STRATEGIC MANAGEMENT

ASSIGNMENT V
VISHNU PRIYAN L
205SM024
1. Conduct the macro environment analysis for e-commerce industry.

TECHNOLOGICAL COMMENTS EFEECT ON

FACTOR INDUSTRY
GROWTH

Technology process Face-to-face transactions of products Positive Effect

Indigenous technology
Maintenance
and services as well as payments
have been diminished by the
technological process in this
epidemic. B2B and B2C markets
have benefited from safer and more
convenient cashless transactions
thanks to technology.
Indigenous technology has shown a Positive Effect
huge growth and has lured many
players into the e-commerce
industry. Indigenous technology has
made it easier for the players to
understand the customers.
In order to remain competitive, Positive Effect
companies in the e-commerce
industry must pay attention to the
upkeep of the social media platforms
through which they conduct
business. As a result, to attract more
customers.

ECONOMIC FACTOR COMMENTS EFEECT ON

INDUSTRY
GROWTH

Taxes Because of the way that E-commerce Negative Effect

connects suppliers and customers
over the internet, rather than socially,
it has given rise to tax evasion and
tax loss concerns. Doubling taxes
also has an impact on E-commerce.
Trading and pricing of products and
services are affected by changes in
taxation systems in a nation.
Dollar rate Usd is the currency used to transact Negative Effect
inputs and imports. The fluctuations
in the USD impact sales and input
prices. If you want a successful
market, you need to deal with these
risks in advance
LEGAL/POLITICAL COMMENTS EFEECT ON
FACTOR INDUSTRY
GROWTH

National Green Tribunal Act - As a result, environmental hazards Negative Effect

2010 are reduced, while natural resources
are protected.
Active NGOs To strengthen their marketing, Positive Effect
communication, and branding
initiatives, NGO's are now seeking to
get involved in E-commerce.
Corporate Social Any industry's CSR model will Positive Effect
Responsibility- CSR highlight the job they perform and
their contribution to society, which
will enhance the industry's image.
The CSR rules and model should be
updated due to the constant changes,
and an ineffective CSR model may
lead to the failure of the firm.
GST This industry is growing at a Negative Effect
tremendous pace in India, and the
government is actively pushing a
digital economy. However, the
implementation of the GST has
slowed its growth.
IPR Intellectual Property Rights (IPR) Positive Effect
preserves the rights and grants a
patent to its author. E-commerce
firms need IPR since it protects
HTML code which is text-based and
utilised by websites. Firms can
secure their databases under
copyright laws or specialised
database regulations.
SOCIO-CULTURAL
FACTOR
Attitudes to work life balance
Workforce diversity
Attitudes towards being green
DEMOGRAPHIC
FACTOR
Population Growth
Age mix population
Multi-cultural trends
Type of skills required
COMMENTS EFEECT ON
INDUSTRY
GROWTH
The contemporary world, with its Negative Effect
desire to earn more and the rise of
Working at home, has doubled the
worker's burden, leaving them with
little time to relax and come up with
new ideas. Because of this,
employees feel unmotivated to
accomplish their jobs.
Indians come from a wide range of Positive Effect
states, backgrounds and
communities. As a result, the
working environment is very diverse.
As a result of working in such a
diverse setting, ideas from different
backgrounds may be combined and
implemented.
It's no secret that consumers favour Positive Effect
eco-friendly and environmentally
friendly items. If the firm wants to
maintain its identity and be
recognised, it must use the same
approach.
COMMENTS EFEECT ON
INDUSTRY
GROWTH
Consumer demand rises as a result of Positive Effect
a growing population.
It is because of this that the Positive Effect
company's products are more
diverse, allowing them to focus on
each age group and meet their
demands, which in turn improves
sales.
It is because of this that the firm Positive Effect
should grow the number of items it
offers and, thus, boost its sales.
It depends on the work they perform, Positive Effect
where they work, and what sector
they work in to determine what skills
they need. Skill sets should be
diverse in the E-commerce business
in order to maximise the company's
potential.
 INTERNATIONAL AND COMMENTS EFEECT ON
GLOBAL INDUSTRY
GROWTH

Tariffs For example, it should keep track of Negative Effect

Foreign exchange rate
the tariffs it has to pay on imports
and exports. This increases the cost
of products and services produced as
a result of tariffs.
USD is the currency used to transact Negative Effect
inputs and imports. The fluctuations
in the USD impact sales and input
prices. If you want a successful
market, you need to deal with these
risks in advance

2. Identify the factor/s in the general environment where internet plays a major role? Give
examples?

Demographic Factor: People of all ages share ideas and learn new things as the world moves
towards digitalization, and surfing and the internet play an important part in demographic
variables. There is no age limit to learning and exchanging ideas. Internet plays a crucial role
in today's rapidly changing environment. For example, a pandemic has provided the internet
and its benefits a chance to have a major influence, notably on students through online
classes.
Political/Legal Factor: It is easy, quick, and free to access all of the political and legal
developments that are taking place in the country or the globe via the internet. For example,
in the past, legal/political changes were communicated to the public through newspapers or
experts, but now, everything is at your fingertips.
Social/ cultural Factor: It is easy, quick, and free to access all of the political and legal
developments that are taking place in the country or the globe via the internet. For example,
in the past, legal/political changes were communicated to the public through newspapers or
experts, but now, everything is at your fingertips.
Technological Factor: When it comes to technology, such as online transactions, e-commerce,
and bill-paying etc., the internet plays a significant role. The internet is the primary means of
developing technology. For example, shops that accept online payments such as Google Pay,
PayTm, etc., have barcodes everywhere.
Economic factor: Because of the internet, the world has become more interconnected. A
single international market for trade and commerce has been created as a result of
globalisation. Because of this, there is less social and cultural disparity among nations. This
has led to a culture of pricing uniformity and a reduction in the number of middlemen. For
example, imports and exports between countries have increased.
3. Provide at least two examples of firms that have succeeded (stumbled) in their efforts to
expand into international markets. What factors can explain their success (failure)?

Firms to succeed in expanding into international markets:

TATA MOTORS
Because they have production and assembly operations in several nations, such as India
Argentine South Africa and Great Britain, this business is among the world's top automakers.

TCS
As customers embrace new technology, like as collaboration tools or cloud computing, TCS
has continued to grow. It's also possible that they'll use 5G, which may be used in areas like
automotive or manufacturing. They place a lot of emphasis on cyber security, which has
brought them a lot of success.

Firms to fail in expanding into international markets:

TATA STEEL
It was bought by Tata group on April 2, 2007, however it failed spectacularly owing to the
economic downturn of 2008. As a result of structural reasons such as an excess of steel in the
world market and a dramatic rise in imports from non European countries into Europe, as well
as high production prices, etc. What we're trying to convey is that cheap Chinese theft that
was dumped has wiped out the company.

AIRTEL
A significant blunder was Airtel's hasty entry into Africa. There were problems with
operations because of the macroeconomic situation in Africa. As a result of poor subscriber
quality, Airtel suffered a significant loss. Airtel's low-cost approach in Africa is a major factor
in this.