Documente Academic
Documente Profesional
Documente Cultură
LAYADE, ADEDAMOLA A.
SEPTEMBER 2012
TABLE OF CONTENT
1. INTRODUCTION
1.1
Background
1.2
1.3
1.4
1.5
1.6
2. THEORETICAL FRAMEWORK
2.1
2.2
Mobile Devices
2.3
Mobile Intelligence
2.4
E-Commerce
2.5
M-Commerce
2.6
2.7
Features of M-Commerce
2.8
2.9
3. CONCEPTUAL FRAMEWORK
3.1
3.2
3.3
Benefits of M-Commerce
4. METHODOLOGY
4.1
Introduction
4.2
Research Design
2|Page
4.3
4.4
4.5
5.2
5.3
5.4
5.5
5.6
5.7
5.8
Summary
6.2
Recommendations
6.3
Conclusion
REFERENCES
3|Page
LIST OF TABLES
LIST OF FIGURES
Fig 1: The Mobile Internet is the 5th major technology cycle of the last half century
Figure 2: Top 40 Countries with active mobile subscription against estimated population
Figure 3: Mobile Intelligence expands information opportunities
Figure 4: Mobile Intelligence expands personal query relevance
Figure 5: percentage of subscribers by major operators
Figure 6: Annual Subscriber Data (2011 -2007)
4|Page
Figure 7: The user experience, mobile programs, and the e-commerce platform were the
top three priorities for 2012.
Figure 8: Facebook is the clear winner for areas of new investment, followed by mobile
Web and other social programs
Figure 9: Rapidly Growing Mobile Internet Usage Surpassed More Highly Monetized
Desktop Internet Usage
Figure 10: What Desktop Computers Have Evolved To
Figure 11: Computing growth drivers over time 1960 -2020E
Figure 12: Relative efficacy of Mobile vs. Other Advertising Media
Figure 13: Different Types of Platforms = Facebook + Apple + Google
Figure 14: Emerging Types of Social Networks
Figure 15: Average Time Spent on Various Mobile Functions
Figure 16: Top 7 Social media Sites in Nigeria
Figure 17: Nigeria Sectoral Contribution to GDP (2010-2011)
Figure18: Growth Rates of Key Sectors in the Nigerian economy, 2010-2011
Figure 19: Evolution of Mobile Subscription in Nigeria
Figure 20: Expansion of Mobile Service across Africa
5|Page
ABSTRACT
This research work shall focus on highlighting the potential impact as well as the
qualitative and quantitative benefits of M-Commerce to business growth in Nigeria. This
study is mainly a descriptive one, therefore the method of analysis of the data will be
explanatory and complemented with the use of research instruments, diagrams and where
applicable simple statistical tools like graph and charts. Case studies will also be sighted as
well as trend analysis. The method of analysis will enable us have a concise view of how
m-commerce will drive business growth in Nigeria.
Technology experts predict that by 2020 mobile wireless communications are very likely
to be available to anyone anywhere on the globe at extremely low cost (Pew Internet &
American Life Project, 2006b). Currently in Nigeria we have over 120million mobile
subscribers (GSM & CDMA) with 96million active users in a country with an estimated
population of over 158million it is safe to conclude that mobile technology has reached a
remarkable amount of the population in just 10years of its introduction to Nigeria.
Meanwhile, the non-oil sectors of the economy remained vibrant with the
telecommunication sector which recorded a growth rate of 34.76% in 2011. Other sectors
including wholesale and retail, building and construction, hotel and restaurants and real
estate posted double digit growth rates in 2011 with 11.33%, 12.26%, 12.09%, and 10.41%
respectively. Between 2006 and 2010, these sectors have grown at a real average rate of
13.44 %, 12.58 %, 12.53 % and 11.38% respectively. The crude oil and natural gas sectors
recorded a decline of 0.57%, significantly down from 5.25 % in 2010.
The increase of the flexibility and power of wireless technology has ultimately been a
motivating factor to the growth of M-Commerce. In the current Business organizations,
mobile commerce or M-Commerce has been introduced in finance, service, retail,
telecommunication and information technology services. In these sectors, M-Commerce is
not only being widely accepted but also it is being more used as a popular way of business/
commerce. In this paper we try to provide an overview of the fundamentals about mcommerce and e commerce.
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CHAPTER 1
INTRODUCTION
1.1 Background
Gone are the days of being chained to an office desk. Advances in high-speed wireless
network technologies and the proliferation of mobile computing and storage devices are
allowing todays workers to enjoy newfound freedoms. Wireless mobile technologies can
provide workers the ability to freely share and access information anywhere, anytime. This
translates into higher worker productivity and efficiency and the ability to more costeffectively provide products and services to customers.
In 2008, imports of data enabled phones exceeded that of non-data enabled phones in many
African markets. In 2009, the undersea cables hit East and Southern Africa in a big way. In
2010, mobile operators became serious about data availability and cost packaging for
everyday Africans. 2011 is expected to bring a new type of data-enabled mobile user in
Africa, and brings the mobile web to center stage.
On the technology front, Africans can accelerate development by skipping less efficient
technologies and moving directly to more advanced ones. The telecommunications sector
continues to attract a flurry of public and private investment. Stiff competition in Africas
broadband market sparked by undersea cables has started forcing down telecommunication
prices in the region, with mobile phone service providers announcing significant reductions
in Internet service prices.
Operators such as MTN are looking to expanding Africa operations by launching app
stores. MTN operates in 21 countries across the Middle East and Africa and has seen a
huge growth in data usage on its networks. Christian de Faria, MTN Groups Senior VicePresident for Commercial and Innovation, says increased online activity drives operators to
respond to customer trends.
8|Page
The time when operators could dictate what they offered to customers is over, says de
Faria. Operators need to go into partnerships with content providers to offer services such
as cloud computing, solutions for small and medium enterprises and to provide rich content
in terms of music, gaming, entertainment and news.
It is no longer about selling airtime, but bundling airtime with products and services. These
can range from app stores and music to value-added services like m-learning and m-health.
A good example of business information services extending their reach from print media to
mobile is directory services. Yellow Pages search brings the ability to find products or
services in consumers neighbourhoods by any of hundreds of categories, from attorneys to
garden services to huts. Targeted businesses can then be contacted telephonically or via
SMS, and also navigated to.
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commerce customers are also likely to be consumers this therefore means most mobile
phone subscribers are potential m-commerce customers.
This study is hereby significant because it will analyse the potentials of M-Commerce and
how it will drive economic growth in Nigeria.
son. It would be even more interesting if this person could outsource the entire transaction
to intelligent mobile application that could act on her behalf. Software agents are among
the components that will have an important role to play in the worldwide spread of mcommerce.
