Professional Documents
Culture Documents
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Anuradha Dissanayake
Contents
1.0 Data Collection Analysis-(Precisely) ................................................................................................... 4
1.1 Country-Ghana ................................................................................................................................. 4
1.2 Overview- ........................................................................................................................................... 4
1.3 Related environmental factors- PEST analysis .............................................................................. 4
1.3.1 Political ........................................................................................................................................ 4
1.3.2 Economic ..................................................................................................................................... 4
1.3.2 Social............................................................................................................................................ 5
1.3.3 Technical ...................................................................................................................................... 5
1.4 Current Infrastructure and other resources available .................................................................. 5
1.5 Factors affecting growth of E commerce activities ........................................................................ 6
1.7 Identified Opportunities ................................................................................................................... 7
1.8 Identified Threats/barriers............................................................................................................... 7
1.9 Other Related Facts-Current Trends-Competitors ....................................................................... 8
2.1 Country-Nigeria .............................................................................................................................. 10
2.2 Overview .......................................................................................................................................... 10
2.3 Related environmental factors- PEST analysis ............................................................................ 11
2.3.1 Political ...................................................................................................................................... 11
2.3.2 Economic ................................................................................................................................... 11
2.3.2 Social.......................................................................................................................................... 12
2.3.3 Technical .................................................................................................................................... 12
2.4 Current Infrastructure and other resources available ................................................................ 13
2.5 Factors affecting growth of E commerce activities ...................................................................... 13
2.7 Identified Opportunities ................................................................................................................. 14
2.8 Identified Threats/barriers............................................................................................................. 15
2.9 Other Related Facts-Current Trends-Competitors ..................................................................... 16
3.1 Country-Kenya.................................................................................................................................... 17
3.2 Overview .......................................................................................................................................... 17
3.3 Related environmental factors- PEST analysis ............................................................................ 18
3.3.1 Political ...................................................................................................................................... 18
3.3.2 Economic ................................................................................................................................... 18
3.3.2 Social.......................................................................................................................................... 18
3.3.3 Technical .................................................................................................................................... 19
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1.3.2 Economic
Professional IT related labor force is cheap when compared with developed countries.
Relatively high price for internet access.
-The cost of using IT technology based resources are still high for the citizens because to
the general.
-per-capita GDP in Ghana is low; therefore, access to the internet is very expensive.
-People are charged a metered rate when utilizing, which is contrast to the flat rate fees in
developed countries.
Accessibility towards e-commerce platform-
-Increasing competition among various companies which provides voice and data
communication services
For an Instance-Vodafone & MTN
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1.3.2 Social
Lifestyle changes-
Growth of IT literacy
The growing interest in ICT-related courses within trade institutions & universities and
the incorporation of ICT in early education programs.
But it should be noted that the average Ghanaian uses the internet only to read and send
email and they rarely access to use for other purposes.
1.3.3 Technical
Even though there are increasing number of technological programs like e-commerce;
still the endemic IT expertise in Ghana is lacking.
Due to poor ICT infrastructure in Ghana; the use of expatriate expertise should be
required.
*A plus factor
Ghana is a developing country with low per-capita income.
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Anuradha Dissanayake
Therefore, there is an issue related to scarce resources in the sectors of health and
education.
It is to be considered that 26.5 per cent of Africans are connected to the internet, while the
United Nations reveal that only eight of the 10 countries with the lowest levels of internet
availability in the world are in Sub-Saharan Africa including Ghana.
Therefore, it is very clear that the size of the targeted market is small and it directly hinders
the growth of the E-commerce activities.
Lack of adequate logistics infrastructure
Overcome skepticism in terms of buying Online-Security issues
Availability of niche e-commerce sites
Shipping barriers-The government should improve the road infrastructure and labeling in
order to allow directions to any place for quick delivery.
Lack of a safe and secure online payments system-
The emergence of financial malpractices which derives as ‘sakawa’ have created a lot of
mistrust in fellow Ghanaians
1.6 Facts related to consumer expectations
While considering the competitor analysis; it is apparent that the consumers in Ghana are in the
economical range; therefore, their affordable range has been reconsidered by the competitors when
generating the business ideas.
Moreover, trustworthiness is highly expected by the consumers since many fraud activities were
detected within the transaction procedures related to the online process in Ghana.
The quality of the products and the best service until the process of delivery is expected.
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Anuradha Dissanayake
Fair Information Practice Act can be used in order to address privacy and security issues
Investments initiated by the government in Ghana for ICT graduates and programs-
increase the IT literacy of people, therefore the limited market will expand further.
