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CERTIFICATE
This is to certify that Report titled MARKET ANALYSIS OF E-COMMERCE B2B
PORTAL which is submitted by ROBIN VARSHNEY (00211809913) in the partial
fulfilment of the requirement for the award of the degree of MBA(Software Enterprise
Management),to GGSIP University, Dwarka, Delhi is a record of the candidates own work
carried out by her under my supervision. The matter embodied in this report is original and has
not been submitted for the award of any other degree.
DATE:
_______________________
Mr RAVI SHANKAR RAI
DECLARATION
This is to certify that Report titled MARKET ANALYSIS OF E-COMMERCE B2B
PORTAL which is submitted by me in partial fulfilment of the requirement for the award of
the degree of MBA-(Software Enterprise Management), to GGSIP University, Dwarka, Delhi
comprises only my original work and due acknowledgement has been made in the text to all
other material used.
NAME:
ROBIN VARSHNEY
____________________
rd
3 SEMESTER
DATE:
ACKNOWLEDGEMENT
My sincere thanks & gratitude is due to Mr. RAVI SHANKAR RAI, Project Guide for his
valuable guidance during the course of minor project work on MARKET ANALYIS OF
E-COMMERCE B2B PORTAL in partial fulfillment of the requirements for the award of the
degree of MASTER OF BUSINESS ADMINISTRATION IN SOFTWARE ENTERPRISE
MANAGEMENT.
I am very thankful to Mrs. Mary Jacintha, Head of department of MBA (SEM) for approving
my project work, timely encouragement & supervision.
Lastly, I would like to thank my parents for their help & cooperation in project work,
typing/editing of the project report.
ROBIN VARSHNEY
MBA (SEM)
BATCH: 2013-2015
00211809913
TABLE OF CONTENTS
CHAPTERS.
LIST OF TABLES
LIST OF FIGURES
EXECUTIVE SUMMARY
PAGE NO.
(i)
(ii)
(iii)
INTRODUCTION
ABOUT THE PROJECT
OBJECTIVE
SCOPE OF THE PROJECT
THEORITICAL FRAMEWORK
ABOUT E-COMMERCE
BUSINESS MODELS OF E-COMMERCE
LIST OF EXISTING E-COMMERCE B2B PORTALS
MODEL OF THE PROJECT
3
10
12
13
DATA COLLECTION
DATA ANALYSIS
SWOT ANALYSIS
CONCLUSION
LIMITATIONS
RECOMMENDATIONS
14
15
16
18
19
20
1
2
2
REFERENCES
21
22
APPENDICES
LIST OF TABLES
S no.
Tables Details
Page No.
1.
2.
(i)
LIST OF FIGURES
S.No
Figure Details
Page No.
1.
13
2.
15
3.
16
(ii)
EXECUTIVE SUMMARY
The project aims to do an analysis the B2B type of e-commerce portal of stationary items. As
well as to analysis the perception of manufacturer/distributor and retailers towards the online
portal.
This includes:
Gathered responses to gain a fine insight into the market activities for stationary items.
Analyzing the response generated to check the feasibility of undertaking the project.
Nowadays there are many Ecommerce B2B portals but there is no as such B2B portal
exclusively for stationary items exist.
E-commerce B2B portal provide a market space for retailer and the manufacturer/distributor
where trading partner can trade with retailers and manufacturer/distributor for the stationary
item.
Therefore a need arises to check the feasibility of carrying out this project.
(iii)
INTRODUCTION
OBJECTIVE
The objective of this project is to analysis the b2b type of e-commerce portal of stationary
items. As well as to analysis the perception of manufacture/suppliers and retailers towards
the online portal .
Gathered responses to gain a fine insight into the market activities for stationary items.
Analyzing the response generated to check the feasibility of undertaking the project.
