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UNIVERSITY OF WALES, TRINITY SAINT DAVID

E-Bazaar.com.pk
A study to identify the issues associated with launching an E-business in Pakistan.
Zain Uddin-28001574

A dissertation proposed is partial completion of the requirement for the BA (hons) in Management.

Research Supervisor Mr. Charlie Dayman

Issues associated with the launch of e-business in Pakistan

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Acknowledgment

I will start with the name of Almighty God, Who is always with me in every facet of my life. He is the one who has always given me determination and faith to work hard. I would also mention my fathers name, Mr. Saleem Uddin and thank him to support me in every decision I made and help me in every mistake I did. Thank you for everything father I am privileged to have been born your son. Special gratitude to my mother, her prayers have given me everything in my life, I wish I could thank her for giving me inspiration to last this long and this project would not have been possible with her prayers for me. I also appreciate my sister, brother and fiance to support me fully and give me courage to live alone here in Ireland and complete this degree. My class mates also deserve to be mentioned here because they have helped me throughout this dissertation. I would be happy to mention the name of my teacher and Supervisor Mr. Charlie Dayman and thank him for all of his support and assistance from primarily to concluding stage. Last but not the least; I would like to cite the special words of thanks for the management, the library faculty and administration of Grafton College. ZAIN UDDIN

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Declaration

This is to certify that this dissertation, which I am going to submit now for examination for the award B.A. (Hons) in Business Management, is completely my own work and has not been taken from others work and all of the sources have been cited and acknowledged by means of entire reference. The preparation of this dissertation followed the regulations of University of Wales, Trinity Saint David and it has not been submitted in parts or whole for any purpose in any university or college. This university has rights to keep, to copy or to lend this dissertation in parts of whole, on condition that any se of the material of this paper is duty acknowledged. Signed____________________________ Date__________________________

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Executive Summary:
This research is conducted to emphasize on the issues that are associated with the launch of e-business in Pakistan and to determine whether it would be viable business in Pakistan market or not. The foremost objective of this dissertation is to analyze these issues and affects of these issues on the launch of e-business. This paper has also focused on marketing process which is required in the introduction of E-Bazaar.com.pk in Pakistan; this marketing processs aim is to create widespread awareness of e-business in Pakistan. Amazons case study has been discussed in order to create proper understanding of the literature and issues. Amazon started with a slow start and strived hard until it got successful, the major issues faced by Amazon during struggling period have also been mentioned in order to compare the situations and issues. Amazon won the heart of people because it is purely customer orientated business which has vision Our vision is to be earth's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online. E-Bazaar.com.pk is a webpage which will fulfill the needs of online customers who buy online due the price difference, better products, etc. The launch of this e-business will create more opportunities for Pakistan entrepreneurs and hopefully government will also sponsor new e-commerce projects in order to increase the viability of e-businesses in Pakistan. Nevertheless, there are many issues related with the launch of e-business in Pakistan. These issues could definitely become hindrance in the way of this launch, some of these issues are: lack of awareness, lack of knowledge, lack of security, lack of trust, lack of infrastructure, etc. These issues have strong impact on this launch; once they are resolved or minimized it is then possible to launch this e-business successfully. Therefore if E-Bazaar.com.pk is capable of establishing new successful business, it would help to inspire the whole country and make e-business more popular with audiences and all of the population. The problem with online shopping is that it has not been seen as a trustworthy way of shopping and it has been seen as an unsecure way of buying something. People of Pakistan believe in face to face transactions and they are also interested in tangible things, according to Rawala in 2007, if they cannot touch the product how will they buy? It is recommended for this e-business to provide as much detail as they can in order to decrease this issue. Government has not issued any law against the people, who commit cyber crime, however government is interested in producing something legal which supports and assure quality e-businesses. 28001547 4

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The research survey shows 62% (out of 100% questionnaire) responded and completed survey which showed 92% of the respondents are interested in online shopping if there is proper and secure payments system, if they have proper internet connectivity and if they have better price and comparable brands. However secondary research on e-businesses (Amazon, eBay) has indicated that e-business could be successful if effectively targeted and if it is customer orientated. This ultimately directs towards overall question considering all of the issues, is E-Bazaar.com.pk viable business for Pakistan market based on the findings it is but not in all over the country now due to the lack of internet connectivity and awareness.

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Table of content:

Table of Contents
CHAPTER 1................................................................................................................................8 1. INTRODUCTION:.................................................................................................................8

CHAPTER 2..............................................................................................................................11 2. LITERATURE REVIEW:.....................................................................................................11 2.1 E-Commerce and E-Business:.........................................................................................11 2.1.1 Fundamental e-business models:..............................................................................12 2.1.2 E-business and Supply Chain integration:.................................................................14 2.2 2.3 2.4 2.5 Network architecture:...................................................................................................14 E- marketing:...............................................................................................................17 Culture and E-business:..............................................................................................19 Issues associated with launching e-business:.............................................................20

CHAPTER 3..............................................................................................................................22 3 RESEARCH METHODOLOGY:..........................................................................................22 3.1 Research objectives:........................................................................................................22 3.2 Research Philosophy:......................................................................................................22 3.3 Research process:...........................................................................................................23 3.3.1 Define the problem:...................................................................................................23 3.3.2 Research approach development:.............................................................................24 3.3.3 Research design development:.................................................................................24 3.3.4 Data collection:..........................................................................................................24 3.4 Data analysis:...................................................................................................................27 3.5 Report analysis:...............................................................................................................27 CHAPTER 4..............................................................................................................................28 4 FINDINGS:.........................................................................................................................28

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4.1 Qualitative research findings: in-depth interviews:............................................................28 4.2 Quantitative research findings: questionnaires:...........................................................31

CHAPTER 5..............................................................................................................................41 5. ANALYSIS:............................................................................................................................41 CHAPTER 6..............................................................................................................................44 6. CONCLUSIONS:...................................................................................................................44 6.1 Recommendations:..........................................................................................................45 7. Bibliography:..........................................................................................................................47 APPENDIX A.............................................................................................................................50 APPENDIX B.............................................................................................................................55 APPENDIX B

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CHAPTER 1

1.

INTRODUCTION:
Information technology and communication is becoming more and more customary in many countries (Lee, 2007). E-commerce refers to buying/selling through the internet; nonetheless it connects into many other mediums such as financial or non-financial transactions between a company and customers (Uddin, 2010). E-commerce is also related to communication that is the delivery
1

of

information,

delivery

of

services

or

feedback/complaints discussed in CRM platform. Moreover, it has roots in business transactions, after-sales support and logistics (Bocij, Greasley, Hickie, 2008). According to IBM, the transformation of business process via ICT2 is called e-business. In simple words, e-business is a way to develop new ways around in the business world through innovative potential of ICT. The significance of e-commerce can be demonstrated by looking at the increase in online sales. According to Chloe Rugby in 2010, UKs e-commerce performance has grown by 22% in 2010 as compared to 2009 which equates to every person in the UK is spending 73 on online transaction. Such rapid growth is not only in the UK alone, online sales in the US have increased by 9% in 2010 as compared to 2009. Sales are going to increase even faster and they would be moving away from high-street-stores because e-shoppers are less delicate to unpleasant economy than normal US consumer (www.sescommerce.com). India is also illustrating a tremendous expansion in ecommerce, online transactions have increased by 30% in 2010 if compared to 2009 and according to economists this growth will continue in 2011 (www.chillibreeze.com). In Pakistan the number of internet users are growing much faster than before (Global news analysts), whereas e-commerce growth is relatively slower than neighbor countries like Bangladesh and India. The barriers to ecommerce in Pakistan are inadequate infra-structure, frequent power failures, lack of security for e-transactions. The internet business has changed some of the traditional strategies such as typical value chain, services, buying behavior, price matching, etc (Robert, Racine, 2001). In e-business traditional supply chain has been changed as well. ICT has been utilized as a generator of competitive benefit in the theme of the current business environment and to facilitate new
1 Customer relationship management 2 Information and communication technology

