E-Business is not Easy Business

Mr. Vivek Mittal the owner of a chain of restaurants in US and UK found that Indian netizens have a good appetite for online shopping and entered the marketing in 2002. The online marketing size bonanza.com slowly picked up its business with the confidence levels of Indian consumer reaching a new high on e-commence transaction with the enactment Of I.T. Law by 2002. Bonaza.com restricted its business to retail trade in electronic goods only even though it wished to enter the real estate market also with online settlements of deals and documentation due to certain legal limitation in India. The validity of online contracts continued to be debatable as IT law did not address specifically. As and when legal uncertainties arose answers were being searched from the traditional contract law as to the formation of the contract itself. The scenario during 2002 – 2005 was confined to limited marketing by netizens with online passwords of bank accounts and to some extent digital signatures sparingly used by the consumers. Bonanza.com faced several disputes with Indian netizens most of whom were not fully familiar with the on line contracts and terms. It used click wrap agreements format for its transaction that allowed instant acceptance and conclusion of contracts by the clients. Some fanciful customers who indulged in window shopping in normal marketing terms found themselves captives of the terms of such contracts and try to put forward the premise of absence of intentional motives behind the casual clicking’s on the website.Bonazia.com had to engage several national and international legal experts to settle the disputes in the courts and as out of court settlements to avoid any adverse image for the company in its competition against foreign online giants like e-bay. Bonanza.com tried to attract local netizens through incentives and contacts. It engaged several cyber kiosks in its campaign and made a massive recruitment of local talent drawn from marketing wings of credit card agencies banks and insurance service organization with volume of transaction registering a fourfold increase by 2007. Bonanza.com extended its brand marketing for placement services as well and became popular among unemployed youth and students who posted their resume with photographs. There appeared to be an information flood pertaining to consumers. The Company was unprepared for managing such business and assessment of potential threats from within the organization, competitors and legal disputes with consumers. While intermittent shocks got submerged in growing volumes of business it was only in the year 2008 the company felt the unearthing shocks compiled with steeply declining volumes of business badly hit by the recession. Vivek Mittal, CEO sought the help of a private investigation agency to dig out the malaise and expose the culprits to enable the company to seek legal remedies and place the company back on rails. M/s Truth and Truth cyber forensics interacted with several wings of Banaza.com and reported the following major finding. “Reputation loss and business loss for the organization was the culmination of secrets and legal lapses committed at several stages off development of organization since 2002. Procedural violations, system abuses, regulatory failure, ethical and legal misconduct of employees and overall failure of management to strengthen vigilance and business intelligence to thwart the competitors attacks on systems”

This case is to be used for IBS Hyderabad-Class Room discussion only.


Page 1 

It only has a brighter side saying that brand value continues to be strong and can renounce back if navigated with caution as online marketing sector is still not flattened by the market crisis. Against Organization by Consumers : Cyber harassment Cyber stalking Defamation Privacy abuses Identity theft e-mail spoofing Cheating and fraud IPR violations Deficiency of services / unfair practices.com ltd.The report inter alia highlighted the following legal disputes pending with bonanza. Against for Business Counter Parts: – – Cyber Hacking Data Theft M/s Truth and truth calls for a total restructuring of the organizational policies and restructuring to cope with the ongoing crisis. . Against internal Employees : – – – – – – – – – – – Unauthorized accessing downloading data Computer Contamination Denial of access to Authorized Persons Online Gambling Tampering with Consumer Data Illegal Leakage of Data to Outsiders Cyber Harassment Pornographic Message Transmission Manipulating Accounting Software Forgery Tampering with Computer source document Destroying / altering – Sharing business information with competitors.

Sign up to vote on this title
UsefulNot useful