signified a more concise hurdle by affirming that “over the internet, it is quite
impossible to be undoubtedly sure that the physical products have all the desirable
features (e.g. material, design, color) as are portrayed online, thus giving a rise to quality
assessment obstacle to e-commerce.”
Risk is believed to be a responsive feeling that is hard to measure objectively. As per
(Peter & Ryan, 1976), risk is the perceived anticipation of losses that are associated with
buying, which in turn behaves as an inhibitor to consumer buying behavior. Quite simply,
perceived risk is basically the supposed doubts one has regarding the undesirable
consequences of using goods and services. In e-transactions, perceived risk and
inconvenience is the primary interpreter of why people abandon shopping carts
(Rajamma R. K., Hossain M. M., and Paswan A. K., 2009). It has also been identified
that alleged risks reduce the consumers desire to swap information and carry out
transactions (Pavlou, 2003). Moreover, it was established that perceived risk has a
negative association with trust, customer loyalty and the view of purchasing online (
(Ganesan, 1994; Jarvenpaa, Tractinsky, & Saarinen, 1999; Grazioli & Jarvenpaa, 2000;
Featherman & Pavlou, 2003; Salam, Rao, & Pegels, 2003).
Lack of trust is one of the major challenges that consumers face in using the medium of
internet to make online based transactions. They hesitate in using the internet for placing
orders and carrying out transactions with SMEs because of their uncertainty of data usage
and return policies (Netcoach, 2014; Kaynak, Ekrem, & Veysel, 2005; Wikibooks, 2014).
The fear that personal information can be used wrongly and lead to deceitful identities
and scam emails. The nature of risk and fraud is quite distinctive when a consumer is
relying upon an unseen business set-up, so the risk of trusting and making transactions is
bound to be higher. Customers are quite concerned about the misuse of personal and
financial data as it can appear anywhere once disclosed. Present day adoption of laws that
are ingrained in the e-transactions form the foundation of trust in the established era.
Where judicial and legal systems are undeveloped, e-commerce transactions are at a loss
because of security issues. On the other hand, (Tan, Tyler, & Manica, 2007) examined
that the underlying fears of fraudulent activities and peril of losses has been a significant
and frequently cited obstacles for B2C e-commerce, with several empirical report
findings in support of their suppositions.
Al Ghamdi, Jones and Nguyen (2013) also studied the e-commerce users are prone to the
subsequent risks such as hesitation to use credit cards, privacy and security issues,
choices for online store shopping, and absence of face-front inspection and product trial.
Exchanging costs and alleged risks balance each other in order to affect consumer loyalty
from the point of acquisition to the point of retention (Yung-Shen Yun, 2011). (Benbasat
& Glover, 2010) revealed in their research that the primary threats in e-commerce are the
misuse of information, risk of inefficient functioning and the failure to acquire benefits
from a product.
2.3.1 Types of Perceived Risks
(Stashevsky & Liebermann, 2002) also presented the 9 most commonly types of
perceived risks associated with e-commerce trades, namely (i) personal information being
supplied, (ii) theft of online credit cards, (iii) broad scope of internet advertisements, (iv)
violence and pornography, (v) lack of tangible contact, (vi) reliability of information,
(vii) lack of human touch in online purchases, (viii) failure to supply products bought on
the internet, (ix) addiction of internet usage. Fernandez and Miyazaki (2001) furthermore
highlighted six primary facets that define risk in the e-commerce transactions, such as (i)
system security – when third parties engaged in fraudulent activities, (ii) privacy – when
online retailers invade personal information, (iii) security – such as online retailers
conducting fraud, (iv) lack of concern, (v) difficulty in online purchasing, (vi)
miscellaneous (such as unspecified and ridiculous responses).
The cost of purchasing a computer, the cost of using it and access to internet expenses
have all been claimed as majority of the barriers to e-commerce alongside the risk of loss
of identity, fraudulent activities and system failures. There is an absence of system

