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Cândida Patrícia Veríssimo e Costa
A DISSERTATION Submitted to
The University of Liverpool
In partial fulfillment of the requirements for the degree of
MASTER OF BUSINESS ADMINISTRATION
A Dissertation Entitled
- An investigation of the influence of adoption of ecommerce on economic development: the case of Angola -
By Cândida Patrícia Veríssimo e Costa
We hereby certify that this Dissertation submitted by Cândida Patrícia Veríssimo e Costa conforms to acceptable standards, and as such is fully adequate in scope and quality. It is therefore approved as the fulfillment of the Dissertation requirements for the degree of Master of Business Administration.
Shane McMordie - Dissertation Advisor
Date: Date: 28th Oct. 2009
The University of Liverpool 2010
I hereby certify that this paper constitutes my own product, that where the language of others is set forth, quotation marks so indicate, and that appropriate credit is given where I have used the language, ideas, expressions or writings of another.
Signed Cândida Patrícia Veríssimo e Costa
Although very few entities know about the evolution of ecommerce in Angola. Results show that consumers generally prefer to shop in traditional stores and some items like books and electronic products are the most purchased when using electronic markets. consumer behavior. many people and organizations do not believe in it and/or still to skeptical and resistant to use it. Angola. for many reasons. the aim of this study is discuss the influence of the adoption of electronic commerce in Angola and how it affects its economic growth. The sample was chosen randomly.An investigation of the influence of adoption of ecommerce on economic development: the case of Angola - by Cândida Patrícia Veríssimo e Costa Electronic Commerce The electronic commerce is considered of great benefit for the development of many economies as it reduces the cost of products. Internet. Therefore.ABSTRACT . Next to the theoretical discussion was carried out a field research where hypotheses about differences of opinion regarding the purchase on the Internet and buying in traditional stores were established. mostly managers. economic growth. employees and university students in Luanda. e-commerce. 4 . developing countries. and such behavior only obstruct the Angolan economy to grow as much as the developed countries. Keywords: B2C. provides transparency and promotes more agility. traditional commerce.
ACKNOWLEDGEMENTS First and foremost I would like to thank God because he always find a way to put me on track when I’m lost and I got lost many times in this journey that was the dissertation. always patient and caring. Carlos Miranda and Jean Colsoul. Shane McMordie. Sebastian Garnier. To Lupi Monteiro for inspiring me in the last minute when I almost gave up everything. Mr. To the sister I chose for me Paula Costa for the sacrifices she made so that I could succeed in this work like when I had no power (electricity) at home and she let me stay at her place till late in the night waiting awake until I finished even though she had to wake up early the next day for work. depressed and lost. the ones I do not see for ages but through Facebook or other networks did not hesitate to send me strength and support. And last but not least my Dissertation Advisor. To the people I met while doing this work. God sent many angels in this journey to support me and the first one and most important of all is my mother. efforts and dedication to pull me up was incomparable. I dedicate this work to her. always willing to support and to see me succeed and to my SSM. although for the wrong reasons. Anuarite Kassongo. appeared at the right time and constantly pushed me forward. they are. To José Roque my dearest friend of all times for the support he gave me after we meet again after being 4 years apart. to all the people that answer my questionnaire in a short period of time. the ones I got in touch after long time. Haidee Sprague. I know it is not easy. thank you so much for your patience with me. 5 . To special angels that without them important parts of this journey would not be possible. she was caring and patient when I was temper. Iracema Veríssimo. and her smile. as always. just ask my mum. Norberto Félix. but with the exact degree of energy and strength which I used to concluded all my work.
.... 20 LITERATURE REVIEW........................................................................................................ 57 2.......3... 6 LIST OF TABLES ...3...........1 Economic Perspective (Introduction) .....................2 Mobile network.9..... 42 2......... Main types of Electronic Commerce .......................... 33 2........................4..............................................................................3............................................................... 70 6 ............ At Corporate Level....................2. Telecommunications ................................................................................................................1 Fixed network...........7.................................................. 33 2.............................. 48 2...............6 Perspective of the Brand and Loyalty..................................... 50 2.................................. International ......................................... 20 2.......4................4............ 48 2................. 59 2............................... 22 2........... 32 2.......................................................... Perspective of Product and Diversity ...................3................................. Impact on competition of the market ..............1........2..........................4............................. limitations............ 33 2...... Introduction of Services....................................................5.............................1 Contextual background.. Definition and scope ............ 66 2..........3....................................................4.......2.........3 Method outline ...............................TABLE OF CONTENTS ABSTRACT................. 64 2....8 Perception of the Price........ 43 2...........................3..................................................................... At Consumer level ....................... Macroeconomic influence (Main Indicators) ..........3............................... 8 LIST OF FIGURES ...........................................................4............... Main differences between ecommerce and Conventional Commerce28 2........8.........3............................. 68 CHAPTER 3 ...............4......4............9..... 15 1... National ....................... 33 2........................................... 11 1...... 48 2... 61 2............................ 35 2.............................5 Perspective of Promotion .......................................................... B2B Influence.............................3 Perspective of the Geographical Location .....................................2.... Evaluation of prices............................2.1...1....................................... E-Government Influence ..7 Perspective of the service ...........4................................3.........2........................................................................................4 Scope.........................................................6........................................... 62 2................................3................................................... 5 TABLE OF CONTENTS .................................. 14 1............................................ 37 2...... Infrastructures ................. Internet and Electronic Commerce .......... 40 2..3........................................ 49 2............................... Performance e Functionalities ................................... 44 2.................................................... 55 2...... 11 1....................................................................2......2....................3............................................................................... 39 2............................................ 20 2........4 Perspective of Logistics and Delivery capacity ...............2 Services Access ........................ & expected results .................3.......5 Structure of chapters ..........................2 Aims and Objectives...3.. 4 ACKNOWLEDGEMENTS .............................. Perspective of Interface............................................. B2C Influence.............3.....................................................3............................................2....................................5.............................9.4..................................... 16 1............................ Angola......................................... 18 CHAPTER 2 .. 22 2..................................................... 9 CHAPTER 1: .......................... 11 INTRODUCTION ...............................................1..................................................
........................................1 Summary of the Survey Results..........................3........................................................ Discussion of Research Findings ..RESEARCH METHODOLOGY ................................................. Recommendations............................................................................1........ 86 5. 87 REFERENCES .....................................2........................................................................................................................... 74 RESULTS OF RESEARCH FINDINGS.........................................1... 86 5.3............................... Background information . 83 CHAPTER 5: ................. 72 CHAPTER 4 ............................... 89 APPENDICES ................................................................................................................................................................... Area for further research .......................................................1 Profile of Users ........3 Conclusion .................................................................. 94 7 ... Information and communication technology (ICT) .... 74 4...........1.............................1.......................................... Limitations to the research..................................................2. 87 5........2 Theoretical Orientation ................................2...........1.......................... 86 CONCLUSION AND RECOMMENDATIONS .......................................................3 Survey Design..................................................... 81 4................................................................ Summary of the Interviews ..................... 74 4........... 74 4.......................................................... 71 3.......................... 79 4........... 75 4............... 70 3........................................................................................................................ 70 3.............
....... ERRO! MARCADOR NÃO DEFINIDO. Table 9: Geographical Coverage............... Table 11: Estimated Market Penetration Rates In Angola’s Telecoms Sector – End 2010. Table 3: Number Of Lines Growing Rate..... Table 12: Voice Lines And Data From Fixed Netwok ............. ERRO! MARCADOR NÃO DEFINIDO. ERRO! MARCADOR NÃO DEFINIDO...........LIST OF TABLES Table 1: The Internet Usage Statistics For Africa ... Table 4: Geographical Distribution Of Users From The Fixed Network ................ ERRO! MARCADOR NÃO DEFINIDO........... ERRO! MARCADOR NÃO DEFINIDO..... ERRO! MARCADOR NÃO DEFINIDO....... Table 5: Mobile Phone Users Growing RateERRO! MARCADOR NÃO DEFINIDO. ERRO! MARCADOR NÃO DEFINIDO.... ERRO! MARCADOR NÃO DEFINIDO.... ERRO! MARCADOR NÃO DEFINIDO... Table 15: Average Revenue Per User ....ERRO! MARCADOR NÃO DEFINIDO. Table 7: Estimative Of Internet Users.......... Table 6: Geographical Distribution Of Users From The Mobile Network .... Table 10: Geographical Coverage By Services NetworkERRO! MARCADOR NÃO DEFINIDO.Arpu .... Table 16: Table Summary Of "Gvu's User Surveys . Table 13: Backbone..........(Usd/Month) ERRO! MARCADOR NÃO DEFINIDO.... Table 14: Current Rates Per Utt .. 8 ..ERRO! MARCADOR NÃO DEFINIDO..... Table 8: Angola Internet Usage And Population GrowthERRO! MARCADOR NÃO DEFINIDO... Table 2: Ecommerce Perspectives ... ERRO! MARCADOR NÃO DEFINIDO...
....... ERRO! MARCADOR NÃO DEFINIDO.... Figure 14: What Do You Think Are The Major Obstacles To Access Internet In Angola?.. 2002 . ERRO! MARCADOR NÃO DEFINIDO................................ ERRO! MARCADOR NÃO DEFINIDO.................. ERRO! MARCADOR NÃO DEFINIDO...... ERRO! MARCADOR NÃO DEFINIDO... Figure 4: Internet Users In Africa....... ERRO! MARCADOR NÃO DEFINIDO................... Figure 13: How Well Developed Are Information And Communication Technologies In Angola? ............... Figure 9: What Is Your Status?.................... ERRO! MARCADOR NÃO DEFINIDO........ ERRO! MARCADOR NÃO DEFINIDO....... Figure 6: Africa Top 10 Internet Countries ERRO! MARCADOR NÃO DEFINIDO........................... Figure 17: Do You Think Online Sales Could Substitute Your Traditional Purchases?..... Figure 12: What Is Your Opinion On The Cost Of Accessing Internet In Angola? ... Figure 8: Sequence Of Tendency Of Consumer DecisionERRO! MARCADOR NÃO DEFINIDO.......... Figure 5: Internet Penetration In Africa.......LIST OF FIGURES Figure 1 : Angola Key Indicators... Figure 16: Have You Ever Made Online Purchases? ....................... Figure 7: Strategic Objectives Of The National Program For Electronic Public Purchases (Pncpe) .......... Figure 15: How Many Times Per Week Do You Make Purchases In A Sales Store?................................ Figure 3: Gdp By Sector..... ERRO! MARCADOR NÃO DEFINIDO. 9 .......... Figure 2: Gdp By Sector................................................. Figure 11: How Do You Normally Access The Internet?ERRO! MARCADOR NÃO DEFINIDO.... ERRO! MARCADOR NÃO DEFINIDO........ ERRO! MARCADOR NÃO DEFINIDO........... ERRO! MARCADOR NÃO DEFINIDO...... Figure 10: Do You Think The Literacy Level In Angola Is Adequate To Allow Citizens To Easily Access Information And Communication Technologies? . 2008 (Percentage)ERRO! MARCADOR NÃO DEFINIDO............. ERRO! MARCADOR NÃO DEFINIDO.................... Figure 18: Which Online Market You Are More Inclined To Make Purchases From? ... ERRO! MARCADOR NÃO DEFINIDO.........................
Units of Telecommunications Taxes 10 . Domain name – a name-based address that identifies an Internet-connected server. ITU = International Telecommunications Union. CNTI . m-business) – Any business activity conducted over a wireless telecommunications network. business partners. B2C (Business-to-consumer) – e-commerce model in which businesses sell to individual shoppers. or information to businesses or individual citizens.National Committee for Information Technology Corporate portal – a major gateway through which employees. IWS = Internet World Stats. services. etc. including requisitioning. ordering. purchase orders and shipping notices. EC – electronic commerce E-Government EC – E-commerce model in which a government entity buys or provides goods. E-procurement – The use of web-based technology to support the key procurement processes. contracting. Eprocurement supports the purchase of both direct and indirect materials and employs several web-based functions such as online catalogues. such as web browsers.KEY TERMS AEC – African Economic Outlook B2B (Business-to-business) – e-commerce model in which all of the participants are businesses or other organizations.org. GDP – Gross Domestic Product OECD = Organization for Economic Co-operation and Development. and payment.r. contracts. Usually it refers to the portion of the address to the left of .com or .World Wide Web INACOM – National Institute of Communications of Angola UTT . or from mobile devices. and Internet protocols. sourcing. or information among various units and individuals in an organization. Mobile Commerce (m-commerce. = penetration rate WWW. and the public can enter a corporate website. p. services. Intrabusiness EC – e-commerce category that includes all internal organizational activities that involve the exchange of goods. Intranet – a secure internal corporate or government network that uses Internet tools.
