E-commerce Report: SWOT, Payment and Security Analysis

This report provides a comprehensive analysis of an e-commerce business, focusing on a case study of HomeStay, a Peru-based hospitality company. The report begins with a SWOT analysis of HomeStay's proposed e-commerce website, discussing business, technological, and geographical benefits, issues, and challenges. It then assesses the feasibility of m-commerce, highlighting its advantages and issues. The report further explores two online payment methods, justifying their selection, and delves into the security problems e-commerce businesses face, such as credit card fraud, malware attacks, phishing scams, and privacy concerns. Part B of the report focuses on The Furniture Store, identifying five critical success factors for adopting e-commerce technologies and suggesting marketing strategies. It also analyzes the advantages and disadvantages of m-commerce for the business and examines five security risks, providing countermeasures. The report draws on various academic sources to support its analysis and recommendations.

E COMMERCE

TABLE OF CONTENTS
PART A...........................................................................................................................................3
a) Critical analysis of proposed idea using SWOT analysis discussing of business,
technological and geographical benefits, issues and challenges..................................................3
b) Feasibility of m commerce of proposed website and its involved advantages and issues......5
c) Two online payment methods and justification behind it........................................................5
d) The security problems which will be faced by the E-commerce business..............................6
PART B............................................................................................................................................7
QUESTION 1...................................................................................................................................7
a) Five critical success factors (CSF) for the introduction and adoption of e commerce
technologies at The Furniture Store.............................................................................................7
b) Five suggestions with justification for successful marketing of firm's e commerce site........8
QUESTION 2.................................................................................................................................10
a) critical analysis of two advantages and two disadvantages related to m commerce for The
Furniture store business.............................................................................................................10
b) Critical examination of five security risks of m-commerce that can be faced by The
Furniture Store with their countermeasures...............................................................................11
REFERENCES..............................................................................................................................13

PART A
E commerce is defined as selling up of goods and services to buyers on online medium.
The retailing facility using the internet or digital tools. Nowadays, many major and smaller
enterprises are using e commerce platforms to promote and sell their products and services. The
advancement of technologies have played a significant role in development of companies using
E commerce platforms and supports in growth with expansion.
Part A covers measures about hospitality service provider company, HomeStay. The
report covers the feasibility study using SWOT analysis. The advantages and issues with threat
factor are analysed. The suitable payment method for e commerce business idea is discussed
with the security issues to be faced.
Overview of company
HomeStay is a Peru based company that provides home stay facilities to tourists in the
form of ethnic villages and heritage homes. On the basis of their high quality products and
tourism related facilities which is offered, they are able to get regular positive response from
sites like TripAdvisor. They have 12 walk-in-offices with bunch of travel agents and planning to
move to online and digital platform to get good number of audience over larger geographical
areas. Here, the proposed idea of making necessary changes by setting up of a website includes
allowing customers to access accommodation facilities, self-registration facility, booking rooms
and making online payments all at one site.
a) Critical analysis of proposed idea using SWOT analysis discussing of business, technological
and geographical benefits, issues and challenges
The idea proposed by management of HomeStay is to improve its website so that it can
provide the services like allowing customers to access company's accommodation facilities as
per their choice, registering themselves, booking room through internet and make online
transaction for the services (Kim and Peterson 2017). All these will support growth and
expansion of organisation using E-commerce mediums. This is planned to improve level of
operations and make payments related to booking of rooms. SWOT analysis is used to provide
critical assessment of benefits and issues or challenges which are faced by the selected enterprise
as follows:
SWOT ANALYSIS

STRENGTHS WEAKNESSES
 Good customer and market
reputation: HomeStay is known to
provide its customers with high quality
products and services, which plays a
vital role in getting good customer
reputation leading to growth of
business. Besides this, The selected
company is also known to have
impressive reputation in market due to
its reliability and quality of products
and services.
 Large number of travel agents to
support: Products offered by
HomeStay are made easily accessible to
customers by the large number of travel
agents. They undertake measures to
develop accessibility between company
and customers from various countries.
 Improved product portfolio:
HomeStay not only provide good
accommodation facility to tourists
during their stay but also offer home
cooked food that gives tourists a unique
experience (Wang, Wang & Liu, 2016).
 Limited within Peru: HomeStay is
currently operating on local levels
within Peru. This restricts the business
and geographical growth which affects
organisation adversely.
 Offline presence restrict customer
base: At present, the website of
HomeStay is not technically adequate
to manage all its business operations as
it only provides the overview of
mission, vision and accommodation.
This affects its expansion and growth.
OPPORTUNITIES THREATS
 Moving to online medium: HomeStay
has a golden opportunity to move
online using a E commerce site. This
supports better offering of services by
organisation.
 Increase in interest regarding
travelling: This is a bigger growth
opportunity as it will lead to expansion
of business and mark a geographical
presence by HomeStay.
 Stiff competition in online hospitality
firm: Many other hospitality
enterprises are already working on e
commerce platform prior to HomeStay.
This will be a big competitive threat to
organisation.
 High amount of resources required:
Applying and implementing e
commerce requires high technological
and geographical presence impacting
growth of business.
The benefits of E commerce website is that it will not only incorporate the technological
advancement within hospitality firm but also improve the geographical presence of firm in its
neighbouring countries. The accessibility of customers on international level will be increased,