security, standards, reliability and even communication practices. The consumers can
lose their valuable money in case the websites are hacked. The most frequently occurring
problem of e-commerce sites are the extremely important and essential requirement for
consumers i.e. cyber security is missing. The security matter can often confuse
consumers about the credibility of the payment procedures, and because of the presence
of so many fake websites customers do tend to have trust issues. Fake websites do not
only bring disgrace to e-commerce but completely collapse the market as well.
One of the major challenges is reducing the cost of internet. The authorities are
attempting to maintain a low price of the bandwidth low, however, the high charges of
operating costs and expanding networks delay in keeping low prices for the internet.
(Kurnia, 2006) stressed on the fact that because of low bandwidth networks, the process
of using internet to purchase products online can be annoyingly frustrating and time-
consuming. Traditionally based rules, policies and regulations have a chance of creating
doubts regarding the legality and validity of e-commerce transactions. In majority of the
developing states, cash on delivery still continues to be the most widely established
system – even credit cards and cheques are not that willingly accepted (Bhowmik, 2012).
The extent of competition in e-commerce is rapidly rising on a daily basis and majority of
the companies are swiftly entering the market. Companies like Amazon, Daraz, Snapdeal,
Indiaplaza, eBay, Homeshop18, GoTo, etc are a few major names. These companies are
making a habit out of people at the cost of their own firms. The changing fashion, trends,
fads as well as laws and regulations can truly affect e-commerce remarkably. Presently
consumers always on the run for innovative and unique products, so innovation can be in
the form of a place, product, price and even promotion.
Another key challenge is that technology know-how and literacy is barely available in
most developing states, which leads to scarcity of proficient employees among SMEs and
obscures them to go ahead with using IT in business. In a few cases, the physical
structures of many emerging countries is known to have comparatively little tele-density
which acts as a major challenge to e-commerce, so it is of little relevance even if these
small to medium sized enterprises voluntarily want to use information technology. The
costs of internet connection, the substantial cost of appropriate software/hardware, and
setting up and repairing costs might act as deterrents for a lot of SMEs because the start-
up investment for possibly adopting novel technology is far greater than for larger
organizations.
(Rose, Khoo, & Straub, 1999) next stated that in-practice, e-commerce might be essential
for customers in saving time, but for commercial reasons the internet might be a bit too
laborious for a lot of users. There can be various explanations for this; (i) the procedure
of registering to access the services may be too hard, (ii) challenges in locating products,
services and/or the website, (iii) procedure of comparing prices, etc. Online sites hardly
offer discounts and when they do they are hardly useful to the customers. Also the
biggest challenge and weakness of e-commerce is that there is no room for bargaining.
There is absolutely no guarantee when you will actually receive your orders as delivery
times can range from one day to weeks even, making it hard and frustrating for an
individual to wait. There are few products that might suit your preferences and even
though the physical products are available but there are no personalized services and
tangibility of products until delivered. In areas where there is not much access to internet
people will have little or no exposure to internet marketing. The advertisements are also
restricted because unlike traditional markets, e-commerce businesses cannot obtain mass
advertising mediums. Furthermore, customers have to bear an additional shipping cost
which always acts as a barrier while shopping online. There is hardly an interaction
process taking place between the seller and the buyer, in fact they do not ever meet. The
ability to convince the buyer to purchase your product and test its reliability does not
exist. Furthermore, every customer would prefer to purchase a product by personally
analyzing it rather than buying it online.
2.4 E-commerce and its impact on Business Performance
A significant amount of interest in the subject of innovation has substantially
supported and sustained business operations as well as helped firms in maximizing their
global reach. E-commerce technologies have quite an ability to lead the way for
significant and substantial output gains at business levels. It is especially when e-
commerce technology is applied to B2B relations that it can pave the way for explanation
of saving costs and business events. The instant impact of these technologies is to permit
automation of routine procedures like sales, distribution, inventory management and
after-sales-service (OECD, 2000). E-commerce has revolutionized the business practices
of a number of firms (Ohidujjaman & Huda, 2013). The term Electronic Data Interface
(EDI) was extensively announced 25 years back over devoted links between
organizations, showing how data can easily be passed unswervingly from the operating
system (OS) of one corporation into the production, purchase processing and logistic
system of other corporations (Clayton & Criscuolo, 2002). If it is properly executed and
implemented, e-commerce technologies can bring put significant improvements and
efficiency in the business procedures. Moreover, (Hasan, 2010) directed that the
contemporary e-commerce industries are now becoming an essential constituent of many
business strategies and also act as fierce catalysts for economic and business
developments.
Nonetheless, the latest developments of e-marketing and online transactions have
significantly affected the performance of a majority of businesses (El Gohary, H., 2012).
Hence, an increasing number of firms are presently incorporating the use of internet and
other electronic mediums to converse with their customers, government institutes, trading
associates and end-users of the firm’s products/services (Rahim, Baker, & Ahmed, 2015).
Some studies report varied findings on the exact effect that e-marketing has on business
development and firm performance. There are few empirical findings that support the
positive association of e-marketing on firm performance, such as financial gains
(Johnston, Wade, & McClean, 2007), firm growth (Mohamad , Building, & Ismail , 2009;
Raymond, Bergeron, & Blili, 2005), and competitive advantage (Teo & Pian, 2003).
The plus points achieved were quite unpredictable in various sectors, given the region
and size of the companies (Wright and Johnston, 2004). But keeping a similar
perspective, the perceived and actual benefits were clearly related to the use of e-
marketing (Sam & Leng, 2006; Raymond, Bergeron, & Blili, 2005). Regardless of all the
differences, the use of e-marketing helps leads to business development and brings about
a significant improvement in business performance. The academic literature that focuses
on firm performance and e-marketing in context of developing states is unusually limited,
and the research extends to the point of including adoption theories and new technology
usage, and eventually the impact that such new-scale and up-to-date technology for the
use and acceptance of electronic marketing in industries.