Today, the scope of M-Commerce encompasses almost every walk of life. Mobile services
are reported from the fields of content, entertainment, travel, banking and marketing. These
therefore shows that a research into M-Commerce will further show how important it is in
the economy and how it can boost economic growth.
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CHAPTER 2
THEORETICAL FRAMEWORK
2.1 Business vs. Commerce & Electronic vs. Mobile
In order to understand the convergence of E-Commerce and M-Commerce, it is imperative
to understand the conceptual background of these and other related terms e.g. Electronic
Business (E-Business) and Mobile Business (M-Business). It is therefore useful to
establish working definitions of the terms commerce and business for they seem to
have transcended their dictionary meanings and acquired new significance since the advent
of the Internet economy. We further differentiate between the terms electronic and
mobile, so as to clarify the respective concepts by showing their similarities and
highlighting their differences.
Business vs. Commerce
The term commerce, in this paper, refers to selling and purchasing of goods and services
in both business- and consumer segments and to activities directly related to such
transactions. Examples of such activities are marketing measures and after-sales services.
The related activities are included so as to take into account that not each and every
transfer of ownership or rights to use a good or service may necessarily trigger a monetary
transaction. The term business, in this paper, refers to all activities undertaken by a firm
in order to produce and sell goods and services. These activities are, thus, not exclusively
of commercial nature and include other processes such as procurement, production,
customer relationship management (CRM) and human resources management (HRM).
The term commerce is hence seen as an integral subset of the broader term business. In
accordance with this approach M-Commerce is regarded as an integral subset of MBusiness [Buse, 2002; UNCTAD, 2004]. E-Commerce is correspondingly seen as an
integral subset of E-Business.
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Mobile phone
Blackberry
Laptop
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Tablet PCs (Apple I Pad, Blackberry Playbook, Samsung Galaxy Tab etc.)
Each mobile device has certain characteristics that influence its usability, such as
Availability of internal smart card reader (e.g. Subscriber Identity Module (SIM)
card, memory card)
Depending on these factors, the services that the end user can receive differs
considerably. Moreover, depending on the network technology used for transmission,
the bandwidth capacity varies and influences the kind of services that the end user is
able to receive. Lately all these devices have the ability to connect to the internet either
through a Subscriber Identity Module (SIM) card by connecting to a 3G network or
through WIFI. The internet connectivity and mobility is a very integral part of Mobile
Commerce. Therefore any device that is mobile, has internet connectivity can be used
as a hardware resource for Mobile Commerce.
Figure 1: The Mobile Internet Is the 5th Major Technology Cycle of the Last Half Century
Source: Micro Strategy The New Era of Mobile Intelligence, 2010
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Since the 1960s, there have been four major cycles of computing: mainframes, mini
computing, personal computing, and desktop computing. Mobile computing, the 5th
technology cycle, is predicted to have a far greater impact and adoption than any of the
previous cycles.
Todays mobile computing is best epitomized by use of the Internet on smartphone
devices, including the Apple iPhone, Google Nexus One, and Research in Motion (RIM)
BlackBerry. Smartphones are exploding in popularity and technical capabilities. The
adoption rate of smartphones is far outpacing previously observed adoption rates of
Internet or desktop-based technologies. The reasons are simple: these mobile devices
provide constant connectivity and are convenient to carry, extremely powerful, and easy
and fun to use. Unique capabilities aside, the number of people that can carry a smartphone
is significantly greater than the number of people that take a laptop with them when away
from the office. Mobile computing will further expand its footprint with the arrival and
adoption of mobile tablet devices. Static, at-your-desk computing using a mouse and a
keyboard is quickly becoming out-dated. Almost everything about todays computers, for
the majority of daily tasks, is obsolete. The future is mobile computing on light-weight,
connected devices that use a Natural User Interface (NUI) and deliver information and
applications in the palm of your hand.
The table below shows the ranking of the top 40 countries in terms of the number of active
mobile phones in those countries. Nigeria ranks 10th in this regard but mobile phone
penetration compared to population are still pretty low at 60% compared to other countries
in the top 40. Despite this fact 60% and a very rapid growth rate of mobile phone
penetration which will be further explained below is an indication that Nigeria does have
huge potential for mobile commerce.
Rank County
Estimated Population
% of Population
1. China
1,010,000,000
1,342,783,832
75.22
2. India
919,170,000
1,204,510,031
76.31
3. United States
327,577,529
316,070,001
103.64
4. Brazil
250,800,000
205,667,329
121.94
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5. Indonesia
250,100,000
182,469,001
137.06
6. Russia
224,260,000
138,119,425
162.37
7. Japan
121,246,700
126,214,115
96.06
8. Pakistan
114,610,000
182,469,001
62.81
9. Germany
107,000,000
82,187,224
130.19
10. Nigeria
95,886,714
158,033,962
60.67
11. Mexico
88,797,186
114,912,233
77.27
12. Italy
88,580,000
58,000,537
152.72
13. Bangladesh
86,550,000
161,959,717
53.44
14. Philippines
86,000,000
103,640,111
82.98
75,750,000
61,617,658
122.94
16. Vietnam
73,300,000
91,482,308
80.12
17. Egypt
71,460,000
83,593,737
85.48
18. Thailand
69,000,000
67,177,529
102.71
19. Iran
68,000,000
68,259,841
99.62
20. Turkey
66,000,000
79,720,789
82.79
21. France
58,730,000
64,716,341
90.75
22. Ukraine
54,377,000
44,869,414
121.19
52,510,000
48,881,354
107.42
24. Spain
50,890,000
40,588,080
125.38
25. Argentina
50,409,800
42,177,224
119.52
26. Poland
47,153,200
38,426,384
122.71
27. Colombia
46,147,937
45,217,098
102.06
46,000,000
30,198,724
152.32
42,300,000
49,061,478
86.22
30. Algeria
33,000,000
35,377,819
93.28
31. Malaysia
30,379,000
27,022,899
112.42
32. Kenya
28,080,000
42,058,462
66.76
33. Venezuela
27,400,000
28,025,873
97.77
34. Peru
27,100,000
30,597,339
88.57
35. Morocco
27,050,000
32,289,992
83.77
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36. Canada
25,543,862
22,112,446
115.52
37. Taiwan
24,412,000
23,118,746
105.59
38. Romania
22,800,000
22,112,446
103.11
39. Australia
21,260,000
22,004,050
96.62
40. Netherlands
20,000,000
16,910,055
118.27
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up and already converts images into data inputs from barcodes, fingertips, fonts, and facial
recognition.