THEORETICAL FRAMEWORK
ECommerce is a latest technology related with commerce and computer. Commerce is the
exchange or transformation or buying and selling of entities (goods or commodities) on a very
large scale involving transportation from one place to another. [Webster]E Commerce is the
process of doing business online. Or we can say that Ecommerce is to conduct business by using
the IT (Information technology, i.e., computer technology and electronic communication) it is
the buying and selling of items or goods or services on the Web using electronic communication
and digital information processing technology.EDI or Electronic Data Interchange is an early
form of ecommerce. Its high cost, use of proprietary standards etc. hampered the spread of e
commerce.
Ecommerce is the process of doing business electronic. It changes the entire business scenario
due to the powerful innovation of Internet, which is spreading fast through the world. The power
of Internet as a global access was felt with the introduction of the World Wide Web (WWW) in
1994. This global network makes global relations with the companies made easier. It is predicted
that, in the near future the digital economy will overtake the traditional economy of all developed
countries.
Ecommerce is a composite of technologies process and business strategies that foster the instant
exchange of information within between organization. Ecommerce strengthens relationship with
buyers make it easier to attract new customer, improves customer responsiveness and open new
markets on a global scale. Ecommerce is the application of various communication technologies
to provide the automated exchange of business information with internal and external customer,
suppliers and financial institutions.
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BASIS
Reduce Data Error
E-COMMERCE
Doesnt involve data at multi
points. Data goes directly from
one computer to another Computer
without involving human being.
2.
Reduce cost
3.
4.
Reduce Processing
cycle time
Ecommerce
reduces
the
processing cycle time of complete
cycles as the data is entered the
system, it is simultaneously
Processed.
5.
Reduce labour
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TRADITIONAL SYSTEM
The buyer and seller create
purchase order on their system
and send it to their trading
partner. The receiver/seller
then
reenter
the
same
information on the computer,
which will create data error.
Time is directly linked to
saving the money. There is
repetition of same work at
every level and it involves a lot
of wastage of time and if the
error is arisen that will lead to
more wastage of money.
It requires reentry of data at
each level and requires lot of
time. So the peak time is
wasted in re entering and
printing of the reports
When the buyer order in a
paper format, the data is re
entered in to the Sellerss
computer and then only
processing can take place
which is a time consuming
process.
Need to maintain a large
number of employees because
onethird of labour force is
employed to fulfil orders from
customers.
ECommerce
EBusiness
Closed System
Secured
Deals with processes needed to facilitate
ecommerce
Used EDI
Always operates on intranet
Involves explicitly business transactions
Focused more on business to business activitie
ebusiness is an online business only
History of Ecommerce
Most people dont realize that ecommerce and its underlying technology have been around for
about forty years. The term ecommerce was originally conceived top describe the process of
conducting business transactions electronically using technology from the Electronic Data
Interchange [EDI] and Electronic Funds Transfer [EFT].EDI is widely viewed as the beginning
of Ecommerce. Large organizations have been investing in development of EDI since sixties. It
has not gained reasonable acceptance until eighties. EDI is a set of standards developed in the
1960s to exchange business information and do electronic transactions. At first there were
several different EDI formats that business could use, so companies still might not be able to
interact with each other. Electronic Data interchange [EDI] allowed different companies to
perform electronic dealings with one another.
13
The internet was conceived in 1969, when the Advanced Research Projects Agency [a
Department of Defense Organization] funded research of computer networking. The Internet
could end up like EDI without the emergence of World Wide Web in 1990s.The web became a
popular mainstream medium (perceived as the fourth mainstream medium in addition to print,
radio and TC) in a speed, which had never seen before. The web users and contents were
increasing at an accelerated rate. Besides the availability of technical infrastructures, the
popularity of the web is largely attributed to the low cost access and simplicity of HTML
authoring, which are the obstacles of EDI Development. The Internet and the Web have
overcome the technical difficulty of EDI, but it has not solved the problem of slow development
of Ecommerce standards.
XML, as a Meta Markup Language, provides a development tool for defining format of data
interchange in a wide variety of business communities. Web services offer a flexible and
effective architecture for the implementation. There is no doubt that XML and the web services
will shape the course of Ecommerce in the years to come.