Chapter 3: Planned Research Methodology
3.1 Methodology
3.1.1. Single Case Study
The research project that I am conducting happens to be an individual case study
of an online website called MyGerry’s, and the nature of the study is exploratory. The
research is being conducted to shed light on the different kinds of opportunities and
challenges that are being faced by under developing e-commerce businesses, and how e-
commerce eventually brings about development and growth for these firms. Since the
study is open-ended it explores the expanding number of opportunities that are arising for
the emerging markets, the threats and challenges that are associated with firms entering
into the world of e-commerce, as well as a vast number of benefits that are associated
with e-commerce that lead businesses towards development. This is a single case
organization because it explores the critical opportunities and threats for businesses
wanting to adopt the technology of e-commerce. The case study is emphasizing on one
such company that has recently entered the e-commerce sector, called MyGerry’s, and
the literature focuses on how this company can exploit underlying opportunities in order
to grow in the market and what challenges are possibly associated with under developing
e-commerce in Pakistan. The academic literature of prior researches and secondary data
from articles and journals are used to explore the topic of e-commerce, thus forming the
basis of qualitative research. The study will use the primary and secondary means of data
collection to have a greater understanding of e-commerce adoption, opportunities and

challenges. The primary data collection consists of questionnaires, whereas secondary
data consists of articles, popular journals, and any research paper published within the
last 10 years.
3.2 Approach
A deductive approach is being used for this research project as the concept of e-
commerce, its adoption, emerging business opportunities, its barriers and challenges, and
its development have been studies in a lot of past and present day research articles. The
research is being carried out to explore the possible opportunities and challenges of under
developing e-commerce in Pakistan, for which purpose I have specifically chosen
MyGerry’s online business. This explorative study will be tested against prior concepts
about e-commerce across Pakistan as well as the rest of the world.
3.3 Data Collection
The primary data collection will be done through use of surveys from companies
that are adopting the modern technology of e-commerce within their businesses. All the
data will be collected and analyzed through the use of questionnaires. The sample size
will be 60, and these questionnaires will be filled by the general consumers who are
habitual of online shopping or who are likely to be potential purchases of online products
in the future. These companies are critical to the case study which is being conducted as
e-commerce adoption is still quite slow in the Pakistani economy, as it requires a lot of
investment and capital. The research will help understand the emerging business market
opportunities for potential and existing firms in Pakistan, as well as the challenges and
difficulty associated with the e-commerce technology which can act as a major hurdle for
most firms. Data will be evaluated by means of the questionnaires that will be filled, and
the research will also include secondary means of data collection from previously
published articles and researches. The data will be analyzed qualitatively by means of a
Likert scale questionnaire; hence bar charts and pie charts will be used to evaluate the