CHAPTER 1: INTRODUCTION 1. such as the latest increase of around 20% for the past three years” (Internet World Stats. Angola After more than two decades of declining economic performance. average real economic growth in the region has increased vitally while. in a growing number of countries. real GDP per capita has been positive. and its economy depends and is supported mostly for the oil prices which when its high it led to continuous gross domestic product (GDP) growth. Figure 1: Angola Key indicators 11 . The GDP is represents the economic growth and it corresponds to the sum of goods. products and services produced within the country during a given period.1 Contextual background. 2010). Angola is currently staging a promising recovery. usually one year. It is the “second largest producer of oil in subSaharan Africa. Over the past several years.
whether private. agriculture. while Angola was in war. telecommunications and alike grew very fast in the developed countries and in some developing countries putting Angola very far behind when concerning the use of the new technologies. That is. Because of that. during that time the sectors like technology. Since first time talked about the Internet. that is electronically. allowing connecting Occidental and Oriental countries in a few seconds. governmental and personal they all describe the concept of global network and global information. the health sector. (1) Gender Empowerment Measure. Angola wasted a precious time that would contribute to its development. corporate. Angola lived in a long war that lasted for more than 30 years. slowly. Nevertheless. developed countries worldwide were absorbing large amounts of information. education. also there was a considerable increase of foreign investment in all sectors but for Angola there was a large gap that hinders it to be weighed against other emerging economies or even developed economies in terms of Internet and electronic commerce. 12 . The war finished in 2002 with the killing of the leader of the rebels and after that started the reconstruction process that focused on the development of the key sectors such as civil construction. but increasingly in a characteristic format. (2) Percentage of population living on less than $2 a day. new technologies. science. industry. With the war many industries were closed down and become obsolete leaving Angola for many years dependent of about 90% of imported products. right after the war. it has become a global network of thousands of networks interconnected. etc.Source: BIT 2010. Such scarcity of products meant that products become very expensive and still hard to find. public. Within the network there are thousands of other networks. from different origins and of the most diverse topics.
In the free market. the commerce in Angola grew in the conventional way. and palm oil. shells. in places before marginal. These vendors (quitandeiras) are considered a cultural symbol of traditional commerce in Angola. After the independence the markets gained new vitality linked to the disarticulation of the store networks and the consequent lack of sales stores. cooking oil. beads. and the street sellers. seeds and figurines that are usually used for traditional treatments. pasta. which invaded all homes and jobs in the developed countries in a compelling. sales stores and the street sellers. a variety of leafs. The vendors of such products usually have their stands near the ones that sells roots. digital concept and almost parallel. always on unoccupied land without hygienic conditions. fast. besides the usual products such as fish. clothes. flour (corn and cassava). fruits and vegetables. to the measure as it was developing the “parallel” economy (of free market) which complemented the “official” (of tariff and fictitious prices and reduced products). these markets always presented themselves with typical products such as cola. New markets arose out of nowhere. books.With the global network. etc. and so far. in stores people could find the groceries. ginguba. The kind of products commercialized where diversified depending on the context. since there was not possible to use such technologies. The conventional way means the traditional way of using markets. beans and this sort of food for a house holding. ribbons. shoes. came a new economic. The author refers to the New Economy and Electronic Commerce. and they grow all of a sudden. and the so called basic basket containing rice. the meat. with no chances of premeditated complaints that can generate major impacts. spices. However. mineral products like argil. that is. Right after the independence in 1975. 13 . the commerce was about the popular stores. ginger. the free markets with the so called “Quitandeiras”.
2 Aims and Objectives The aim of this study is to discuss the changes in consumer behavior in the Angolan society by comparing the traditional ways of making purchases (in stores) and the adoption of electronic commerce practices. There is a high degree of poverty and the country is under government total control. appearance of a small elite of very rich people which results in a disparity of economic classes. was appearing all sorts of products in these markets. anything else is limited. Angola main barriers to socio economic development have mainly a political root which is the basis of all problems. Nevertheless. huge social inequality. poor people is concentrated in rural areas and with the reconstruction process government is creating more poverty by evicting people from their houses so that they can reconstruct the neighborhoods for a higher class. The main commercial activities are in the sectors of oil. along with how it can influence the economic growth of Angola. appliances. as happens with many developing African countries. began to emerge clothes.Gradually. The author sought to provide in this work a comprehensive response to the problem. but is expected to be an interesting assessment of what has been so far 14 . According to BIT (2010) 1. and all sort of industrial products such as medicines non-existing in pharmacies. parts and accessories for vehicles. illiterate people or with low academic and technical skills. Beside the usual products. high levels of unemployment. The work is certainly not a final answer. diamonds and construction. According to BIT (2010) the main socioeconomic barriers are poverty mainly resultant from the war. especially in the more marginal. presenting the various viewpoints in the scientific literature on the subject and testing for these views to the final consumer.
It will be important because it will allow making a comparison and identification of factors that benefit or detract Angola from grow economically and culturally with the use of electronic commerce. as a project with the support of the CEO • • contacts • Ministry of Finance database with the support of internal contacts 15 Internet adoption rates documents via Internet Ministry of Science and technology database with the support of internal . The literature review and the interviews will focus on the areas of statistics of electronic commerce and Internet in Angola.investigated in the area and a comparative test of the importance of each factor proposed by researchers. especially case studies of Angola and developing countries such as African and Latin Americans. socioeconomic views. 1.3 Method outline The methodology that will be used will be the triangulation method that includes both qualitative research and quantitative research. The methods primarily will be based on the analysis of the existing literature review. The approach taken in this study is. government and regulatory issues. author own translation) reports and conference papers with the support of internal contacts • Accessing TradeJango’s final report. user’s buying behavior. for the qualitative. demographically and economically different. corporate and international perspectives. The reason for choosing these countries is because they are particularly similar to Angola although they are geographically. conduct analysis of: • CNTI (National Committee for Information Technology. the first electronic marketplace of Angola. and OECD countries such as Portugal.
responsible for the implementation of the government portal of Angola • • Interview Interested parties Searching specialized journals from the University of Liverpool Online resource centre • Case study in a sense of describing the context and the background of the country situation. limitations. & expected results 16 . the Internet and EC.• Accessing previously written dissertations on the subject of the countries in cause via Internet • • Accessing Internet WTO database on the subject Articles in news media Conduct research by: • Indirect observation of the TradeJango company as the first electronic marketplace • • Interviewing colleagues/internal contacts Interview former and actual clients of tradeJango being them large buyers. via the Internet and via personal experiences. people and companies behavior towards technologies. 1.4 Scope. the SME’s and individuals at the companies • Interview the CEO of TradeJango. the first electronic marketplace of Angola • Interview the main consultants that are/were involved in the implementation of electronic marketplaces and alike in Angola • Interview key people of the Ministry of Finance.
ecommerce? 3. and the influence it can provide to the National economy. Also according to INACOM (2010). There are initiatives. the number of libraries is relatively short and the information is quite limited in terms of subjects. as a developing country. What are the current Internet consumerism characteristics at Ecommerce level? 2. The author will attempt to answer the following questions: 1. The Information technology subject is still growing in Angola therefore most of the information is much technical and regarding the physical side of the IT. Thus information on the subject is very limited. The fusion of technology and economy is still a field to explore in Angola as a developing country. fundamentally the Ecommerce. the author worked in the first national electronic marketplace and also has the advantage of making part in the kick off of such project as well as in the 17 . At a technological level.The scope of this study mainly the introduction of electronic commerce in Angola. is Angola prepared to compete with other economies? The limitations of this study are mainly related with the literature review. inspired in the knowledge brought to the country by the foreigner investment and consultants but they are dispersed and the access to that information is not easy. there are no exact statistics with the population which makes that the statistics on the use of telecommunications services to be merely estimative. What types of characteristics socio-economic are necessary to The Internet adoption rates are adequate for the use of help Angola with the development of Ecommerce compared with other developing countries and developed countries? 4. However.
by presenting the main types and business models defined by 18 . The Internet is a vital factor for the use of the Electronic Commerce and for Angola. Furthermore. the market behavior and the influences to the economy so far. Therefore. 2004). the author also attempted to uncover what are the main differences with traditional commerce and what are the benefits and barriers. the work began by highlighting the reality of commerce in Angola. Such experience gained allowed the contact with many entities directly and indirectly involved in the technology sector in Angola. the level of acceptance of existing users. the author made an attempt to characterize the Electronic Commerce. the results expected are the best possible with a compilation on background information on Internet and electronic commerce. being it in different countries. compared to other economies. In this sense.5 Structure of chapters Considering the objectives mentioned previously. following looking for the most suitable definitions for e-commerce as a way of knowing what it is going to be investigated. different cultures and basically their different conditions influences the process of globalization worldwide (Kamssu. thus Kamssu’s work entitled Shortcomings to Globalization: Using Internet Technology and Electronic Commerce in Developing Countries will be relevant as the author will be able to get acknowledge of the Internet barriers that affect also other countries given that this study is a comparative study and to analyze the statistical analysis that revels the empirical relationships between these communication factors and the Internet adoption of different countries. and the advantages and disadvantages presented relatively to eCommerce. The disparate access to Internet by the different social group’s situations.implementation towards the creation of the company. 1.
In the second chapter. using the views of individual investigators and showing the diversity of information that exist. the main limitations of the survey and suggestions for researchers wishing to do work in this area. 19 . even for specific topics. there was a description of the macroeconomic influence of eCommerce in Angola and a statistical characterization of the development of electronic commerce. as well as products that are more common in this type of commerce and forms most commonly used to typify them.researchers in the field. Afterward the author set the various articles of the subject and organized them in terms ecommerce users behaviors and the economy. the United States and European Union. The third and fourth chapters are devoted to the presentation of the methodology and main findings of the study in this work. both in Angola and OECD countries and in individual cases in African countries. Thus. the fifth chapter presents the main conclusions and contributions of the dissertation. it was possible to present an overview of the topic. Finally.
Most of the negative effects of the war occurred since late 1992. the oil sector is by far the one that always kept a pace of growing. inaccessibility of rural areas and cities due to the landmines and the stoppage of all the commercial activities. the plundering of the assets of the peasants. the indiscriminate slaughter of cattle. Conflicts occurred since then have affected many cities and most of the basic infrastructure of country has been destroyed or deteriorated due to the cumulative effects of inadequate maintenance and lack of investment.CHAPTER 2 LITERATURE REVIEW 2. Its performance had greatly diverged from other sectors of the economy.1 Economic Perspective (Introduction) Angola is a very rich country located in south-central Africa that suffered a war that lasted almost thirty years and which left it very ruined. The agriculture economy has suffered greatly in the removal of peasants from areas of conflict. harmed both the supply of inputs to farmers as well as the flow of goods to the markets. 20 . Nevertheless.
The mining sector. 59% in 1999 and 60% by 2000 and 54% by 2001 (Figure 1). 50% in 1995. 21 . n. 38% in 1998.According to United Nations (2002 cited in Anon. While agriculture was affected by war and a political environment that does not fostered its growth. Angola has become heavily dependent on oil. 47% in 1997. 6% in 1971. dominated by oil and diamonds was accounting for 3% of GDP in 1960. onshore oil exploration. 58% in 1996. 90% of exports and 75% of government revenue. the figures did not change much. mainly dominated by foreign multinationals had greatly increased their production. 6 years after reaching the peace and during the hard process of reconstruction of the country. 2002 Other Transformation Diamonds Oil Commerce Agriculture Source: Minader (2002) With such concentrated economic structure into two sub-sectors it would naturally arise some large distortions in the development of the country.d) there was low productivity in agriculture together with a very inefficient public sector. by 2008. with it constituting at the least 40% of GDP. However. As result. 25% in 1981. as per the figure below. Figure 2: GDP by sector.
The commerce sector fitting the sector of services.1. 2008 (percentage) Source: African Economic Outlook (AEC). like many other evolved over the years. Definition and scope The definition of Electronic Commerce (EC). and to transform this situation it will require huge efforts.2.Figure 3: GDP by sector. with very high prices that came through corruption and inefficient procurement. most notably the evolution that has suffered over the past fifteen years due 22 . 2008 In the peace era. 2. Internet and Electronic Commerce 2. only grew by 1. According to the AEC (2010) the low transparency and weak institutions in the economic sector of Angola happens because Angola’s economy remains highly concentrated in the hands of a small.9% in almost 10 years. extremely well connected political elite.9%. the construction sector took its place and grew at an incredible scale during the reconstruction of the infrastructures but the majority of the projects were of very low quality.2. the dependency of the oil sector grew by 3.