enhancing the sales and growth of business (Kim and Peterson 2017). The online booking and
payment facility will lead to make the services faster.
However, On the other hand, certain issues also prevails related to e commerce. High
level of expertise is required to manage technological and demographical enhancement
operations. Besides this the cyber security threat and lack of proper ethics related to online
transactions and E commerce is a major threat.
b) Feasibility of m commerce of proposed website and its involved advantages and issues
The m-commerce or mobile commerce is a part of E-commerce facilities that has been
incorporated within HomeStay. This includes usage of mobile devices to carry out e-commerce
operations and has the following advantages and issues.
According to Rutherford and et.al., (2016)the m-commerce increases mobility for the customers.
As the m-commerce operations include the use of mobile devices, it improves the accessibility to
e-commerce facilities of HomeStay. The customers can reach the services of firm, anytime and
from anywhere. Besuides this, it saves time and resources utilized by organisation. As m-
Commerce improve accessibility of user, it saves the time and equipments that are incorporated
for online retailing purpose.
However, as per the findings of Wang, Wang & Liu (2016) it has certain Issues such as
cyber security. This is a serious concern related to e commerce operations of HomeStay,
especially related to m commerce. It leads to loss of intellectual property, vital informations and
other resources from the firm. It includes the threats like malwartizing, hacking or keylogging.
c) Two online payment methods and justification behind it
In order to incorporate the online payment or transaction measures within the e
commerce website, various payment methods are incorporated. This will help in proper transfer
of money and make payments for the services utilized by user at HomeStay. The two major
transaction methods are:
 Mobile banking: This involves the effective planning of the operations which are carried
out by the organisation which will support the effective online transaction. It involves the
transaction using credit/debit cards, direct through the bank account or other mediums
(Goolsbee and Klenow (2018).
 Paypal: It is a digital wallet or a mobile payment service provider that contains the
virtual money or is linked with a person's personal bank account. This allows the fast and

secure payment process that will help in improving the effectiveness of e commerce
measures which are taken in consideration by HomeStay.
The reason behind choosing these mediums of payments is that these measures are
relatively faster, convenient and secure as compare to offline transaction methods that can be
undertaken by chosen hospitality firm. It is a popular mode of transaction among younger
generations.
d) The security problems which will be faced by the E-commerce business.
The security risks is associated with the E-commerce can be result of human error, an
accident or unauthorized access to systems. The security problems may affect the E-Commerce
business of Homestay are as follows -
Credit Card fraud – The Credit Card fraud is the most common security threat that Homestay
can face. The credit card fraud occurs when the hacker gains the unauthorized access to tourist
personal and payment information. To access this data the hacker penetrate the database of an E-
commerce site by using the malicious software programs(Wang, Wang, and Liu, 2016). The
credit card hacker’s intention is steal the Tourist data in order to sell it to the black markets.
The Homestay can use Firewalls to prevent external users from gaining the access to
information held on the computers. They can also use intrusion detection software that can
provide an early warning for the Hackers.
Viruses, malware attacks – The Malicious software programs can affect the E-Commerce
business of Homestay. The attackers usually injects the web pages and the files with these
malicious programs in order to help them in gaining access to E-commerce business. Through
SQL injection the attackers easily insert the malware into the website’s database which allows
them to compromise the data stored in the database.
The Homestay should ensure that all the computers should have the virus protection and
firewall. The Homestay should also advice their Employees not to use the unauthorized programs
and download any documents from the internet which contain virus.
Phishing Scams – The E-commerce business of Homestay could also be faced security problem
by Phishing Scams. These scams focus is on targeting the important user data like credit card
numbers and login certificate of the tourist information. The attacker can sent the email to an
online shopper a phishing scam that may contain a link to a malicious site that can match the e-
commerce site of Homestay.