Enhance investment environment for telecommunication companies in order to provide
mobile systems for citizens majorly in the rural areas
IT services provided by other media companies opens up a new platform for e-commerce.
Availability of alternative IT network infrastructure
Outbursts of IT programs with potential to supply IT labor
Growth of the technology-
Ghana -iGDP of 1.1% President of Ghana plans ahead to build an IT city near Accra –
the capital – with a total investment of about $5.2 bn
Political threats
Lack of continuity and commitment related to technological based programs-online begun
by previous governments-
GCNet project became a failure with the changing of the government. (Schuppan, 2009).
National Identification Registration (NIR) project-
Database system failure-new government did not prioritize.
Economical threats
Global economic crisis
Government depends on foreign investment
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Anuradha Dissanayake
Challenges
The lack of funding and investment for ICT related projects and online programs
Unemployment and high disparity in income between developed and developing nations
within Ghana
Local graduates enter the labor force in other countries-brain drain
Global terrorism and security risks
Use of the internet to commit fraud is a general problem. (Andoh Baidoo and Osatuyi,
2009; Foster et al., 2004).
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eShopAfrica.com-
Creates sustainable businesses for traditional African artisans
Based in Accra, Ghana.
Trading online since 2001 and was one of the first e-Commerce sites based in Africa.
Registered in Ghana as an export only company while promoting products from the non-
traditional sector.
Strategy Implementation-Invest in their artisans enabling them to find new markets and
grow their businesses in a sustainable way.
Tonaton.com-
Given the accessibility to clients- completely free to publish a classified ad on
Tonaton.com
Time efficiency- Takes less than 2 minutes.
Given the privilege of selection of popular second hand items around Ghana
carmudi.com.gh
Their aim is to strengthening the position of consumers by providing information
on the car market, contacting with individuals and professional sellers while
offering the best online market place for vehicles in Ghana-second hand cars
Assuring reliability and trustworthiness
Heel The World(HTW)
url: http://www.htwshoes.com
Aims on high-end bespoke men’s shoes and leather accessories while supporting
people in the start-up space
collaborate with younger fashion brands, paid internships annually.
http://www.dreamoval.com/can-e-commerce-succeed-in-ghana-2/
http://disrupt-africa.com/2015/03/african-e-commerce-long-game/
https://www.modernghana.com/news/640481/ecommerce-report-ghanas-top-20-ecommerce-
websites.html
http://ventureburn.com/2014/12/7-african-countries-booming-ecommerce-markets/\
http://www.pulse.com.gh/news/business/tisu-ghana-e-commerce-platform-launches-new-mobile-app-for-
ios-and-android-id4879527.html
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2.1 Country-Nigeria
2.2 Overview
Nigeria can be recognized as one of the developing countries which have experienced a steady
increase in e-commerce- Nigeria began about 2 decades ago and by 2013 itself e-commerce
platforms have developed up to 75. Therefore, it is very much clear that they have a great progress
related to the growth of e-commerce.
e-commerce in Nigeria began in the era where Automated Teller Machines were the used as the
main mediums of transaction, and now the platforms have grown up to the current state of modified
internet technologies for various e-business transactions including order placement, processing,
fulfillment & delivery and payment options.
The success was solely based on the reason of adoption of e-commerce in Nigeria which can be
evaluated from the level of adoption of information technology within the Country-Growth of the
IT literacy of the individuals.
As an example, within the years 2000 – 2013, internet penetration has moved from 0.06 to 38.00
per 100 inhabitants
Moreover, within years 2000 to 2012, the mobile subscription base in the country had risen rapidly
from 2% to 67.68% which can be recognized as a positive factor for the growth of the e-commerce.
When researching; it was noted that that the most popular e-commerce sites in Nigeria are,
jumia.com.ng and konga.com.ng which offer a variety of products and services in a diverse range
covers products based on technology, health and fashion.
Some competitors obeezi.com and ochala.com act as online retailers whom only focus on specific
aspects of business; specializing on the theme fashion.
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In 2015, the Federal Government signed the Cybercrime bill into law which prohibit and
prevent fraud in electronic commerce.
The main purpose of the Cybercrimes Act of 2015 extends beyond prohibiting,
preventing and criminalizing online fraud, but also prescribes punishments and sets the
institutional framework for enforcement.