Though. Internet use grew in Africa 1. which states that the Internet users are “those 3 years or older who 'currently use' the Internet” and to conclude the CNNIC (n. cited in Internet World Stats. aged 6 or above. who went online in the past 30 days”. which registered a rate 23 .d. However. Initially. the number of users cannot be calculated by the existing number of Internet access because. 2009) defines the Internet user as “someone aged 2 years old and above. For that reason Internet users generally outnumber the amount of Internet access subscribers (IWS.d. Table 1: The Internet Usage Statistics for Africa Source: Internet World Stats (2009) According to Internet World Stats. who uses the Internet at least one hour per week”. 2009). cited in Internet World Stats. cited in Internet World Stats. 2009) defines the Internet user as a “Chinese citizen. 2009). the definition of Electronic Commerce was intimately connected to computer to computer connections in the form of EDI (Electronic Data Interchange). the Internet World Stats (2009) resumes the definition of Internet user as “anyone currently in capacity to use the Internet”.to the explosion of the Internet. The ITU (n.d. especially in the developing countries many individuals share the same Internet connection.8% between 2000 and 2009.809. surpassed only by the Middle East. A distinguished definition is from the US Department of Commerce (n.
675. These figures show that the advancement of digitalization is faster than the predictions made by experts and indicate that the impact of new technologies on the values inherited from the industrial age will be more traumatic than previously thought. which had its routine and its values more affected by the new technologies. Over the same nine years. 24 . because the transition will be shorter.2% growth of its population cybernetics.9% of Users. Africa altogether has only 3.2% in Germany. 46.5% in relation to access to the Web. in the same period the United States showed a rate of 76.7% in England and 43.of 1. especially in the area of communication. Figure 4: Internet users in Africa Source: Internet World Stats (2009) The indicators of Internet Users in Africa for 2009. as it is impossible to curb the growth of the Web. Latin America grew 934. the solution seems to be to increase the pace in the awareness of the need to adapt to the changing times.1 in France and 96% in Japan. shows that in contrast with the rest of the world. From the point of view of Africa. For comparison. against 54.1% over the same period.
Africa still very behind with a penetration of 6.Figure 5: Internet Penetration in Africa Source: Internet World Stats (2009) While the world average of Internet penetration of the world is of 24. Figure 6: Africa Top 10 Internet countries Source: Internet World Stats (2009) 25 .7%.7%.
Many expressions are found around this topic. there are six mediums of electronic commerce. Commerce in the broadest sense is a social and economic activity that is associated with mankind almost since its existence. an application from the information technology directed at provide support to the productive processes and the transaction of goods and services which the author will discuss in detail later on. the today growing buzz word for promotion and to perform commerce is definitely inclined to the Internet. Electronic Data Interchange (EDI) and Internet. it is in a reconstruction process after a long war that led it behind in terms of science and technology. namely the fax. However. among others. From an economic point of view. telephone and television which are the ones also widely used for promotion and to perform commerce.Angola does not reach the top 10 Internet African countries. yet 26 . or rather. television. Many are also the concepts. over time that same man. The Internet constitutes a powerful tool to facilitate and multiply the global communication between people and institutions. telephone. It’s not much to say that in Angola the most used and considered quite developed are the fax. was stimulated to adopt new and different ways to trade being the Electronic Commerce the latest form adopted (Batista: 2004:18). under the circumstances deriving from the relationship with other men and the natural evolution of the species. Although considered a very rich country. However. its potential is reflected fundamentally through electronic commerce. E-Commerce According to Panagariya (2000). electronic payment and money transfers systems. this topic centers around itself a determined number of other essential and decisive expressions to understand the language of – Electronic Commerce.
2008). Instead. transferring. However. E-commerce is more than just buying and selling products online. selling.it is necessary to isolate them and understand them. Service perspective “is a tool that addresses the desire of governments.and intraorganizational collaboration” Source: Adapted from Turban et al (2008:4) In a very simple way EC can be defined as “doing business electronically” being it with or without the Internet. electronic commerce is a new way to drive. it encompasses the whole process online development. Collaborative perspective “is the framework for inter. n. the Service. thereby substituting information for physical business processes” (Weill and Vitale. and management to cut service costs while improving the quality of customer service and increasing the speed of service delivery” (Turban et al. cited in Turban et al. otherwise there is a risk to misunderstand all the dynamics involved around the e-commerce. including the Internet”. firms. delivery. 2008: 4) that is it entails the B2B (Business-to-business) and the B2C (business-toConsumer) interactions. or exchanging products. marketing. Turban et al (2008: 4) completed that definition through several perspectives where the most appropriate for the author are the Business. Table 2: Ecommerce perspectives E-commerce Perspectives Business perspective Definition “is doing business electronically by completing business processes over electronic networks. and the Collaborative perspective. customer service and payment for goods and services purchased by global communities of (Diniz et al. and/or information via computer networks. 27 . with the support of a worldwide network of trading partners. By electronic commerce the author referred to Turban et al (2008: 4) definition. which states that Electronic Commerce (EC) “is the process of buying. From a less academic point of view. consumers. 2001. implement and develop business. sale.d:3) virtual clients.
however it presents itself with an enormous potential capable to radically alter all economic activities and various social environments. 2000:3).In Angola it still at very early age. among others. Additionally Mann (2000) states that simultaneously. EC requires at least three types of infrastructure: • Technological infrastructure to create an Internet marketplace. such infrastructures allow EC to innovate the traditional marketplace in three ways: • Process innovations: • Product innovations: • Market innovations: The effects of this “revolution” are not. According to Mann (2000). visible and prominent impacts. • Process infrastructure to connect the Internet marketplace to the traditional marketplace. and the continuum of ways in which electronic commerce is manifested (Mann. associated with large. the infrastructures are one of the majors concerns that detract them of socioeconomic development. in many cases. to evolve.2. Rather. such as new product type or the elimination of intermediaries. 2. effects less visible but perhaps more prominent focus on the daily routines of business activities such as ordering office supply. Commerce 28 Main differences between ecommerce and Conventional . Electronic commerce can also be approached in terms of the elements of its infrastructure. In the developing countries. laws. its impact on the traditional marketplace. and regulations. payment of bills. • “Infrastructure” of protocols.2.
Traditionally. • Cable television. However. that is the commerce that uses physical stores to sell their products to the consumer. • Catalogues. where viewers select the products by viewing programs where they are presented and making the product order via the telephone. which is usually done via telephone or mail. which are sales that are made by consulting a catalogue and subsequent order. at the same physical location in which the vendor performs its sales. All these formats can suffer the "interference" of Electronic Commerce. the so called B2C. with the development of technology this explanation no longer makes sense. • WWW. the last format to emerge and which uses the Internet as a preferred form of contact with the customer. In terms of electronic commerce between companies and individuals. the main difference between electronic commerce and conventional commerce would be that the first one opposite the second one utilizes an electronic platform as interface to interact with its clients. Palmer (1997) divides commerce in the Retail Industry in 4 formats: • Physical Stores. being that nowadays even the conventional commerce in some situations utilizes electronic platforms to interact with the consumer. so the format itself can not be considered a factor one hundred percent differentiator: • The physical stores are subject to the use of technologies such as EDI and a more direct relationship with the user through contact via kiosks and other 29 . it is significant to note that in recent years have appeared mixed models. derived from the entry of traditional commerce companies in B2C business involving the use of Electronic Commerce as a second channel of contact with customers.
it is clear that it is not because a physical store utilizes information technologies. • Catalogues. When it comes to physical goods. allowing a more interactive presentation of products. this store simply utilizes in some of its processes forms of E-commerce (such as EDI). there are characteristics that are unique to each format and which constitute its competitive advantage (eg. Despite this entry of Electronic Commerce in formats that traditionally its influence would not be imagined. direct contact. according to Palmer (1997). such as catalogues. the sites WWW can not yet offer to the consumer an experience of touching and seeing the good they want to buy. However this format in recent years has also used some "traditional technologies". with the Internet on the other hand.equipment installed at customer premises to provide some of the convenience that electronic commerce can give. • Sales through Cable TV also use sophisticated technology. and with the combination of computer and television it will increasingly make intensive use of interactivity. product testing. in addition. that it will be known as e-commerce. Additionally. mainly use telephone systems based on computer systems to accept orders or offer their books on media like CD-ROM. the consumer will 30 . that already migrated to the WWW long ago. in the case of physical products. while in a store the consumer usually has direct access to the goods. there are examples (Amazon) that chooses to go over to storage or by opening stores. • The commerce via WWW is the format that the laypersons often describe as the Electronic Commerce B2C and the formats which makes greater use of the potential that new technologies offer. no need to use a computer system).
according to a study by Palmer (1997). it offers the possibility of the customer to access to the shop from almost anywhere at a reduced cost and at any time. according to Han & Han (2003). electronically it’s only possible to use intangible methods of payment. which reduces the choices of the customer (if it wishes to opt for a one hundred percent electronic transaction). which means that products that are based on information have a potential advantage in being acquired in this way. it is also possible to transmit digital information. It is. as the number of available products. Through the Internet (and other digital channels). This is a real handicap for the Angola consumer. thus reducing costs to the consumer. The ability to create value through Information is therefore. Indeed. a not insignificant issue relates to the means of payment. Besides selling the product itself. the main differentiating factor and one that has the capacity to generate competitive advantage for Electronic Commerce. There are also differences not negligible. especially because the infrastructures for 31 . you can electronically provide the customer added value. Han & Han (2003) present the problem in a different light. because the physical support or the hardware can be eliminated. for example. the characteristic of the Internet is sure to affect the ability of the user experience with the product. or contact a customer of e-cards whenever is his friend’s birthday.always have to wait for product delivery. Finally. In fact. but on the other hand. saying that the major differences between electronic channels like the Internet and physical channels are related to the creation of customer value. the potential of describing the goods and to provide information and the time spent to buy the product (which curiously. Nevertheless. possible to fully inform consumers about the characteristics of the wine they are buying. based on information at very low costs for the store. is inferior in physical purchases and catalogue purchases). as Ward (2000) cited in Duarte (2004) claims.
2. MMS. Zambia.3. Nigeria. With such a obstacle to overcome the operate of electronic payments through the Internet is very low in Angola. there is a growing number of people already using the electronic means of payment such as the ATM. the objective of the Interbank Services Company (EMIS) is to achieve this year. still there is a need to mass consumption across the country. Today. DRC. also the mobile GPS services not work yet in Angola. 75 % of the population for banking. and Kenya (Twinomugisha. Tanzania. the system of electronic payments is in the growing phase. m-commerce. Other African countries with such technologies are Ghana. However countries like South Africa . Although. and e-learning. For instance the case of m-commerce. Cote d’Ivoire. 2009). phone banking. Although. intrabusiness commerce. B2E. c-commerce. 3G technologies. Main types of Electronic Commerce According to Turban et al (2008:35) the major types of electronic commerce transactions are: B2B. C2C. However. 32 . newer services allow to use SMS. the issue of payment in Angola depends of several factors. the pionner. B2C. Additionally. 2.electronic payment are not much developed. as a developing country. it is possible to make purchases and perform online payments. B2C. it still not possible to make online purchases or major operations like bank transfers. and in the process of recovering from a long war. Uganda. and video conference but only to receive daily bank statements. e-government. it is possible to surf on the Internet. According to ANGOP (2010) the payment by debit card ATM was introduced in Angola in 2001. m-commerce and egovernment. In Angola the ones operating are B2B. all of them operate with many limitations as the telecommunication infrastructures do not allow for major online operations.