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business strategies. Dell and Ryanair are leading companies in proving how ICT enables differentiated business models (Dept of Enterprise, Trade and Employment Ireland). More than 24% of the Dells support is powered online; according to Zimmerman, Dell is the largest e-commerce webpage in the world. Michael Dell, CEO Dell Inc., suggested that companies that ignore the benefits of internet are in huge risks, all of these companies will have to consider the importance of ICT. Amazon.com is one of the most customer-centric companies in the world; it allows customers to buy/sell online and tries to offer the lowest price in the market. It took almost ten years for Amazon to make a profit. The companys success credit totally goes to CEO Jeff Bezos, who successfully structured long term customer orientated strategies. One of the most vital strategies in Amazon is that Bezos has focused on CRM and enhanced the customer satisfaction. According to Bezos, if you do build a great experience, customers tell each other about that. Word of mouth is very powerful. Bezos has also considered long term strategic planning and said if you think about the long term then you can really make good decisions that you wont regret later. (Barbara Farfan, 2010). Infrastructure of e-businesses contains internet, extranets, intranets, networks, promoting CRM, knowledge management, integrated supply chain management and etc. Infrastructure of the e-businesses is more than technology as it is effective management and interaction of strategy, Human Resource (skilled people), electronic transactions (credit cards, VISA, Master cards) and plans (Optima media, 2007). In Pakistan, internet providers are offering range of technologies such as DSL, fiber optics, WiMax, etc. Pakistan broadband has shown 150% growth in the year 2009 as compared to 2008 (Wattegama, 2008). Qubee has launched WiMax technology in Pakistan and it is growing rapidly. There is an enormous need for reliable and wide area connectivity in Pakistan. Currently there are approximately 1 million credit card users in Pakistan. Banks like UBL3 have started providing VISA debit card to the consumer. According to PressPK, PayPal is coming to Pakistan in 2011, which will enable many of the public to buy and sell online securely. This study will identify the issues associated in launching an e-business in Pakistan i.e. EBazaar.com.pk. It will concentrate on issues like cultural, political, environmental, technological and economical issues. It will not investigate the market feasibility, financial feasibility, funding of the project, technical construction of the webpage and product pricing. This study will not involve in measurements i.e. It will not be likely to collect and analyze all of the measurements such as online transactions made all over in Pakistan, Broadband usage, 3G usage, WiFi usage, Mobile internet usage in Pakistan, etc.
3 United Bank Ltd Pakistan

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This dissertations objectives are to emphasize the cultural and ethical issues that might need attention during the launch of E-Bazaar.com.pk, to consider the issues related to marketing process and to progress an understanding of e-commerce in order to establish a way for latest business ventures.

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CHAPTER 2

2.

LITERATURE REVIEW:
This chapter provides an introduction to the literature while summing up the reviews and critique summarizing e-marketing, project management and e-business. It also supplies the reader with a depth analysis to the issues related with this study and the potential challenges faced. In the process of introducing new product to the Pakistani market, E-business theories and literature will be discussed; the issues that are related to e-commerce will also be mentioned. The marketer would focus on marketing literature and marketing issues that are related to e-business. Marketing literature assists in building effective strategic plans for the new product. It also helps in market segmentation: customer understanding, awareness, their morals and values, customer relationship management, brand loyalty and attract sponsors/investors etc.

2.1 E-Commerce and E-Business:


E-commerce is defined as the simple buying and selling via internet (Chaffey, 2009), however it also participate in many other mediums that are financial or no-financial transactions between B2B, B2C or C2C(Uddin, 2010). This means that e-commerces process is also involved in communications i.e. information delivery about product/service, electronic service delivery (downloading, uploading) and feedbacks/discussions of hub webpage. According to Raynold in 2004, E-commerce is mainstream enabling businesses to sell products and services to customers on a global basis. Thus its a process which allows the corporate to apply and examine new tools and techniques so there would be a comfort in marketing and selling products/services. It is a quintessential application of ICT (Chaffey, 2009). E-business is the transformation of organization processes by using ICT (IBM, 2007). Ebusiness can be identified in two main directions. The first one is strategic and operational i.e. enhancement of e-business technology and strategies. The second one is used as an adjective to focus on the nature of businesses that are not high-street businesses such as Eason, Tesco etc rather they are pureplays (web based self service businesses i.e. customer or organization will serve themselves on e-businesses) (Uddin, 2010).

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Therefore the term e-commerce has been complemented by innovative terms such as ebusiness, e-marketing and more specifically e-CRM, e-tailing and e-procurement (Chaffey. 2009). E-commerce has been facilitated by several technologies that permit communication through websites, blogs, emails and digital media (wireless, mobile etc). It is important to discuss the opportunities for buy-side and sell-side e-commerce transactions, when identifying the strategic influence on e-commerce. Buy-side e-commerce is a transactional link between company and its suppliers whereas sell-side e-commerce is a transactional link between suppliers and its customers.

Figure 1 taken from 11 Chaffey 2009

page

2.1.1

Fundamental e-business models: In customer to customer (C2C) models the business derives from the customer and the eventual destination is also customer. This model goes well with e-commerce when there is selling of used material either on cash or exchanging goods tactics on the website (Korper, Ellis, 2001). The best example found regarding this model is eBay where the consumer can also sell their products to other consumers. This model also enables customers to read the reviews of others about the product/service and also write their own reviews about them (iblogger, 2010). In business to business (B2B) model, both of the parties are businesses. In the interest of creating better value products/services, delivering value and effective distribution systems businesses interact with each other electronically (Korper, Ellis, 2001). It could be a transaction between manufacturer and wholesaler or wholesaler and retailer. This model is crucial because of its high volume transactions than other models such as B2C and C2C (iblogger, 2010). In addition this model is also important because of the strong relationship 28001547 12

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with the supply chain of the business (Currie, 2004). For example, an online retail organization such as Asos.com makes several B2B transactions while buying or displaying clothes, shoes or cosmetics from different suppliers/brands. This model also enhances the communication and collaboration of businesses electronically (blogs, social media i.e. facebook, twitter, etc). The business-to-customer (B2C) model is the commerce which has business firms on one hand and customer on the other. B2C should not be considered as traditional online selling or buying only, because marketing comes before selling of the product/service (iblogger, 2010). Marketers identify segmentations, trends and promotional activities in order to sell more. This model also helps in conducting online surveys to attain customer satisfaction level and customer details (Uddin, 2010).

Figure 2 taken from http://indianblogger.com/understanding-the-modes-of-ebusiness/

E-commerce also provides market security system (Korper, Ellis, 2001), in order to support secure payments such as PayPal. PayPal promises the consumer that they will not transfer the money to sellers account until receivers get delivery of their goods. 2.1.2 E-business and Supply Chain integration: The process of organizing the movement of merchandise from suppliers to buyers is known as Supply Chain Management (SCM) (Chaffey, 2009). Additionally it is the process which optimizes an organizations internal performance in interaction with suppliers and customers in order to convey the products/services efficiently (Jorge, 2008). According to Chaffey, 2004: the co-ordination of all supply activities of an organization from its suppliers and partners to its customers. Managers can integrate supply chain and ICT in order to bring the company upstream and downstream (Jorge. 2008), because supply chain is the strategic approach which unites all of the steps in business cycle i.e. from the acquisition of 28001547 13

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material/technology and product/service design to shipping, warehousing and until customer buys product/service (Laudon and Laudon, 2002). The internet has not only given more power to customers in buying online, compare prices, read reviews, etc but it has also enabled organizations to easily gain access to distributors (Reynolds, 2001). This process has changed the entire supply chain environment due to the enhancement of ICT. The increased globalization and innovative technologies/software have given benefit to organizations through the integration of supply chain rather than to follow a traditional supply chain where it is not easy to find appropriate suppliers and it is an arduous task to know the customer and manage customer relationships (Beyer, 2010). Therefore, supply chain and ebusiness integration is cooperation and collaboration of businesses across the whole supply chain, hence improves market competency, CRM and operational efficiency (Lee, Han, 2009).

