Magero Martin Mwegi

SCHOOL OF HUMAN RESOURCE DEVELOPMENT

DEPARTMENT :

COMMERCE AND ECONOMIC STUDIES

COURSE :

BACHELOR OF BUSINESS INFORMATION

TECHNOLOGY

UNIT CODE AND NAME: HBT 2306 E-COMMERCE

PRESENTED BY:

MAGERO MARTIN MWEGI

REGISTRATION No:

HD232-6409/2012

PRESENTED TO:
GROUP:

MR MIRINGU
X

TASK:
1. Write an essay on forces driving e-commerce by giving examples?
DATE OF SUBMISSION: 6TH JUNE, 2014

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INTRODUCTION
The rapid growth of e-commerce imposes an increasing demand for the professionals who
possess the knowledge of conducting businesses in this fast-evolving electronic marketplace. To
cope with the ever-increasing demand in e-commerce education, in the last decade, the education
system has been undergoing a structural evolution in many countries. In fact, the e-commerce
courses or the courses covering issues in e-commerce are common in colleges, all any other
institutions of learning.
The question about requires the learner to clearly define what he/she understands about the
Forces driving electronic commerce by the use of examples. After a clear and detailed definition
the learner is required to explain the implication and the effects of the each factors outlines.
Definition of terms
E-commerce is usually associated with buying and selling over the Internet, or conducting any
transaction involving the transfer of ownership or rights to use goods or services through a
computer-mediated network. It is exchangeable used with other network like mobile commerce.
Electronic commerce or e-commerce refers to a wide range of online business activities for
products and services. E-commerce also involves any form of business transaction in which the
parties interact electronically rather than by physical exchanges or direct physical contact.
E-commerce is the use of electronic communications and digital information processing
technology in business transactions to create, transform, and redefine relationships for value
creation between or among organizations, and between organizations and individuals.
Factors driving e-commerce-This are those considerations that fuels and makes easier through
facilitation of e-commerce to take place in a given environment.
The following are forces driving E-Commerce
Today, not well informed observer would neglect a countrys development in terms for
information communication technology online services to economy. Following are the some of
the important factor fueling e-commerce.
Market forces

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Market is electronic space in which producers, manufacturer demand and entrepreneur make
their product available on the internet or the e-service with images and information for potential
buyer to examine the product, bargain and possibly buy.
Companies, Institutions, individuals and Corporations are encouraged to use e-commerce in
marketing and promotion to capture international markets, both big and small. The Internet is
likewise used as a medium for enhanced customer service and support. It is a lot easier for
companies to provide their target consumers with more detailed product and service information
using the Internet
For example OLX is a company that enhances the use of e-commerce and encourages people to
provide their production to be advertised, to be promoted and eventually online buying and
selling takes place through OLX. Buying a book on www.amazon.com
Economic forces
Economic is the study of human behavior as a relationship between ends and scarce resources
that have alternative uses to produce, distribute and consume goods and services among various
groups in the society to satisfy unlimited needs
Therefore the general wealth and commercial health of the nation is also an important driver.
Economic factors are influenced by Organizational culture Commercial benefits Skilled and
committed workforce
Economic efficiency is one of the most evident benefits of e-commerce resulting from the
reduction in cost of communication, low-cost technological infrastructure, more economic
electronic transactions with suppliers and speedier, reduces advertising costs and global
information sharing, and cheaper services to potential customer with alternatives. This clearly
explains the need for cost benefit analysis brought about by e-commerce.

Economic integration is either external or internal. External integration refers to the electronic
networking of corporations, suppliers, customers/clients, and independent contractors into one
community communicating in a virtual environment (with the Internet as medium). Internal
integration, on the other hand, is the networking of the various departments within a
corporation, and of business operations and processes. This allows critical business information