The reasons were as follows: 33 .3.3.4). registered an increase of 28. the provision of services (number of lines sold to the public in this segment and running for the clients). it has been registered that year-by-year high growth rates related to the number of users of the telecommunication services (voice. counties and communes of the country.51% in relation with the previous year. 2010). the Government has been supporting the creation of such infra-structure through the Basic Network Development Program (PDRB) (INACOM. However. 2.3.1 Fixed network According to INACOM (2010) in 2009.65% over the previous year. 2. data and multimedia).184.108.40.206. 2010). the achieved teledensity. resulting in an increase in teledensity to 0. are booming in all the capital provinces. with the commercial maturation of most of the primary commercial projects of the PDRB. was below the predicted (1. For this effect. Macroeconomic influence (Main Indicators) In Angola.77%. That represented a variation of 30. Telecommunications One of the primary objectives in the sector of telecommunications in Angola is the creation of a network structuring support for the development of the national telecommunications. Hence. there is the National Institute for Communications (INACOM) who is the body responsible to ensure regulatory and monitoring the businesses of providing telecommunications services. and to manage. plan and monitor the use of radio range all over the country (INACOM.2 Services Access 2. That increment was also a result of the contribution done by the wire line telecommunication operators of the private sector.
probably.000 (1st semester of 2009) Source: Ministry of Telecommunications and Information technology in INACOM (2010) Table 4: Geographical distribution of Users from the Fixed Network Source: Ministry of Telecommunications and Information technology in INACOM (2010) 34 . • Merely 48% of the total existing lines installed in 2009 were put to service by the company that is. The causes were identified and will. be exceeded with the start of the Angola telecom Restructuration process. which the preparation is actually in course. Table 3: Number of lines growing rate Number of inhabitants: 17.551. sold to the public (See table below).• There was registered a delay for the completion of the projects. which led to only 41% of accomplishment of the capacity of installation by Angola Telecom.
the growth tendency in Luanda in the range of 73% must be inverted through the adoption of appropriate political measures. making the access throughout the geographic area of the country more equitable.2 Mobile network In 2009.3. 23 (Table 5). the number of mobile phone user grew by 19. 2010). 35 . From the analysis of the table above. the mobile teledensity reached 50. Luanda is having the biggest number of mobile phone users. 2. This also means that.72%. at least fifty per 100 inhabitants in Angola uses a mobile phone. it can be verified that the utilization expansion of the fixed network in all provinces lacks a major growth. Table 5: Mobile Phone Users growing rate Source: Ministry of Telecommunications and Information technology in INACOM (2010) According to statistics from the (Inacom).68%.2. with a percentage of 67. cited in ANGOP (2010). Consequently. which means a variation of 37% in relation to the last year (INACOM.In 2009 the fixed network was composed of users of Angola Telecom and from MSTelcom services providers. Of the 18 Angolan provinces.
Nevertheless. some improvements are slowly taking place such as the implementation of a national fibre optic backbone network. the privatisation of Angola Telecom and the possibility of licensing a third mobile operator in the near future (Internet World Stats. it is a fact that the Internet penetration in the Angolan market is very slow.2. 2009).3.3 Internet Although there is a growth of Internet service providers. Table 7: Estimative of Internet users Source: Ministry of Telecommunications and Information technology in INACOM (2010) 36 . This phenomenon has a deepest connection to the also slow growth of the number of access of the fixed network available.Table 6: Geographical distribution of Users from the Mobile Network Source: Ministry of Telecommunications and Information technology in INACOM (2010) 2.
resulting of the implementation of the Telecommunications via VSAT. Introduction of Services According to the Mr. Domingos Pedro. the Angola Telecom Business Unit managed to achieve the strategic goal of bringing basic services (at least four phone lines and one Internet access) to 455 locations by installing 626 VSAT stations. The counties and communes from the province of Luanda were not counted. it was possible to take telecommunications to a total of 155 counties that are integrated in the country (100% coverage) and to 300 communes (82% of coverage). On the other hand.000.3.799. General Manager of INACOM. General Manager of INACOM (2010). with the launching of the service Liga-Liga through the Infrasat. Therefore. either the fixed network or the mobile network are installed providing services to all the provincial capitals. according to the International Telecommunication Union (ITU) (2009) the number of Internet users by June 2009 was around 550.3% of the population. having already begun the process of extension of networks to the counties and important locations.3. 2. 2010) the Census Bureau (2009) used for this study a number of 12. And although there is no exact statistics on the number of the populations (Domingos Pedro. The mobile 37 .Table 8: Angola Internet Usage and Population Growth Source: Internet World Stats (2009) On the other hand. which represented 4.293 populations on 2009.
the Internet services penetration will grow exponentially allowing. still both networks serve less than 5% to the counties. slower by nature and several other constraints. that covers less than 43% of the municipal divisions.network penetration reached about 68% compared with the fixed network. Furthermore. to be accessed in any region served by this network. Although the network is booming around these regions. . affirms that with the introduction of the 3rd generation technology by the mobile operators. Domingos Pedro (2010). technically speaking. Mr. Table 9: Geographical Coverage *Strategic goals was achieved ** Predominant coverage through the Liga-Liga (INFRASAT) *** coverage almost exclusively through the Liga-Liga (INFRASAT) Source: Ministry of Telecommunications and Information technology in INACOM (2010) Table 10: Geographical Coverage by Services Network Source: Ministry of Telecommunications and Information technology in INACOM (2010) 38 .
even lower than the Internet penetration rates. having been designated as the central supervisory authority.za (2004) already predicted that the mobile market was the fastest growing market in Africa and that represented a sign of sustainable economic growth. it is important that there is transparency and open and clean competition but Angola is recognized by being a country with high indicators of corruption which delays the economic growth of the country. Table 11: Estimated market penetration rates in Angola’s telecoms sector – end 2010 Market Mobile Fixed Internet Source: BuddeComm. Infrastructures Telecommunications constitute the critical infrastructure to the spread of electronic commerce. with responsibilities in all areas regulated therein. by 2010 there is an estimative of growth of the mobile network of 57%.However. indicating that the mobile network is a sector that is growing very fast in Africa while for the fixed network there will be only a growth of 2%. makes the potential expansion of the Internet. 2. the ITU (2004) cited in cellular. (2010) Penetration rate 57% 2% 4% Back in a couple of years.co. linking urban access points with the rest of the world. The access to quality digital and optical cables for high speed.4. which accumulates with the function of the national regulatory authority for electronic 39 . INACOM takes in this area a major role.3. Nevertheless. along with new forms of access through cable TV networks and private networks alternatives to the public telephone network.
Table 12: Voice lines and data from fixed Netwok Source: Ministry of Telecommunications and Information technology in INACOM (2010) Table 13: Backbone *Data from the PRIT project Source: Ministry of Telecommunications and Information technology in INACOM (2010) 2.communications and postal services. However INACOM only have figures for the voice lines and data from fixed network and that represents a great barrier for electronic commerce or even the Internet to develop. Evaluation of prices 40 .3.5.
the major private mobile service provider. In general prices remained stable in the last three years.To gauge the accessibility degree of prices in the period 2007-2009. both for its number of subscribers as well as the penetration achieved. revealed itself as the operator that practices lower prices for the connections inside its own network (INACOM. the mobile network was taken as the base. through the committee of prices. Table 14: Current rates per UTT UTT – Units of Telecommunications Taxes at AKZ7.20 Source: Ministry of Telecommunications and Information technology in INACOM (2010) 41 . earning during the period in reference AKZ7.075). In the fixed – mobile connections and the connections between themselves the operators practice the same prices inside their own network. Considering that the UTTs price remained steady. has remained steady. UNITEL.20(USD 0. 2010). This contributed also to the fact that the price of the Units of Telecommunications Taxes (UTT) set by the regulatory body. the author can conclude that the operators are not using the UTT/minute as a competition tool.
INACOM (2010) found that the Average Revenue per User (ARPU-) of the operators had a decreasing tendency. Considering that the Unit of
Telecommunications Taxes (UTT) remained steady and that the variation number of clients was more than 107%, there was a gain for consumers of telecommunications services in respect to ARPU. Table 15: Average Revenue per User - ARPU - (USD/month)
Source: Ministry of Telecommunications and Information technology in INACOM (2010)
2.3.6. B2B Influence According to Turban et al (2008) in B2B ecommerce “all the participants are either businesses or other organizations”. The more prominent Business to business (B2B) initiative of electronic commerce in Angola is the marketplace TradeJango, founded by the Angola National Oil Company, Sonangol E.P and it was created as an opportunity to optimize cost identified by the upstream sector (TradeJango Final report, 2003). With the evolution of the upstream business and the arrival of foreigner investments to Angola in the oil sector, it was considered opportune that is such context of growing expenses, the optimization of procurement process to result in the reduction of costs. The marketplace tradeJango defines itself as a digital forum that unites buyers and suppliers so that they can perform business transaction efficiently (TradeJango.com, 2005).
The advantages for users are: • • Optimization of the internal purchase process of the buyer entities; More control over the purchases processes of the concessionary party; • • Fast information sharing between all the participants; Development of the Angolan economy through the promotion of the local content; TradeJango was possible because Sonangol is the National oil Concessionary and it has power to support such initiatives, however, although the oil operators who operate in Angola already use an international marketplace, Sonangol encourages them to use the local marketplace, as they already have much experience in that. TradeJango is a pioneer in the Angolan market and it expects to go further by expanding its geographical spectrum and with the implementation of services that could serve not just the local suppliers and buyers but also the local public institutions, government institutions and foreigner’s buyers and suppliers, always keeping with the B2B business model. 2.3.7. B2C Influence According to Turban et al (2008), the B2B “includes retail transactions of products or services from businesses to individual shoppers”. In Angola, at the Business to Consumer level (B2C), the experience comes from private initiatives and it resumes itself more for advertising of services because unless it is a public company initiative such as from TAAG, Angola airlines, the private initiatives do not have the support of online payments or even delivery of products. The consumers limit themselves to search for the website, choose the product, get the phone number and, depending of the product, make a call to perform the order. However, the consumer has to travel to the shop to get the product. 43
There are no records of B2C experiences in Angola, however the author experienced the new website form TAAG to make a flight reservation and buy a ticket and it works very well. It was a rare experience in Angola, because there was the use of the credit card and rarely Angola EC initiatives have such payment means. It turns out that TAAG marketplace is supported by A South African server. 2.3.8. E-Government Influence Angola has implemented a set of reform initiatives, particularly at the government level, in order to transform the high pace of the developing sustainable and integrated economic growth of the country. According to Leadership (2009), one of the pillars regarding this view of reform is the Public Procurement, reflecting the concern of the Government in the effective management of public resources and the increase of the transparency with its use. When integrated with other reform initiatives currently being carried out, it will result in a significant volume of annual savings and better allocation of resources on more initiatives to modernize and improve the functioning of the framework of Public Administration or in economic and social initiatives. In this sense, the Government of Angola has started a project of modernization of public procurement through the design and implementation of a National Program for Electronic Public Purchases [PNCPE]. This program has 2 major practical points of reference for ultimate goals to be achieved: • Administrative modernization of Public Procurement, based on the establishment of sourcing strategies and negotiations centered on redefining the organizational structure and functions allocated to the Public Procurement, in modernizing its legal framework and the training of human resources allocated to this area;
as well as it will contribute greatly to promote the image and dynamism of the country internationally. together with data on the Angolan government spending in recent years plus the expected challenges for the future. opposite to the state equipment. The work of designing the PNCPE which had the support of Leadership Business Consulting company included an analysis of international reference cases. The National Program for Electronic Public Purchases (2009) created the following formula: Modernization of public procurement = Administrative Modernization + Technological Modernization According to Leadership Business Consulting (2009). The knowledge obtained from this set of international realities related to similar initiatives. including working visits of the Ministry of Finance team to some entities in Europe and South America. helped establish the following set of strategic objectives: (see figure below) Figure 7: Strategic Objectives of the National Program for Electronic Public Purchases (PNCPE) 45 . and through the embracing of electronic tools by the national businesses to support the procurement process.• Technological change for Public Procurement. the development of the National Electronic Public Procurement is a unique opportunity for achieving a set of high-level goals that will put Angola in a level of internal innovation and modernity. through the definition of an integrated technological model.
with particular focus on small and medium Angolan companies. the ministry of Finance held in 2008 a pilot phase of a set of 10 ministries with the support of TradeJango where projects were implemented with the selection of a limited number of categories of goods and services. One example is the adhesion of the Ministry of Finance to the TradeJango portal. 46 . its competitiveness and productivity of the economy in general. Due to the innovation introduced by PNCPE and expected impacts. TradeJango is an electronic marketplace aimed at bringing together buyers and suppliers in a digital forum so they can perform business transactions (Tradejango. aiming to promote electronic commerce. the PNCPE has incorporated a set of measures to promote info-inclusion of business.Generate significant gains in terms of savings and efficiency in procurement Increase the quality of goods and services purchased Increase the transparency of the government purchases Promote the economy and the entrepreneurship Promote the image of Angola at a Internationally Contribute to the modernization of the administration Promote the electronic commerce.com). that is. The event was a reverse auction which proved to be a huge success making the government reaches savings of thousands of dollars (Author’s observation). the first electronic marketplace in Angola. the competitiveness and productivity of the economy Source: Leadership Business Consulting (2009) Aware of the importance of the adhesion of the economic agents to this initiative.
• • Timely implementation of initiatives.86 million USD. there are quite a few barriers that must be overtaken. according to the defined calendar. During this implementation the impacts will be analyzed and the opportunities for improvement to be made to strategic review of the operation will be identified. 47 . Critical Success Factors • Getting strong and continuous political patronage to the implementation of PNCPE. in particularly with the custody of Ministry of Commerce. to represent success during 2010. As mentioned above. they highlight the achievement of a set of procedures that will reach savings of around 7. these procedures have been performed by the Angolan e-marketplace "TradeJango". For Leadership BC. decided to run until 2010 the pilot phase. Beyond these quantitative benefits. more transparent and simplified. there has been the continuing involvement of the Ministries comprised in this process in order to train them on new concepts and procedures for procurement. These potential benefits are due primarily to a combination of two effects: The aggregation of needs and comparison of potential suppliers with a tendering process and a more open. which together have reversed a considerable improvement in the bargaining power of the state. the PNCPE initiative with expected impacts. According to Leadership Business Consulting (2009) among the initiatives already undertaken to implement the test. Employment and Information Technology. a platform that supports the acquisition procedures electronically. Promoting inter and intra-organizational cooperation.As a result.