2.2 Network architecture:


The internet is the primary resource which is used to commence and then capitalize ebusinesses through its multiple communication channels (Korper, Ellis, 2001). The internet has capitalized the business world by giving it a new shape when the businessmen can develop their new businesses with less financial investment (Chaffey, 2009). It has made it possible now for customers to buy and receive the product/service while sitting in their home. The speed of the internet is vitally important because of the ease the information and communication from the supplier to seller and seller to customers (Uddin, 2010). In traditional businesses, it is nearly impossible to reach the actual supplier but the internet has facilitated e-business which now can be helpful for customers to reach actual suppliers and make comments about the quality of product/service. For example, suppliers are selling directly or some organizations are selling indirectly on the eBay platform, here the consumer can reach the supplier who has now become an e-retailer and it has benefited both the supplier and consumer in terms of quality and price. It has also enhanced the customer buying behavior through providing millions of products and brands on the same e-business channel while also reducing and saving their time (OBrian, 2002). For example if a person buys a book from a shop, it would cost him money for traveling and it will surely take more time than buying online. Internet connectivity is a major issue in developing and maintaining e-businesses (Levitt, 2006), if a customer has a normal broadband or DSL connectivity (1 Mega bytes per second) it is possible to buy a product easily online. Recently (8 th April 2011), the test has been conducted by me on eBay.com to examine how much time it takes to get access to this webpage and to find a product.

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Issues associated with the launch of e-business in Pakistan Time took in typing www.ebay.com on web browser (safari 2.0): seconds Time took in opening page on web browser (safari 2.0): seconds Time took in finding a product iPod touch 8G:

Dissertation 4.98 3.94 3.75 seconds

Note: Internet speed, typing speed and browser quality are major factor affecting shopping online. Webpage should also be developed on high quality internet protocol (IP), so it will be easier for the browser to upload the web page fast. The intranet is the system which utilizes standard network systems such as Wi-Fi, Ethernet, IP etc. in order to connect people or group of people of the organization. It is one of the most important systems in e-businesses (Chaffey, 2009). Managers can reach employees at any time and also employees can commence their projects via intranet (Levitt, 2006). There are many applications that cannot be shared on internet directly to the customer or supplier so that companies design intranet systems which enable users to communicate virtually and share the workload with each other anywhere in the world (Bartoo, at el, 2000). It has helped organizations to hire specialists from different countries. It is the tool which helps organizations to reduce some of their variable costs such as uploading pay slips, bonus information for employees, awards information, upcoming events, etc. If the company follows traditional pattern of paper based models for each employee/member it would cost nearly 12 per individual (Laudon and Laudon, 2000). The intranet is also a major assistance to some facets of supply chain of the e-business, for instance accounts and finance departments, marketing and sales departments, IT departments and management department are all on the same platform. For example, if any supplier or buyer wants to contact manager he/she will reach CRM department which then will use intranet to discuss the case with responsible managers. The extranet is a common extension to intranets; it is possible for external people or group of people to get access to the companys webpage through extranets. It has also proved to be one of the most effective systems which increase the effectiveness of businesses. Electronic data interchange (EDI) is a system used in extranets which transfer/exchange information over the internet i.e. customer relations, invoices, order tracking, purchasing orders, bills, etc (Laudon and Laudon, 2000). EDI could be used to sustain CRM of the company and it also provides the customer database to the company. Extranets could also be helpful for marketers to identify the customer information for market segmentations. It enhances the trust of customers when they read and write about the products/service (Kokakula, et al, 2010), customers can actually reach the consumers who have already

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Figure 3

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bought and used the product/service. Therefore it is a major tool which could be used to increase the tangibility of e-business webpage.

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2.3 E- marketing:
Marketing is the process which is accountable for examining, identifying, satisfying and anticipating customer needs profitably. Internet marketing or electronic marketing is simply defined as achieving marketing objectives through applying digital technologies (Chaffey, 2009). These technologies include internet, extranet, web sites, e-mails, wireless, mobile media, etc. It is the process of developing and sustaining customer relationships via online activities in order to facilitate new ideas, products/services and the satisfaction of both parties (Manzoor, 2008). E-marketing considers process which is a traditional marketing program (Harris, Dennis, 2007). Process includes corporate strategies, business unit strategies, opportunities in the market, marketing strategies, marketing plan, CRM strategies, etc. Marketing is the major process to generate long lasting customer relationships. Thus it is marketers duty to focus in finding customers to cultivate an ample amount of loyal customers through applying marketing tools and techniques. There are three effective stages in marketing that are used to target audiences: awareness, investigation and commitment (Manzoor, 2007). It should also be kept in mind during emarketing process that the goal is not only to build strong relationships with online customer; in fact the marketing strategic goal considers offline (relevant) customers as well (Korper, Ellis, 2003). The marketing plan is a cross-functional activity which could reach at any level of companys life (McDonald, 2007). There are series of activities involve in this plan such as marketing objectives, formation of plans, examining market situation and achievement of the goal. Marketing plan designs a market analysis which involves opportunities in the market, segmentations, target audiences selection, positioning, marketing mix (product, place, price and promotion), promotional mix, etc. Effective marketing plan does not only contribute to single action such as good product/service, rather it focuses on the long term customer orientated strategies in order to deliver value to the customers. For example, amazon.com is a considerable e-business which has always concentrated on long term customer focused strategies. According to CEO amazon.com, start with customers, and work backwards. Listen to them but dont just listen to customers- also invent on their behalf. Obsess over customers (Ram, 2009). E-marketing process entails right blending of marketing mixture at the right time and sequence. There are several effective ways of marketing an e-business, the marketing process is also the process which develops and maintain brand image, so therefore it is quintessential to display a new business adequately i.e. first impression may be everlasting (Korper, Ellis,

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2003). Certain management applications such as SWOT/PESTEL should also be applied while introducing new business in Pakistan. Following are the marketing strategies that could be used to target audiences effectively: Search engines like Google are utmost important to market an e-business and directories like Golden Pages/Yellow Pages could also be used. Advertising brochures could be distributed by the host network company and ebroachers can also be distributed by broadband providers who then can share business. Online advertisement is another milestone is successful e-business process, advertisement could be done in popular classified newspapers such as Dawn newspaper Pakistan, online classified web pages, etc Direct marketing is foremost important process when discussing about e-marketing (Uddin, 2010). It is more than communication or promotion, because it also contains decision making. It could be done by sending e-mails to the target audiences or send mails via posts. Data mining and warehousing techniques can also be used as targeting new customers and record their buying trends. Social networks are one of the most important ways of marketing new e-business such as facebook, twitter. Facebook has given facility to directly target audiences with respect to their demographics. Marketer can do paid facebook advertisement by linking the page to facebook users who could be living in particular area or they have online buying behavior. It is not very hard for a marketer to perform segmentation via facebook and market new e-business.