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to be stored in a digital form that can be retrieved instantly and transmitted electronically.
Internal integration is best exemplified by corporate intranets. Among the companies with
efficient corporate intranets are Procter and Gamble, IBM, Nestle and Intel.
Social forces Incorporating the level of advancement in IT education and training which will
enable both potential buyers and the workforce to understand and use the new technology.
Through social networks where people engage into social activities online is driving commerce
on social media where friends encourage one another to buy online a given product that they
have tested it through online services.
Technological forces-The increasing capacity of telecommunication infrastructures and the
popularization of Information Technology applications in Kenya, particularly in the last decade,
have refueled the growth of e-commerce. IT factors promoting the e-commerce education can
generally be summarized into two aspects: the improved public information infrastructures and
the increasing investment in e-commerce education.
The degree of advancement of the telecommunications infrastructure which provides access to
the new technology for business and consumers
The good example for instance is the rise of portable mobile devices and advanced videos is
increasing the desire of the consumer to spend more time researching online for price matching
and ultimately on their buying decision. With the discovery of different innovative mobile phone
applications every day, e-Commerce has matured extensively
It is obvious that any technological advancement that has an easy and wider access to people is
going to rock! Here supply meets the demand.
Moreover, the principle of universal access can be made more achievable with convergence. At
present the high costs of installing landlines in sparsely populated rural areas is a disincentive to
telecommunications companies to install telephones in these areas. Installing landlines in rural
areas can become more attractive to the private sector if revenues from these landlines are not
limited to local and long distance telephone charges, but also include cable TV and Internet
charges. This development will ensure affordable access to information even by those in rural
areas and will spare the government the trouble and cost of installing expensive landlines
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Legal forces -In order to improve the institutional infrastructures of e-commerce and ecommerce education, the government and have been issuing laws and regulations successively.
They also financially sponsored some key academic projects, which greatly benefited ecommerce education.

For example students joining university as from this year, they have to apply online through this
site http://kuccps.uonbi.ac.ke/ and also people can apply for KRA pin online and do any ecommerce transaction provided by KRA through this site https://mapato1.kra.go.ke/itms/
All of the services above fall under Governments Promotional Interventions as a force fueling ecommerce
Political factors: It including the role of government in creating government, legislation,
initiatives and funding to support the use and development of e-commerce and information
technology.
Customer interaction forces-This is where customers meet in various platforms like in their
companies of working, and through this interaction they are able to inform each other on some of
the online services that they had been the beneficiary of it. Through this they encourage their
friends to try e-commerce transaction.
Education. E-commerce education that leads to professionalism had led to the fueling of ecommerce in developed and developing countries to cope with the challenges that are likely to
arise.
As e-commerce education is getting popular, an increasing number of organizations launched
training programs in e-commerce with certificates for trainees in different concentrations. In
order to standardize retraining programs with required quality and, defining the qualifications of
e-commerce professionals on different levels that as positively impacted e-commerce
Safe And Secured Online Monetary Transaction like Electronic Debit, Micropayments, Epayments in B2B transactions, E-billing in B2C, Online banking can influence someone to adopt
the e-commerce

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Competition Thong (1999) found out that competition influences the adoption of new
technologies or electronic commerce very little in small enterprises, while Premkumar and
Roberts (1999) findings were contrary; that the pressure of competition is a factor that influences
adoption.
Security Issues-Where the customers is guarantee security of is information online he/she
accepts to engage to online transaction and vice versa

CONCLUSION
In this essay we analyzed the driving forces of e-commerce as it presented its current status and
discussed the major examples regarding the quantity and quality of e-commerce in meeting the
job market requirements. .

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REFERENCES
Turban (1999). Ecommerce Driving Forces. In Greenstein, M., and Feinman, T. M. (Eds.)
(2000). Electronic Commerce: Security, Risk Management and Control. Beijing:
Mechanical Industry Publishing House.
Ngai, E.W.T., and Wat, F.K.T. (2002). A Literature Review and Classification of Electronic
Commerce Research. Information & Management 39, pp. 415-429.
Andersen Consulting (1998),
E-commerce: Our Future Today. A Review of E-commerce in Australia
Macharia, J. (2009). Factors affecting E-commerce Adoption: Nairobi United States,
International University
Maswera T., Edwards J., & Dawson R., (2008). Recommendations for E-Commerce adoption:
Information & Management, 42(7), 947-964.
Mclvor, R., & Humphreys, P. (2004). The implications of Electronic B2B Intermediaries for the
Buyer-Supplier Interface: International Journal of Operations and Production
Management, 24(3), 241-269

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