1.3. the challenges are very similar. International “While in the developed countries e-commerce has slowed down. According to Hawk (2004:182). National At a national level. According to its final report (2003). created with the purpose to facilitate the business of upstream companies with the local content or suppliers.” When facing the comparisons of electronic commerce in other developing countries. such challenges are mainly the lack of telecommunications infrastructures. always contributing to the sustained development of the marketplace”.3.9. lack of timely and reliable systems for the delivery of goods. For such a new business the author believes marketing and dissemination of information is crucial to get everybody involved.3. the more prominent initiative of electronic commerce is the TradeJango. as well as the monitoring of achieved results. 2. it still did not reach the level of recognition it deserved. It is the first initiative of the kind and it’s sponsored by the National oil company (Sonangol). low bank 48 .com.• Program Management of the planned projects in PNCPE. • Ensure that the benefits are measured accurately in order to diagnose the success of the initiative. Although TradeJango is in the market for 3 years. (TradeJango. lack of qualified staff to work with such technologies.9. TradeJango is an eMarketplace. 2009). Impact on competition of the market 2. Its mission is “to be the Angolan eMarketplace that promotes and supports commercial relations between companies operating in Angola. • And effective communication PNCPE. 2.2. in the countries with a weaker economy the virtual economy only starts to develop.9.
which have a positive attitude towards the company and are willing to buy their products and remain loyal for a long time. the Data package available for block concessions. There employees have the opportunity to access company internal news. This is a way for the company to manage the individual information resources (Turban et al. at a corporate level. that is.4. the same happens in Angola with the majority of the population. 2008:30). 2008:30) For instance. profitability of the company and the shareholder value created. Another challenge referred by Hawk (2004. they seem to forget that their possible consumers are mostly illiterate. 49 . public bids. 2. all the affiliates. training sessions available. Although in Angola a small elite is prepared to buy and sell online. Sonangol. and low computer and Internet penetration. Therefore it will be a long journey to change such behaviour. Hawk (2004: 182) goes further referring to the challenges saying another other issue is concerned to the cultural barriers. the history of the company. with the intranet. has a corporate portal which is “a gateway for customers. etc. Some cultures like India view the face-to-face sell as a very important part of the selling experience. Also the overall performance is important.account and credit card penetration. and a joint assessment of key factors such as site traffic and pricing. the revenues. the National oil company of Angola. some countries still do not accept well the ecommerce as a way of doing business. low income. At Corporate Level A successful organization must have consumer-oriented action (Shankar. 2002). employees and partners to reach corporate information and to communicate with the company” (Turban et al. However. some companies have the possibility to think of its internal public also.182) is the lack of legal and regulatory systems to provide security while doing business online.
travel. books. in the end of the nineties. being that with products like the music there was a growth of almost 400% in three years only. 50 .However for a company that performs sales online it must work according to several perspectives for it to be successful. books. music and travel. Dube (2002) found a study conducted among students of its University that its best selling products were. Ward (2000) cited in Duarte (2004).4. concluded that at the end of 1998 (the date of the latest survey from GVU). Also Lim (2000) states that the best selling products on the Internet in various countries. software.1. 2. An analysis of its data also shows that there has been significant progress during the second half of the 90s in the number of people with experience of online shopping. software and clothing. products / services consumed were computer equipment (hardware / software) investments. music. were computer hardware. Perspective of Product and Diversity The success of electronic commerce is undoubtedly generated by sales. magazines and tourism. in descending order. using the "GVU's User Surveys (Table 16). books. music.
50% 54.40% 42.70% Food 2. search time of the product. Dollars.80% 5.90% 7. tend to be those that minimize the transaction cost and these costs are either the price of the product itself or other non-monetary costs (e.80% 3.40% 10.50% 42.70% 19. assumed risk.70% Legal Services 1.10% 23.80% 3.60% 10.60% 2.60% 5.00% 3.40% 24.70% 2. time needed to purchase the product.90% 11. 98 37.70% - Computer Hardware (<$ 14.00% Videos 4. pleasure at time of purchase).70% 3.50% 11. however there are emerging small businesses focused on fast food delivery such as sandwiches.90% 9.40% 55.. 96 GVU7 Apr.60% 33.10% 4.50% 40.50% 30. Besides the product itself. 95 GVU5 Apr. 2004 According to Ward.90% 4.40% 20.80% 15.70% 11.40% 1.60% 11.60% 5.g.30% 7.60% Sunglasses / Jewelry 2.50% 35.40% 44. This fact suggests that certain characteristics will influence the sale or not of a product online. 98 GVU10 Oct.20% 19.10% 7.40% 26.00% Computer Software (> $ 18.00% 26.80% 33.00% 20. Source: Duarte.80% 4. 97 GVU9 Apr. The monetary values are expressed in U.60% 9.40% 29. 97 GVU8 Oct.40% Appliances (> $ 50) 4.60% 31.40% 3.20% 13.10% 13.30% 4.30% 43.50% 0.20% 28.60% 39.10% 28.80% 28.80% 19.10% 2.80% 23.20% 10.30% Percentage of respondents has purchased online in each of the categories of products in each of the GVU surveys.80% 16.10% 18.10% 3.70% 1.40% 53.30% 14. 51 .30% 20.70% Tourism 14.50% 21. 2002).50% 36.50% 5. products that will benefit from greater online success.90% Internet Services 35.20% 21.40% 12. also the variety of choice was reported in some studies as an important factor in the decision making process of consumers to purchase online (Girard et al.30% 3.30% 6.60% 4.90% Apparel and Footwear 4.10% 10.10% 37.50% 3.80% 8.20% 50) Appliances (<$ 50) 4.00% 7. In Angola the spectrum of the Internet is quite low yet.90% 7.00% Music 11.50% 43.30% Investment 8.S.50% 22.80% 1.70% 28.10% 16.00% 42.40% 11.90% 0.60% 30.00% Books / Magazines 13.80% 6.40% 50) Computer Hardware (> $ 14.40% 7.Table 16: Table summary of "GVU's User Surveys Categories GVU3 Apr 95 GVU4 Oct.30% 50) Computer Software (<$ 50) 28. 96 GVU6 Oct.40% 2.60% Concerts 3.
they may turn to the new technologies as soon as they discover the benefits of the electronic commerce. the margins associated with these products is generally low. videos. Thus. they also have the advantage of being available without physical contact. are generally capable of remote evaluation. soups. Girard et al. 2000 & Bughin. and there are products much more important in Angola to be bought than just that type of products. 2000). concerning the products. Peterson (1997) thoroughly studied the issue and proposed for each of its product categories. computer software. thus avoiding the delicate logistical problems that arise with the Electronic Commerce of physical goods. (2002) for example. 2001). Still. noted that products such as "Research" are easier to sell online because it is possible without direct contact with the product to determine exactly what are the characteristics and suitability to consumer needs. several authors have studied the question of what types of products that would be more valuable in terms of Electronic Commerce. salads. or to "materialize" themselves in the form of services or by constitute information (Kiang et al. 2001). The author believes that in a near future that may happen because of the high prices that local entrepreneurs have to face to rent or buy a physical store. since these products.pizzas. the decision more likely than consumers in terms of acquisition or 52 . But. if not negative and the frequency of buying these products online is not very high therefore the seller just utilize such means to reach a broad range of consumers. the margins associated with these products is generally low. music. travel and Internet services (Ward. if not negative and the frequency of buying these products online is not very high (Bughin. etc. Associated directly with this issue is the tangibility of the products. toys. Furthermore. consumers tend to purchase "simple" goods online with low value per transaction. such as books.
give advantage to traditional retailers because unless the customer makes purchases in mass. a situation in which traditional retailers can take advantage (Figure 8). if the value proposition is intangible or is based on information. taking into account that the cost of delivery will represent a smaller proportion of the final price. Leaving the decision weighting on other aspects such as the fact that the product lacks a preview examination. the advantage is the Internet retailer. Expensive products and of occasional purchase in theory have a good chance to be marketed via electronic commerce. there are economies of scale in traditional retailing that are not applicable to the Internet retailer. 53 . as it benefits from large economies of scale due to the digitalization of content. Low cost products and frequent purchased. However.not a product in a store of electronic commerce Internet.
Acquisition is likely to be online. insurance) the brand choice is made after research in both channels. Price comparison on both channels. (Ex: Newspapers and magazines online) the brand choice is made after research on the Internet. (Ex: milk. low frequency of purchase Differentiation potential of low High differentiation potential Intangible value proposition or information Differentiation potential of low Adapted from Peterson et al. high frequency of purchase Differentiation potential of low High differentiation potential Intangible value proposition or information Differentiation potential of low High differentiation potential Intangible value proposition or information igh cost. Price comparison on both channels. soft drinks. Acquisition is likely to be online. The purchase will probably be in a store. The acquisition will be conducted in either of the channels. The purchase will probably be in a store. eggs) decision taken by a trademark search after a shop. (Eg software packages) the brand choice is made after research in both channels. The acquisition will be conducted in either of the channels. Take into account the need to inspect the products may influence the decision in this case. Price comparison on both channels.Figure 8: Sequence of tendency of consumer decision Dimension 1 2 High differentiation potential Dimension Dimension 3 Sequence of tendencies of consumer decision (Eg wine. In the future the Internet could become more convenient to make the delivery of these products. Not likely to research online. (Ex: Quotes of grant) the brand choice is made after research on the Internet. The acquisition will be conducted in either of the channels. (1997) 54 . Price comparison on both channels. (Ex: Precious metals known weight and purity) the brand choice is made after research in both channels. (Ex: Sound Systems. Not likely to research online. Later research in retail is unlikely. automobiles) the brand choice is made after research in both channels. Later research in retail is unlikely. Value proposition tangible or physical Low cost. cigarettes) decision taken by a trademark search after a shop. The acquisition will be conducted in either of the channels. (Ex: Car Financing.
insurance and finance).2. 1999). gold bars). Perspective of Interface. in other studies (Lhose & Spiller. From this sort of fact they could conclude that there were categories that were clearly more affected by the economic failure period that followed the bubble.Chi & Kiang (2001) analyzed the proposal of Peterson and rated the products of a sample of insolvent companies after the Internet bubble period.. Moreover.. they head to the stores with large catalogues. An example happen with the opening of the first and actual only shopping center of Angola. 2. consumers seem to prefer shops with a great choice. eggs). since studies suggest that stores with greater variety of products have more visitors (Lhose & Spiller. consumers have an idea of products that can find in every store and when they are looking for something. In terms of product variety. but not a higher sales volume per customer. The categories of Peterson with more bankruptcies were: • Tangible products with low degree of differentiation and infrequent purchases (e. More products attract more consumers. a third of retailers have expressed disappointment at the limited supply of existing catalogues. Apparently. The affluence of people revealed larger after years of buying in free markets as the biggest markets with a wide variety of products for consumers. • Products not tangible.g. located in Luanda.4..g. 2002). The author agrees with 55 .g. • Tangible products with low degree of differentiation and shopping frequency (e. low degree of differentiation and infrequent purchases (e. milk. Belas Shopping. according to the users themselves (Dube. 1999). Performance e Functionalities The user interface of an E-commerce shop is a fundamental key to its success. It is also noteworthy that although the size of the store does not affect the volume of sales.
were the aspects that had the greatest impact on 56 . especially the listing of products is the main factor affecting the increase/decrease in monthly sales of a store of Electronic Commerce. and it was noticed that one of the services that were very welcomed was the electronic catalogues. leading researchers to conclude that the interface. Failure to do so users quickly leave the store without making purchases.that particularly because in Angola the Internet velocity is quite low and sometimes even intermittent which makes the lighter interfaces a more comfortable and fast way of using the Internet. The introduction of additional product information such as price. including using technology with moving images and sound for demonstrations. • Represent in a pleasant and informative way the company’ products. A well designed site.. 2002). the author worked in the first electronic market in Angola. A list of all the products of the seller in a unique repository. In fact. complemented with prices and product specifications. 1999).simplicity above all. company contacts and service level. TradeJango. contributing 61% of its variation (Lohse & Spiller. There are studies that go further. For instance. taking into account either the time each page takes to be seen whether the number of clicks needed to reach the information . image and more descriptive information. an innovation not so common locally which made the buyers very interested. the simplicity and convenience of using a CE shop is the most important factors to induce customer satisfaction (Shim et al. was the idea conveyed by the users of the study. should take into account the following factors: • High speed navigation. according to these authors. • Placing in an accessible location the return policy.