2.2 Culture and E-business:


The impact of ICT has further broadened beyond organizations boundaries and has saturated in every aspect of daily life (Burn, et al, 2002). Understanding of the cultural diversity, perceptions, values and stereotypes of the target audiences is the major challenge while establishing new business into the market (Harsh, 2010). Culture influences consumer buying behaviour directly (Schumann, 2009). Consideration of values, symbols, religion, traditions, language and thoughts is vitally important in the process of business development. There is a division between subjective and objective cultures: subjective culture could be values, norms, religion, attitude, etc whereas objective culture refers to 28001547 18

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infrastructure, communication and technology, and other materials (Burn, et al, 2002). Objective culture is more likely to be focused because of the nature of business (electronic) because it examines that how information is being communicated in a society. For example the US, the UK and Japan all are advanced in information and communication technology, however electronically reconciled communication is profoundly utilized in the US and the UK but Japan relies on oral or face-to-face communication (Burn, et al, 2002). Therefore, the countries falling in lower context culture (UK, US, etc) would give relative importance to written communication, on the contrary countries (India, Pakistan, etc) falling in higher context culture would relatively focus in oral communications. Greet Hofstede in 1980, found four dimensions of culture that focus on the fact that how people from different cultures act and behave. These four dimensions are: power distance, uncertainty avoidance, individualism, collectivism, and masculinity/femininity. Trompenaar on the other hand studied corresponds to Hoftedes four dimensions in the form of five relationship orientations.

2.3 Issues associated with launching e-business:


E-commerce came into existence soon after the launch of internet (commercial usage) in 1991. E-commerce has been successfully extending its roots since 1994 in the western world. Though internet was there after 1991 but it took 3 more years to develop HTTP to secure protocols and DSL to supply the internet to users. After the increase in numbers of internet users, e-commerce became the process of buying and selling through internet. Nonetheless, B2B e-commerce became relatively successful after 1998, whereas B2C ecommerce was not successful until the end of 2001 due to the failure of many dot com businesses in 2000 (Laudon, Traver, 2008). Following issues proved to be barriers in launching e-businesses successfully: Lack of awareness: there was lack of awareness about the e-commerce until universities and colleges started teaching this subject in late 1990s. There was no media hype about the newly innovative business techniques. Lack of knowledge: people cannot become customers until they are acknowledged about the products/services. Marketing is the best option to deliver the message and enhance the customers knowledge about the products (Chaffey, 2009). There was lack of knowledge about the new buying pattern i.e. e-business. Soon after the companies realized the importance of e-commerce they started delivering the messages regarding e-commerce to the target audiences. Market segmentation became quintessential in pursuing this task (Korper, Ellis, 2003). 28001547 19

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Lack of security: people were also afraid of buying online due to the lack of security provided by internet providers and web providers. The internet was not very known until the mid of 1990s however it was getting popularity day by day which helped ecommerce to enhance its credibility. Anti-viruses and security panels were not sufficient enough to ensure customers to buy or sellers to sell online.

Lack of trust: many of the people still do not trust e-commerce especially in Asia. It was the big issue in 1990s because products pictures and videos could not be easily uploaded to the web site. So there was actually no tangibility of the products sold online. In order to do that, it was important to invest wide amount of money so that brand image will develop and customer will consider the products. Also e-businesses in the beginning were not inexpensive than off-street shops.

Payment issues: it was the biggest issue which did not let e-commerce to grow faster. People did not have credit cards; there was no secured payment system such as PayPal. Even if someone had credit card, they did not completely trust in online shopping until 2000. As secured payment system rose it motivated people to use ecommerce facilities.

Lack of infrastructure: there was no adequate infrastructure such as Wi-Fi, broadband, mobile internet, etc. Companies were not spending money to go online due to this fact. In fact internet accessibility was way expensive in that era. The speed of internet was very poor, internet was just used to send e-mail and communicate with people (Levitt, 1996).

Globalization: companies were not strategically thinking about the future business opportunities through globalization. Hence investment on e-business was not arising. This was also the reason which became barrier in the progress of e-businesses.

Ebay and Amazon played a vital role in promoting and establishing e-businesses. These companies allowed e-transactions. Amazon.com was founded in 1994; it was the first American company which went online. Company did not make profits until 2003; company survived and faced many issues (Laudon, Traver, 2008. In the beginning it was considered as the online bookstore, but Amazon extended its online store by adding electronics, music, CDs, video games, fabrics, etc. CEO Jeff Bezos showed obsession with customer orientated management, Amazon through its effective customary behavior developed trust about the ecommerce to its target audiences. Amazon has one of the best web sites in the world, the web site is clear and user friendly, and it focuses on customer relations through online assistance/customer feedback etc. Dell Inc. is also a considerable example; this company went online and brought new idea of customization in electronic market. There were no

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other web sites before giving opportunity to its customers to select and design your own product online. These companies gave foundation to the successful and secure ecommerce future (Laudon, Traver, 2008).

CHAPTER 3

RESEARCH METHODOLOGY:
The research problem is based on successfully launching an e-business Ebazaar.com.pk in Pakistan and to identify the issues related with this launch and establishment on e-businesses in Pakistan. The research commenced by (Uddin,2010), (Harsh, 2010),(Chaffey, 2009), (Levitt 2006), (Manzoor, 2007) and (Korper, Ellis 2001) are based on the idea that in order to become successful in e-commerce world it is important to communicate with target audiences so that they will get awareness about e-commerce and market should also consider the importance and role of culture while launching this project. Review of the literature has identified number of key issues associated with the launch of Ebazaar.com.pk. All of these issues have executed formation of research problem, the research problem and the research objectives settlement. In interest of putting these problems together the literature review was undertaken. Consequently the research problem is as follows: what are the issues associated with launching an e-business in Pakistan? Is E-Bazaar.com.pk viable in Pakistan market? In order to address the questions, assumption of the problem and then setting the research objectives is vital. There are three types of research methods: Exploratory, descriptive and casual research (Kotler, 2003). Following are the objectives set out in order to answer the question:

3.1 Research objectives:


To emphasize on the cultural and ethical issues that might need concentration during the launch of E-Bazaar.com.pk To consider the issues related with the marketing process and planning To progress an understanding of e-commerce in order to establish new opportunities for businesses.

3.2 Research Philosophy:


Paradigm illustrates the procedure of scientific practice which is based on peoples assumptions and nature of knowledge/ worlds assumptions (Hussey and Hussey, 1999). In simple words paradigm indicates different things to different people (Harsh, 2009). There

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are three main paradigms that are used to prevalence in management research: positivistic paradigm, constructivist paradigm and realist paradigm (Flower, 2009). However, qualitative and quantitative techniques could be used likewise (Malhotra, Birks, 2003).

3.3 Research process:


The examination of marketing process and analysis of cultural and ethical issues are the fundamental concerns in accomplishing the research objectives. There are different models of conducting research (Collis, Hussey, 2003). This research will follow the pattern of quantitative and qualitative methodology. Following are the stages that will be taken in order to develop research process as a loom for carrying out this research: 3.3.1 Define the problem: The research problem (E-Bazaar.com.pk an online business Pakistan: what are the issues related with launching e-business in Pakistan? is it viable for Pakistan market?) has been developed from the outline review of literature. The literature review recognizes that there are several cultural, ethical, political, energy issues, technological and social issues that might become hindrance while launching E-Bazaar.com.pk. According to Professor Rawala (2007), ineffective ICT management of government could become even bigger barrier for the businesses that are interested in going online and use e-commerce. 3.3.2 Research approach development: This stage assists in building up an authentic research approach to the problem. Wiid and Diggines suggested that the contents of this approach might contain research questions or hypothesis, theoretical framework and analytical models. This research has concentrated in theoretical framework which is supported by academic models and theories. After undertaking extensive range of literature review the evidences for the objectives were collected. Additionally, use of appropriate theories and models provided information on how the researchs design be selected in order to measure the variables. 3.3.3 Research design development: A research design is an action plan and it is a blue print of the research process (Domegan, Fleming, 1999). This is designed to facilitate the decisions that need to be made in order to solve the issues and problem. Additionally the research design provides information that is required to make decisions and also concludes the possible solutions to the problem question (Taylor, 2005). Hence, it involves in understanding of the fact that how respondents

