E-commerce Business: SWOT Analysis, Marketing, and Risk Management

The content discusses the SWOT analysis of ecommerce business, highlighting its opportunities, threats, and risks. It emphasizes that in today's fast-paced digital world, ecommerce has become a vital platform for businesses to reach customers globally. The report highlights the importance of understanding the strengths, weaknesses, opportunities, and threats (SWOT) of ecommerce businesses, as well as the various risks involved, such as information risks, technology risks, and business risks.

Background
The new ideas and ways to access the internet tools and connectivity to describe the new
commerce era which is called E-commerce now days. Business ideas and planning has
been completely revolutionized and operating business has become easy and convenient
for both users and service providers. When we talk about E-commerce, we refer the way
of selling and purchasing the goods and services online and this involve online payment
system as well that is possible through payment gateways. Enhancing economic growth,
increment in business opportunities, competition in market and better profitable accesses
in various markets, are the main features of E-commerce. E-commerce is swelling as an
attractive and revolutionized way of doing business and helping companies to do better
competition in market and contribute to economic success at maximum level. (V. zwaas,
2001)
Here, we will discuss about potential customers of business, materiality of developing the
website, advanced SWOT analysis and marketing strategies of E-commerce business.
E-commerce is the process of buying and selling goods and services over internet and on
other various online networks that are on World Wide Web. E-commerce development
has increased the sales and revenues of companies that are moving faster towards growth
targets and achieving success efficiently. This is a current trend where users like to stay at
home and order for groceries, cloths, shoes on internet and E-commerce companies get
them delivered at user’s door. Various payment methods have been introduced since E-
commerce business took place in market and users can make the payments online from
anywhere anytime.
E-commerce potential customers:
As per the assignment criteria, I have chosen the parts and tyres of the vehicle. This
product is targeted to any kind of four wheels’ vehicle.
Ways to convert a visitor into customers
Word of mouth: - This is the strongest weapon of marketing. When a customer of your
company spread the information of your company in positive manner and praises
products and services, more people shows interest and buys goods and services from that
company
Testimonials: - Online testimonials are also a great way to show the company success
Customize your pitch: consumers should know to customise their pitch to
customers their talking to, the better option it will happen.
Limited access: if someone has a nice product so he can ponder it providing everyone
limited access to it.
Speed: speed is very important for the ecommerce companies. Most of the
consumers forget about it so it has a bad impact on business. As many popular
websites likes flipkart and ebay make every possible way to format their websites
faster.

Importance of Developing the Website:
Developing a website helps the company to increase product knowledge, communication
maintenance between potential clients and marketer, increase the popularity of the
company and also many other things. Security is another feature and most important for
all websites. Appropriate security methods like (HTTPS / SSL) used in making it.
Marketing Strategy:
A solid marketing strategy is very important in succeeding an ecommerce business.
Strengthen your SEO
 Share your reviews on Social Media
 Bring your existing customers back for more
 Reach Out to Customers in Their Native Languages
Business and Social Issues:
As we know ecommerce website is most popular on internet. Besides this, it contains
many issues in which security and privacy is the most important issue in all. As without
security and privacy the chance are increases in which the customer will scared and get
cheated by the seller. For example, he wills scared weather the products available on
website are good or bad as he can only see a picture of the product. That is why the
customers will scare as the seller posted a good product or not. So if the seller frauds the
customer then the standard of the society will become down. Another chance when the
customer gets scared is after he will transfer the money and will not received the product.
So a bad impact falls on IT industry as after this the customer will not go to that website
again to buy any other products and go to buy the products themselves by marketing. (T.
Seideman, 1996)
Other than that some other issues are also there. So one another important issue is the
shipping issue. It means when a customer buys a product on a website from a seller and a
seller is from some other state then a good data management in shipping the product is
required. This means that the seller has to manage the data carefully and securely such as
name of the buyer, Address of the buyer, credit card information and contact information.
If the seller will not mange it then the buyer will not receive the right product and he will
feel as he gets cheated by the seller and after that he will not go to those websites again.
Tools for the Analysis:
The various tools of analysis are given below:
Swot Analysis:
SWOT Analysis is to frame on your strengths and keep down your weaknesses. You will
want to take the benefit of opportunities those are present by that environment and
minimize the threats present by that environment. SWOT analysis is the acronym for
Strengths, Weaknesses, Opportunities and Threats.

According to the figure, the questions arise by the analyst while operating a SWOT
analysis is as follows:
Strengths of SWOT analysis:
 Universal market: E-commerce largest ability is that in this no briquette structure is
required for doing business; no specific range is required and helps to expand all the
ecommerce companies to global range. The development of this refers to the spreading of
geographic retail markets.
 Time saving: time saving is the strength as transactions over internet are done in no
time and hence reduces the physical movement.
 Comparison of price and products: on the ecommerce platform every customer can
compare price and products very effectively as all the information is available about the
product on the internet. It is the right of every customer to choose the product and bargain
so the ecommerce websites provide the customer the greater bargaining power and
freedom so that a customer can buy the right product.
 Fast Exchange of information: It will provide fast and aright sharing of information
among customers and sellers enables very fast in time reply.
 Faster buying process: the customer can buy a product in just a click at the right price.
There is no physical movement and chasing of good product is needed. So it results in
faster process of buying any product.
Weaknesses
 Security: security is the important defy as the customers always feel themselves
insecure mostly in the process of transactions.
 mock websites: there are many mock websites are available over internet those
promises to provide better services and secure transactions and therefore disrespect the
ecommerce also with nasty name and gives negative impact to ecommerce.
 Fraud: by the hackers, the personal and financial details of customers are being misused
and therefore it scared the buyers.
 Minimum discounts and bargaining: In online marketing there is almost no chance of
discount and bargaining in buying any products.
 Long delivery time: in ecommerce website the consumer provides the services to the
seller according to their own convenience. Most of the time the delivery time extended
and it can take day to weeks.
 Impossibility of physical examination: the buyer cannot check the product available on
website by physically touch or wear. So the quality of the product is not known.
 Limitation of products: Only a limited number of products can be available.
 Limited exposure: in evaluating areas there is no or little exposure to ecommerce in
places where internet is not available.