Accessible 24 hours a day. referring also to other studies such as Nielsen. As such. Flexible. since the existence of links to help find relevant information about the product and helps to make cross-selling between products. which found that only 42% of cases consumers were to find the information they wanted and that 62% of users gave up searching for the wanted items to purchase online. 1999). it is recognized that an essential feature for the success of any computer application is the quality of the system (Molla & Licker. The first aspect that the geographic location is important relates to cultural issues. studies indicate otherwise. This study was not the only one to find this relationship.4. that an online store (which at the end is nothing more than an application) should satisfy the following characteristics: Stable performance. However.3 Perspective of the Geographical Location Much has been advocated in recent years that the location would no longer be relevant. 2001). The geographical location remains essential at various levels. 2. given the fact that the Internet had a global reach. Good speed access and use. Friendly user interface and simple to use. Fast to use. it is surprising that 95% of the stores in 1998 had no links between related products (Lohse & Spiller. by analogy. 57 .. However. Faced with these overwhelming data. for example. Reliable.sales. 2002). One reason for this is indicated by Gefen (2002). This study refers that the number of links in a store is responsible for 10% of the variance in monthly sales. Visually pleasing. the sale of a camera always have a link to purchase accessories such as batteries and a variety of lenses. Meaning. observing that consumers tend to trust the sites where the navigation is simpler and cleaner interface. A company must know the characteristics of markets where it operates and adapt to it which at the outset in this respect the local companies have an advantage (Chau et al. today things are different.
According to Steinfield & Whitten (1999) possible strategies for a local company are: • Trust . because the retailer may belong to local groups such as church.The lack of consumer confidence is often one of the reasons for failure of electronic commerce. These authors analyzed the local companies with a presence at the Electronic Commerce on the Internet and tried to distinguish the problems and consequences of that presence. Further. the existence of a shop in the town where the potential customer lives is one factor that inspires confidence especially because culturally the consumer is used to purchase in the stores and is the means more accessible to make purchases.Consequently. but many are poorly prepared to deal with these customers and therefore fail. Steinfield & Whitten (1999) have an uncertain view on the subject of the importance of geographical location on a strategy level of Electronic Commerce. It is possible for local companies to adopt strategies that give them competitive advantages over its competitors. And in Angola.. According to these authors. • Consumer Needs and Behaviour .. something that stores like Amazon can not have. 58 . etc. namely using local contact networks and the trust that local customers put on them.The existence of a local store is an advantage at different levels in terms of satisfying consumer needs. volunteer organizations. The geographical location it is important at this level because it is both a limitation for those who want to enter more distant markets and an advantage for those who have presence in a market. a company that wants to be successful in both markets must adopt different strategies for each. companies typically go online in order to gain access to distant markets. The store is a point for receiving of returns.
Through the local store is also possible for the consumer to experiment or test a product. among other strategies that make the store be more appealing to potential customers’ region. supplementing the product purchased. they can use well-known figures from the local level. Other examples of complementarities is the provision of technical assistance to customers who made purchases online.the local shop can create additional promotional activities. • Local Knowledge .g. offering coupons to encourage customers to visit the local store. they can deliver products of regional interest that can not be found in other shops. thus closing the lack of confidence or satisfying the need to have the product immediately. or even go get the product he/she saw in the online catalogue. For example. 2. it is possible to sellers in a given region to use this knowledge to give themselves an advantage compared to sellers nationwide and internationally. destined for the final consumer and the implementation of a "reduced" number of large orders. designed to the distribution centres and retailers (Krovi. The Internet can also be used to advertise online events taking place in the store (e. 2001). they can adapt their sites to custom local language. literary events at bookstores) or special promotions. It is also possible for the seller to use the web channel to sell products that he does not want to put at reduced prices in the shop. 59 . 2001). at the local store or even the availability of online information. • Complementarities .Given their local knowledge.4. The logistics of a B2C E-Commerce site is very different from what companies are used because it is completely different the satisfaction of millions of small packets..4 Perspective of Logistics and Delivery capacity One of the keys to the success of a business area of Electronic Commerce is a good logistics (Krovi.
60 . currently.Lee and Whang (2001). proposed the following strategies to not to miss what they call "The Last Mile" of Electronic Commerce: • Direct Transmission . who order regularly. there are already techniques of "logistical delays" that allow the products to be shipped directly to the warehouse closest to the customer. To fill this gap.Another interesting technique is when you work with deliveries to companies. • Dematerialization . making a product goes from Angola to Portugal and back again to the country.There is often movement of physical products that can be replaced by sending the information directly via the Internet. and only this warehouse aggregates an unique order only. but who only know what they really need when the order is already on the road. For example. Other examples of resource exchange are the use of independent logistics operators that make the aggregate needs of various retailers. it is possible to attend to the geographic location of a competitor to make an exchange of resources. • Transit Warehouse . it is possible for the producer of cement A to ask to the competitor producer of cement B who is closer to a client of the producer of cement A to make the delivery on behalf of the other producer of cement A in exchange for the execution of a delivery to a customer of competition in the vicinity of the factory of the producer of cement A. • Resource exchange . The solution adopted by some logistics operators are shipping the best possible forecast of customer needs in a given region and assign the products to customers only when it is reaching the destination. replacing the previously used physical supports.At industrial level. is that due to supplier networks are often committed to genuine irrationalities in transportation and logistics. Examples of the adoption of such strategy is the replacement for physical catalogues online catalogues or transmission of software via the Internet.One of the problems of logistics.
2. also it allows the correct packaging of devolutions and often the immediate replacement of defective products. the customer will hardly go there. asking the client to do the same collection. and that was in fact.4. Also according to Bughin (2001). which also allows the reduction of transport costs and improve customer service. The company may then choose to proceed with the delivery of products in local shops. the sin of businesses is often just bet too much on promoting. According to Bughin (2001). as unaware of the store. on unprofitable companies were on average seven times higher than those of successful companies. there is a difference between firms that have adopted a strategy of mass to be successful. These same stores can also be used to receive refunds. the company has physical stores nearby. or is able to partner with companies that have them.• Aggregate Delivery . can pass through the aggregation of supplies only one day of the week or by granting to others the task of delivery at local level. Looking at their accounts.5 Perspective of Promotion The promotion of a good or service is a factor contributing to the success of an operation of Electronic Commerce. to reduce the cost of individual deliveries. However. and those that are not profitable. which often is too high due to lack of sufficient supplies to be held in the area concerned. Since a good part of this were costs of communication.Another technique that reduces cost is the aggregation of supplies. However.often the cost of delivery to the customer's home is just too high. the author comes to the conclusion that the non-labour costs. • Use of brick-and-mortar models . were 181% for non-profitable companies and 10% for profitable 61 . ignoring the other factors needed for successful operation. The strategies to be adopted. the spending on communication in relation to the total revenue.
profitable companies are those that convert its visitors into buyers and simultaneously manage to attract more visitors with a reduced communication cost.businesses. but also B2B. 2000). meant a higher average expenditure per visitor by 52%. but on the other hand. That is. the company is likely to be incurring costs that will not recover. would not do business with 62 . at least in terms of the B2C market.. 2. more important than doing the promotion is to have no communication costs in excess. as crucial to the success of an operation of Electronic Commerce. or through promotion in 'real' institutions thus reducing costs of space rental for promotion. their customer base is. It should be noted however. due to the fact that the established relationship is a relationship at a distance. In the long term. because if you do. given that 51% of companies. either through savings on brand awareness. Ideally. However. according to Bughin four times higher on average). because they have behind "brick-and mortar" companies that help spread their brand to attract customers (75%) and retain customers (although they have fewer visitors. that largely profitable companies require less promotion. Trust affects not only the B2C commerce. companies should make alliances with successful companies that already exist (or be "branches" of these) in order to reduce marketing costs. every online business will have to instil confidence in their consumers (Urban et al. The issue of promotion is as apparently fundamental to the success of an Electronic Commerce company.4. to succeed. according to a survey conducted in 2000.6 Perspective of the Brand and Loyalty Numerous studies refer to the necessity of having a good brand and other mechanisms that generate confidence. These higher expenses led to 13% more visitors.
. Confidence is a factor which may help raise and keep customers. 1999).. primarily because it creates a psychological barrier to change. the issue of encryption is still a means to be implemented and developed. since the costs of switching to another supplier involve having to leave a relationship in which they have confidence and move to another in this not yet (Gefen. but are beginning to attach greater importance to the protection of their privacy (Swaminathan et al.com was implemented. By the time the portal TradeJango. According to Shankar et al. Even as consumers gain experience in the purchase via electronic commerce. Subsequently. 2002). Even confidence is important because it helps predict satisfaction. of data such as credit card information. thus increasing the number of sales. Trust is also an element that helps in customer loyalty. it is a control over the organization and a mechanism for reducing transaction costs (Shankar et al. to expect miracles. These questions could "easily" be solved by implementing encryption system. Domingos Pedro. General Director of INACOM (National Institute of Communication).potential partners who did not trust. 1999). trust was seen as related to privacy issues and pertaining to the respect that the companies had with the data the 63 . reduces uncertainty. The trust has not yet capable of increasing the average volume of individual sales (Swaminathan et al. By “easily” the author mean only for the developed countries because for the developing countries such as Angola. 2002). however. especially with the exchange with the seller. trust was initially seen as a mere security issue. this issue was raised and considered to be implemented in the legislation and to be protected by law but the process still running and even for the telecommunications this subject revels not completely covered but the government is optimist and according to Mr.. (2002). they realize that the issue of security is not as important as thought. There is.
the trust covers both aspects. The Angolan market is growing faster in the last couple of years. the innovation of others and also the fast decline of some others. all that that involves all the offline activities of the company with its customers and stakeholders and confidence online. The existence of competing avoids the arbitrary fixing of prices. The common factor of between them stills the low or non-existing competition. the crucial factor it to offer the right amount of service and avoiding incurring to costs that do not bring added value to the customer. which is all that which is. Many times the Angolan news exposed situations of big companies that sold expired products or imported them from doubtful sources. nowadays.e. Finally. This situation brings issues such as the creation of new business ventures. after the end of the war. 2.4. i. but much more because the client must have confidence in the supplier. However. In a situation of perfect competition. This is another point that is not necessarily applied by all the companies in Angola. the confidence in this light can be divided into trust off-line. price is established according to market conditions and tends to remain at levels close to the cost of producing the goods. a monopolistic business. However. but also that the product will be delivered with the agreed price on the terms agreed upon and that any problems will be promptly resolved later. in contrast.7 Perspective of the service Excellence in service is a factor often cited as being fundamental to the success of a company. related to its online activities. including the operation of the store. according to the existing literature. The low or lack of competition promotes the creation of monopolies and lack of options for consumers as such this companies may provide their services as they want and consumers will always buy it. not only in the initial phase of the buying process. But. can increase its 64 .customers delivered to them.
this is an essential characteristic and valued by customers. Also the customer support is an important factor in meeting this and creating loyalty. adapting to their characteristics and help you in your navigation). search capabilities relevant to answer customer questions. There are cases where customers do not even seek such information and when to seek this has no impact on the probability of making purchases. The user of an electronic commerce shop expects to find in it detailed information on products and services needed as well as information on the procedures of the company. during and after the sale). For contents directly linked to products and services offered by the company. The latter have no necessarily a direct relationship with the products that the customer will purchase (e." despite being very common and present in most stores. Have content that is created with the aim of being an "appetizer. Molla & Licker (2001).g. calculators.overall profit by simply raising the price because it dominates the offer and it is not threatened by competition. The contents can be divided into two major groups. When the customer does not find this information. the contents that are designed to inform customers about the features of products and services rendered. 1999). in a mountaineering shop provide online travel guides). and the content that serve to entertain or provide additional information to the client. Molla & Licker (2001) are clear. A service that is typically provided by the electronic commerce is the accessibility of content. contributing critically for its satisfaction. converters of hard 65 . has no significant effect on sales and number of visits (ly & Spiller. usually leaves the store and passes to the competition. The client expects to be satisfied throughout the life cycle of the transaction (before. Can be considered examples of support services: artificial intelligence (the system remember the client.