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respond to the different research techniques and then how researcher make decisions (Malhotra, Birks, 2003). 3.3.4 Data collection: In general, researchers start with gathering secondary data which is available previously and have been collected for other purposes. Secondary data is more quick and cheaper in cost than primary data (Kotler, 2003). Nonetheless researchers cannot make decision on the basis of secondary research alone because necessary information may not be present or it is not applicable/accurate/impartial. The secondary research has been conducted for this research and it contains broad literature review. There were several different ways that assist in finding data such as textbooks, journals, articles, newspapers, internet and previous lecture handouts. Primary research is another vital aspect in the research process. It involves in data collection that does not previously exist. It could be done in different patterns such as in questionnaire, telephone, interviews, etc. There are two most important techniques that have been used in this research: Qualitative and Quantitative. Qualitative Research: The aim of this research is to identify and answer the problem what are the issues that are associated with launching e-business in Pakistan? Is EBazaar.com.pk viable in Pakistan market? Under the methods of qualitative research the indepth interviews with Pakistani people could make the researcher aware of the factors and issues that are related to e-business launch in Pakistan. In the context of introducing ebusiness in Pakistan, the major anxiety for researcher is to examine some of the cultural norms, ethical issues, technological issues, beliefs and buying behavior of the public, government involvement in the e-commerce development, political issues, etc. Insight into the dynamics of interaction is required in order to undertake effective interviewing (Chisnall, 2001). In-depth interview provides the researcher with political and economical issues that are related with the launch of E-Bazaar.com.pk through interviewing government officials, internet providers, internet users, businessmen, etc. This kind of interview features the up to date response and it is easier way to arrange because there will be not be many people or groups of people, although it may get harder to reach some of the interviewees (Pellissier, 2008). These interviews are generally unstructured; questions will be depending on the answers of the interviewees (Harsh, 2010). Whereas there could be a closely linked alternative questions prepared before the interview, because it is an open-ended questions where each interviewee can present their personal opinions and responses. Accordingly, for this research paper un-structured approach will be utilized in order to interview four 28001547 23

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departments: Government person (who is related to telecommunication or e-commerce department), internet provider (such as Pakistan Telecommunication Ltd., Qubic internet, Mafhh internet), a businessmen (who are interested in using internet for their businesses) and e-business orientated person (See Appendix B). Each interview can take to 30 minutes to one hour. The arrangement of this interview was done on 5th of April by calling respondents via phone and skype. Three of these interviews were conducted on 11th of April whereas the last one with government person was done on 15th of April. The response rate was almost 90% in telephone interview and it was more effective than emailing them. The response rates of these in-depth interviews are higher than 90% (Neumann, 2000). Quantitative research: Questionnaire has been used in order to undertake quantitative research for this paper. The questionnaire (Appendix A) is designed after analyzing data from literature review. In order to reach maximum number of individuals in less time, questionnaire proves to be practical way of conducting research (Collie, Hussey, 2003). They are short and point to point, most of the respondents do not get tired provided that questionnaire has been designed effectively. However sometimes it gets boring for the respondent as well (stone and stone, 2005). It is simply defined as a data collecting tool which contains a series of questions, written or oral, that the respondent answers (Harsh, 2010). There are some ethical or legal issues that are concerned with questionnaires thats why name, income and email has been set optional so that respondents can even answer without disclosing their identity. The first few questions are closed end questions that will deliver primary perception of the respondents toward the subject i.e. online shopping/transactions. The questionnaires have distributed in different areas of Pakistan such as metropolitan (urban) cities Lahore, Karachi, Faisalabad, Islamabad, etc and rural areas such as Toba tek singh, Sukhur, Larkana, Rahimyaarkhan, etc. The email was sent to the students who were themselves interested in answering this questionnaire, whereas they were also happy to take answers from their friends and family. The research questions were also distributed through Facebook to the Pakistani internet users in order to take their opinion on the research problem. This questionnaire was distributed on 3rd March 2011 and most of the respondent reply after 2 weeks.

3.4 Data analysis:


After collecting data, the researcher has to prepare and analyze the results and findings. This is a vital stage of the research process because it makes sure that the collected data has been analyzed correctly in order to satisfy the research objectives (Chisnall, 2001). This

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is a technique which can be utilized to obtain information and findings from the collected data in contrast to the literature review (Domegan, Fleming, 1999).

3.5 Report analysis:


This is the final step in the research process which presents the analyzed data in order to bring conclusions. It translates the findings of the researcher, delivers the reports of conclusion and provides reports of findings (Kotler, 2003). There are three basic role of any research report: to communicate findings, to become reference document ready to serve and to supply credibility for the work undertaken (Domegan, Fleming, 1999).

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CHAPTER 4

FINDINGS:
Findings are accomplished from the primary research. This is a two stage approach which involves qualitative and quantitative research. The first stage of findings contains the collection of qualitative data. A total of four interviews were conducted within Pakistan over telephone and skype. Three of the interviews were conducted on 11th of April 2011 whereas last interview was carried out on 15th of April 2011. Each of these interviews lasted approximately 15 to 25 minutes. All of the expected individuals responded except government representative who gave interview on 15th of April because of his busy schedule. The second stage involves quantitative data i.e. questionnaires. Over 50 questionnaires were distributed through internet, out of which 26 replied only. 5 Pakistanis who are living in Dublin also responded and answered questionnaire. Therefore, 31 completed questionnaires will be used to analyze data, which represents rate of response as approximately 62 %. Questionnaire findings also reveal that eighty two percent of these respondents were students and eighteen percent were in jobs/other occupation.

4.1 Qualitative research findings: in-depth interviews:


Objective 1: To emphasize on the cultural and ethical issues that might need concentration during the launch of E-Bazaar.com.pk The first objective is related with the respondents awareness of cultural/ethical issues that are associated in the launch of e-business in Pakistan. Firstly, the interviews were asked to express their feeling about internet and importance of internet in Pakistani culture. The findings illustrate that the respondents have several understanding on this launch. The common consensus among interviews is that the government has not really focused on ecommerce yet. Although government officials are declaring that they are strongly interested in strategic planning of promoting e-businesses in Pakistan. Following are the examples given by the interviewees during in-depth interview: Pakistani people are more interested in shopping from shopping malls as it is kind of trend in here. It is not an easy job to diversify their cultural behavior. They do not feel like sitting home and getting something that is why food delivery system is not even famous in 28001547 26

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Pakistan. I do not think many people will trust to shop online because of the intangibility. (Muazzam, 11th April 2011) Pakistan is an insecure business place now, only rich people can buy expensive goods, the class distribution is the huge factor that affects businesses. The idea of bringing branded products that are not available in market normally can change the buying behavior of the customer who can afford it. People do not trust internet here, in my opinion business dealings should be face to face. (Aamir, 11th April 2011) The respondents appreciated in bringing this idea of launching an e-business in Pakistan market; however they disclosed that the cultural and ethical issues might become hindrance here. The government individual also explained that there is such law or legal agreement made by government which can assure the quality of service provided by e-businesses, how will the customer know the product is genuine or even the web page is genuine. There is no such law exist which can stop scammers who do fraud online. These issues have strengthened customers belief about the online shopping. (Adeel, 15th April 2011). Furthermore, all of the interviewees conceded this idea in Pakistan which can be successful at certain level. Objective 2: To consider the issues related with the marketing process and planning. The second objective is related with the understanding of the interviewees about the marketing process and its issues associated with the launch of e-business in Pakistan. The interviewees were asked to display their thoughts and ideas on the concept of e-business. Discussion on the marketing process also involved facts from literature review and the lack of opportunities such as lack of security, lack of electricity, lack of infrastructure, lack of awareness, lack of knowledge and lack of trust. Following are the examples given by the interviewees during in-depth interview: People in Pakistan are not aware of the importance and advantages of online shopping; they are inclined to shop from off-street shops. Through marketing it is possible to explore this vision to the people so that they will recognize and they will buy. Government has done its job effectively in enhance IT infrastructure in Pakistan as a result of which internet users are increasing day by day. Government is also planning to invest in huge e-commerce projects. Government is in contacts with PayPal so that it can provide Pakistani people with secure payment system. (Adeel, 15th April 2011).