 Customer’s satisfaction: no personal or face to face interaction happens between the
seller and the customer. So, one cannot convince the customer directly.
Opportunities:
 Changing trends: nowadays people are very much interested in by branded things
instead of the locals. They are very aware about it. In ecommerce financial transactions
can be done anywhere in the world. It is very fast and effective evolving day by day. In
the near future people will become more comfortable by buying products over internet.
 rising users: number of internet users are increasing day by day and therefore people
feel very comfortable to buy products through internet.
 Regular universal increment: ecommerce websites can be used from any place and
any time without any disruptions. Internet users are increasing day by day and also
increase ecommerce users.
 High availability 24*7: as the ecommerce websites are available all time whether it is
day or night so there are no time restrictions and hence it is available all time by just a
single click of mouse.
 expanded business growth: ecommerce business has very wide scope and visions to
grow as it is always take place where it can in a gap. And as the gap filling is a never
ending process so as the business growth.
 advertising: in comparison with the conventional systems, nowadays advertising has
become very cost effective.
Threats
 Competitors: competition is increasing continuously. As global competition is also
increasing along with the local one, large companies are already available in the market
making the customers used to of their costs.
 Changes in environment, law and regulations: regular change in trends and fashion can
distress ecommerce and affected it badly
 Innovation: innovation nowadays is very important in product, place, promotion and
price. Customers always seek for innovative products so it will become a headache for
consumers.
 Privacy concerns: fears are there which leads to spam email are and frauds as the
information can be misused.
No interaction: there is no face to face or direct interaction between buyer and seller and
no scope of discounts and bargaining that is why people mostly prefers buying physically.
 Fraud: by using confidential information and transaction persons can misused it and can
damage the faith of customers.
Risk Analysis:
The main risks linked with ecommerce are hackers, viruses and transaction details and
confidential details over the internet. Although new technologies can reduce many risks

and recent surveys indicates the risk over very normal issues related to stocks and
shipping charges. Risks can be divided into three categories: these are information risks,
technology risks and business risks.
Information risks are mainly about the personal details and information published and
available on the website. It also contains misuses of information, and confidential details
violation of laws in many countries. Technology risks refer to the risk which is mainly
involved in hardware, software and databases. These can also result in misuse of
technology and wrong technology which is required to address business requirements.
Third one is business risks which are mainly associated with the relationships of buyer
and seller and also with the services and stuffs available over the internet.
Because e-commerce saddles various functional and technical regions, authors in various
regiments have identified risks related with ecommerce.
Information Risk
 Content on web page exposing web publisher to libel, defamation of character,
slander
 Infringement of copyright as well as privacy invasion suits evolving due to textual
content that is posted
 Copyright infringement and invasion of privacy suits that come up due to
morphing and digital scanning
 Violation of patent, trade secret, or Copyright by stuff that the website developers
use
 There can be theft of information online due to unauthorized web site access. This
information can relate to data of customers and employees, which might even be
damaged.
 Credit card information intercepted in transit is disclosed or used for fraudulent
purposes
 Information that has been changed or inserted in transmission is processed leading
to erroneous results
Technology Risk
 Omissions or errors in design of software
 A website’s unauthorized access
 Injecting computer viruses to infect a web site
 Internet service provider (ISP) server crashes
 Omission and error in software error resulting in unauthorized access
 Third party intercepts credit card information in transit causing breeches in
security for online payments.
 Intercepting and copying or changing non-credit card information during
transmission
Business Risk
 Web page content exposes web publisher to libel, defamation of character,
slander
 Electronic bulletin boards containing defamatory statements resulting in liability
 Worldwide legal exposure that emerge from using the information in violation of
laws in home country
 Use of web sites for carrying out illegal promotional games, like, contests or
sweepstakes
 Maintenance lacking on the current web pages
 Business impact because of intellectual property lost because of employees who
move to competitive organisations

 Supplier association changes pertaining to data access, distribution strategy, data
ownership, as well as marketing tactics
Concept Map
Conclusion:
Nowadays business always practices to launch new products and services for customers
as the consumers always wants that their business become more and successful and
regularly become better and cheaper. Ecommerce is progressing day by day and become
more important for the business as a technology advances by the time increases by the
advent of internet and ecommerce the option have become increases continuously for
both consumers and businesses. (Boateng, R,2008). Nowadays it become very easy to
enter a new market and can do evaluation of product and performances. This report infers
about ecommerce website development along with analysis tools including SWOT

analysis and all other risk analysis tools which is very much require for ecommerce
business restricting the related risk. These are completely same as the risks including in
another business environment.
References:
 V. Zwass, ‘Structure and macro-level impacts of electronic commerce: from
technological infrastructure to electronic marketplaces’,
http://www.mhhe.com/business/mis/zwass/ecpa per.html (accessed May 2001).
 T. Seideman, ‘What Sam Walton learned from the Berlin airlift’, Audacity: The
Magazine of Business Experience, Spring 1996, 52–61.
 Boateng, R., Hinson, R., Heeks, R. and Molla A. (2008). Ecommerce in LDCs:
“Summary Evidence and Implications. Journal of African Business”, 9(2) 257-
285.
 P. Timmers, “Electronic Commerce – Strategies and Models for Business-
toBusiness”