Swot Analysis Of e-Commerce

e-ISSN: 2582-5208
International Research Journal of Modernization in Engineering Technology and Science
( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:04/Issue:10/October-2022 Impact Factor- 6.752 www.irjmets.com
www.irjmets.com @International Research Journal of Modernization in Engineering, Technology and Science
[349]
SWOT ANALYSIS OF E-COMMERCE TECHNOLOGY
Ms. Sargunpreet Kaur*1
*1Department-Mittal School Of Business (Commerce), Research Scholar At
Lovely Professional University, India.
DOI : https://www.doi.org/10.56726/IRJMETS30463
ABSTRACT
E-commerce is one of the biggest changes that has taken India's business by storm. It has completely changed
the dynamics of the Indian Environment and basically, E-commerce has great potential that changes the way a
business should be run. Statistics show that the total market size of the Indian Consumer is approximately 740
billion (2011) and is expected to show dramatic growth to $ 675 billion in 2016 and $ 850 billion by 2021 with
the annual growth rate growing. Compared to this data, India’s total E-commerce market was estimated at $ 2.5
billion in 2009 and showed a successful growth of $ 6.3 billion in 2011 and this active growth doubled in 2012
at $ 14 billion billion's-commerce has emerged as a new model.Of business and will live and compete for a long
time and will contribute significantly to the economy in the form of growth and development.
In this paper, we will discuss in detail the SWOT analysis of E-Commerce, which will include concepts of
strengths, weaknesses, opportunities, and threats that the E-Commerce industry faces in the current situation.
Keywords: E-commerce, SWOT, Internet, Market, Competitiveness, Technology.
I. INTRODUCTION
Commerce may be defined as the process of exchanging goods and services between the two business
enterprises using aids to trade. Business, on the other hand, is defined as the state of being busy with some
commercial activity that is going to return you yield in form of monetary benefits [1]. Commercial enterprises
certainly contact each other while transacting any commercial activity.
Previously performing any kind of activity related to business was cumbersome and expensive because one had
to travel long-distance and carry money in his pocket. One of the biggest risks is being carried out while
performing economic activity [1]. The transactions also took a long time to mature. The chain also included
intermediaries, wholesalers, retailers, and consumers. This process was very time-consuming and expensive. At
every stage, there was an increase in the price of the product, which was an ultimate burden on the pockets of
end-users or the consumers [2].
To remove all these hindrances and reduce the added value in the cost of the product or even neutralize the
effect of a burden on the buyer, only one miracle was meant to happen when E-Commerce moved into the
Indian business world and entirely reformed the dynamic forces of all business entities.
This "e" was a phenomenon and when entities started initiating this as a prefix with their business, the prices of
the products decreased and automatically the market went through an overnight transformation [1].
The organizations who have prefixed the word"e" in front of their business operations seem to have rapid
returns for their economic concerns and they all have never-ending success stories [3]. The Internet has become
one of the most powerful and popular mediums for transmitting data and information within a few seconds.
Users can find any kind of information anywhere within a short period as compared to the traditional form of
gathering information that consumes more time and effort [1].
Here again one does not need to stand in long queues for booking movie tickets or railway tickets as all this
complex process has become very easy with the help of Electronic media. This whole process can be initiated in
a few seconds from anywhere in the world.
In other words, E-commerce deals with hard and soft goods and services in exchange for some convenient
charges over the Internet. A very Interesting definition describes the meaning of E-commerce by Kalakota and
Winton in 1997[1].
Kalakota and Winton defined E-Commerce in four different ways [3]:

