Evaluation Of The Role Of E-Commerce In Reducing Operational Cost In An Organization
This study was carried out to examine the evaluation of the role of e-commerce in reducing operational cost in an organization with special reference to Jumia online stores. Specifically, the study aims to examine the role of E-commerce in reducing operational cost in an organization, identify other benefits accruable from E-commerce in Nigeria and identify the limitations and disadvantages of E-commerce in Nigeria. The study employed the survey descriptive research design. A total of 141 responses were validated from the survey. From the responses obtained and analyzed, the findings revealed that The use of E-commerce does reduce the operational cost of an organization.. The study thereby recommendsthat enable e-commerce companies and businesses to coordinate strategy and resources and skill composition of long-term relationships, particularly those institutions or dense information technology companies, and through electronic networks that allow the sharing of information. Some researchers believe that the images of these networks that regulate e-commerce will prevail in the near future; where they become the organizational structure of each social interaction between people.
1.1 Background to the Study
E-Commerce is the process of conducting business electronically among various entities in order to satisfy an organizational or individual objective. A key ingredient of E-Commerce, sometimes referred to as electronic trading, is the advertisement and procurement of goods and services over the Internet (Rhodes & Carter, 1998). The success and volume of E-Commerce on the web has been widely reported. With success in establishing an environment in which E-Commerce can grow and flourish, every computer can become a window open to every business, large and small, around the globe.
The electronic medium we call the Internet has the potential to reduce actual transaction time, processing time and operational cost dramatically, while at the same time making information available globally. Internet-based E-Commerce has been embraced as a means of reducing operational cost and as a high potential means of generating revenue (Levis, 1996). The ubiquity of the web and the availability of browsers across different platforms provide a common base upon which E-Commerce applications can be built, especially in the enterprise. This common platform has reduced the significance of issues pertaining to software distribution and software installation, thus encouraging the expansion of E-Commerce via Intranets, Extranets and the Internet.
E-Commerce provides new channels for the global marketing of tangible goods and presents opportunities to create new businesses providing information and other knowledge-based intangible products (Rhodes & Carter, 1998). Although most E-Commerce is currently at the inter-corporate and inter-organizational level, services targeted at individual customers are evolving rapidly. The Internet is the most obvious example of this and is a major catalyst in the diffusion of E-Commerce, helping to foster a common environment for electronic transactions of all kinds. E-Commerce encompasses all forms of interactive business transactions, which are facilitated by networks of computers. E-Commerce is expanding because of the greater number of businesses and individuals who are able to use these networks and the growing number of ways in which businesses can conduct transactions electronically with other organizations and directly with consumers at a reduced cost (Bartell et al, 1999).
At present, business-to-business E-Commerce seems still to be of greater volume than business-to-consumer E-Commerce with the primary motive of operational cost reduction, but this may change in the future. These trends are important to the global economy and to the economy of individual countries because E-Commerce contributes to economic efficiency. E-Commerce contributes to economic efficiency in five important ways. They includes shrinking distances and timescale, lowering distribution and operational costs, speeding product development, providing more information to buyers and sellers and enlarging customer choice and supplier reach (Turban et al, 2000). However, this study is focused on the role of E-Commerce in reducing operational cost in an organization.
Furthermore, when offline stores calculate operational costs, they have to factor in countless business expenditures along with the actual number of transactions.
When there are fewer transactions, the cost of per transaction is higher. On the flipside, transactions arriving in high quantity can overwhelm the personnel and distributors. In an E-Commerce business, the operational cost is the same across the board, whether one order or thousands come in.
Dealdey.com was launched in March 2011and they features a daily deal on the best things to do, see, eat, and buy in Nigeria. DealDey is trying to create an easy and fun way to get fantastic deals on great experiences. DealDey.com supports local businesses and in return they support consumers with good savings. They are attempting to create a “Win-Win” scenario each and every day for local merchants who want to attract new customers, and consumers who want to save money and take advantage great services and activities in their own city.
1.2 Statement of the Problem
Electronic commerce is a popular topic in business management, mass media and in informatics circles as well. Perhaps its impact is most visible in the areas of financial services and retailing. Many E-Commerce initiatives have risen in a short period of time. Those initiatives include innovative smart cards to facilitate E-Commerce, remote payments and electronic checking, online trading of stocks, bonds and related financial instruments, online banking, and online retailing (e-tailing).
