Business Project: Evolution of E-commerce in Romania

This business project investigates the evolution of e-commerce within the Romanian business environment. The research aims to determine how e-commerce has contributed to the growth and development of the Romanian business environment. The study employs a descriptive research design, utilizing a deductive approach to test assumptions and validate hypotheses. Qualitative research methods are applied to analyze data gathered from interviews with 20 Romanians living in the UK, providing insights into the evolution of e-commerce in Romania and comparisons with the UK market. Secondary data sources, including websites, books, and journals, are also used. The project includes an introduction outlining the research aim, issues, objectives, and chapter summaries. A literature review explores e-commerce significance, barriers in Romania, and relevant regulations. The methodology chapter details the research design, data collection, and analysis methods. The analysis and discussion chapter presents the findings, followed by conclusions and recommendations. The project includes a personal reflection and references, providing a comprehensive overview of the Romanian e-commerce landscape.

BUSINESS PROJECT

Abstract
The project aims to determine the evolution of e-commerce within the Romanian
business environment. The issue identified has e-commerce contributed to growth and
development of the Romania business environment. For the present study, the researcher has
applied descriptive research design to address the research issue and comprehend the study
efficiently. Deductive research approach has been used by the researcher to testify the
assumptions and validating the hypothesis of the study. Qualitative research method is used for
analysing the descriptive data and hence, in the present study, qualitative research method has
been used to analyse the descriptive data collected from interviews. For this research were
interviewed 20 Romanians which are living in UK and they also know Romanian e-commerce
situations to understand the evolution of e-commerce in Romania and to analyse the difference
between UK and Romania E-commerce. Secondary source of data is interpretation of data
collected by others. The researcher has access to different relevant websites, books and journal to
interpret the data. In the present study, the researcher has used thematic analysis to analyse the
collected data and interprets it effectively which will be easily comprehensible for the end users
of business project.

Table of Contents
TITLE..............................................................................................................................................4
CHAPTER 1: INTRODUCTION....................................................................................................4
1.1 Introduction...........................................................................................................................4
1.2 Research Aim........................................................................................................................5
1.3 Research Issues.....................................................................................................................5
1.4 Research Objectives..............................................................................................................5
1.5 Chapters Summary................................................................................................................5
CHAPTER 2: LITERATURE REVIEW.........................................................................................7
Barriers in e-commerce business of Romania.............................................................................8
Regulations related to internet transactions..............................................................................11
Ways to promote positive attitude of customers towards e-commerce.....................................14
CHAPTER 3: METHODOLOGY.................................................................................................15
CHAPTER 4: ANALYSIS AND DISCUSSION..........................................................................18
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS...................................................26
5.1 Conclusion...........................................................................................................................26
5.2 Recommendations...............................................................................................................26
5.3 Personal Reflection.............................................................................................................27
5.4 References...........................................................................................................................28
APPENDIX I.................................................................................................................................32

TITLE
The evolution of e-commerce within the Romanian business environment
CHAPTER 1: INTRODUCTION
1.1 Introduction
Increase in global expansion and rigidity in globalisation and liberalisation policies
affects the marketers and organisations greatly. Now business are expanding rapidly and with the
help of evolved technologies organisations able to enhance customer base and profits efficiently
(Voineagu and Begu, 2016).E-commerce or electronic commerce is the terminology that is used
by the business that involves transfer of information across the internet. E-commerce (electronic
commerce or EC) E-commerce (electronic commerce or EC) is the buying and selling of goods
and services, or the transmitting of funds or data, over an electronic network, primarily the
internet. These business transactions occur either as business-to-business, business-to-consumer,
consumer-to-consumer or consumer-to-business. The terms e-commerce and e-business are often
used interchangeably. The term e-tail is also sometimes used about transactional processes for
online shopping. As the information technologies and systems are thriving ceaselessly, business
organisations are formulating and developing different methods that helps in improving the
business practices and leads towards growth and development of the organisation. Romania is
considered as biggest e-commerce industries in South-eastern Europe (Popescu, 2015).
According to the data acquired from GpeC (eCommerce awards Gala) there about 5000
online shops active on the Romanian market and majority of the populations prefer online
shopping in the country (Ecommerce in Romania, 2018). The online retail sale in country
surpasses 1-billion-euro mark in year 2014 in 2016 it reaches to 1.8 billion. As the agility and
accessibility in internet plans increases, smartphone penetration in the country enhance, majority
of population of the country diverts from traditional shopping to digital shopping (Nica, 2015).
