E-Commerce Report: Axiata Group, Challenges, and Development

This report provides an overview of e-commerce, focusing on its significance for businesses and specifically addressing the case of Axiata Group. It explores the fundamental aspects of e-commerce, including business-to-customer (B2C), business-to-business (B2B), and customer-to-customer (C2C) transactions. The study details the advantages of e-commerce, such as cost reduction, increased revenue, effective information management, global reach, and transaction efficiency. It also identifies major challenges in e-commerce implementation, like finding the right products to sell, attracting customers, generating targeted traffic, nurturing prospects, capturing leads, converting shoppers, retaining customers, achieving long-term goals, and selecting appropriate technology and partners. Furthermore, the report outlines crucial steps for developing an effective e-commerce approach to gain a competitive edge, including identifying high-demand products, selecting the right manufacturers, creating an appealing brand name, setting revenue goals, and designing appropriate marketing plans. This report provides a comprehensive analysis of the e-commerce landscape and strategies for success.

E-COMMERCE

Table of Contents
INTRODUCTION...........................................................................................................................1
QUESTION......................................................................................................................................1
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
E-commerce can be explained as the means of selling as well as buying of products and
services through electronic means such as; mobile application, internet. The transactions of these
kinds of business can be held between customers to business(C2B), business to customers(B2C),
business to business(B2B) and customer to customer(C2C) as well(Pappas and et.al., 2017). This
study explains the importance of e-commerce for an organisation, Axiata Group. Along-with
this, this study also describes the various challenges faced by an organisation while
implementing the approach of e-commerce in the organisation. It also explains the steps which
must be considered in effective development of the various approaches of e-commerce.
QUESTION
Essential of e-commerce in business and major challenges faced by organisation in
implementing e-commerce.
E- Commerce is an process of conducting transaction between sellers and buyers in
business through internet. As continuous growth of the internet technology that has change the
business market. It is essential for the organisation Axiata group today in many way such as.
Decrease in Cost
The cost made on advertisement and communication is became less by using the mail and
online advertisement. Cost incurred in HR is also low. Most of the process are automated in
business. Through this middle man are eliminated in this process as there is direct link between
the customer and business. It reduce the maintenance inventories due to effective supply chain of
the organisation Axiata group(Mazzarol, 2015).
Increase in Revenue
Through the use of e-commerce it increase the sales which helps the business to have
greater profit out of it . Where the e-commerce make the business being open for 24 X 7, which
helps the organisation Axiata group to increase in revenue. It also helps the customer to attract
towards the organisation as the firm provide the full service to the employee. Which make the
employee more happy toward the company as the company providing more digital services to the
customer. It retain the customer to the same company which in result increase the revenue of the
company.
Effective information management
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E- Commerce help the organisation Axiata group to create process, store, distribute and
retrieve of any information cheaply and quickly. This benefit help the organisation to remove the
gap of communication Between the customer and business or between business to employee or
between business to business. As all know that communication is the lifeblood of every business
organisation. Management of good information enable the apex level management to decision
quickly and make use of best opportunity at right time. Hence e-commerce is essential for every
stage for effective information management(Yu and et.al., 2016).
Global Reach
It is an medium of global reach. Business organisation Axiata group are able to send the
message all over the world through the electronic medium. And it help in explore new market
and reach globally at cheaper cost. E-Commerce attract the consumer and business client from
anywhere throughout the world with the help of internet at global reach.
Transaction efficiency
E-Commerce is an essential for business process which help the business to streamline
the operating business. Efficient transaction of business cycle can reduce the delivery delay. E-
Commerce save time, as it take minimum time to complete the transaction and also it maintain
the efficiency of transaction.
Major challenge faced by organisation in implementing e-commerce
There are several common challenges faced by the organization Axiata group by implementing
the e-commerce which are-
Finding right product to sell.
E-commerce help the organisation to find out the right products to sell in the market. Like
shopping cart platform- where the shopify eliminated many barriers of entry(Oliveira and et.al.,
2017). Anyone can start sell of products within day and can sell any kind of products by
launching online store. For example Amazon- where as amazon is also dominating the e-
commerce with their huge online products catalogue. All of this e-commerce business made
difficult for the retailer to sale unique products in the market and it effect the retailer business.
Attracting the perfect customer
On-line shopper do not shop the same way or unstable. They keep on changing the new
strategy. They use amazon to choose the products and ask recommendation on to the social
media(Chaffey, Hemphill and Edmundson-Bird, 2015). They use smart products to use about the
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review of their products while in the store. Pay for the purchase using all kind of payment
method. And hence lot has been changed the way that consume content and communicate
through online. Likewise it attract the customer through electronic media.