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1. E-commerce is the delivery of information, products, services, or payments over telecommunication
channels, computer networks, or any other electronic mode of communication.
2. E-commerce is the application of technology towards the automation of business transactions and work.
3. A tool that addresses the desire of the firms, consumers, and management to cut service costs while
improving the quality of goods/services and increasing the speed of delivery.
4. Capability of buying and selling products and information on the internet and other online services.
E-Commerce is also termed as click business where with one click of technology you can perform any business
activity. This click includes Usage of HTML, server, address, website, electronic data interchange, XML, and
protocols [4]. One of the most profitable forms of business. This gives a bundle of benefits like speed, fast
transactions, cost-effectiveness, timesaving, economic, high-profit margins, retaining of the consumers, and
many more [5]. A business concern will follow all the measures that help the business to run smoothly and
effectively.
II. LITERATURE REVIEW
E-commerce in the Indian subcontinent is thriving and poised for robust growth. The success of the E-
commerce business model depends mainly on understanding the market deeply and offering various types of
features. The E-commerce market in 2009 was about $2.5 billion and it rose to $8.5 billion by 2011.
According to the latest research by Forrester, leading global research and advisory firm, the e-commerce
market in India is set to grow at a CAGR* of 67% between the years 2009 to 2012. The report, titled "Asia
Pacific online retail Forecast, 2016 to 2020 has been issued by Forrester Research Inc. Analyst Zia Daniel
Wigder, with Steven Noble, Vikram Sehgal, and Lily Varon. They proposed that e-commerce revenues in India
would jump by more than five times by 2016, jumping from US $ 1.6 billion in 2016 to US $ 8.8 billion in 2020.
Mohd Asim Khan and Preeti Sagar [6] give an overview of the future of e-commerce in India and describe the
future growth aspects and segments in India's E-Commerce. It also has highlighted some opportunities in the
context of retailers, wholesalers, producers, and the people. They both have discussed new emerging trends in
E-commerce, which can enhance economic growth, increase business opportunities, competitiveness, better
and profitable access to markets in India. A new approach concerning Internet marketing in Ecommerce;
showing how advertisers need this innovation to be successful. E‐Commerce is emerging as a new way of
helping business enterprises to compete in the market and thus contributing to economic success. As per their
assumptions, Advanced SWOT Analysis of E‐commerce is Indian oriented which will comprise of strengths,
weaknesses, opportunities and threats faced by e‐commerce in current scenarios in India. India is an emerging
economy and e-commerce has played a pivital role in the growth of the businesses and overall economic
development.
In this paper, the prediction of all the above analysts was correct, as E-commerce is a never-Ending concept for
any successful and developing Economy. As per the Indian Budget, 2022 E-commerce will cover the completely
Indian market with the highest percentage share of 84% in the next four years.
III. NEED STATEMENT (RESEARCH GAP)
After an extensive literature review, there is very minimal research that is exploring the inception of
“Transparency but no transparency”. The need statement also defines “transparency” in the context of
consumer perception.
IV. SWOT ANALYSIS
One of the most important steps that every business should implement for the successful and smooth
operations of its business. Most of the time we have found that the use of electronic technical expertise for
performing business activities adds value or either reduces the transaction costs or even both occur at the same
time [9].
SWOT analysis is about concentrating on various aspects of e-commerce that emerged in the Indian-originated
website" FLIPKART", i.e. focusing on strengths, weaknesses, opportunities, and threats for the flip kart to the
targeted markets.

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SWOT Analysis (An acronym for strength, weakness, opportunities, and threats), here we will be trying to find
out the strengths and weaknesses of E-Commerce in the context of the Indian Business Environment [10].
Then we will be trying to identify the threats and opportunities that can be seen clearly in the business sector of
India. An analyst would work on the following concerns in conducting a successful SWOT analysis.
A table has been inserted to explain the “SWOT “of “FLIPKART.
4.1 Strengths
Strengths-It is an inherent capacity of the firm to have a strategic advantage over its rivals in the business
environment.
Example-The strength of the company can be the best technological tools in the market or tangible assets like
Intellectual Property rights or Adequate sources of capital.
4.2 Weaknesses
Weaknesses-It is an inherent limitation of the firm, which can create strategic drawbacks for a business
operating in a business environment.
Example-High debts, obsolete technology, weak and inefficient management structure. Lack of funds or even
the underutilization of the funds.
4.3 Opportunities
Opportunities-A favorable condition in which the business environment enables them to reinforce their stance.
Example-New markets for coffee like India and The Pacific Rim Nations. The company has an opportunity to
expand its operations in different emerging economies.
4.4 Threats
Threats-An unfavorable condition that can cause damage to the organization in a business environment.
Example-Emerging competition from rivals, negative impact of media and NGOs, changing consumer attitudes
and preferences towards your company.
Strengths
1)Effective and strong Supply and logistics chain.
2)Strategic acquistions
3)Brand awareness among people.
4)Has it own in-house brand"CITRON" for home
appliances and healthcare products.
Weaknesses
1)limited distribution channels
2)Intense competition from snapdeal and
Amazon.
Opportunities
1)increase in the internet penetration.
2) Entry into new product categories
.Recent is the furniture.
Threats
1)New entrants
2)Technological Upgradation by rivals
like Amazon and snapdeal.
SWOT Analysis of
"Flipkart"