The e-commerce business organisations further provide effective offers in order to attract the
customers towards online purchase of products and services. 19 million people reside in
Romania out of which 9.4 million uses e-commerce for online transactions. This is nearby 50 per
cent of the total population. The figure shown below is the estimation of number of users that
will be increase in 2021 (Turban and et.al. 2015).
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The business project will be formulated in the systematic manner so that end users can easily and
efficiently comprehend the concepts. Research methodology shows the design, approach and
strategy of research along with data collection, sampling and analysis. The data will be collected
from 20 Romanians living in UK but with deep knowledge about past and actual Romanian e-
commerce situation by conducting interview survey. Data analysis and discussion will be
provided in the project and eventually best recommendations will be provided by the researchers
that will help Romanian organisations to increase their productivity, profitability and users.
1.2 Research Aim
Aim
“The aim of this project is to determine the evolution of e-commerce within the Romanian
business environment.”
1.3 Research Issues
Has e-commerce contributed to growth and development of the Romania business environment?
In the research project, the issue has been identified by the researcher whether, e-
commerce contributed to growth and development of the Romania business environment? In the
light of this statement, the researcher will conduct the in-depth research by analysing the
business organisations that trades online.
1.4 Research Objectives
To attain the aim of the research had been formulated following research objectives:
1. To Investigating the significance of e-commerce in the business environment
2. To Examining the impact and importance of e-commerce to the Romanian business
environment
3. To Investigating how the present e-commerce practises in Romania can be improved.
1.5 Chapters Summary
Business project must be done in systematic and structured manner. To increase the
effectiveness of the research, this research was classified in five chapters. The summary of
chapters is described below:
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Chapter 1- Introduction: Introduction is the beginning and first chapter of present business
project. The researcher will provide brief information about the project including aims,
objectives and research issues.
Chapter 2- Literature Review: The motive of literature review is to provide theoretical
framework to the study. This is the second chapter, where researcher will identify, analyse,
interprets the review proposed by senior scholars, researchers and authors about the evolution of
e-commerce in Romania.
Chapter 3- Methodology: Research methodology demonstrates the structure and methods
applied in the business project. This is third chapter where researcher will discuss the precise
methodologies which will be used to conduct the business project smoothly.
Chapter 4- Analysis and Discussion: In research project or dissertation, analysis and discussion
chapter are considered as very important one. In this chapter, the researcher will transmit the
gather information to the end users. This will help them to understand the flow of project.
Chapter 5- Conclusion and Recommendations: This is fifth and last chapter of business project
where researcher will sum up the study. In this last part will be discussed things which were
covered in the business project.
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CHAPTER 2: LITERATURE REVIEW
The significance of e-commerce in the business environment
In argument of Brinkmann, (2014), E-commerce stands for electronic commerce and
through the electronic media it pertains to trade in goods and services. As per Ilie, Bălăceanu and
Apostol, (2015), an important role is being played by the e-commerce in the online business. In
the online market to reach out to the new customers it is one of the best and cheaper
intermediate. A smart way of conducting business is being offered if e-commerce is effectively
implemented. By making use of e-commerce in the business the sale revenue will increase.
The business is being revolutionized by E-commerce with a wide range of online
activities of business for product and services are being introduced by E-commerce. Over the
electronic system such as internet and other computer network e-commerce refers to the buying
and selling of the product and services as stated by Popescu and Benea, (2017). This system
depends on the technologies such as electronic funds transfer, supply chain management. With
the use of e-commerce, the business today has become more efficient. Less money is being
spend by the people in the business and they reach huge profit with e-commerce. The use of e-
commerce has given more flexibility to operation of the business as today business can operate
24 hours a day. Based on the fact where time is essence e-commerce proved its importance. The
time plays an essential role to both the business and consumers in the commercial markets. The
online retail sale in Romania surpasses 1-billion-euro mark in year 2014 in 2016 it reaches to 1.8
billion. As the agility and accessibility in internet plans increases, smartphone penetration in the
country enhance, majority of population of the country diverts from traditional shopping to
digital shopping.
From the perspective of the business during each transaction less amount of time is spent
and on the same day more transaction can be achieved. For the consumer during their transaction
it will save up more time. Due to these e-commerce steps in and it has replaced the traditional
methods in which the single transaction can be cost both parties a lot of valuable time. According
to Andam, (2014), with the use of internet with ease a transaction or order can be placed with
just few clicks in a minute. For example, in comparison with the traditional method a banking
traction can be done through the internet within a few minutes.