The on-going impact of the evolution in device inputs and natural interfaces is to make
applications faster, easier, and more natural to use, leading to greater usage and a higher
user adoption rate.
The Impact of Mobile Intelligence will be greater than what is currently imaginable as
shown in figure 4 above. In the new era of Mobile Intelligence, businesses that presently
do not exist may evolve into industry leaders. Applications that are moderately valuable
with the desktop Internet may be billion dollar applications when fully applied to the
mobile Internet. The next YouTube or Facebook hasnt been invented yet, but will be
designed as a mobile application. Organizations that stay with todays desktop-based
information distribution models may become obsolete, outpaced by those organizations
that choose to thrive on the mobile Internet. Organizations that embrace Mobile
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2.4 E-Commerce
The Internet and Web technologies have tremendously changed the way of doing business
in general, and commerce in particular. Users have more opportunities to be informed
about the current trend of the market before making any decision. Users are continuously
browsing the Internet as well as being overwhelmed with information from different online
sources (for example, www.forbes.com, www.ft.com ) In addition, there is no longer any
need to go to a library to purchase ones favourite sports magazine. Several Web sites exist
that allow users to submit online orders. This way of doing business constitutes a part of
what is commonly known as e-commerce). Web shopping is only a small part of the whole
e-commerce picture that covers several types of businesses that range from customer-based
retail sites like www.amazon.com (business-to-consumer), to auction and music sites like
www.ebay.com , and to business exchanges trading goods/services between corporations
(business-to-business). E-commerce is seen as a general term for any type of business, or
commercial transaction that involves the transfer of information across the Internet.
E-commerce as part of the whole e-business evolution has been the object of major
changes. First, businesses started the digitalization of their data to make it available online.
This data included the businesss profile and catalogues. Initially, businesses did not
attempt to adapt their business processes (that is, the know-how).
Later, businesses decided to undertake the reengineering of their processes due to the
pressure to remain competitive. The traditional way of satisfying users needs could no
longer cope with the challenges presented by the new context with its complex features:
profitability, competition, alliances, and market volatility. Adjusting the businesss knowhow to the context, therefore, became critical.
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The third stage consisted of offering online forms to capture users needs efficiently and
accurately. There was no longer the need to send faxes or call vendors to get orders
completed. To conclude any purchase transaction, financial partners were invited to join
the shopper-vendor relationship. Ensuring the security of the payment process and the
exchange of private information was and still is a major concern.
The next stage in the e-business evolution was the offering of personalized services. The
purpose of personalized services is to include the profiles of users in terms of preferences
and interests when working to fulfil their needs. Now, the trend of e-business is towards
joint ventures where business processes are merged.
A simple definition of E-Commerce describes it as: [...] the buying and selling of products
and services over the Web [Kalakota and Robinson, 2002]. However, there are several
definitions of Ecommerce in circulation emphasising its different aspects. Prevailing
definitions may be divided into two primary categories. The first category works with a
narrow, restrictive definition, requiring the whole transaction to take place in electronic
form and having a monetary character. For example, the
German Federal Statistical Office is reported to use the following definition: Transactions
are regarded as E-Commerce, when the offer as well as purchase or the actual availment of
a product or service is carried out in electronic form using a computer-mediated network
against monetary payment [Fischer, 2003].
This definition, however, seems to be too restrictive as it does not recognize the fact that
just some parts of a transaction might also be carried out electronically without having to
process all the steps of a value-chain in that form. Further, the emphasis on the monetary
character ignores the commercial nature of marketing measures (e.g. transactions carried
out with the intention of selling a product or service) and after-sales services (e.g.
transactions carried out in continuation of a preceding monetary transaction).
The second category works with a broader definition of E-Commerce, as can be seen in the
definition used by the US Bureau of the Census, which defines E-Commerce as, [...] any
transaction completed over a computer-mediated network that involves the transfer of
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ownership or rights to use goods or services. [] Completed transactions may have a zero
price (e.g., a free software download) [Mesenbourg, 2001]. Also according to the
Organisation for Economic Co-operation and Development (OECD), it is the method used
to place or receive an order, not the mode of payment or the channel of the delivery that
determines whether a transaction is considered as an E-Commerce transaction [OECD,
2002]. The primary criteria for E-Commerce, thus, are:
2.5 M-Commerce
It is acknowledged that the Internet is playing an important role in our daily life. The
Internet has become a vehicle for services rather than just a static repository of
information. Airline booking and hotel booking are examples of these services. Besides the
new role of the Internet, we are witnessing rapid progress in wireless and handheld
technologies. Telecom companies are offering new opportunities to users over mobile
devices like cellular phones and personal digital assistants. Reading emails and sending
SMS messages between cellular phones are becoming natural. Surfing the Web thanks to
the Wireless Application Protocol is further evidence of the wireless technology
development. We are convinced that the next stage (if we are not already in it) for telecom
companies in partnership with businesses is to allow users to buy and sell without being
connected to any wired network. Mobile commerce (m-commerce) is the new trend and is
expected to drive the future development of e-commerce. Being able to buy and sell
goods/services over mobile devices is an important step towards achieving an anywhere,
anytime paradigm. Location and time will no longer constrain people from completing
their transactions. Suppose that a person would like to buy a gift for her sons birthday
while she is on a bus. Instead of postponing the errand, she can use her mobile phone to
search for the perfect gift. Her search can be narrowed by such criteria as the maximum
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price she is willing to pay, the desired delivery time, and the age of her son. It would be
even more interesting if this person could outsource the entire transaction to intelligent
components that could act on her behalf. Software agents are among the components that
will have an important role to play in the worldwide spread of m-commerce.
An e-commerce value-chain represents a set of business processes that implement
interactions between online shoppers and e-commerce systems. Song and Whang
suggested a value chain of eight processes: attract, interact, customize, transact, pay,
deliver, service, and personalize.
M-Commerce is a by-product of the technology convergence of Information Technology
(IT) with the telecommunication technologies (TCT), which is jointly referred to as
Information and Communication Technologies (ICT). M-Commerce may be thus regarded
as an extension of Electronic Commerce (E-Commerce) to wireless mediums. This
convergence, however, enables some unique, location-based services, hitherto not possible
in E-Commerce. These innovative services are made possible by the convergence of these
two technologies.
Many different definitions of mobile commerce exist in the literature, but these usually
refer to e-commerce activities via mobile devices such as mobile phones and PDA.