The next important phase in the History of Ecommerce was the development of Mosaic Web
browser in 1992.The Web Browser was soon given the form of a browser which could be
downloaded and was named as Netscape.
The next important milestone in ecommerce was the development of Napster. Napster was an
online application used to share music files for free. Many consumers used the site and were
dictating what they wanted from the Industry. Napster allowed people to download music from
the Internet for free.
The development and adaptation of DSL and Red hat Linux respectively, again benefited the
process of online business transaction. The year 2000, saw a major merge between AOL and
Time Warner which marked another important step towards the development of Ecommerce.
The World wide popularity of Internet has resulted in the stable development and overwhelming
acceptance of ECommerce. ECommerce provides with a rich online transaction experience.
Business to Business is the largest ECommerce in the present time. Peer to Peer and Consumer
to Consumer are two important types of ECommerce.
14
From the business perspective with less time spent during each transaction, more transaction can
be achieved on the same day. As for the consumer, they will save up more time during their
transaction. Because of this, Ecommerce steps in and replaced the traditional commerce method
where a single transaction can cost both parties a lot of valuable time.
Ecommerce is the most cost effective compared to traditional commerce method. This is due to
the fact where through ecommerce, the cost for the middleperson to sell their products can be
saved and diverted top another aspect of their business. For ecommerce, the total overheads
needed to run the business is significantly much less compared to the traditional commerce
method. The reason due to that is where most of the cost can be reduced in Ecommerce.
To both the consumers and business, connectivity plays an important part as it is the key factor
determining the whole business. From the business point of view, Ecommerce provides better
connectivity for its potential customer as their respective website can be accessed virtually from
anywhere through the Internet. This way, more potential customers can get in touch with the
companys business and thus, eliminating the limits of geographical location. From the
customers standpoint, Ecommerce is much more convenient as they can browse through a
whole directories of catalogues without any hassle, compare prices between products, buying
from another country and on top of that, they can do it while at home or at work, without any
necessity to move a single inch from their chair. Besides that for both consumers and business,
Ecommerce proves to be more convenient as online trading has less red tape compared to
traditional commerce method. Ecommerce itself gives a boost to the global market. In short, if
without any major obstacles, Ecommerce will certainly continue to mature in the global; market
and eventually, it will become an essential business plan for a company in order to survive and
stay competitive in the ever changing market.
Ecommerce business have numerous advantages over off line retail locations and catalog
operators consumers browsing online stores can easily search to find exactly what they are
looking for while shopping and can easily comparison shop with just a few clicks of the mouse.
Even the smallest online retail sites can sell products and turn a profit with a very simple online
0presence. Web tracking technology allows ecommerce sites to closely track customer
preferences and deliver highly individualized marketing to their entire customer base.
Some of the benefits of ecommerce are
Expanded geographical reach
Expanded customer base
Increase visibility through Search engine Marketing
Provide customers valuable information about your business
Available 24/7/365 Never close
Build customer Loyalty
Reduction of Marketing and Advertising costs
Collection of customer Data
15
16
Limitations of Ecommerce:
Electronic commerce is also characterized by some technological and inherent limitations which
have restricted the number of people using this revolutionary system. One important
disadvantage of ecommerce is that the Internet has still not touched the lives of a great number
of people, either due to lack of knowledge or trust. A large number of people do not use the
Internet for any kind of financial transaction.
Another limitation of ecommerce is that it is not suitable for perishable commodities like food
items. People prefer to ship in the conventional way than to use ecommerce for purchasing food
products. So ecommerce is not suitable for such business sectors. The time period required for
delivering physical products can also be quite significant in case of ecommerce. A lot of phone
calls and emails may be required till you get your desired products. However returning a
product and getting a refund can be more troublesome and time consuming than purchasing, in
case if you are not satisfied with a particular product. Some of the other limitations are:
Costs involved with bandwidth and other computer and server costs
Some customers need instant gratification, and shipment times interrupt that
Search utilities far surpasses the speed used to find products through catalogs
17
Channel Management
Ecommerce allows for speedier distribution of information regarding changes in
operational conditions to trading partners. Technical, product and pricing information can be
posted with much ease on electronic bulletin boards.