The Homestay should also give advice to their employees to avoid the opening the email
attachments unless it is for them.
Privacy of online transactions – The attackers are now creating fake sites to obtain the
customer's information. This can happen with the Homestay too and this sites can be created
easily in little cost to the fraudsters (Leong, Newell and Cui, 2016). This can cause serious
damage to the Homestay valuations and reputations. The Hackers have been the known to alter
website content to negatively impact the Company's reputation.
Homestay can use the omni-channel approaches to implement fraud management efforts
into their heritage homes in order to quickly detect and address the suspicious activities. They
can use the firewall software to protect their data.
PART B
QUESTION 1
a) Five critical success factors (CSF) for the introduction and adoption of e commerce
technologies at The Furniture Store
In order to incorporate the effective E commerce measures and technologies which are
adopted by The Furniture Store, the management look after proper assessment and evaluation of
success factors of e commerce. These factors will influence and set the operations and growth
measures which are undertaken by the organisation. Some major critical success factors (CSF)
for introducing and adopting e commerce operations within chosen enterprise are:
Concrete reputation: The Furniture Store is well known for providing products and services to
customers since two decades. It indicated that good reputation in market support to attract
customers and increase sales Akter and Wamba, (2016) While, lack of customer base would have
affected business.
Ergonomics and product Quality: This is a major critical success factor in which this Store is
well known in market for providing good quality products and services to their customers. The
views of Zhao and et.al., (2016) indicated that high quality goods are purchased by the buyer
improves their satisfaction level and catalyses an organisations success. On the other hand,
failing to maintain the quality factors may turn out to be fetal for the organisation impacting its
sales.

Affordability: Affordable pricing is one of the major factor that led to success of The Furniture
Store. Getting a good quality product (Furniture) with impressive agronomics on a reasonable
price is the driving factor that impacted the growth in sales of organisation. The findings of
Leong and et.al., (2016) indicates that cost is a very important aspect for an organisation that will
help in improving sales of The Furniture Store. If the company fails to maintain the affordability
of its products, it may lose its loyal and potential customer base within market.
Special customer loyalty programs: As from the case study, this can be said that organisation
has a loyal customer base which provides the orders on regular basis. The findings of Cai and
et.al., (2018, September) suggests that having a loyal customer base is a advantage for an
organisation as its provides the competitive sustainability to a business enterprise. Hence, The
Furniture Store can opt certain measures like offering discounts, sales offer and other facilities
like free delivery to regular customers to have improved sales. Although, maintaining the
positive perception of customer for a long term is a major challenge for the organisation.
Good experience in field: The furniture Store is a well known and reputed furniture enterprise
in Nigeria. The studies of Rahayu and Day, (2015) advise that a good knowledge of one's own
field of expertise will help an organisation to excel in an unexpected manner. The high quality
agronomics and customising the product as per customer need is a major success factor for
organisation. This assists the organisation to predict the customer requirements and market
trends in prior and make necessary changes accordingly. On the other hand, lack of proper
knowledge may turn out to be devastating for organisation.
b) Five suggestions with justification for successful marketing of firm's e commerce site
The five suggestions for a successful marketing of e commerce site of The Furniture
Store.
 Use of social media platform: The furniture Store can opt the usage of the furniture
store for the marketing or promotion of e commerce website. Measures like advertising
on social media platforms, sending e mails and text messages with pop up notifications
can be used for this purpose. All these measures will help in improving sales and gaining
a good level of attention towards its e commerce site (Oliveira Alhinho and et.al. 2017).

The online advertisement can also be used which will help in gaining more and more
traffic towards the online retailing website of The Furniture Store by younger buyers.
 Collaborating on local level: The furniture Store can look after for a collaboration on
local stage within Malaysia. As the organisation desires to expand within Malaysia, these
measures will prove out to be beneficial. It will not only support in raising the awareness
among the potential younger customer base but also help in improving the sales and
growth measures which are undertaken by organisation. Other than this, the virtual demo
can be provided which will help in improving understanding of customers towards e
commerce site. As number of younger customers will be made aware, this will pursue
them to make purchase using e commerce site.
 Search Engine optimization: The use of search engine optimization or SEO tools will
help in effectively improve the accessibility and promotion of e-commerce website of
organisation (Leung and et.al. 2018). As users prefer to access the top links while
browsing internet, this will assist the organisation to keep their website on top while the
search and hence, increases traffic on the online retailing site of The furniture store.
Besides this, the frequent use of key words and utilizing it for the sales purpose will
increase effectiveness of e commerce site to an extensive level.
 Email based marketing: As the organisation provides the office furniture too, it helps in
gaining a good accessibility by the means of email based marketing. E mailing to
corporate organisations and users will lead to driving the desired customer base towards
the online retailing site of The Furniture Store. Besides this, the email marketing is one of
the convenient and cheaper option of promoting one's products and services. This will
lead to a significant rise in sales and boost the online traffic of younger users towards the
website.
 Pay per click marketing: As the measures like use of search engine optimisation, email
marketing and social media platforms will help in keeping the link of e commerce
website in the trend (Santos, Hortaçsu and Wildenbeest, 2017) As a younger user will be
accessing the site, a payment will be made to the browser as well as The furniture Store.
This will help in generation of a decent revenue and attract higher number of users or
potential buyers on site. Besides this, the firm can opt for offering certain benefits to