Mobility and reachability are two main characteristics of m-commerce. Compared with
traditional e-commerce, transactions are generally conducted through personal computers
(PCs) and laptops. M-commerce applications provide the potential with more freedom for
organizations and users to perform various commerce-related tasks without the limitation
of time and location (available anytime from anywhere).
Mobile phone users are increasingly accepting phones as multipurpose devices, which can
be used to send text messages, take pictures, surf the web, download ring-tones, and play
games (Smith, 2005). Some marketers are starting to see the mobile phone as a potential
marketing medium and consequently are seeking ways to tap into this burgeoning
opportunity. For example, Samsung and Nokia will provide digital video broadcast
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a. Many of the services offered by M-Commerce may as well be availed using the
immobile (stationary) Internet, e.g. purchasing entrance ticket to a football
match.
b. M-Commerce opens new business opportunities by enabling innovative, locationbased services (LBS) that the immobile Internet cannot offer. For instance the
location of the nearest Automatic Teller Machine (ATM) in real time can only be
provided by determining the current geographic position of the user.
China has the worlds largest mobile market with more than 750 million
subscribers
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In 2013, the number of mobile phone users in the US is predicted to reach 255
million, representing 80% of the population
Brazil was the BRIC country with the lowest number of mobile phone subscribers
with only 174 million in 2009
Purchasing Train or Plane Tickets (30%) was the most popular M-Commerce
application in France in 2009
Japans M-Commerce exceeded $10 billion in 2009, compared to $1.2 billion in the
US
1. Ubiquity: Ubiquity means that the user can avail services and carry out
transactions largely independent of his current geographic location (anywhere
features). This feature can be useful in many situations, e.g. to cross-check prices
while standing in a supermarket or while one the move.
2. Immediacy: Closely related to the feature of ubiquity is the possibility of real-time
availability of services (anytime feature). This feature is particularly attractive for
services that are time-critical and demand a fast reaction, e.g. stock market
information for a broker. Additionally, the consumer can buy goods and services,
as and when he feels the need. The immediacy of transaction helps to capture
consumers at the moment of intention so that sales are not lost in the discrepancy
between the point of intention and that of the actual purchase.
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Mobile Accounting
Mobile Brokerage
Mobile Gaming
Travel Information
Mobile Office
Mobile Couponing
Mobile Newsletters
Mobile Shopping
Mobile Ticketing
Public Transport
Mobile Parking
Navigation Services
Emergency Services
Mobile Banking
Mobile Entertainment
Mobile Marketing
Telematics Services
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the primary area of this application, which is also known as Intelligent Transport System
(ITS). The main services are navigation systems, remote diagnosis as well as access to
other mobile applications such as Mobile Entertainment, Mobile Content/Office, Mobile
Banking and Mobile Shopping.
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Chart Title
ETISALAT
12%
M-TEL
0%
MTN
46%
AIRTEL
20%
GLO
22%
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ACTIVE SUBSCRIBERS
120,000,000
100,000,000
80,000,000
60,000,000
40,000,000
FIXED WIRELESS
20,000,000
CDMA
GSM
2007
2008
2009
2010
2011
GSM
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CHAPTER 3
CONCEPTUAL FRAMEWORK
3.1 Motivations for E-Commerce Transformation
Even in its nascent stage, mobile commerce can enhance business efficiency by
distributing information to the workforce remotely, and offering new channels on which to
interact with customers. The distinction of M-Commerce from E-Commerce is based on
the value proposition attributes of ubiquity, convenience, localization and personalization.
When these attributes are combined, the potential to improve the business value becomes
enormous. For the Internet value-adding activities such as search, evaluation, problemsolving, and transaction, mobile technology also enhances the value by making them more
convenient and efficient. In addition, a mobile service framework enables whole new
levels of customer care, as well as new business opportunities.
Consequently, mobile business will be the main driving force for the next phase of
electronic commerce growth because the rapid adoption of the mobile telecommunication
systems has created a market opportunity of several hundred million consumers
worldwide.
I. Clarkein 2001 presented the following reasons why mobile technology is beneficial for
businesses:
e-commerce applications that succeed on the desktop Personal Computer (PC) will
not necessarily meet with a similar accomplishment in a wireless commerce;
industries that are time sensitive, such as financial services and travel, are likely to
benefit from mobile commerce;
vendors can deliver promotions based on the user's location, and real time
discounting may become the killer application,
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M-Commerce is the term for making business transactions using mobile devices. There are
already several existing M-Commerce applications and services nowadays that have been
very helpful to us. Some are mobile banking, location maps, and variety of news, mobile
shopping, ticketing and mobile file sharing.
Mobiles are being used more and more on daily basis and its more than just making and
receiving a call. Mobile companies are coming up with new features for their smart
phones, which offer consumers ease, flexibility and security at the same time.
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Convenience
Flexibility
Easy of Connectivity
Personalisation
Time Efficient
Flexible Accessibility: User can be accessible via mobile phones and at the same time be
accessible online too through logging on to various mobile messengers like Yahoo and
Gtalk and other networking platforms. On the other hand, user may also choose not to be
accessible by shutting down his mobile device, which at times can be a good thing.
Easy Connectivity: As long as the network signal is available, mobile devices can connect
and do commerce transactions, mobile to mobile and even mobile to other devices. No
need for modem or WI-FI connectivity set up.
Time Efficient: Doing M-Commerce transactions do not require the user to plug anything
like personal computer or wait for the laptop to load. Just hit the on button of your mobile
device and you are ready to go.
Despite the small screen, having something in your pocket that can do so much via M38 | P a g e
Commerce is really an amazing technology and a great help. E-Commerce businesses are
also making applications for mobile phones which allow users to browse their online
products and make payments with couple of buttons.
Mobile technology offering benefits to all kinds of business
No matter what kind of job you do, mobile technology can help to make you more
productive and responsive:
The lawyer can access and update documents quickly, regardless of where work
takes them;
The travelling salesman can update his sales figures for the weekly report while on
the road;
The home-based worker can access the company network to find data for a
credentials document;
The market researcher can update statistics on the corporate network from
wherever they are;
The council worker can report an urgent piece of information back to colleagues in
the office, without needing to travel back there.
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CHAPTER 4
METHODOLOGY
4.1
Introduction
In the theoretical part of the research, key concepts were explained and the framework for
analysis was set. This research project is primarily a descriptive study that will involve the
collection of data mainly from secondary sources (e.g. Nigeria Communications
Commission, Pyramid etc.). The aim of the study is to give significant insight into the
subject of study M-Commerce in order to arrive at a reasonable conclusion and
understanding that it is a major driver for business growth in Nigeria.
4.2
Research Design
This has to do with how the research paper has been designed. This research paper has
hence been divided into six (6) chapters.