18
Payment Management
An electronic payment system allows for a more efficient payment management system by
minimizing clerical errors, increasing the speed of computing invoices, and reducing transaction
fees and costs.
Many organizations are implementing electronic commerce in numerous ways and
receiving tangible benefits but as electronic commerce matures and develops, these ways are
likely to change based on the accelerating adoption rate.
19
20
This e-commerce B2B portal gives the market space where retailer interacts to their
trading partner.
There is only information flow between trading partner and retailer through the medium
of the E-commerce B2B portal. This information flow is the two way from trading
partner and retailers and unidirectional from distributor to trading partner.
Material flow takes place from manufacturer / distributor to trading partner and from
trading partner to retailers.
Revenue will generate through trading with manufacture and with retailers. Revenue
model is decided on mutual consent between the two parties.
21
act
as
an
intermediary
between
DATA COLLECTION
To check the feasibility of this project, we need to collect the data and analysis it. Here the
primary data could be the efficient data for the analysis.
Primary Data:
Data observed or collected directly from the first-hand experience or we can say primary data are
originated by a researcher for the specific purpose of addressing the problem at hand.
22
DATA ANALYSIS
Data analysis is based on the responses of 41 Distributor i.e.(sample size is 41).
There are 25 distributors who are in favor of this exclusive E-Commerce B2B portal.
10 distributors are neutral with this portal they are not sure about the success of this
project so they believe in the testing of the project before use.
6 distributors are against of this portal because they are not in the favor of electronic
commerce.
23
Data analysis is based on the responses of 53 retailers (i.e. sample size is 53).
There are 26 retailers who are in favor of this exclusive E-Commerce B2B portal.
10 retailers are neutral with this portal they are not sure about the success of this
project so they believe in the testing of the project before use.
17 retailers are against of this portal because they are not in the favor of electronic
commerce because they believe in touching and feel stationery items and select item
and decide to purchase from its own.
24
SWOT ANALYSIS
STRENGTHS
25
CONCLUSION
Since the majority of distributors and retailers are in favor of this portal so it is feasible to
carry out this project.
B2B Portal provides the cleared and well-structured deal and enable the global market
where you can promote your unlimited product and services in a very cost effective way.
Without any more efforts you can easily enhance your global market presence by getting
inquiries from buyers across the world and generate large amounts in revenue.
26
LIMITATIONS
27
RECOMMENDATIONS
Live demo of the E-commerce B2B portal will help to convenience other retailers and
manufacturer/Distributors.
Before making an inventory decision trading partners should explore more market.
28
REFERENCES
http://www.tutorialspoint.com/e_commerce/e_commerce_quick_guide.htm
http://www.livemint.com/Companies/5rcMyyEJgbQzZUnkJ9dRjJ/Amazon-stake-inseller-may-come-under-scrutiny.html
http://www.ecommercetimes.com/news/viewpoint2000/view-000411-1.shtml
B2B Business Models Essay by Ruth A. Wienclaw, Ph.D. EBSCO Research Starters
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APPENDICES
QUESTIONNAIRE FOR RETAILER:
1. For how long years are you using the internet?
a. 1 year ,
b. 2 years,
c. 3 years,
d. More
2. Have you done any transaction over internet?
a. Yes
b. No
3. What is the advertisement medium of your product?
a. Newspaper,
b. TV
c. Magazines,
d. Exhibition/ trade shows
4. Have you ever used any portals for your products promotion?
a. Yes
b. No
5. Rank in order of your preference the various portals provided by the company.(rank 1 for
the best one..)
a. Indiamart.com
b. Tradeindia.com
c. Alibaba.com
6. Do you think that promoting your product through a definite business portal will
ultimately help in exposing your product globally?
a. Yes
b. No
7. Which is the best medium of promoting the products features through online? (RANK
IN ORDER OF PREFERENCE)1-BEST
a. Trade fare
b. Print media,
c. Electronic media
8. Do you think web portal will help in your business ?
a. Yes
b. No
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