The ultimate goal is to protect e-business transactions, company copyrights, domain
names and other electronic signatures in relation to electronic transactions in Nigeria-
which is a positive factor to win over customer’s trust.
2.3.2 Economic
Nigeria’s economy is gradually becoming cashless, since the digital payment and
electronic banking are implemented in phases across 27 states of the federation, which was
initiated in Lagos.
The cashless policy has caused in increasing demand for ATM services deployed in main
cities and commercial centers across Nigeria, including Lagos, Port Harcourt, Enugu,
Onitsha, Ibadan, Kaduna, Kano, and Calabar, which directly facilitate electronic banking
and financial services within Nigeria
Current-Commerce platforms has contributed to the growth of the Nigerian economy.
According to the National Bureau of Statistics (NBS), e-commerce is creating jobs for the
country’s over 20 million unemployed youth
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Anuradha Dissanayake
2.3.2 Social
Lifestyle Changes-Internet users have grown rapidly.
As an Example-
Compared to 2006, internet users in 2009 grew from 3.1 per cent of the total
population to 16.1 per cent which can be considered as an impressive improvement.
In 2014 there were 55 million Internet users in Nigeria while 30 million of which buyer
goods online.
The ecommerce market in Nigeria was reportedly worth $3 billion in 2013.
Increasing number of people who are gaining internet access and inhabitants are
becoming IT literate, with the accessibility of mobile phones
It should be noted that still many people have fully adopted the new purchasing
technology
According to the statistical interpretation, out of 70 per cent o f respondents who
know about e-Commerce, approximately only 32% of them use it.
The current trend of common online activities of Nigerians in percentage are ;
browsing and searching-74%
Selecting of a product, -56%
paying online-15 %
paying offline, 82% and online checking of results were recorded out of the whole
as 43%
More usage by youth population
2.3.3 Technical
The growth of telecommunication facilities
Within 2006, itself Nigeria was reported as Africa’s fastest growing nation in the
context of telecommunications
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Challenges
Insecurity
Poor electricity conditions
Inadequate Infrastructure availability
Essential legislations have not implemented related to technological policies
Low IT literacy
Lack of awareness
Language barriers- Non-availability of local language websites
Lack of adequate e-commerce experts
Lack of trust in the ecommerce infrastructure, poor website design, inability to complete
transaction using credit/debit card option and slow internet speed
Lack of trust in the government of the country- failed promises
Online fraud among Nigerians
Perception of the Customers-Customers are fear of providing financial details on e-
commerce sites and fear of multiple deductions from account
Privacy and security risks- architecture of the internet, does not support security
sufficiently.
Recorded unethical behaviors- Violating Data Protection Act
Monitoring the visitors’ and customers’ likelihoods via cookies without their knowledge.
And passing the customers’ private information to the third party without their consent.
High cost of shipping goods to and from Nigeria
Low penetration of credit cards which required to shop online
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Jumia.com.ng
Konga.com
Kaymu.com.ng
Dealdey.com
Yudala.com
Checki.com.ng
Payporte.com
Kara.com.ng
Figure 2.9.1
References-URL link
http://ceur-ws.org/Vol-1755/169-176.pdf
http://punchng.com/prospects-and-challenges-of-e-commerce-in-nigeria/
http://twoschmucks.com/country/nigeria-e-commerce-data/
http://nigerianlawtoday.com/e-commerce-evolution-in-nigeria-opportunities-and-threats/
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3.1 Country-Kenya
3.2 Overview
Kenya’s population consists of around 43 million and therefore, can be categorized as the seventh
largest country in terms of population within African continent. For an instance, the statistical data
related to the population growth rate in 2010 was nearly estimated at 2.6% per annum, among the
world’s highest, and due to that particular reason; about 45% of Kenyans are aged 16 and under.
(Souter & Kerretts-Makau, 2012).
The United Nations report in 2012 has declared that the current e-commerce platforms have
directly or indirectly contributed towards creating jobs by providing employment opportunities
within the young crowd in Kenya who have possess high skills.
Internet companies are interested towards the current e-commerce platforms since it has low setup
costs compared to traditional brick and mortar business models or infrastructures.
But, it should be noted that in some instances online customer acquisition costs can be as much as
4 times as high as offline and when initiating the e-commerce platforms complex hurdles related
to taxation within Kenya also should be taken into account.
