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E-Commerce Strategies_The Relationship Between E-commerce & Competitiveness

E-Commerce Strategies_The Relationship Between E-commerce & Competitiveness

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Published by Shapiro
This research paper sets out to analyze the degree to which e-commerce can be embraced to achieve competitive advantages. It analyzes how e-commerce technologies have impacted on business performance in Zimbabwe. The research determines the relationship between e-commerce and business profitability.
This research paper sets out to analyze the degree to which e-commerce can be embraced to achieve competitive advantages. It analyzes how e-commerce technologies have impacted on business performance in Zimbabwe. The research determines the relationship between e-commerce and business profitability.

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Published by: Shapiro on Oct 13, 2008
Copyright:Attribution Non-commercial

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05/09/2014

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In developing countries like Zimbabwe, a major impediment to take-off of e-
commerce is inadequate ICT and Telecoms infrastructure as well as shortcomings in
physical infrastructure, logistics and trade facilitation (Gapu, 2004). Other limitations
include foreign currency controls, which limit the free exchange of value over the
internet. A research in Vermont, USA (Vermont Report, 1999) revealed that there
are three main areas of barriers to e-commerce:
Ignorance – when people know little about the internet, they tend to hate the
technology and thus use of the facility will be limited. However, this is not the
situation in Zimbabwe because rapid changes in mobile technologies and the
quick buy in by people in Zimbabwe have proved that Zimbabweans are quick
to adapt to changes and embrace them.
Cost – costs prevent most businesses from establishing e-commerce
services. Cost comes in the form of cost to buy hardware and software for
use in e-commerce. It also comes in the form of cost of building the system as
experts are expensive to pay. Significant costs also come from the cost of
leasing bandwidth from telecommunication service providers. In Zimbabwe,
cost is one big inhibitor to technological advancement.
Time – companies find it difficult to invest in time to develop systems that can
be used on the internet.

Straub (2001) contend that other inhibitors of e-commerce come from fears about
perceived lack of online privacy, which arise from the internet’s ability to record
every aspect of the user’s behaviour. For example the Government recently
announced its intentions to monitor the Internet and intercept e-mails for
intelligence reasons. Every transaction on the internet involves some disclosure
of one’s personal information (Straub, 2001). This tends to scare away senior
managers away from conducting business on the internet.

Van Hooft and Stegwee (2001) contend that there is a general lack of secure
electronic payments system. They base their argument on the fact that current

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generations of e-payment systems involve sending information over the internet.
This has the attendant risk that such information may be intercepted by the
wrong people and hence may be misused.

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