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V. HOW E-COMMERCE IS USEFUL FOR SOCIETY?
There is an enormous influence of E-commerce and its commercial activities on civilization. The social impact
of E-commerce has been unpredictable as per the perception of the culture. This can be justified through
following dynamics:
● Greater usage of the internet is one of the fastest emerging demographic sectors comprising learners and
youth.
● E-commerce has bridged the hole between the job hunters and the job contributors in the society-commerce
through the internet provides all types of training to employees all over the world through a wide network.
● E-commerce is a source of amusement.
● The diminishing levels of global warming and air pollution also have helped in improving the quality of air.
● Decrease in traffic as people can buy and sell anything from anywhere and at any time.
● It has brought regional balances in the developing countries.
● The problem of unemployment in the form of call-centers in developing countries has also declined.
● Increase in the production activities as business organizations are able to attract and retain customers from
anywhere in the world.
● Through the internet people can buy goods from anywhere in the world. If the goods are not available in the
local market, then E-commerce is the best solution to buy the product from the international market.
5.1 Environment Protection
In E-commerce, the concept of sustainability can range from business models to packaging products and its role
will simultaneously increase in the coming years.
E-commerce and sustainability awareness has been a trend of discussion in the E-commerce business model.
One of the most talked about topics is corporate social responsibility and eco-friendly supply chain that
addresses the increasing demands of the consumers [7].
According to Sustainability Annual Trends Report, indicates that e-commerce in recent years has experienced
massive growth and this had an unprecedented effect on the environment [7].
To explain it more deeply, more than 2 billion tons of waste ends up in landfills globally every year. All the
cardboard boxes, plastic foam used for packing ,Styrofoam peanuts need to be predisposed to someplace, and
that somewhere is The” Great Pacific Garbage Patch”[7].
There is also a recent trend in the E-commerce business that nowadays many retailers have given an ecological
makeover to their products and have stepped into green business where wooden pallets, paper and cardboards
can be used as home accessories.
This has actually revamped the concept of sustainable development. A new trend out of this has borne out
“Environmental friendliness”. As per this concept, most of the E-business firms have established themselves as
sustainable business promoters.
TOMS has become an internationally acclaimed recognized brand. This brand is using the packaging material
that is mainly prepared out of recycled waste solid (80%) [7].
E-commerce is still good for the economy and the planet. As e-commerce will grow, the economic and
environmental benefits are sure to follow.
VI. CONCLUSION
Any developing nation's progress can be rationalized if it has E-commerce and innovation as one of its primary
concerns. If introduced effectively and resourcefully it will yield high output and gives you an edge over your
competitor i.e. competitive advantage.
With the conceptualization of Information technology, the scope and progress of the e-commerce industry have
increased manifold. It's very important to enter the market as a new entrant and one can evaluate his/her
products and services to know the company's performance. With the development of Information technology,
the business overheads have been reduced and the business operations are enhanced.

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The Internet is one of the most effective marketing tools. Internet marketing will become the future of the
market. Data protection is one of the priority concerns of all the E-Commerce business firms.
Moving forward with the companies like Flipkart, they need to protect themselves in three prominent areas:
integrity of data, confidentiality of data and authenticity by installing firewalls for protection and the trade
secrets are not leaked.
Information technology has boosted the overall efficiency of E-commerce worldwide. This way you can enter
any new market and evaluate your product by assessing the product and the company’s performance. On top of
it, the business overheads have been reduced.
A developing economy like India will definitely give new feathers to the conception of E-Commerce.
VII. REFERENCES
[1] International Journal of Science Technology & Management www.ijstm.com Volume No.04, Special
Issue No.02, February 2015 ISSN (Print) 2394-1529, (Online) 2394-1537 Emerging Trends And
Advanced Swot Analysis Of E-Commerce In Indian Context Mohd. Asim Khan, Preeti Sagar.
[2] Karen A. Forcht and Rolf-Ascan Wex (1996), “Doing business on the Internet: marketing and security
aspects”, Information Management & Computer Security, 4/4, pp. 3–9.
[3] Marquis, S. (2001), “Let’s not ignore the potential of the Web as a mass ad medium”, Marketing, March,
p. 26.
[4] Strauss, J. and Frost, R. (1999), Marketing on the Internet: Principles of Online Marketing, Prentice-Hall,
Upper Saddle River, NJ.
[5] Jim Hamill (1997), “The Internet and international marketing”, International Marketing Review, Vol.
14, No. 5, pp.300-323.
[6] Dighton, J. (1997), “Commentary on exploring the implications of the Internet for consumer
marketing”, Academy of Marketing Science, vol.25 No.4, pp.329-46.
[7] https://blog.getbyrd.com/en/rise-of-sustainable-ecommerce

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