However, its effect on the reduction of operational cost of organization has been examined in a number of ways comparatively to brick and mortar organizations for instance the money received for every transaction will pay for the item; it will also contribute to the salesperson salary, credit card fees, lease on storefront, electricity, telephone, heating/cooling, taxes, displays, repairs and maintenance to the building. However, the money received for an E-Commerce transaction pays for the item, web hosting, shopping cart software, distribution and little else. The cost overall of maintaining a virtual store is far less than that of a brick and mortar store.
1.3 Objectives of the Study
The following are the objectives of this study:
- To examine the role of E-commerce in reducing operational cost in an organization.
- To identify other benefits accruable from E-commerce in Nigeria.
- To identify the limitations and disadvantages of E-commerce in Nigeria.
1.4 Research Questions
- What is the role of E-commerce in reducing operational cost in an organization?
- What are the other benefits accruable from E-commerce in Nigeria?
- What are the limitations and disadvantages of E-commerce in Nigeria?
HO: The use of E-commerce does not reduce the operational cost of an organization..
HA: The use of E-commerce does reduce the operational cost of an organization.
1.6 Significance of the Study
The following are the significance of this study:
The outcome of this study will educate business managers and the general public on the role of E-commerce in reducing the operational cost of business organizations. This research will be a contribution to the body of literature in the area of the effect of personality trait on student’s academic performance, thereby constituting the empirical literature for future research in the subject area
1.7 Scope of the Study
This study will cover the benefits of E-commerce with special focus on its influence as regards operational cost reduction in business organizations.
1.8 Limitations of Study
Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work
1.9 Definition of Terms
The buying and selling of goods or services using the internet, and the transfer of money and data to execute these transactions.
An organized group of people with a particular purpose, such as a business or government department.
1.10 Organization of the Studies
The study is categorized into five chapters. The first chapter presents the background of the study, statement of the problem, objective of the study, research questions and hypothesis, the significance of the study, scope/limitations of the study, and definition of terms. The chapter two covers the review of literature with emphasis on conceptual framework, theoretical framework, and empirical review. Likewise, the chapter three which is the research methodology, specifically covers the research design, population of the study, sample size determination, sample size, and selection technique and procedure, research instrument and administration, method of data collection, method of data analysis, validity and reliability of the study, and ethical consideration. The second to last chapter being the chapter four presents the data presentation and analysis, while the last chapter(chapter five) contains the summary, conclusion and recommendation.
Summary, Conclusion and Recommendation
In this study, our focus was on the evaluation of the role of e-commerce in reducing operational cost in an organization using Jumia stores as a case study. The study specifically was aimed at highlighting the role of E-commerce in reducing operational cost in an organization, identify other benefits accruable from E-commerce in Nigeria and identify the limitations and disadvantages of E-commerce in Nigeria. A total of 141 responses were validated from the enrolled participants where all respondent are drawn from jumia staffs and their customers.
Based on the finding of this study, the following conclusions were made:
- E-commerce contribute in reducing operational cost in an organization
- The benefits accruable from E-commerce in Nigeria are it brings enhancement to the performance of the business, assists in the customization of products and the services and lower costs and enhanced sustainability
- The limitations and disadvantages of E-commerce in Nigeria are lack of system security, reliability or standards owing to poor implementation of e-commerce and customers can’t try before they buy
Based on the responses obtained, the researcher proffers the following recommendations:
Enable e-commerce companies and businesses to coordinate strategy and resources and skill composition of long-term relationships, particularly those institutions or dense information technology companies, and through electronic networks that allow the sharing of information. Some researchers believe that the images of these networks that regulate e-commerce will prevail in the near future; where they become the organizational structure of each social interaction between people. The company benefits from the results of the application of e-commerce in reducing the salaries and wages of men and reward salespeople and sales and reduce expenses, sales and administrative expenses of travel and the movement of salesmen
How To Get The Complete Material For “Evaluation Of The Role Of E-Commerce In Reducing Operational Cost In An Organization“
The Complete Material Will Be Sent to You in Just 2 Steps
Quick & Simple…
Make Payment (Through Transfer) of ₦3,000 to Any of the Account Below
|Acc No: 0811003731|
|Acc No: 1225513212|
|Acc No: 8143831497|
Or CLICK HERE To Pay With Debit Card
|FOR STUDENTS OUTSIDE NIGERIA|
|CLICK HERE To Purchase Material ($15)|
|FOR GHANIAN STUDENTS|
|Make Payment of 80 GHS to 0553978005 | Douglas Osabutey | MTN MoMo|
Send the Following Details on WhatsApp ( 08143831497) After Payment
- Payment Details
- TOPIC: Evaluation Of The Role Of E-Commerce In Reducing Operational Cost In An Organization
The Complete Material Will Be Sent To You On WhatsApp After Receiving Your Details
T & C Apply