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In western world, companies are currently marketing their products through their websites where as in Pakistan; companies are not even motivated to advertise online or start etailing. From customer point of view, we hardly get any customer who wants to use online facilities. Consequently, it is highly expensive to develop internet webpage which has strong security system and payment plan. This vision of launching an e-business in Pakistan could only be successful once government starts supporting e-entrepreneurs. (Aamir, 11th April 2011). According to answer given by respondents, it is a huge challenge for an e-business to do marketing of E-Bazaar.com.pk in Pakistan. There are many issues that are contradicting in the launch of an e-business in Pakistan; one of the major issues is related to market segmentation. Almost all of the interviewees pointed out the issues related to segmentation: demographic, psychographic, and geographic. According to internet provider at Mafhh communication Karachi, Government really has to fund the internet providers in order to enhance the infrastructure of internet, if any customer wants to use Wi-Fi they have to buy expensive routers themselves and we do not have resources to store routers or provide internet through broadband, it is all fiber optical network distribution. (Zeeshan, 11th April 2011). Internet is not available everywhere in Pakistan and if it is available it is not appropriate network which could stop marketers to target audiences. Objective 3: To progress an understanding of e-commerce in order to establish new opportunities for businesses. This section is designed to deliver proper understanding of the issues that are directly related to the launch and progress of e-businesses in Pakistan. It also contains the discussion about electricity issues in Pakistan. Following are the examples given by the interviewees during in-depth interview: If I have sufficient money I would try to target all over the Pakistan but due to the financial and inefficiency of the government in e-commerce development, I am interested in targeting upper class in metropolitan cities first. Because many of the middle class citizens living in metropolitan cities do not have proper electricity supply. They do not use credit cards, they do not have fast internet, they fear if they get robbed because government has not published any law against cyber crime. (Aamir, 11th April 2011). Government is really considering opportunities that can be given to e-commerce department but the major issue is finance. Due to the financial instability in country,

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government is not going to spend big amount of money in e-commerce department. Educational department has already introduced e-commerce as a compulsory subject for the business students. Government is also planning to provide secure method of payment. (Adeel, 15th April 2011) E-businessmen would be successful only if they start bringing innovative and new technology which is unavailable in off-street shops. Customers from high class are always seemed to be attractive buy big brands such as Apple (in electronics), River Island (in clothing), car parts (BMW, AUDI), etc. These things are unavailable in most of the superstores or supermarkets so customer will be inclined to buy these items online. (Muazzam, 11th April 2011). According to answers given, major hindrance in the success of e-businesses in Pakistan is the lack of awareness, lack of adequate payment systems and security issues. These things can only be minimized with the effective government policies and laws. All respondents except government individual criticized government and media because they do not promote e-business or e-commerce. They also suggested that if the businesses and customer understand the advantages of B2B and B2C models, there are huge changes of making money in the future. They also suggested that if government shows little interest in supporting e-commerce, e-business can generate revenues and create opportunities for new business ventures in Pakistan.

2.2 Quantitative research findings: questionnaires:


Q.1 Do you have computer? The results show that 98% of the respondents have computer. Following figure demonstrates the response rate: Q.2 Do you use internet? The results show that 98% of the respondents are using internet. Only one person, who lives in Sukhur, does not use internet due to lack of knowledge and financial instability. Q.3 How much is your houses income per month (optional): 98% of the respondents answered this questions, majority of them selected option C. Q.4 Can you communicate in English? 65% of the respondents answered yes.

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Q.5 What is your educational level? Majority of the respondents selected option A.

Q.6 how often do you use internet? Majority of the customer selected option A. Q.7 which is your favorite internet activity? Most of the respondents selected option B and many of them selected more than one answer. Q.8 which internet do you use? Majority of the respondents use fiber optical which is the most popular internet networks system in Pakistan. Q.9 how is the speed of your broadband? The internet speed seems very bad as many respondents selected slow. Q.10 how do you evaluate the growth of internet users in Pakistan? Respondents answered option A which indicates the increased of internet users in Pakistan. Q.11 what do you think how many of your friends and family members use internet facility? Almost all of the respondents select option B which means there is still less number of internet users in Pakistan. Q.12 what is the best way of shopping for you for items such as books, DVDs, Fabrics, shoes, grocery, games, computers, cameras, stationary etc? Majority of the respondents are interested in shopping from superstores. Q.13 How much time to do you spend in going and buying book or mobile phone from offstreet shopping centers? Some of the respondents selected others and wrote time (5-10 mins):

Q.14 Do you also spend some money while going to the shopping mall in travelling etc?

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Most of the respondents replied yes because of the fact that some shops are far so they might need to spend money in travelling as well. Q.15 Do you trust in online shopping? 85% respondents said no and mentioned the payment/security issues in their answers. Q.16 Do you prefer to shop online if you get in cheap prices and authentic brands? 65% respondents selected yes.

Q. 17 Do you have credit card or VISA debit card? 90% of the respondents do not use any credit or VISA debit card and they have mentioned that there is no need and Pakistan does not have culture of electronic transactions. Q.18 PayPal is coming to Pakistan late this year according to the sources, would you feel easy to buy online once PayPal is there? Respondents seem happy to hear that PayPal is introducing in Pakistan this year and majority of them have selected yes. Q.19 if you buy online, in how much time you expect to get delivery of your goods? Respondents have selected option A/B and some of them want deliveries before 24 hours. It means fast delivery system will be needed which is another issue due to the lack GPS availability in Pakistan. Q. 20 Do you think you will like to do your shopping online for major festivals for Eids, Marriage ceremonies, school functions, etc 98% of the respondents do not like to shop online whereas 2% of them have selected yes. Q.21 What would be the reason(s) of shopping online(please select more than 1 reason if needed) All of the respondents selected multiple answers: Q.22 What would be the reason(s) of not shopping online? Many of the respondents are interested in going for shopping with friends and family due to cultural values.

Q. 23 would you allow/recommend your siblings/friends to shop online? All of the respondents have said yes and many of them written that they will definitely tell their friends and family if they like the service.

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Q. 24 Do you think there will be job losses if e-business becomes successful in Pakistan? Majority of the respondents have selected may be.

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CHAPTER 5

5. ANALYSIS:
This section is based on the findings section; it involved the analysis of gathered data which has already been collected in the form of qualitative or quantitative research. Following are the issues that are associated with launching an e-business in Pakistan, these issues derived from literature, findings and their analysis: One of the biggest issues for the marketing campaign for e-business launch in Pakistan is related to segmentation. Segmentation would help to identify the behavior of customer, demographics, psychographic and geographic. Geographical issues: Pakistan has four provinces; there are many metropolitan cities such as Karachi, Lahore, Peshawar, Quetta, etc. Often population density has been classified in urban and rural people. The most important issue to be considered here is the availability of internet connection in the areas of marketing new brand concept. For example urban areas of Pakistan have access to the internet but majority of the urban areas have not got access to the internet (Global news analyst Pk). However metropolitan cities population seem definite target audiences as it had been analyzed through quantitative and qualitative that it is easier to communicate them. Demographical issues: the variables like age, family size, income, occupation, education, social classes have to be considered while launching EBazaar.com.pk. For example, from the questionnaire it has been analyzed, the person who earns minimum wages ( 50) does not have internet accessibility. There are many villages and even small towns near big cities where the people are not aware of e-business concept because they usually do not use internet; therefore in order to educate them about online shopping. Marketers cannot process until people have computer education and internet understanding. Psychographic issues: unfortunately Pakistan people have been divided in social classes such as upper class, middle class and lower class, it affects their lifestyle, activities, opinions, values, etc. For example, in in-depth interviews, it has been identified that the person who belongs to upper class can easily buy branded and luxury goods whereas middle class people can try to save money to buy these items but lower class people can just think of buying even normal products. Upper 28001547 33