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In comparison to traditional methods more time will be consumer to complete the
transaction where this is not case with e-commerce it will hardly take about few minutes to
complete the transaction. It is thus proved that for both the business and consumer e-commerce is
beneficial as with greater efficiency the payment and documentation will be completed. In
comparison, with the tradition methods e-commerce is more cost effective from the viewpoint of
business according with Voineagu and Begu, (2016). The process for the middle person to sell
their product will be saved through e-commerce and it will be diverted to other aspects of the
business. Only a head office is needed to run an e-commerce business so with the use of e-
commerce in the business much of the cost can be reduced.
Barriers in e-commerce business of Romania
Nica (2015) stated that though Romania is providing good market facilities to its
entrepreneurs, the customers are still in their beginning stage. There are various features that
keep customers away from using e-commerce services and products. The foremost barrier is a
lack of trust in internet resources to disclose their banking details. There are limited courier
services, and further restriction in using credit and debit cards restrict companies within their
geographical location. The e-commerce stores such as e-Mag are not promoting its business to
new customer segments. As a result, they are unaware of crucial information and its
implementation in the industry. There is limited number of certificate authority in the
infrastructure of e-commerce business.
Seer, et al. (2012), informed that though the use of internet technology is growing fast,
there is a large proportion of population, who find computer equipment expensive to purchase.
So, they could not reach the service provided by the e-commerce industry. This factor limits the
potential of e-commerce industry to attract new customers. The economic condition of the
country is still underdeveloped and faces difficulty in keeping its telecommunication companies
up to date in the service. The lack of technological barrier in the development of e-commerce
industry in Romania. At present, the government of Romania is working to modify its regulatory
reforms to expand its e-commerce business.
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According to (Şeitan, Gherman and Bulgărea, 2010) lack of education and knowledge
about the benefits of e-commerce transactions affects the purchase behaviour of consumers. This
barriers still affects minority of population which does not prefer online mode of shopping.
E-commerce theories
As stated by (Brinkmann, 2014), in order to understand how the complex, physical,
biological, economic and social system operate the system theory is being proposed by Ludwig
von in 1945.. A system may be, typically defined as a set of different independent and regularly
interacting or interrelating units or subsystems that work collectively to carry out a set of pre-
determined objectives. To understand the business situations, the system approach can be useful
as it uses various concepts such as output, boundaries etc
Adoption theory is also can be sued in E-commerce. To use an innovation here adoption deal
with decision that is made by the individuals or organization. The complexity, compatibility,
compatibility etc may influence the adoption of innovation.
The impact and importance of e-commerce to the Romanian business environment
E-commerce market is impacts on the business trends and customer behaviour. Now customers
worldwide prefer online mode of shopping instead of traditional mode. As per Khan, Syed and
Hashmi, (2016), Romania is a South-eastern European country and in the Balkans it is the
largest. Germany, Italy and France are its main exporters. However, Germany, Italy and Hungary
are its main importers. In the South-eastern Europe Romania is one of the bigger e-commerce
industries. In the year 2015 the e-commerce market of Romania was estimated to be around 1.4
billion euros. In the year 2014 its e-commerce market was expected to be around 1.1 billion. In
Romania there are about 5,000 online stores.
E-commerce business industry in Romania is estimated to be around € 1.4 billion in the
year 2015. It was € 600 million in the year 2013, and € 1.1 billion in the year 2014. Therefore,
the business sales of the e-commerce industry are at its rising phase. Donici & Diacon (2011)
reported that the e-commerce sales of retail products were significantly low, and was between
2.3 and 2.6 %. In 2015, there were approximately 5000 online shops in Romania; it increased by
11 % as compared to that of in 2013. The biggest online stores in Romania are e-Mag, Okazil,
Flanco, Domo, Altex, and others. E-Mag entered the e-commerce market of Romania in the year
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2015 (Nica, 2015). So, it could be conducted that e-commerce business in Romania has enough
potential to enhance its future business. By looking at the growing business sales of the industry,
it could be considered that the Romanian entrepreneurs get a fertile marketplace to explore their
business sales.
Pelău & Bena (2010) suggested that faster access to internet connection would further
increase e-commerce business in Romania. The most demanded products through online stores
are information technology communication products, home decorations, clothing, and shoes. The
maximum number of the online customers tends to pay their payment through cash on delivery
option. Through the customer’s knowledge about the concept of going cashless payment, they
are reluctant to use through the medium. It reveals that customers do not trust online banking
payment. Hence, it restricts the prospects of online industry in Romania.