data.
3.4 Ethical Considerations
This research study that I am conducting will lie in accordance with all the
specified terms and conditions as per the ethical and moral code of conduct that is
highlighted in the learning material. The study is low-risk but despite of that I ensure that
the respondents will be taken proper care of, all the ethical guidelines will be followed,
and proper care will be ensured in avoiding any chance of discomfort. The companies
will be asked for consent, and this will be attached in the Appendix section. All the data
that will be collected with be securely and safely stored and only be used for academic
purposes. The data will remain confidential. A consent for will also be taken from the
firm I have chosen for my case study, i.e. MyGerry’s, which will also be attached in the
Appendix section.
3.5 Schedule of Completion
I expect to finish this research project in a span of 3 months, starting from the day
of getting the topic approved for the project proposal. The specific targets which I hope to
achieve in the project are listed down as follows:

Approval of Project Proposal received 6 Feb 2018
Literature review commences 22 Feb 2018
Data collection commences 24 Feb 2018
Data collection concludes 2 Mar 2018
Literature review concludes 6 Mar 2018
Writing of first draft commences 8 Mar 2018
Submission of Draft Project Report 1 Apr 2018
Submission of Project Report (final) 9 Apr 2018

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Appendix A
Questionnaire
1. What is your gender?
Male
Female
2. What age bracket do you fit into?
10-15
16-20
21-25
26-30
30-40
40+
3. Why do you use internet for? (Choose as many as applicable)
Entertainment
Educational purpose
Shopping
Information search
Communication purposes
Online banking
Online Game
4. How many hours do you spend on the internet a day ?
1-2 Hours
3-4 hours
5-6 hours
More than 6 hours
Less than 1 hour
5. How frequently do you purchase things online?
Once in a month
Twice or five times in a month
More than 5 times in a month
Never
6. Why do you prefer online shopping (choose as many as applicable)
Saves time
Convenient and flexible
Fun doing shopping on web
Wide range of choices
Flexibility of prices
Security
7. If you do not purchase things online why? (Choose as many as

applicable)
It is difficult to shop
I do not trust online shopping
I heard bad things about online shopping
I do not find what I look for
No Internet Availability
8. What do you buy online mostly? (Choose as many as applicable)
Books
Clothing
Digital devices
Food
Health
House ware items
Others
9. For this section of the questionnaire please choose the appropriate

number, with number 1 being “Strongly Disagree”, 2 being “Disagree”,
3 being “Neutral,” 4 being “Agree” and 5 being “Strongly Agree.”.
S. No Strongly Disagree Neutral Agree Strongly
Disagree Agree
9.1 I love shopping a lot
9.2 Every time I choose

only one site for my
online shopping which
I feel good
9.3 I prefer doing shopping
quickly
9.4 I would not return to
the site again if I am
not satisfied with site
for the first time
9.5 I prefer to buy things
every time which do
got offers
9.6 I prefer buying from a
site which is organized
in such a way that it
minimises my
shopping time
9.7 I do not spend more
for shopping
9.8 I am very curious
about buying products
which are newly
introduced
9.9 I prefer paying with
credit card to paying
with cash
9.10 I want to find the
information very
quickly on the site
9.11 I want to negotiate
with the vendor before
buying something if
negotiation is possible
9.12 I want clear
description of product
about one page before I
buy
9.13 I want the information