Moreover, different ways of approaching the targeted customers via e-commerce platforms can be
pointed out as well. For an instance Businesses-to-Consumers (B2C e-commerce) where e-
commerce involves retailing transactions within organizations and individual shopper; B2C
receives a lot of media attention and many people are familiar with online retailers. Some of the
e-commerce platforms which belong to this category are amazon direct and target.com. Secondly,
consumer-to-Consumer (C2C e-commerce) involves transactions between consumers, the
ecommerce website serves which facilitates the transaction, while the seller needs to pay a fixed
fee to the online auction house to sell their products, the buyer can bid without paying any fee.
Best examples for those kinds of auction sites are eBay and www.bazee.com. Thirdly, consumer-
to-Business (C2B e-commerce) allows consumers to sell products and services to businesses,
freelancer sites such as Task Rabbit and www.monster.com.
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Anuradha Dissanayake
The authority through the ICT ministry will be engaging the government on customs and taxes for
low valued e-commerce items, with a view of lowering the duties and taxes currently charged.
3.3.2 Economic
Current e-commerce trends have reduced information search costs and transactions costs
The online sales made by e-commerce websites in Kenya are extremely modest when
compared to similar business types in developed countries.
The internet penetration rate in Kenya is around 18%.
Other attributes include low fixed and mobile broadband costs - under or around 2% of
monthly incomes.
3.3.2 Social
Life style changes-
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3.3.3 Technical
Inadequate cybersecurity systems which allows merchants verify the identity of their
customers and manage potential fraudulent usage
Lack of reliable, low-cost delivery services
Lack of appropriate systems which enables consumers return unnecessary or defective
items.
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Kenya’s electronic commerce market is geared up –major growth within next 5 years-
Improvement of mobile internet performance
Current digital transactions in Kenya take place via smartphones and mobile broadband
due to low fixed-line and Personal Computer Penetration-Targeted customer growth since
more accessibility to internet services
Communications Authority of Kenya’s commitment for creating a robust national address
system in the short to medium term. -which will eradicate the current situation of difficulty
for couriers to deliver goods bought online to their customers’ hands due to inefficient
address system.
Empower Small & Medium Businesses to mobilize their business processes equally with
the current online practices.
Challenges
Limitations of e-commerce related to technical conditions
Lack of universally accepted standards for quality
Issues related to security
Issues related to reliability
communication bandwidth
ecommerce software incompatibility with operating system and other applications
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Technological concerns related to security, web site issues, technology issues including costs,
software and Infrastructure
Managerial Issues-people and organizational issues & management support
Business challenges -customers service, customer old habits and legal issues
Overall considering the above major factors; the following main challenges can be written down
precisely.
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3.9.1 Jumia
Jumia the largest online shop in Kenya. The site has a wide range of selections including
mobile phones, tablets, computers & laptops, women’s fashion and men’s fashion
3.9.2 Kilimall
Kaymu was the previous name, which can be described as an online marketplace. Any
seller can join and sell their products on the site.
3.9.5 Bidorbuy
References-URL link
http://erepository.uonbi.ac.ke/bitstream/handle/11295/77075/Kabuba_E-
commerce%20And%20Performance%20Of%20Online%20Businesses%20In%20Kenya.pdf?seq
uence=3&isAllowed=y
http://techsahara.com/e-commerce-growth-in-kenya-offers-new-opportunities-for-entrepreneurs/
http://www.itnewsafrica.com/2016/06/e-commerce-boom-in-kenya-offers-new-opportunities-for-
entrepreneurs/
https://www.businessdailyafrica.com/magazines/Report-says-Kenya-lags-behind-peers-in-e-
commerce/1248928-2369806-ldme5c/index.html
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Electronic commerce is not used in the Republic of Congo widely. When considering the internet
penetration rate this country belongs to one of the lowest based on the whole continent due to lack
of reliable infrastructure and equipment related to the modern technology. Therefore, the current
situation is expected to improve with the completion of a fiber optic link which will connect both
Pointe-Noire and Brazzaville to the West Africa Cable System which will pave the way for
improved internet performance. Moreover, they are expecting to connect support all of the
businesses and individual customers in terms of distribution and administrative services.
4.3.2 Economic
Within the year 2010, the internet and other e-commerce sales transactions averaged
13% of total turnover.
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4.3.2 Social
4.3.3 Technical
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Lack of consistent and widely used internet services can be considered as a major
challenge for e-commerce.
Lack of awareness and adequate policies
An ineffective post system and mistrust of consumers to shop online
The non-existence of legal and regulatory frameworks in areas related to infrastructure
and delivery of electronic services
References-URL link
https://www.export.gov/article?id=Republic-of-Congo-ECommerce
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