Generating targeted traffic
As evolving the digital marketing channel. Retailer can't rely on one type of channel to
drive the traffic to their online store. They effective leverage the email, ppc, social, display ads,
re-targeting and drive qualified traffic towards the online store(Travis, 2017). They must visible
but the audience paying attention.
Nurturing the ideal prospects
Small percentage of email list will convert to paying customer, retailers always deliver
value with their email marketing efforts. Whereas online make a lot of focus on communicating
about the product, effective offering and promotion of product as well. But the prospect need
more than that. Hence having the large list of email Id is useless if not actively subscribe.
Capturing quality leads
Online retailer spending the significant amount of money driving traffic to online store
where the conversation range between the 1% to 3% they put lot of efforts in generating leads
order to get most out of marketing efforts. Like the money in list and build the email subscribe
list is key for long term success. It not only help you to communicate the message. but it allow to
prospect better use of tools For example Facebook custom audience. Where Retails can crafts the
right message to the right audience(Kim and Peterson, 2017).
Converting shoppers into paying customers
Driving an quality traffic and nurturing which leads a key if want to close the sale. At
certain point it need to convert all those lead to pay for marketing campaign. Retailers
continuously optimise the efforts in converting both email as well as website visitor Conversion
optimization is continuous process. They converting all the customers which are highly payable
and can easily afford the cost of the things as compare to the customer who can't afford much
high.
Retaining customer
Attracting new customer is more expensive as compare to retaining the current ones that
already have. Retailers can implement tactics to help them to get most of out of the customer
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base in raise lifetime customer(Laudon and Traver, 2016). For retailer it is difficult to attract new
one but can maintain existing by using the proper technology.
Achieving profitable long term goal
One way to increase the sales for the growth of the business but at end what matter is
profitable. Whereas online retailers must find way to cut stock cost, improve marketing
efficiency, reduce shipping cost, reduce overhead and control return orders.
Choosing right technology and partners
Some online retailer face growth challenges because their technology is limiting as they
hired the wrong partner to help in manage the project. For achieving growth the retailer built
good technology foundation. And choose the right partner to work with. Like many a time the
retailer not having the proper technology because of many reason will be their, sometime the re
tailor select the cheaper technology which nay effect the business growth. And their growth
remain stable at same place.
Process in developing an effective e-commerce approach to gain competitive advantage.
Business through electronic media is in trend now-a-days, several organisations are
concerned in developing their operations on the platform of e-business(Cui and Pan, 2015). The
telecommunication organisation Axiata Group is also in the race of developing approaches of e-
commerce effectively, in order to get competitive advantages in competitive market among its
competitors. For developing an e-commerce approach successfully, an organisation is supposed
to follow certain steps. These steps are discussed as under:-
Identification of high demanding products-
First of all, an organisation need to concern about the product which it is deciding to offer
and its market demand. Axiata Group, needs to make production of such goods which are highly
demanded in global market, have high margins of return, and the product whose warehousing is
not complex. As earlier an organisation make an effective analysis of trend in the competitive
market, the more that business concern get the chances of developing its business through
electronic media well. If the analysis goes in wrong direction then it may result in the failure of
the product of an organisation in market and its competitors will get the chances to take this
failure of organisation as an opportunity to themselves(Mazzarol, 2015).
Selection of right manufacturer-
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When an organisation is planning to enter in the global market through electronic media,
then to meet out the demand of global customers by offering them the international quality
products has become the main concern of that organisation. It is important to have the right
selection of manufacturer who can manufacture the best quality products to meet out the demand
of concerned customers. While having contract from overseas producers or the manufacturer, an
organisation need to place an effective communication as because this is the only way by which
the manufacturer can produce the quality and quantity of particular product. Lack of quality in
the product leads the failure of the product in the competitive market and the competitors will
take advantage and grab the market as well as the customers of the organisation, Axiata Group.
To meet the demand of the customers globally, and to lead the competitive market the
organisation has to select a right manufacturer(Travis, 2017).
Appealing brand name-
To make the customers to remember the brand name of the organisation for a particular
kind of product, then an organisation must decide an appealing and easily memorable brand
name which can attract the target users of the product. To make the brand name of the
organisation, Axiata Group, memorable for the user of the product, a business concern can make
the use of different types of sources to advertise the brand name and product. Appealing brand
name helps in the growth and development of the company as more customers get attract
towards that brand name and make purchase of the products which further increase the sale of
Axiata Group, which further contributes in the financial position of organisation. The weak
brand name make the competitor's brand name popular among the customers which may result
loss of competitive advantages and at the same affects the goodwill of the organisation
adversely(Yu and et.al., 2016).