Chapter one is general introduction of the research study and it involves looking at the
historical background of the study, problem of the research, the purpose why the research
is being carried out, objective of carrying out the research, the justification and the general
overview of the research.
Chapter two is the theoretical framework and it looked at various components of the
research from the following perspective:
mobile devices
mobile intelligence
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e-commerce
m-commerce
features of m-commerce
Chapter three outlines the conceptual framework of the research with emphasis on
motivations for m-commerce transformation, challenges of m-commerce transformation
and the benefits of m-commerce
Chapter four shows the methodology adopted in carrying out the research, it starts with an
introduction, research design, re-statement of research questions, data collection
instruments and finally method of data analysis.
Chapter five shows data presentation and analysis
Chapter six contains summary of the whole research work, conclusion and
recommendations.
4.3
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4.4
The main sources of data for this project are documents and publications that constitute
secondary instruments. Most of the data will be sourced from Nigeria Communications
Commission NCC and also reference will be made to findings from Pyramid Research
publication Impact of Mobile Services in Nigeria.
4.5
This study is mainly a descriptive one, therefore the method of analysis of the data will be
explanatory and complemented with the use of research instruments, diagrams and where
applicable simple statistical tools like graph and charts. Case studies will also be sighted
as well as trend analysis. The method of analysis will enable us have a concise view of
how m-commerce will drive business growth in Nigeria.
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CHAPTER 5
DATA PRESENTATION AND ANALYSIS
We hope to rewire the way people spread and consume informationWe think a more
open and connected world will help create a stronger economy with more authentic
businesses that build better products and services
Mark Zuckerberg, Founder /
CEO, Facebook Letter to Potential
Shareholders, May 2012
The percentage of individuals using the Internet continues to grow worldwide and
by end 2011 2.3 billion people were online.
In developing countries, the number of Internet users doubled between 2007 and
2011, but only a quarter of inhabitants in the developing world were online by end
2011.
The percentage of individuals using the Internet in the developed world reached the
70% landmark by end 2011. In Iceland, the Netherlands, Norway and Sweden more
than 90% of the population are online.
By end 2011, 70% of the total households in developed countries had Internet,
whereas only 20% of households in developing countries had Internet access. Some
outstanding exceptions include Lebanon and Malaysia with 62% and 61% of
households with Internet respectively.
Total international Internet bandwidth increased sevenfold over the last five years
reaching 76000 Giga Bit/s by end 2011. This equates to 34000 bit/s per Internet
user worldwide.
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Major differences in Internet bandwidth per Internet user persist between regions:
on average, a user in Europe enjoys 25 times as much international Internet
capacity as a user in Africa.
Mobile cellular:
Growth was driven by developing countries, which accounted for more than 80%
of the 660 million new mobilecellular subscriptions added in 2011.
By end 2011, there were 105 countries with more mobilecellular subscriptions
than inhabitants, including African countries such as Botswana, Gabon, Namibia,
Seychelles and South Africa.
Mobile broadband:
Mobile broadband has become the single most dynamic ICT service reaching a
40% annual subscription growth in 2011.
In Africa there are less than 5 mobilebroadband subscriptions per 100 inhabitants,
whereas all other regions have penetration levels above 10%.
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5.2
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companies among the top 500 internet retailersmost were from apparel, travel and
hospitality, consumer electronics, general merchandisers, and specialty brands.
Mobile Was the Game Changer It Was Predicted to Be
Delivering on analyst predictions, 2011 was indeed The Year of Mobile. Not only did
mobile sales increase dramatically, with US$6.7 billion in 2011 m-commerce sales, but
mobile also proved itself as an incredibly valuable tool for accelerating online and in-store
purchases on the customers terms. Mobile has also served as a catalyst for cross-channel
integration. With consumers using mobile Websites and apps in tandem with other touch
points, 41% of the respondents from online organizations plan to invest more resources on
the front end of mobile user experiences and integrate mobile with their back-end
technology. The success of mobile has not only encouraged organizations to continue
investing in it in 2012 but has also led them to ratchet it up by hiring more employees with
mobile skills and building on existing programs to find new ways to engage connected
consumers.
To Hedge Against the Weak Economy, Organizations Balanced New Acquisition and
Retention Strategies with Investment in Experience
To combat the lingering economic weakness, online retailers focused equally on three
areas: growing market share, cultivating their customer bases with loyalty programs, and
investing in the user experience. Customer acquisition centered on search strategies and
social programs, whereas loyalty programs relied heavily on e-mail marketing and mobile
loyalty programs to drive more-frequent, higher-value transactions. Protecting margin and
experimenting with new social programs rounded out the top five areas online
organizations focused on to protect against economic woes.
Organizations
Have
Invested More
in
Customer-Centric
and Customer-Facing
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Figure 7: The user experience, mobile programs, and the e-commerce platform were the top three priorities for
2012.
Source: Oracle, 2011
For New Areas of Investment, Facebook Ranks #1, Followed by Mobile and Other Social
Programs
Broken out from other social programs, Facebook takes the top spot for emerging areas
to invest in, with 57% of the respondents indicating a planned investment in the social
networking giant. Behind Facebook, the mobile Web (47%), other social programs (such
as Twitter or forums, with 43%), and mobile apps (43%) rank among the top emerging
initiatives.
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Figure 8: Facebook is the clear winner for areas of new investment, followed by mobile Web and other social
programs
Source: Oracle. 2011
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Personalization, A/B testing, and tablet devices round out the emerging initiatives
list. Personalization has been broadly defined, but with relevance at the core of a great
user experience, personalization remains a consistent focus, with 34% of the respondents
investing in new personalization initiatives in 2012. Among the respondents, 31% of
respondents reported A/B testing as a new area of investment with the promise of
promoting proven content and products to consumers. Tablet devices made a first
appearance on this years survey, with 31% saying they plan to invest in the emerging
touch point, ranging from in-store deployments for kiosks and associates to consumerfacing apps and experiences that engage big-spender tablet users.
Determining emerging programs ROI is a challenge. Consumers are demanding
social programs and multichannel features that retailers must deliver to remain
competitive, but 30% said determining the measurable value of new programs is difficult.
Retailers are defining new metrics to measure success going forward, including newcustomer acquisition, volume of user-generated content, and time spent on a Website.