users on browsing and clicking on their e commerce site. It will turn out to be an effective
medium to promote the products offered by organisation.
QUESTION 2
a) critical analysis of two advantages and two disadvantages related to m commerce for The
Furniture store business
M-commerce operations have gained a significant popularity in recent time. This has
became a epitome of e- commerce operations which are undertaken by an organisation. As the
organisation is planning to penetrate within Malaysia, using this on a regular basis and
effectively will prove out to be beneficial for organisation. Nevertheless, it will have certain
advantages and disadvantages, which is required to be significantly handle by management of
organisation. The critical assessment of two major advantages and disadvantages of m-commerce
measures of The Furniture Store are:
Advantages:
Convenient in use: The finding of Mavlanova, Benbunan-Fich and Lang, (2016),
indicates that the m-commerce site is very beneficial and effective for the user as it is very easy
to use. The majority of users (especially younger customers) uses the mobile devices for the
shopping purposes. Thus, in such conditions, the proper implementation and utilization of m-
commerce sites will lay a very significant impact on growth of firm. Other than this, it is a faster
and comparatively cheaper option to make purchases, increasing interest of younger audience
towards the m-commerce sites.
Localisation: The findings of Sharma and Lijuan, (2015) suggest that planning to
operate within Malaysian market, management of The Furniture store look after the providing
the services of m-commerce as per the local market, making it easy for both, younger customer
and the business enterprise to access the services. Other than this, using the technologies like
GPS to locate the customer or store of selected organisation will help in increasing accessibility
of customers towards business enterprise and their products.
Disadvantages:
Dependency on internet: The analysis of Westley and Bass, (2016) suggests that m-
commerce operations that are followed by an organisation are deeply based on internet
connectivity. The strength of internet or data network may vary from one location to another in
Malaysia. This will influence the execution of mobile based retailing operation's which will

impact the operations related to e commerce. Lack of appropriate internet connectivity will
hinder the m commerce operations that are followed by The Furniture Store.
Susceptibility to security threats: The research of Deng and Wang (2016) indicates that
the m-commerce operations faces the highest risk of online attacks that makes it unsafe for using
to some extent. The threat factors like malware, viruses, trojan and keyloggers are certain factor
which will influence and impact the operations which are undertaken by the furniture service
provider organisation. The risk factors will also lay an impact on sales and other business
activities which are undertaken within organisation.
b) Critical examination of five security risks of m-commerce that can be faced by The Furniture
Store with their countermeasures
Various risk factors will be faced out by selected enterprise which will impact the m-
commerce operations. Their suitable management is essential in order to observe the
sustainability of organisation. Critical assessment of 5 major risk factors which is faced by The
furniture Store with their countermeasures are:
Data loss and theft: The findings of Fan, Ju and Xiao (2016) suggests that this is a
major risk factor associated with m-commerce operations which will help in significant planning
of the mobile based retailing operations. The loss or theft of vulnerable data of The Furniture
Store will influence its sales and thus, impacts the execution of operations by the selected
business enterprise.
In order to prevent such conditions within the business enterprise, appropriate firewalls
and anti theft software's can be installed and placed within organisation. This will play a vital
role in safeguarding the information.
System hacking: Analysis performed by Olajide and et.al. (2016) indicates that data
hacking or getting unauthenticated access is also a major challenge for The Security Store which
will influence the sales and other business operations which are undertaken within the
organisation. The hackers may perform malicious activity on the m-commerce platform of
organisation.
In order to counter and prevent such situation, certain security measures can be
undertaken such as abstaining the access to malicious and suspected links or messages, not
answering to mails from unknown sources etc. which help in protecting the firm.

Privacy leakage: The research of Holm and et.al. (2017) showcase that the m-commerce
operation of the furniture retailing firm are greatly susceptible to leakage of private information
which may affect the operations of the furniture retailing enterprise.
Proper firewalls and authentication is required to be observed which will help in
protecting the data and other personal information within the firm.
Viruses and malware: The study of Wang Wang and Liu, (2016) suggests that viruses
and malware's are also a big security threat that will impact m-commerce operations of The
Furniture Store.
In order to prevent the attack, suitable anti viruses and anti malware software's can be
used. It supports protection of data.
Location based accessibility: The research of Leong, Newell and Cui, (2016) indicates
that sometimes the location based services also lead to severe security threat. Hence the
inappropriate access of location can impact the data and information security and may turm out
to be a threat factor.
In order to prevent such conditions, accessing the internet and m commerce operation on
unknown network must be avoided. Also, proper firewalls must be placed.

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