E-Commerce operate in a highly competitive environment that forces change in business strategies. Unpredictable change in competitors products and in customers needs and expectations represent market volatility. Several drivers support e-commerce survival and growth:
1. Digital Convergence: The digital revolution has made it possible for digital devices to communicate with one another. The internet’s massive growth during the past decade- a creation of market forces- will continue.
2. Anytime, anywhere , anyone: Today’s e-commerce is available to anyone, anywhere in the world, 24 hrs. a day seven days in a week. E-commerce ties together the industrial sector, merchants, the service sector & content providers using text, multimedia, video & other technologies.
3. Change in organizations: More and more of today’s businesses empower frontline workers to do the kind of work once performed by junior management . The trend is toward partnering owners and managers across departments to develop a chain of relationships that adds value to the enterprise. E-commerce, which makes communication easy, is an ideal method of making these connections.
4.Increasing pressure on operating costs and profit margin: Global competition and the proliferation of products and services worldwide have added unusual pressure on operating costs and profit margins. E-commerce addresses these concerns quickly, efficiently and at low cost.
5. Demand for customized products and services: Today’s customers are collectively demanding higher quality and better performance, including a customized way of producing, delivering and paying for goods and services. Mass customization puts pressure on firms to handle customized requests on a mass market scale. Firms that don’t move with the trend will eventually lose out.
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