Conclusion
Online retailers are on the cusp of a totally new way of doing business. They have a unique
opportunity to capture consumer mind share and wallet share if they can deliver consistent
experiences and enable unique multichannel commerce behaviors before their competitors
do. Success will rely on honing efforts to address user-centric customer experiences,
narrowing the focus to the most-valuable programs, and electing the right technology
strategy that will enable internal teams to deliver optimized experiences scalably. Areas to
watch are the emergence of real-time retail analytics, social-enabled commerce, the
continued success of mobile, and tools that will enable retailers to scale always-targeted
experiences that target merchandising more effectively. As needs surpass what existing
technology can support, solutions will collapse into a unified control panel where
consistent, optimized cross-channel experiences can be created, managed, and monitored
centrally.
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This solution seems to be gaining fast popularity. Sevenval can meanwhile boast of several
top references in various sectors. Prominent references in the field of Mobile Banking
include Postbank, comdirect bank, Norisbank and VR-Networld.
5.4
Mobile is clearly becoming a new way people shop [eBay has] nearly tripled mobile
GMV (gross merchandise value) year-over-year to nearly $2 billion, with strong holiday
shopping momentum in Q4. In 2011, we expect Mobile GMV to double to $4 billion.
John Donahoe,
President & CEO,
eBay
CQ4:10
Earnings Call
worldwide in terms of the number of internet users added between 2008 -2011, this is
above the USA which is 8th within the same time frame. Although Nigerias population
penetration is just 28%, this is still impressive within a short time and indicates a huge
potential for growth.
Table 6: 1.1B Global Mobile 3G Subscribers, 37% Growth, Q4 at Only 18% of Mobile Subscribers
Source: Kleiner Perkins Caufield Byers (KPCB), Internet Trends D10 Conference, 2012
Table 6 above shows global 3G subscription. This is equally important as 3G offers high
speed internet. The growth of 3G subscriptions in Nigeria is 51%, although this is small
compared to countries like China, India, Brazil Egypt and Vietnam we still rank no1 in
terms of 3G growth in Africa.
In 2011 according to KPCBs research shown in Table 6 above, Nigeria had 6million 3G
subscription in 2011. Let me also add that the current Blackberry Internet Subscription in
Nigeria is currently 2.4million in addition to the 3G this is impressive considering when it
was introduced to Nigeria.
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Figure 9: Rapidly Growing Mobile Internet Usage Surpassed More Highly Monetized Desktop Internet Usage
Source: Stat Counter, 2012
The year 2011 witnessed a great shift from desktop computing to mobile computing.
Although a lot of people have desktop computers in their homes and offices, the still
prepare to go to the internet using their mobile devices. Figure 11 shows that more and
more people use their tablets, mobile phones and other mobile devices to connect to the
internet in Nigeria. This is because mobile internet is relatively affordable and most
importantly its easier and cheaper to acquire a mobile phone than to buy a computer
dedicated for internet connectivity. A N2500 brand new nokia phone will allow you
connect to the internet and service providers have various data bundles that are affordable
for different categories of people.
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Although we have the more expensive mobile device like the tablets (Ipad, galaxy tab etc.),
it is still a preferred choice for internet connectivity by many because of its mobility
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5.5
Mobile is clearly becoming a new way people shop [eBay has] nearly tripled mobile
GMV (gross merchandise value) year-over-year to nearly $2 billion, with strong holiday
shopping momentum in Q4. In 2011, we expect Mobile GMV to double to $4 billion.
John Donahoe,
President & CEO,
eBay
CQ4:10
Earnings Call
Figure 12 shows that mobile advetising is graudally becoming the number choose for
brands. This is because it is more effective than other media and the fact that it cuts across
a huge demographic and is not limited by location makes it very effective. All that is
require is basic mobile internet connectivity. A lot of mobile phone manufacturers now
make it standard for phones to be a ble to browse the internet just as much as the phone can
do its primary function which is to make a phone call.
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5.6
John Doerr of KPCB coined SOLOMO (Social Local Mobile). This describes the way
social media has helped shape and accelerate growth of mobile global and we shall see
later in this chapter Nigeria.
Figure 13 and 14 takes a look at establish platform and emerging platforms from the social
networking angle that serves various purposes from information sharing to pure social,
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gaming etc. The amazing thing about these social media platform is that to the owners its
a huge investment that rakes in billions of dollars, to the various vendors that use it for
advertising, product launch and sale, its very effective and finally to the end user its
engaging, easy, fun and now seen as a way of life.
Nigeria currently ranks 31st in the world in terms of Facebook subscription with 5,184,720
members as of July 2012. The user penetration is 3.41% currently but Nigeria ranks
highest globally with 81.2% for Facebook mobile penetration.
In terms of advertising on Facebook, Nigeria ranks 5th globally with Cost Per Click (CPC)
of $0.91 and Cost Per Mille (CPM) of $0.17. Russia, Japan, United State and Australia are
ahead of Nigeria in that order. Meanwhile South Africa also made the top 10 list coming
10th globally and 2nd in Africa.
From the African perspective, Nigeria has the highest number of users in Africa followed
by South Africa which ranks 32nd globally. Algeria, Israel, Tunisia, Kenya, Ghana,
Senegal, Ethiopia, Libya, Tanzania and Cameroun all make the top 100 globally in that
order.
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What this means is that the potentials that social media has to accelerate growth can also be
used to accelerate the use of commerce using the same media and leveraging on the mobile
web exposure it exposes users to.
5.7
Telecommunications Sector
In 2011, the Nigerian economy grew at an estimated real rate of 7.36% (see figure 19).
This was slightly lower than the 7.98% recorded in 2010. In 2011 on a quarterly basis, the
economy grew by 6.68% in the first quarter, down by 0.64 percentage points year-onyear. In the second quarter, the economy grew by 7.61% down marginally from the 7.71%
posted in the corresponding quarter a year earlier. The economy recorded growth rates of
7.30% and 7.68% in the third and fourth quarters of the year respectively, down by 0.66
percentage points and 0.92 percentage points year-on-year.
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Key economic developments that contributed to the marginal decline in GDP in 2011
include lower agricultural output, the lingering effect of the financial sector reforms
(involving mainly the banking sector and the capital market), as well as some significant
disruptions witnessed in the oil and gas sector particularly towards the fourth quarter.
Despite the marginal decline posted in 2011 however, the growth rate for the year was
higher than the five year average recorded over 2005 to 2010 at 6.68%.