Set up revenue aim-
To ensure the sustainability of the organisation in competitive market and to get the
competitive advantage, Axiata Group must set up its revenue aim or goals. An organisation can't
pursue its operational activities without considering the overall cost of the product till it reached
to its final and ultimate user. Overall costs includes:- production cost per unit, cost of shipping,
fees paid to merchant, brokerage and commission etc. An organisation always work for increase
its volume of sales and reduction in production costs which further increases the profit margin or
revenue of the organisation. As every cost which is saved because of increment in sales volume
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can be spend on the further marketing activities for the development of the product(Falk and
Hagsten, 2015). If revenue goals is not established by the organisation then the competitors will
raise their heads in the global market and took the market share of Axiata Group.
Designing appropriate marketing plans-
To design a well-defined planning strategies for the marketing of the product to reach the
global customers by the means of e-commerce is essential and foremost need for developing an
effective approach of e-commerce to ensure competitive advantages over the competitors in
global market. Axiata Group need to plan a strategy in which it is they figure out the various
ways of offering the product to its target customers and also need to find the number of
customers who is preferring the product of organisation. Marketing planning also includes the
tracking the information from the market regarding the customers feedback, number of
competitors, optimization of search engine, setting up the targets so that organisation can grow
quicker(Laudon and Traver, 2016). A weak market plan can put a question mark on the
sustainability of the organisation, as to make plan is good for any organisation but at the same
time the execution of the same is more important. Negligence in the execution of planned
strategy will make the competitors to take the competitive advantages and make the competitors
to enjoy more profits and customers of the product of Axiata Group get shift towards the
competitor's products(Oliveira and et.al., 2017).
Technology development and business analysis-
It is very important step to follow for effective development of e-commerce approaches
for Axiata Group. Now-a-days in the era of tough competition an organisation must develop its
technology with the change of time, and keep their technology updated, so that organisation can
assures its presence in the competitive market. Along with development of technology in the
organisation the analysis of all the business activities is necessary for smooth running of the
business concern. Business analysis includes the analysis of the availability and delivery of the
product to its end users, addressing feedback of the customers, analysis the growth of the
product as well as the growth of the business organisation and fluctuation on the percentage of
profit etc(Chaffey, Hemphill and Edmundson-Bird, 2015). Use of outdated technology and delay
in analysing effectiveness in the development of e-commerce approach will strengthen the
competitors of Axiata Group, which may lead the organisation to suffer the heavy loss.
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For successful development of e-commerce in Axiata Group, the organisation have to
follow the above stated steps which helps the business concern to gain the competitive benefits
in the global market, as because e-commerce provides the wider range of customers. Internet
plays an significant role for the development of e-commerce, that's why the organisation must
emphasize on the proper utilisation of internet sources and develop its own website and mobile
application too, so that the organisation can be updated from the trends of the market and
strategies formulated by its competitors(Kim and Peterson, 2017).
CONCLUSION
From the above study it can be concluded that for the effective and successful
implementation of e-commerce in the organisation, Axiata Group faced challenges. It is analysed
from the study that the development of e-commerce is very important for gaining the competitive
edge over the competitors in the global market. This study also conclude that an organisation
must follow some steps to get competitive benefits from the effective development of the
approaches of e-commerce. The study conclude that the business concern, Axiata Group need to
focus on the technology development for implementing the approaches of e-commerce
effectively in the organisation.
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REFERENCES
Books and Journals:
Chaffey, D., Hemphill, T and Edmundson-Bird, D., 2015. Digital business and e-commerce
management. Pearson UK.
Cui, M and Pan, S. L., 2015. Developing focal capabilities for e-commerce adoption: A resource
orchestration perspective.Information & Management. 52(2). pp.200-209.
Falk, M and Hagsten, E., 2015. E-commerce trends and impacts across Europe. International
Journal of Production Economics. 170. pp.357-369.
Kim, Y and Peterson, R. A., 2017. A Meta-analysis of Online Trust Relationships in E-
commerce. Journal of Interactive Marketing. 38. pp.44-54.
Laudon, K. C and Traver, C. G., 2016. E-commerce: business, technology, society.
Mazzarol, T., 2015. SMEs engagement with e-commerce, e-business and e-marketing. Small
enterprise research. 22(1). pp.79-90.
Oliveira, T and et.al., 2017. Modelling and testing consumer trust dimensions in e-
commerce. Computers in Human Behavior. 71. pp.153-164.
Pappas, I.O and et.al., 2017. The interplay of online shopping motivations and experiential
factors on personalized e-commerce: A complexity theory approach. Telematics and
Informatics. 34(5). pp.730-742.
Travis, D., 2017. E-commerce usability: tools and techniques to perfect the on-line experience.
CRC Press.
Yu, Y and et.al., 2016. E-commerce logistics in supply chain management: Practice
perspective. Procedia Cirp. 52. pp.179-185.
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