Nica (2015) informed that the most selling online e-commerce products in the market place are
household items and travel items followed by sporting and fashion goods. Others are music and
books, magazines, and movies CDs.
From the year 2015 there have been increase in the number of users of internet in Romania. In
the year 2015 there were about 11 mil internet users. However, in the year 2016 the number of
internet users was 11.2 million.
Also, the number of online order that is being placed form mobile phones is also
increased to a great performance in the 2016. There was about 25-30% of users who were
making of mobile phones to place an order in the year 2015. However, as stated by Wang, Wang
and Liu, (2016), in the year 2016 this number has increase as there are about 35-40% of users are
making use of internet for placing the orders.
From the year 2013 there have been increase in the number of mobile internet connection
in Romania. There were about 8.2 million poles that were using internet connections, but this is
being increasing each year. In the year there were about 9.9 million internet connection users. As
far as e-commerce demographics are concerned thinks haven't changed too much as per
Voineagu and Begu, (2016).
About 25 and 35 years old is the average age of the Romanian online shoppers and in the
cities most of these people resides. When Romanians paid for services they prefer online card
payments. In the year 2015 and 2016 the online card payment that was used in Romanian was
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about 6-7%. Cash on delivery is the preferred payment method used by them. The online
banking, micropayments by SMS etc. is some other payment methods. According to Turban and
Turban (2018), the internal online merchants there were about 64% of Visa card online payment
in the year 2016.
The plane tickets were mainly included in the purchase. From 40 Euros in 2015 to 50
Euros in 2016 the average order value on visa cards was increased. So, it is being found that
there have being increase in the number of internet users, online shipping and use of online
payment in the Romanian each year and the online shopping sites are also increasing where the
customers can shop the products. The present situation in the Romanian is that have been
increase in the online shopping sites and also the people are also making use of debit card in
order to make their payments as per Brinkmann, (2014).
From the above illustration, it can be understood that the number of e-commerce users in
Romania in 2018 is around 10.2 million and the figure will keep on increasing due to easy
availability and accessibility of technologies. In accordance with this context, the following
business project shed light on evolution of e-commerce market in Romania.
Regulations related to internet transactions
The regulatory legislations of Romania are in accordance with the European framework
of e-commerce policies. The country had enforced it within its national laws to regulate its
information technology and communication in the digital economy. The first law is related to
Laws associated with electronic commerce. This law monitors the e-commerce dealings and
business transactions in the marketplace ((Şeitan, Gherman and Bulgărea, 2010)). The second
law is regard with authority rights; the law considers the rights of the online customers. The third
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is associated with the electronic signature. This law enables the online customers to make their
business dealing online through e-commerce mode by uploading their digital signature in the e-
contracts. The approval of any business dealing could be commenced easily with the assistance
of e-signature.
There is another law related to electronic payments. This law states that the online
banking transactions in the e-commerce industry should be kept secret so that bank account
details are not mishandled. The next law considered in the e-commerce industry is online
advertising. This law states that the information provided through online advertising or during
the promotion of the products should be appropriate. The online customers should not be misled
by fraud information. Details of the products and services of the e-commerce industry should be
actively given to the customers. The adjacent law is about private life (Nica, 2015). The business
details of the products, as well as information about personal data of the customers, should not be
disclosed. Thus, with the implementation of these laws, Romanian government tries to enhance
its prospects of e-commerce industry. However, these laws should be strengthened enough to
enable the customers to make safe and security transactions with e-commerce.
The present e-commerce practises in Romania can be improved
E-commerce activities are taking place in the countries who have higher internet connectivity,
global supply chains and effective mode of transportation plus education. As per Fang and Lim,
(2014), the numbers of present users in Romania who are making use of desktop device to make
purchase are more in comparison with the byers who are making use of mobile devises for
placing order. Since 2015 there has being a considerable growth in the mobile commerce. New
trends of the use of e-commerce need to be adopted by the online buyers also. Several
advantages are being looked by the consumers while shopping. The advantages such as free
delivery, discounts and promotional campaigns needs to be provided to the consumers by the
online shops as stated by Cristache, Ciobotar and Kailani, (2015).
Those demands need to be completed by the online shops and delivery companies. The
market of e-commerce needs to become more proactive and less reactive market. To keep up
with the changing demand of the customer and behaviours the online site of businesses should
try to innovate. The video content, automation, personalization is other important things that
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