in the site to be written
in my own language
9.14 The site should show
all the transaction
details and price details
for the item which I
buy every time until I
leave the site
9.15 Delivery manners is
very important to me
9.16 I always shop in the
same site which I trust
most
10. Did you buy anything on the MyGerry’s.com or Do you intend to

buy anything on the MyGerry’s.com in the next 6 months?
Yes
No
Not Sure
Q11. Your Name: ____________
Q12. Your Designation: ________________
Q13. Your years of service: less than 1 year 1 – 5 years
6 – 10 years 11 – 15 years
More than 15 years
Q14. Your education:
Intermediate or equivalent or less
Bachelor or equivalent
Master or equivalent or higher

Appendix B
1. Organization Consent Form

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To Explore Opportunities and Challenges for Under Developing E-commerce 1

To Explore Opportunities and Challenges for Under Developing E-commerce

A Project Proposal Submitted

Kamal Nasir Khan (40915)

Department of Business Administration

The requirement for the

MASTER OF BUSINESS ADMINISTRATION

This Project has been

Accepted by the faculty

FACULTY OF BUSINESS ADMINISTRATION

Dr. Irfan Hameed

Table of Contents Page

2. Project related literature summary …………………………….…… 8

customers of Pakistan will be offered the most excellent products.

browsing for items from aisle to aisle as is done in traditional markets.

1.2 Project Research Problem

(Chaffey, 2009). There are two recognized categories of e-commerce: business-to-

in India, producing a record of $1 billion US Dollars investment, and China’s Alibaba

customers MyGerry’s needs to provide superior customer services it is necessary to gain

implement to experience continued growth.

1.3 Purpose of the Project

The primary reason of conducting this research is to explore the underlying

about improvements in the development of MyGerry’s business venture. It is a good idea

but to develop its business even more.

1.4 Research Questions

1. What are the different kinds of e-commerce businesses that exist in

underdeveloped and developing countries?

1.5 Significance of the Project

MyGerry’s focuses on providing a fast-track and hassle free online shopping

income groups. With an increasing importance of e-commerce, MyGerry’s should focus

explore the possible opportunities and challenges of under developing e-commerce. It

well as further develop its business.

Chapter 2: Project Related Literature Review

without a website in the modern world is definitely not up-to-date.

information, product types and availability, their substitutes, and so on.

time and effort.

2.2 Opportunities for E-commerce

Because of the changes in the ICT landscape, e-commerce is now a part of

numerous emerging business markets and budding economies (UNCTAD, 2015). E-

secure and painless transactions is yet to be achieved, as unanswered privacy concerns of

commerce will undoubtedly continue to expand and prosper.

2.2.1 The role of Government

business-to-business (B2B). (Owens, 1999) stated that roughly 80% of e-commerce

opportunities in global markets. The government support for e-commerce businesses is

granted by the government in order to improve the booming sector of e-commerce in

and $900 billion US Dollars (CFO Innovation, 2017).

2.2.2 Emerging Business Markets

As creative as e-marketing/internet marketing (IM) can be, it is also quite

worldwide e-commerce. The distinctive infrastructure and socioeconomically borne

having an expectation of better performance and increasing growth rates, a widespread

local players (Junaid, 2015).

primarily influenced by the unsuccessful governmental rules such as adequate IT

significant development and attention in Pakistani firms in order to take advantage of

technology adoption (e.g. e-commerce or e-business, e-procurement, e-marketing, e-

government, linked to innovation).

organizations in third world countries to enter the business-to-business (B2B) and

service sector of developing countries by permitting them to work efficiently. Moreover,

traditional commerce businesses in developing countries.

of e-commerce. The number of daily users of online shopping is increasing steadily.

companies are switching to e-commerce marketing as online customer services is a

advertising costs much less as compared to the brick-and-mortar firms.

2.3 Challenges of E-commerce

Furthermore, advancement of such technologies has its consequences too, and a

Enterprises: A review of the methodologies, 2008). (MacGregor & Kartiwi, 2010)