2001 and Swaminathan et al. nowadays. important variables that determine the frequency of purchase over the Internet. what consumers wait for the services on the Internet is for it to be free and the products they buy to be cheaper than in ordinary shops. the access to information and reliability. Such conclusion is shared by Swaminathan et al (1999). But apparently. 1999). the frequent or occasional EC Internet consumers are no longer as much as sensitive to the price that not-Internet consumers are (Li et al. especially if consumers have a broader optional choices. 2. one thing is what consumers say and other thing is what they practice. In fact. In practice.. The price sensitivity between channels will therefore be determined by the costs that customers find in each channel (not necessarily monetary costs). It will be the client’s mind 66 . cancellation and refund orders and lists of frequently asked questions (Molla & Licker. Consequently there will be a tendency for consumers to prefer the Internet whenever it has lower prices but not in a much different way than choosing to shop in a cheaper traditional store over another more expensive. that is. the ability to cancel orders.8 Perception of the Price The price is one of the variables of marketing mix and a variable that consumers consider to be lower when purchasing on the Internet. In fact. there are products in which the Internet can be more competitive than the traditional stores and others where the reverse is true. As referred previously there are most suitable products to the Internet than others. alternative payment. ahead of variables such as quality and service. state control of the order.4. which consider being the price competitiveness. according to Dube (2002) most consumers regard price as their reason for buying products over the Internet.currency. maintenance of account. 1999).
The monopoly thanks to its market power harms consumers by restricting the production and variety. being it both non-monetary and monetary costs. and forces to pay prices arbitrarily fixed by the monopolist. as initially it was assumed that electronic commerce would eliminate intermediaries (Palmer. this is another cost burden to the purchase of products via electronic commerce on the Internet. The perception that e-commerce stores should be priced significantly cheaper than traditional trade stores is closely linked to the Theory of Value Chain. It will be recorded that when purchases are made online the customer have to wait several days to receive the product or the need for physical inspection of the product and consumer familiarity with the product (Janse & Noll. with the non-monetary costs is lower than the theoretical price of purchasing goods in a physical store. 1997). adding the actual cost. A comparative study between the various forms of business placed the purchase on the Internet behind the purchase in the physical store and catalogue’s shopping. the reality is that they are price sensitive and the Internet is now a place where the war price is almost permanent. not necessarily in all situations. 2002 ). Also. in terms of time spent to buy a given product. A client can only make a purchase online if the theoretical price that makes the product. But it must be kept in mind about the monopolies in Angola. even though electronic consumers are not such price-sensitive as the consumers in-store sales. It’s important to note that the lack of competition could be detrimental on the reduction of costs and lead to underutilization of productive resources. The competition however is also a factor to take into account because. however. adding the costs of the product. For example. For example. transport costs and travel have to be accounted for.to do the math. That is. delivery costs are a factor to take into account almost always 67 . in the world of electronic commerce.
the main link between the potential customer and the company. But not only is the system that has to be adapted to the user. one element that must be considered is the interface of the system.. as it will eventually define the success or failure of the operation. as this is. according to the consumer (for example. 68 . one must take into consideration the age of the potential consumer). As already mentioned. This is why it’s important to pay special attention to the use that users give the system. this is one of the most relevant indicators for success that the system may have in the future.5.for physical products. 2000 cited in Duarte. Consumers with greater knowledge of the Internet feel more comfortable making purchases in a shop online than newcomers to the Internet world (Li et al. and it is vital for the satisfaction of the first and the success of the second (Molla & Licker. that is "Internet literacy" (in case of Internet stores. in the absence of human contact.. 2001). 1999 and Kwak et al. 2002). The user satisfaction is always the ultimate goal. At Consumer level One factor that will never be overlooked in the implementation of an electronic commerce operation is the user/consumer. 2.) Consumers first have to go through a learning curve before adopting a new channel and the shape of this curve is even different. Using the Internet (or other electronic channel) to carry out procurement of goods and services requires not only resources but also requires knowledge about the functioning of the channel. Products whose transport is complicated by always end up seeing your transaction cost increase (Ward. is also the user has to feel comfortable with the system. 2004) and this is a situation that holds back the developing countries. because like other information systems.
verifying that they are "compatible" with the purchase via the Internet (or via the system in question). education. affect the likelihood of a consumer buying online (Li et al. gender.. need for social interaction and income.. a successful e-commerce store must always take into account the characteristics of its consumers. 1999 and Swaminathan et al. 1999) Because of this.Also factors intrinsic to the consumer such as the need for experimentation. Even the purchases made in the stores are a great risk for consumers because although there is an entity called INADEC (National Institute of Defense of Consumers) it does not goes totally into defense of the consumers mainly because of poor infrastructures and conditions to do it. 69 .
Unfortunately some of the questions of the questionnaire were quite subjective and could not provide an obvious result to the research and also important questions like sex and age were left out by mistake. Participants were advised that the aim of this survey was to collect data on Internet usage and electronic commerce usage in Angola. The sample selected by the author derived from the database of contacts. if the developed countries have strong economies which are growing each day with the use of the electronic commerce. a questionnaire consisting of 19 direct questions and 2 open questions. the research comprised both adult men and women. with such experience the developing countries could design strategies to follow the steps of the developed countries. However. not deviating from their countries realities. being the research instrument. The results of such answers can be used to estimate how the profile of Internet and electronic commerce users can influence the Angolan economy. The students where chosen as most of the employed individuals are also students and as such it was important to consider that 70 . to evaluate how their behavior could influence the economy of the country. that is.CHAPTER 3 RESEARCH METHODOLOGY 3.1 Profile of Users This research used a sample of 200 respondents. clients and interested parties who were contacted via e-mail inviting each and every user to answer a questionnaire. The author chose randomly individuals who are professionals in the Angolan market as well as university students. Plus that these data were necessary to analyze the growth of Internet and the adoption of electronic commerce in Angola in contrast with making purchases in the conventional or traditional way.
the accessibility levels in Angola to determine how it could affect the performance of the economy.some could just be students. As the method was a questionnaire sent via email. The type of questions was focused on the questionnaire but as the interview got along the information became diversified and quite satisfactory also. credit cards. The participants were located all over Angola and some where abroad temporarily. The author of the dissertation was a collaborator of TradeJango. it was imperative that the participants had a wide knowledge of the Angolan reality. personal computers and speak more than one language. However. Such type of participants also could provide more reliable information and because of their management positions. the interviews were more for the most important and busy people that would leave the questionnaire behind for later and would forget ir. the author also performed interviews. Following the chosen participants are from middle class thus it is probable that they have favorable conditions such as bank account. their qualifications.2 Theoretical Orientation The theoretical orientation is the triangulation method which is a combination of methods. Some of the participants are interested parties since they work or worked with electronic marketplaces in Angola. the first electronic market in Angola since it was a project till its implementation and full 71 . 3. With the quantitative approach the author attempted to calculate the percentage of users of Internet. The quantitative information was based on the interviews and served to compare with the qualitative results. therefore it was not accepted Angolan individuals living abroad for more than 5 years. qualitative and quantitative.
All the contacts made through this past 5 years of experience served to be able to provide valid background information and support on future predictions. The next decision that was taken has to do with the type of e-mail to be sent: simple email with a questionnaire inserted in the message as an attachment (word processor or another specific program) or a link redirected to a website with the questionnaire attached. it is required that the data should be collected over a relatively short period. 3. the author therefore opted for the use of an e-mail that contained a link to a website built specifically for that purpose. The use of email is the chosen method because it presents a very high response speed and is superior. Therefore. The personal interviews were in a structured manner created by the author so that the interviewers could be able to give the information instantly. 1986 cited in Fortes & Rita. makes it difficult to both cut and paste it to a mail message or attach it to a file. The fact that the author was a collaborator of TradeJango did not implied for the main focus to be the TradeJango but the experiences acquired in such technological environment developed in a developing country provided the author with a more significant point view that can provide the research a high degree of validity and reliability. 72 .d)). so as not to jeopardize the completion of a dissertation within the deadline. when it comes to the process of data collection. the use of a timely and effective tool is required.3 Survey Design Time factor is a major constraint. when compared to other methods of data collection (Kiesler and Sproull. n.operation therefore the knowledge about the subject is one of the best in the market. openly and with more confidence. Weighing up the pros and cons of each method and given the lengthy questionnaire which. In fact.
In the process of filling the form users had the opportunity to check and rectify any of the answers and to move back and forth in the available pages. 73 . To find the questionnaire the user simply needed to click on the activated URL in the e-mail message. The site was linked to a database SQL (Structured Query Language) that stored all the answers and ensured total confidentiality of users. it would be possible to quit or abandon the questionnaire at any time. clarity. Unfortunately the questionnaire allowed participants to skip answers and that biased the results.com/s/candidadissertation2010. The site contained a form for answers to the questionnaire. However.In that sense. When the deadline proposed by the author was reached. a thank you message appeared for users as a sign of appreciation for the time dispensed in the questionnaire. as they do not contain any mechanisms of association with them. In formatting the website. Once the questionnaire was completed. pleasantness.surveymonkey. In addition to that. functionality and ease of response. an e-mail was sent to respondents with a link redirecting them to the following website where they could find the questionnaire: https://www. guidelines were set based on simplicity. the e-mail had a presentation and description of the objectives of the study and the respectful thankfulness. it would only be possible to proceed to following questions if all previous ones were completed in full. Yet. the author gathered the information from the server and chose the best presentation of results as proposed by the site.
Figure 9: What is your status? S E CT ION A : B A CKGR OU N D IN FOR MA T ION 1. the author expected to know what were their employee status and the consequent use of Internet.1 Summary of the Survey Results 4. W ha t is y o ur s ta tus ? 21% Employee (middle level) Employee (department head or higher) Student Both student and employee 24% 7% 48% 74 .1. Background information By inquiring the participants about their background information.1.CHAPTER 4 RESULTS OF RESEARCH FINDINGS 4.
In addition. Information and communication technology (ICT) By inquiring about the Internet means of access the author expected to analyze the existing connectivity in Angola. the author expected to obtain results on the literacy level that were most adequate to make use of the Internet and other technologies in Angola. Figure 10: Do you think the literacy level in Angola is adequate to allow citizens to easily access Information and communication Technologies? D o y o u think the lite ra c y le v e l in A ng o la is a d e q ua te to a llo w c itize ns to e a s ily a c c e s s Info rma tio n a nd Co mmunic a tio n T e c hno lo g ie s ? 21% Yes No 79% 4. H o w d o y o u no rma lly a c c e s s the inte rne t? 10% 29% LAN Cellular phone ADSL Broad band (cable. etc) 3% 48% 10% 3G card 75 .2. Figure 11: How do you normally access the Internet? S E CT ION B : IN FOR MA T ION A N D COMMU N ICA T ION T E CH N OLOGY (ICT ) 3.1.
By inquiring about the Internet costs the author expected to analyze the factors that may influence or detract the consumers of using the Internet in Angola. Figure 12: What is your opinion on the cost of accessing Internet in Angola? W ha t is y o ur o p inio n o n the c o s t o f a c c e s s ing inte rne t in A ng o la ? 2% 18% 39% Too costly Costly Moderate Low 41% By inquiring about the development of Information and Communication the author expected to analyze one of the influencing factors that detract consumers to access the Internet and also the influence of such factor on the development of the economy. Figure 13: How well developed are information and communication technologies in Angola? H o w we ll d e v e lo p e d a re Info rma tio n a nd Co mmunic a tio n T e c hno lo g ie s in A ng o la ? 5% 0% 12% Very well developed Well developed Poor Very poor 83% 76 .
CON S U ME R LE V E L 7. Figure 15: How many times per week do you make purchases in a sales store? S E CT ION C: P U R CH A S E S . Figure 14: what do you think are the major obstacles to access Internet in Angola? MAJOR OBSTACLES TO INTERNET ACCESS 70 60 50 40 30 20 10 0 Poor infrastructure High cost Education Energy Other 36 27 10 12 % 62 It sounds essential to evaluate how frequently the consumers use Internet to make purchase. since it will be the one of the main parameter allowing the author to analyze the penetration of Internet on consumer’s habits and behaviors. H o w ma ny time s p e r we e k d o y o u ma k e p urc ha s e s in a s a le s s to re ? 7% 11% Always 34% Sometimes Rarely Never 48% 77 .One of the most important issues for the author was to analyze the major obstacles to Internet access since these factors represented a high percentage of the problems that influence the development of the Angolan economy.
Figure 17: Do you think online sales could substitute your traditional purchases? D o y o u think o nline s a le s c o uld s ub s titute y o ur tra d itio na l p urc ha s e s ? 38% Yes No 62% 78 . Figure 16: Have you ever made online purchases? H a v e y o u e v e r ma d e o nline p urc ha s e s ? 36% No Yes 64% By analyzing the EC tendencies of consumers the author attempt to estimate future trends.The author addressed the question on online purchases to attempt to analyze the degree of level access to marketplaces and to support other questions such as regarding the barriers.