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class people have been found different, they have their own cultural and social values, they celebrate in their own way and their buying behavior is totally different. Middle class people are more likely to opt with normal culture and social life, upper class would consider the likes of brand, quality, country-of-origin of the products, something innovative, etc. Middle class people are seemed to look at the brand but also compare the prices with respect to the quality and value of the products. However, most of the lower class people do not have internet facility, or they have less knowledge of online shopping. Similarly upper class and middle class audiences are more likely to understand and trust the e-commerce whereas it is hard but not impossible to find anyone from lower class understand or trusting online transactions. The main and considerable cultural issues that are related with the launch of e-business in Pakistan are: Pakistan government has not really focused on e-commerce yet. After the in-depth interviews it has been analyzed that Pakistan government is interested in planning and developing strategies to promote e-businesses in Pakistan. The number of internet users has increased and people now are using latest internet connectivity networks such as Wi-Fi, 3G broadband, DSL, etc. According to the governments member Adeel, increase in internet users is directly proportional to increase in ebusinesses opportunities for Pakistan entrepreneurs. Nonetheless, in spite of increase in number of internet users in Pakistan there are very view e-businesses that are facing financial trouble. In the light of questionnaires answers it has been illustrated that people of Pakistan are more interested in shopping from shopping malls, shopping areas, etc that is the issue businesses are not motivated to go online. It has also been analyzed that during the festivals in Pakistan people tend to do shopping in groups with friends and family, it is not just shopping for them it is more enjoyable activity. One person from Karachi replied in questionnaire that why would I order online while sitting home when there is no enjoyment and fun? Most important cultural factor is that people of Pakistan are more likely to trust face to face transactions. Furthermore, it has been analyzed that lack of education in many areas is a major issue associated with the launch of an e-business in Pakistan. According to Dawn news channel Pakistan, only 48% percent of Pakistanis are educated. Simultaneously, 65% out of these educated people have studied in national 28001547 34

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language Urdu. Although language converter could be used in order to resolve this but most of the internet activities are based on internet. Electronic payment is an integral facet of ecommerce (Manzoor, 2008). The major issue in Pakistan market is security and privacy. Respondents identified there is no law which can stop cyber crimes. According to the questionnaires answers, an online customer is likely to buy online only if there is secure payment system and quality assured products. People fear that the government has not forward any law against people who involve in illegal activities on the internet. One respondent replied If I am shopping online in Pakistan, and I am not intending to steal anything but what about the hacker who may steal my details and take benefit of it?. Another security issue is fraud it is a challenging task to take target audiences in trust that web page is not scam or fraud. While analyzing the data collect in relation to the issues associated with the launch of ebusiness in Pakistan some ethical and legal issues need consideration. There are several ethical and global issues that are related to e-business launch such as privacy, security, job losses, etc. One person, who is 39 years old, answered questionnaire states that suppose if my son is buying online and a product which is not appropriate for him who will be responsible for that? Who will examine that the product is sound for this kid? He further states on the question about online shopping, I will be happy to shop online but how can I be sure that the website is regulated by government? Other reviews also illustrates the issue of job losses, according to their opinion: job losses could occur as soon as ebusiness get success, many off-street shops will face drop in sales, customer will reduce their traveling expense for shopping and customer can compare products online unlike many off-street shops which is giving positive edge to e-business future but negative edge to usual shops and jobs. Electricity issue was also discussed heavily during the interviews and questionnaire replies. Many of the cities like Karachi, Lahore, Faisalabad, etc do not have adequate electric power systems. Interviewees told that currently there is 6 hours load shedding of electricity in many cities. When people do not have proper electricity how will they shop online? Though upper class and middle class people can afford to power generators for their houses and shops but not lower class people.

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CHAPTER 6

6. CONCLUSIONS:
After analyzing data, the final conclusion from this dissertation is that there are many issues associated with the launch of E-Bazaar.com.pk in Pakistan. These issues can be resolved or minimized if not then these issues can become severe problem and later become reason of companys failure. It is vitally important to target right audience at the right time and in the right area i.e. effective market segmentation. Obviously, there cannot be three different web sites for three different social classes; however it is possible to differentiate products/services with respect to the gender such as goods for male or female, age groups, prices, offers etc. If a person is earning minimum wage, he/she can still shop online but the issue is internet they might not have internet so the company could develop mobile webpage such as eBay mobile; mobile internet (3G) has been found cheap and easy accessible in Pakistan. E-Bazaar could also be considered to launch on the internet but not all over the country for example marketers can first target audiences from urban areas and metropolitan cities, after the successful results they can further promote the website to rural areas and small cities of the country. Upper class population tends to shop online easily because most of them are attached to latest business patterns and western business style. They have employed people to serve them in their houses and they do not really want to go out until there is an occasion or friends hang out, therefore the internet would be best option for them to buy with comfort. Middle class people give more importance to value of the product but they also want to save some money so e-business would attract them if rightly marketed and launched. This e-business is not viable for many areas of Pakistan where there is no internet or internet literal people. Furthermore these issues are downsizing as the rate of internet users is increasing in Pakistan but the government has to focus on the development of e-commerce. The cultural issues such as face to face business transactions, tangibility of product could be harder to resolve but they can be minimized by giving customer right packages and take them in comfort zone. Several ways could be offered such as money back guarantee, exchangeable items, minimum delivery charge, and fast delivery services, etc. CRM is the most important facet of this business which can assist in minimizing many issues. Customer reviews can be useful to take the customer in trust. E-Bazaar should also follow the way of eBay and Amazon where customer can also use e-commerce models such as B2B, C2B and C2C. This will enhance the awareness of audiences about the online shopping and selling. 28001547 36

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Payment and security issue has also been considered, in simple people of Pakistan will not buy online if there is no easy and secure way of payment. Majority of the Pakistanis do no use credit card. Students from all areas and groups are more likely to shop online because of their education enhancement. After the research, it has also been observed that students and youngsters are more attractive to innovative business ideas such as e-business. Marketers can communicate the message through seminars, events, TV, radio, educational institutes, etc because it is quintessential to give the knowledge about e-business to the audiences. In the reflection of this research, this e-business could be launched in major areas of Pakistan for the time being because it is not viable to launch this business all over the Pakistan until these issues get resolved.

6.1 Recommendations:
Based on the research it is recommended that: Marketing is a most important part of any business, similarly this e-business should have proper marketing plan which clearly focus on market segmentation and customer relation department. Definitely launch mobile internet site as well which can allow customers to buy easily from their mobiles. Contact internet providers to involve in business by doing marketing and lowering down the issues by marketing strategies. Get brands that are more famous on media and not available in Pakistan, such as River Island, Apple, Adidas, etc. It is good if biding is there on website such as eBay bids. Contact government officials to register this business and assure the quality certificate. Try to show as much pictures and videos as possible in order to downsize the issue tangibility in Pakistan culture, because they do not really until they feel the products. Let customer sell their goods, website can take its profits; through this e-tailing will increase. In order to resolve payment issue, allow customers to pay on delivery which is a sensible approach in current situation. Communicate with students from universities to contribute in marketing activities: this will be a best way to communicate to target audiences from different classes because students come from different social classes. The website should be user friendly, there should be intranets/extranets system planted, translation software should be there so that it can minimize the language barrier. 28001547 37

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Arrange seminars in the targeted cities distribute brochures in different markets, use Public Relation, promotional mix, etc. Assure people that this e-business will generate many jobs in Pakistan and the business will mostly manage its supply from Pakistan which endeavors to be beneficial for countries economy.