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Activity Sector
1. Agriculture
(a) Crop Production
(b) Livestock
(c) Forestry
(d) Fishing
2. Industry
(a) Crude Petroleum & Natural Gas
(b) Solid Minerals
Coal Mining
Metal Ores
Quarrying & Other Mining
(c) Manufacturing
Oil Refining
Cement
Other Manufacturing
3. Building & Construction
4. Wholesale & Retail Trade
5. Services
(a) Transport
Road Transport
Rail Transport & Pipelines
Water Transport
Air Transport
Other Transport Services
(b) Communication
Telecommunications
Post
(c) Utilities
Electricity
Water
(d) Hotel & Restaurant
(e) Finance & Insurance
Financial Institutions
Insurance
(f) Real Estate & Business Services
Real Estate
Business Services
(g) Producers of Govt. Services
Public Administration
Education
Health
(h) Comm., Social & Pers. Services
Private non-Profit Organizations
Other Services
Broadcasting
TOTAL (GDP)
Source: National Bureau of Statistics (NBS)
2005
4,773,198.38
4,228,282.24
313,252.32
61,785.79
169,878.03
6,094,891.34
5,664,883.21
17,301.53
0.28
14.90
17,286.35
412,706.60
29,037.47
8,501.84
375,167.29
215,786.12
1,868,251.30
1,620,111.98
385,481.61
362,605.26
6.94
982.88
3,282.82
18,603.71
39,513.20
38,194.00
1,319.20
29,387.42
27,905.92
1,481.50
46,080.04
130,749.45
126,528.38
4,221.07
712,835.26
680,790.75
32,044.51
148,055.51
115,190.77
26,042.52
6,822.22
128,009.49
154.48
126,112.79
1,742.22
14,572,239.12
2006
2007
5,940,236.97 6,757,867.73
5,291,619.08
6,024,381.00
378,702.61
434,151.66
73,461.07
83,812.04
196,454.21
215,523.03
7,488,743.54 8,085,380.04
6,982,935.44
7,533,042.60
27,283.96
31,454.41
0.30
0.40
22.21
26.94
27,261.45
31,427.07
478,524.14
520,883.03
37,457.96
41,355.76
11,791.64
14,916.86
429,274.54
464,610.41
250,332.27
266,463.99
2,741,794.53 3,044,773.87
2,143,487.42 2,502,832.04
441,822.30
473,445.36
416,240.26
444,989.96
7.53
9.55
1,061.25
1,170.70
4,023.88
4,567.79
20,489.38
22,707.36
165,524.06
243,551.04
164,019.87
241,814.89
1,504.19
1,736.15
42,614.82
45,778.44
40,974.19
43,820.51
1,640.63
1,957.93
57,611.87
72,839.43
296,704.89
340,908.11
288,381.31
330,822.23
8,323.58
10,085.88
808,555.17
925,594.42
765,184.66
871,568.00
43,370.51
54,026.42
168,796.67
193,425.36
131,329.00
151,330.40
29,689.87
33,356.60
7,777.80
8,738.36
161,857.64
207,289.88
158.80
163.59
159,545.29
204,451.11
2,153.55
2,675.18
18,564,594.73 20,657,317.67
2008
7,981,397.32
7,114,793.96
512,943.55
99,022.65
254,637.17
9,719,513.85
9,097,750.70
36,190.11
0.52
31.00
36,158.59
585,573.04
47,582.10
17,162.68
520,828.27
306,581.64
3,503,181.70
2,785,654.78
479,126.69
450,329.84
9.66
1,184.75
4,622.60
22,979.84
249,883.37
248,102.08
1,781.29
52,670.64
50,417.93
2,252.71
86,058.68
392,044.34
380,445.57
11,598.77
1,064,433.59
1,002,303.20
62,130.39
223,385.84
174,029.96
39,394.14
9,961.73
238,051.64
188.13
235,118.78
2,744.74
24,296,329.29
2009
2010
9,186,306.05 10,273,651.99
8,200,921.69
9,159,983.65
583,623.47
661,662.21
111,071.52
124,283.20
290,689.37
327,722.93
8,071,070.58 10,440,834.98
7,418,148.91
9,747,355.20
40,612.78
45,656.99
0.60
0.68
34.68
39.10
40,577.51
45,617.21
612,308.89
647,822.79
53,958.89
61,268.35
19,556.59
22,121.45
538,793.41
564,432.99
347,690.73
393,525.92
4,082,351.76
4,667,658.38
3,106,819.54
3,430,111.69
506,720.97
528,268.57
475,907.25
495,111.55
10.22
10.78
1,248.38
1,357.77
5,243.09
5,805.66
24,312.03
25,982.81
256,003.69
262,617.83
254,195.37
260,770.98
1,808.32
1,846.85
62,148.50
70,543.07
59,613.44
67,684.79
2,535.06
2,858.29
98,961.71
113,684.94
444,235.90
507,490.24
430,991.55
492,259.57
13,244.35
15,230.67
1,213,009.66
1,342,926.91
1,142,366.55
1,262,791.74
70,643.11
80,135.17
255,443.83
292,679.99
197,262.29
224,204.56
47,095.70
56,010.85
11,085.85
12,464.58
270,295.27
311,900.14
211.99
241.29
267,194.85
308,642.66
2,888.43
3,016.18
24,794,238.66 29,205,782.96
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The non-oil sectors of the economy remained vibrant with the telecommunication sector
which recorded a growth rate of 34.76% in 2011. Other sectors including wholesale and
retail, building and construction, hotel and restaurants and real estate posted double digit
growth rates in 2011 with 11.33%, 12.26%, 12.09%, and 10.41% respectively. Between
2006 and 2010, these sectors have grown at a real average rate of 13.44 %, 12.58 %, 12.53
% and 11.38% respectively. The crude oil and natural gas sectors recorded a decline of
0.57%, significantly down from 5.25 % in 2010.
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5.8
ACTIVE SUBSCRIBERS
120,000,000
100,000,000
80,000,000
60,000,000
40,000,000
20,000,000
0
FIXED WIRELESS
20
07
20
08
20
09
20
10
20
11
CDMA
GSM
GSM
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In US-dollar based revenue terms, the Nigerian mobile services market expanded at one of
the fastest rates in Africa for the past decade and is the second largest in the region.
Currently M-Commerce application is already in full swing in the financial sector. The
success of M-PESA in Kenya launched by Safaricom has spread through the rest of the
continent. Money Box Africa (www.mobileboxafrica.com ) is also a mobile-phone based
money transfer services that allow customers to deposit and withdraw money, transfer
money to others, pay bills and make purchases. The company was setup to deploy a
mobile commerce application to allow users to virtually store and move money, make
payments over distance and enable a host of transactions all with the use of mobile
phones. The company aims not only to use mobile technology to deliver its services but
also to adopt the same business model that helped mobile operators succeed in lowincome
and growth markets. Also MTN Nigeria just introduced mobile money which what the
whole concept of Mobile Commerce.
Also various companies especially the entertainment and media industry in Nigeria already
use the Short Code SMS service which is a value added service provided by the service
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providers and create revenue not just for the but to marketers and also the business owners.
Already companies also engage in mobile advertising and this has proved very effective so
far.
The purpose of this study is to show the huge potential that can help Nigeria Business grow
but leveraging on the opportunities that M-Commerce provides. Nigeria is very ripe to
adopt M-Commerce because as we can already see the growth in mobile penetration,
internet connectivity and social media creates the necessary platform needed for any
investor to engage in M-Commerce in Nigeria.
Every sector in Nigeria can benefit from adopting M-Commerce to boost their business, it
does not only add to their revenue but also allows them reach out to a huge number of
people at a lesser cost than what the other media will cost. The potential of M-Commerce
in Nigeria cannot be over emphasized enough as it is evident from the analysis above that
this is the future driver of business in Nigeria.
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CHAPTER 6
SUMMARY, RECOMMENDATIONS AND
CONCLUSION
6.1
Summary of Findings
This study has helped to show that mobile technology has remarkably grown in Africa and
especially Nigeria. Ideal time has never been more productive with the emergence of social
media which in itself has transformed into a platform for commerce. Mobility makes it
perfect for developing countries and the idea platform to reach out to a large number of
people.
The explosive growth of the mobile internet and its associated devices has finally helped to
realize the idea of consumer convergence, making it imperative for multichannel retailers
and other enterprises that sell online to present a unified and consistent view of themselves
to customers across a multitude of devices, locations, and activities. In this new world of
agile or elastic commerce, the concept of a traditional website or in-store purchasing funnel
becomes obsolete as mobile devices bridge the gap between online and offline. All
enterprises will have to transform themselves into next-generation multichannel retailers,
allowing consumers to interact with their brand, search their catalogue, make a purchase,
or track an order or even basic financial transactions and banking.
In an increasingly time-pressured business and personal environment, the ability to work in
what was previously dead time is more important both for productivity and work-life
balance. For some, work is no longer just somewhere to go to, but something they do,
wherever they are. In the worlds poorest and richest countries alike, mobile technology is
touching heights these days and the small device is offering a lot to the users other than
making and receiving calls. With a new platform of smartphones in the market, this
technology is giving a tough time to the other fields of advertising and marketing.
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Mobile broadband subscription is also growing very fast with over 1billion
subscription
Social media plays a very important role in mobile penetrations and mobile
commerce
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6.2
RECOMMENDATIONS
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Banking: Mobile Banking can also serve as a source of revenue. Mobile services can be
offered on a premium basis. The price, in this case, should be reasonable enough so that
customers are willing to pay them but at the same time they should be from a financial
point of view higher than the costs incurred by the bank. Additional revenues can be
generated in two ways:
Mobile Banking can be also used as an image product to gain strategic advantages. A bank
may hope to win or retain a positive image amongst technology-savvy sections of the
society and strengthen the brand-reputation of being innovative and visionary. The image
of being a technology leader can help the bank win customers looking for modern products
and services and at the same time help it retain its own existing base of technology-savvy
customers, some of whom otherwise might have switched to other banks while looking for
such a product. Further, the bank can profit from an early-mover advantage by actively
shaping technological standards that are based on ones own strengths. This is, of course,
fraught with a substantial risk of incurring financial and image losses if the propagated
technology fails to establish. Although all banks in Nigeria now provide SMS alerts and a
few banks like UBA and Zenith have introduced mobile money, there is still room for
other competitors to play as this will boost the growth of the sector and the economy at
large.
a lot of adverts on mobile but very few Nigerian companies use this medium and its a very
effective means of reaching a wide range of Nigerians.
Transportation: New transportation application streamlines ticketing, planning, traveling
and bookings. In different parts of Nigeria this might be a challenge to implement because
of poor urban transit system but in places like Lagos, Abuja and Edo state that have
organised their urban transit system, extending their services to be done using the mobile
phone will not only make it convenient for the customers but will also create a new
revenue stream.
Agriculture: because of the mobility, m-commerce provide, rural users will use
applications that use the mobile phone as a payment tool or convey more information that
is relevant to their daytoday activities. Applications can be designed specifically to suit
farmers needs and interface them with buyers and government.
Education: Similar to other wired technologies, mobile wireless technologies have first
been used in industry sectors such as business. The movement of mobile wireless
technologies in education is a recent trend, and it is now becoming the hottest technology
in higher education. Developing applications and portals that educate people on various
issues from healthcare to basic child sciences can be used to engage people intellectually
across the population. The quality and relevance of the application will justify the cost
attached to it. The fact that it makes idle time more productive is a huge plus.
Health Care: Healthcare is the largest service industry in the world and none of us
throughout the course of our life can avoid some interaction with this industry. Healthcare
systems in each nation have till date been shaped by their country's traditions, culture,
payment mechanisms and patient expectations. Now however, it is not these differences
but rather the commonalties of a global and apparent terminal malady of exponentially
increasing costs, an informed and empowered consumer, the need for e-health adaptability
and a shift from focusing on primarily curing to the prevention of diseases that are the
major challenges of healthcare management in the 21st century
M-Commerce can provide all these with ease if well harnessed. In fact it will boost
primary health care delivery.
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6.3
CONCLUSION
Mobile phone is the ultimate platform for various companies to market and advertise their
products, says Rene Meza, Managing Director, Zain Kenya.
M-Commerce is definitely here to stay and its the future. As technology continues to
progress and new systems are being created, mobile commerce is on a rapid rise. Today
most people are constantly on the go and the ability to conduct businesses in the palm of
your hand wherever you go is definitely in high demand. It is important therefore to note
the following
Weakness: the major weakness of this research is that M-Commerce is heavily dependent
of Mobile Device, availability of cheap internet connectivity and enabling government
regulations. But the two most critical obstacles are:
Security Challenges
Limitations: this research was limited by access to Value Added Service (VAS) data by
telecoms operators which would have been used to show the potentials of M-Commerce
through its current use and future projections.
Several authors suggest diverse current and future scenarios related to M-Commerce, this
research attempted to give an overview of those authors work and screen the situation in
Nigeria. It is important to highlight that this research was conducted with the resources
accessible within the time frame provided but for a more detailed assessment of the impact
of M-Commerce on the Nigeria economy, a more extensive study should be conducted
looking at the impact on each sector of the economy.
This research was able to come up with the conclusion that wireless internet and mobile
commerce and its applications are here to stay and if it is harnessed properly can definitely
contribute to economic growth in Nigeria by leveraging on the population and mobile
phone penetration.
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REFERENCES
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