Undeniably publish and promote website on facebook, twitter and other social networks. CRM department could also collect customer database through this way. Share with people in their blogs, live chats, videos and more.

7. Bibliography:
Beyer Sewen, 2010, supply chain performance measurement and e-business supply chain management: including a practical excursus of the intel case, GRIN Verlag Burn Janice, Marshal, Barnett, 2002, e-business strategies for virtual organizations, Butterworth-Heinmann Chaffey Dave, 2009, e-business and e-commerce management, Fourth edition, Prentice hall Chilli breeze, Ecommerce in India, Available at (12th march 2011) http://www.chillibreeze.com/articles_various/Ecommerce.asp Chisnall, 2001, Marketing research, McGraw Hill Collis, Hussey, 2003, Business research a practical guide, Palgrave Macmillan Currie Wendy, 2004, value creation from e-business models, Butterworth-Heinemann

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Dept. of Enterprise, Trade and Employement, 2004, e-business strategies, Available at (12th march 2011) http://www.deti.ie/publications/enterprise/2007/ebusinessstrategypublished.pdf

Domegan, Fleming, 1999, Marketing research in Ireland, Gill and McMillan Ecommerce growth, US ecommerce forecast 2008 to 2012, Available at (12th march 2011) http://www.sescommerce.com/ecommerce-growth.asp Farfan Barbara, 2010, Quotations from the customer centric founder and CEO of Amazon, otes.htm Available at (12th march 2011) http://retailindustry.about.com/od/frontlinemanagement/a/Amazon_CEO_Jeff_Bezos_qu

Flower Paul, 2009, Research philosophies-importance and relevance (issue1), Leading learning and change, Cranfield school of management, Available at (20th April 2011) http://www.networkedcranfield.com/cell/Assigment%20Submissions/research %20philosophy%20-%20issue%201%20-%20final.pdf

Harris Lisa, Dennis Charles, 2007, Marketing the e-business, Taylor and Francis Harsh Sandeep, 2010, Football india, Dissertation submitted to University of Wales Lampeter Hussey, Hussey, 1999, business accounting, Macmillan business Iblogger, 2010, Understanding the modes of eBusiness, Available at (1st April 2011) http://indianblogger.com/understanding-the-modes-of-ebusiness/ Jahankhani Hamid, Watson, Me, 2009, Handbook of electronic security and digital forensics, World Scientific Jorge, 2008, e-business and the supply chain management, Journal published by Secured Assets Yield Corp. Ltd., available at (10th April 2011) http://www.saycocorporativo.com/saycoUK/BIJ/journal/Vol1No1/article_4.pdf

Kocakulah, Abbas Foroughi, Mitchell Lannert, Streamlining Supply Chain Management with E-business, 2010, The Review of Business Information Systems, Volume 6 Number 2.

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Laudon, Kenneth C. and Laudon, Jane P. Management Information Systems: Organization and Technology in the Networked Enterprise. New Jersey: Prentice Hall, 2000.

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Wattegama Chanuka, 2008, Pakistan ranks worlds fourth in broadband growth, Available at (13th march 2011) http://lirneasia.net/2008/12/pakistan-ranks-worlds-fourthin-broadband-growth-with-such-a-tiny-base/

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APPENDIX A
RESEARCH QUESTIONNAIRE

Name (Optional): Occupation: City: Email (Optional)

1. Do you have computer? 2. Do you use internet? Why?

Yes Yes

No No

3. How much is your houses income per month (optional): a. b. c. d. 7000-14000 rupees (50-100) 14000-25000 rupees (101-200) 25000-50000 rupees (201-400) Other If choose other then please explain.. Yes No

4. Can you communicate in English? 5. What is your education level? a. b. c. d. Higher school or less Graduate Masters Doctorate

6. How often do you use internet? a. Daily b. Once a week c. Once a month 28001547 42

Issues associated with the launch of e-business in Pakistan d. Other If choose other then please explain 7. Which is your favorite internet activity? a. b. c. d. e. f. News reading Studying Gaming Social network Online shopping Other If choose other then please explain

Dissertation

8. Which internet do you use? a. b. c. d. e. DSL Wi-Fi Fiber optical Mobile broadband (3G) Other If choose other then please explain...

9. How is the speed of your broadband? a. b. c. d. e. Very Fast Fast Moderate Slow Very slow

10. How do you evaluate the growth of internet users in Pakistan? a. b. c. d. e. Very fast Fast Moderate Slow None

11. What do you think how many of your friends and family members use internet facility? a. All of them b. Some of them 28001547 43

Issues associated with the launch of e-business in Pakistan c. None

Dissertation

12. What is the best way of shopping for you for items such as books, DVDs, Fabrics, shoes, grocery, games, computers, cameras, stationary etc? a. b. c. d. Supermarket Mini market Shops near your house/workplace Other If choose other then please explain.

13. How much time to do you spend in going and buying book or mobile phone from offstreet shopping centers? a. Half an hour b. One hour c. Other If choose other then please explain... 14. Do you also spend some money while going to the shopping mall in travelling etc? a. Yes b. May be c. No 15. Do you trust online shopping? Why? Yes No

16. Do you prefer to shop online if you get in cheap prices and authentic brands? Yes No 17. Do you have credit card or VISA debit card? NoWhy? Yes

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18. PayPal is coming to Pakistan late this year according to the sources, would you feel easy to buy online once PayPal is there? Yes No Why?

19. If you buy online, in how much time you expect to get delivery of your goods? a. b. c. d. 24 hours 36 hours 48 hours Other If choose other then please explain.

20. Do you think you will like to do your shopping online for major festivals for Eids, Marriage ceremonies, school functions, etc Yes No 21. What would be the reason(s) of shopping online(please select more than 1 reason if needed) a. b. c. d. e. f. g. h. i. j. Fast delivery while sitting home Cheap price Well recognized brands Securable payment and delivery system Comparable items Customer reviews about the products Exchangeable products User friendly web page It is dangerous to go out nowadays Other If choose other then please explain...

22. What would be the reason(s) of not shopping online? a. b. c. d. e. No trust on online transactions You like to go out for shopping Shopping with friend and family Tangibility of products Other If choose other then please explain.

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Issues associated with the launch of e-business in Pakistan 23. Would you allow/recommend your siblings/friends to shop online? Yes Why?

Dissertation No

24. Do you think there will be job losses if e-business becomes successful in Pakistan? a. Yes b. May be c. No Note: The right of privacy of the correspondents that are contributing to this material is secured and protected under the Data Protection Act 1998. This questionnaire has been made to fulfill the requirement of dissertation which will be submitted to University of Wales, Trinity Saint Davis. Any future non academic use of this material is prohibited. Zain Uddin

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APPENDIX B
DETAILS OF THE INTERVIEWEES; IN-DEPTH INTERVIEW: 1- Mirza Aamir, Business man who owns three book shops in Karachi, Lahore and Islamabad, is interested in creating webpage for his business so that customers can buy, review and sell online. a. Interview date: 11th April 2011. b. Interview way: Telephone c. Contact: 0092333367968 2- Muhammad Muazzam, fresh graduate who wants to start e-business in Pakistan through bringing fashion fabrics from overseas and designer clothes from designers and selling them online. a. Interview date: 11th April 2011 b. Interview way: Skype c. Skype Id: Muhammad_muazzam 3- Zeeshan Ali, internet service provider, their internet network is huge in the city of Karachi. a. Interview date: 11th April 2011 b. Interview way: telephone c. Contact: 00923212721066 4- Adeel Stephen, government employee who is currently working in Pakistan Telecommunication Ltd. and monitors the growth of e-commerce in Karachi. a. Interview date: 15th April 2011 b. Interview way: telephone c. Contact: not disclosed

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