Pedro clarified that INACOM is doing its home work and waits for the parliament to do theirs so that major advancement can be made. According to Mr. Pedro (2010) the actual Internet statistics in Angola are purely estimative. Domingos Pedro.1. Figure 18: Which online market you are more inclined to make purchases from? W hic h o nline ma rk e t y o u a re mo re inc line d to ma k e p urc ha s e s fro m? 11% 7% National/ Local International N/A 82% 4. INACOM do not understands about the electronic commerce however it says that is at the beginning and it is under the tutelage of the ministry of science and technology. Government created a project of telecommunications under tutelage of the 79 . All the politics of development of the telecommunications sector were always at the margin of the telecommunications sector. Summary of the Interviews A couple of interviews were made to some managers in the technology industry. such as the General Director of INACOM. Mr.3.Bu identifying the market preference the author attempts to identify the tendencies of the majority of the choices of the consumers. under the Vice minister of telecommunications. Mr.
According to INACOM (2010) there is low public security. The census project is approved and after that it will be possible to make statistics of the population. South Africa is the fourth country in the top 10 of Internet countries of Africa. since the variables that are used today are purely estimative. Today it is no possible to produce but in a 4 years time it will be possible to produce the equipment necessary to support Angolan infrastructures. INACOM believe that in 4 years time the development of technology will be much better than today. There are very few electronic marketplaces in Angola. where big companies like Unitel and Movicel do not have the right conditions to secure their physical locations. in fact even the Director told the author that they were not the best entity to provide accurate information and demonstrated that 80 . The author came into knowledge that this website is generated and managed from South Africa. next to the gasoline container.Purchases in the Internet are complicated because of there is credit card inaccessibility and there are no sites to buy from. Culturally people are used to get something out always and the use of cards and technologies alike impede the handling of money and people always ask for a tip. example of a new one is from TAAG which is one of the fewest that allows electronic payments. for instance the anthem stays close of the generator. therefore sometimes they affirm that the card machine is not working properly. Electronic payments are difficult especially in cases like in the gas station where they do not accept cards simply because with the use of money is easier for them to keep the change. The information provided from the Director is way different from the one obtained in the BuddeComm (2010) site. The domain .ao is not in Angola.
And 40% of the respondents use broadband. As to education. 24% were head of department of higher. all of them had as minimum the 12 grade.they actually do not have accurate information and that the information provided by the INACOM right now are just estimative since there are no census and it is not possible to know the exact population size. being the research instrument. the author could get hold of the population size number from sources like the Internet World Stats which diverge from the information provided by the Director of INACOM in terms that if there is no Census of the size population where does the site obtained such information? There was also an interview with the consultants of Leadership Business consulting which provided information on the government projects (see egovernment). 48% of respondents were middle employees. 21% were both employee and university students. a questionnaire consisting of 18 direct questions and 3 open questions. once again. specifically the Internet and electronic commerce and for comparison purposes the traditional purchasing. With the third question (Figure 11) participants should respond the accessibility to use the Internet. Discussion of Research Findings As mentioned before. However. the research used a sample of 200 respondents. such as literacy level and employment status. 4. and 7% were just university students. The survey was conducted with men and women in a universe of 60 participants.2. The second section relates to the Communication and Information Technology in Angola. 81 . The first section (Figures 9 and 10) is comprised of two questions on the background information and relates to the delimitation of the sample.
and electrical power. were asked how often do they find the products they want to purchase when buying on the Internet and 55% finds the products online frequently compared to 49% of frequency when shopping in a store. variety. 62% prefer to shop at physical stores and 38% answered that they prefer to buy direct online. promotion and safety in delivery. good visual format. and booking flights and hotels. Then in the thirteenth question (Figure 18) the respondents need to report their preference of marketplaces. The items preferred by the respondents are electronics.followed by 29% that use LAN and 10% still uses ADSL. convenience. stock immediately. And in the fifth (Figure 13) respondents need to respond on the reasons about the level of development of the communication and Information technologies in Angola. as the top 4 as follows: Poor infrastructure. ease. diversity. and previous experience recommendation. reliability. books. payment options. and 36% answered yes and 64% answered no. price. either national or international. 82 . Respondents were asked whether they ever bought on the Internet. Education. knowledge of Web site service. The reasons that led the respondents to buy in the international marketplaces in which they are related as the first: credibility. High cost. When asked about what are the major barriers to access the Internet than respondents enumerated with open responses. DVD's and CD's. easy access and convenience. the same percentage as the ones who use the cellular phone. Of the respondents who buy on the Internet. interesting. When asked their opinion on the cost of Internet respondents responded from the too costly to the low cost. promotions. prompt delivery. Of respondents who bought on the Internet.
However. low academic level 5. another very important barrier to indicate are the Lack of legal and regulatory policies makes it difficult or impossible to actually transact business electronically with safety. lack of delivery. Actually. 6 Transparency issues. their age range and at least their monthly income. followed buy poor connection. if men or women. The poor infrastructures are the major problem. 4 poor electricity supply. it was complicated to clarify differences such as who buy more online. According to Payne (2003) “a survey done by OECD found that one of the major obstacles to using electronic commerce was lack of understanding of electronic commerce techniques and the technology needed to use it.When asked about what the major obstacles for the evolution of electronic commerce in Angola respondents enumerated the most pertinent (1) to the least pertinent (10). failed to gather the number of men and women. 2 payment options. etc) 1.” 4. Consequently. lack of site. payment issues usually connected to lack of credit cards. lack of PO Box. 83 . and thus related: Logistic issues (net deliveries. in terms of demographic sample. Internet cost 3. However. there was an open box for extra responses and respondents add that other barriers are: poor quality of service or not knowing the service. it was possible to identify the barriers of using the Internet and the ones that detract electronic commerce to develop. lack of trust.3 Conclusion The choice of method was not the best one as the author. 7 language. if younger or older or even if executives or students. It is valid to denote that such responses were created by the author so it could be presented as a closed question. bank accounts and many times the websites do not even have the name of Angola in their list of billing address or do not accept the credit card. poor Marketing and customer services.
the price for expatriates may seem cheaper if bought at the price of a developed country but for Angolans it is expensive. Angola has a lot to learn but first there is a need to reconstruct the country. Furthermore the connection is bad. the difficulties are: • Most of the population rarely sees a computer. with such results Angola is not yet prepared to compete with other economies. Wages are low in Angola and to spend $1. specific stores such as NCR. of a lawyer for example. So first problem. to provide an obligatory minimum level of education to all so that the children of today can really become the future of tomorrow. to create and approve rules and regulations on communication and information technologies.700 on a notebook when the salary is $1. Yet there is no guarantee of delivery in the 84 . the post office does not go to every city. really is not feasible. • Internet Access .it is too expensive to have Internet at home. to develop the information technology systems. never operate.200.Finally. it is very slowly and resuming – it’s very bad. Angola is entering the sector of electronic commerce with quite some difficulties but that can be overcome with strength and good will of the private investment. • Post office or mailing service: This is another difficulty. and tomorrow such technologies could be seen as part of Angolan life. • Low wages: Despite of computer products are already available in the local market. to be prepared to have electric power 24/7. the developing countries are not an example to follow yet but can be seen as competition to growth and regarding the developed countries. lack of equipment. it falls constantly. or if seen.
Everything is paid in money and fewer people use banks. thus it can be said that such card is not used.places where it reaches. In addition to the normal difficulties. Despite these problems. Logistics in the capital may work. The money circulates best in the hands of people and in their pockets.in Angola. TradeJango is an example that companies can generate profits for local companies and expose them at international level. although there are credit card services at the banks. starting from Luanda. • Imports of products. distribution and logistics: imports are still a serious problem. • Payment . Companies or individuals that need to receive mail need to rent a mailbox post on the local psot office. there are problems with the clearance of goods and the like. but in the provinces is very difficult to move goods and papers. 85 . at least. it is possible to develop electronic commerce in Angola. checkbooks either. Therefore they have to go periodically check for new mail. people just hire a truck to make deliveries. it is not a common card to use locally.
for instance the official site from INADEC (National Institute of Defense of Consumers) or such sites are very poor in information. • Important websites do not work. developing the educational and health sector. and it is considered a secondary matter. the development of basic sanitary sector.1. • Many times the lack of Internet connectivity affects the whole country because there is only one satellite working for the Angola Telecom and also providing its services to the private services providers. Information is totally outdated like 7 years back. • With the lower education there are no skills to get involved in the development of more and more Angolan websites . there are other priorities such as the country reconstruction. full of updated local information in all sectors.CHAPTER 5: CONCLUSION AND RECOMMENDATIONS 5. Limitations to the research One of the limitations of the research results from the fact that the author has narrowed the universe of analysis only to a data base of important contacts mostly medium high class people. For the author some limitations were: • Time constraint. which prevents generalization of findings to the whole of the Angolan population. for such a complex subject in Angola the author would need more time to identify the exact sources of information on technology issues. • Although the author had an interview with the General director of INACOM. 86 . the information available in journals and websites is not coordinated leading to biased research results. • Lack of information. people does not discuss about electronic commerce.
the product or service can not only be sold. more recent information can only be found at BuddeCom website at the expense of US$245.2.00 for 20 users. segmentation 87 . US$490. 5. since in digital format. Area for further research The areas for further research are the education sector and the cultural behavior. overall connectivity. the Internet in Angola has increased restrictions such as the laws and regulations that are not defined till today and the ingrained culture of buying and selling in the streets or personally and even the high resistance to change to new technologies either because it’s hard to change or because its expensive. Much remains to be developed in ecommerce in Angola to the most effective use of the network as a channel for buying and selling and the unique characteristics of this new medium .3. personalization. US$735. those products or services that may be converted into a digital format the Internet take the role not only of a sales channel.interactivity. For example.• Although the author obtained reliable information directly from the National Director of INACOM. For companies who are interested to enter in the market of telecommunications in Angola it may be cheap but for a dissertation researcher it is quite expensive. or there is not a profound reachable study that entails the economic advantages the use of electronic commerce could bring to the country. but also be effectively marketed via the Internet.00 for 10 users. Recommendations For certain types of industries the impact of the Internet as a channel for sales and purchases may be the greatest. 5. so that it can be analyzed together with the development of telecommunications and its use. but also of a distribution channel. Although it is promising. There are practically no information available on electronic commerce in Angola.00 for a single user.
and one-to-one time real communication and at any time - open a large window of opportunity that transform the Internet into something more than a new channel, that is, a rich environment, conducive to the development of new business models to be explored. It is recommended that today Angola view E-commerce rather than just a distinct form of business, it can serve as a complement, aligned and integrated with traditional operations, leveraging organization's results. There should be more examples of the TradeJango initiative and not just as a B2B eMarketplace but also as B2C. The Internet and conventional retail channels are both complementary and competing. Each system offers opportunities for communication, transaction and distribution. A consumer can use a traditional channel to try or to inspect the product and then buy it via Internet or vice versa. That would help the country especially in a sense of better time management, as such consumers would not need to go to the stores, and reduction of traffic on the streets, people would have more time to apply to other activities, more money for the companies, better organization for organizations and employees. To start the availability of the information on such business should be available on the Internet so that locals and international people may have a start on getting to know about the subject. There still many gaps about electronic commerce in Angola, to be covered.
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etc) o 3G card o Other____________ 4. Do you think the literacy level in Angola is adequate to allow citizens to easily access Information and communication Technologies? o Yes o No SECTION B: INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) 3. How well developed are information and communication technologies in Angola? o Very well developed o Well developed o Poor o Very poor 6. SECTION A: BACKGROUND INFORMATION 1. What is your status? o Employee (middle level) o Employee (department head or higher) o Student o Both student and employee 2. If poor. ____________________________________________________ ii.APPENDICES Appendix I: Survey Questionnaire An investigation of the influence of adoption of ecommerce on economic development of Angola The aim of this survey is to collect data on Internet usage and electronic commerce usage in Angola. what do you think are the major obstacles to access Internet in Angola? (Please give at least 4) i. These data are necessary to analyze the growth of Internet and the adoption of electronic commerce in Angola in contrast with making purchases in the conventional or traditional way to influence the economic growth of Angola. How do you normally access the Internet? o LAN o Cellular phone o ADSL o Broad band (cable. ____________________________________________________ 94 . What is your opinion on the cost of accessing Internet in Angola? o Too costly o Costly o Moderate o Low 5.
Which online market you are more inclined to make purchases from? o National/ Local o International o N/A 14. Which products do you buy more frequently. Do you always find the product you're looking for. _____________________________________________________ iii. ___________________________________________________ ii. on the Internet? i. iv. __________________________________________________ iii. Do you always find the products you're looking for? o Frequently o Sometimes o Rarely 10.CONSUMER LEVEL 7. __________________________________________________ 9. How many times per week do you make purchases in a sales store? o always o sometimes o rarely o never 8. If yes. with which products? i. ___________________________________________________ iv. ____________________________________________________ ____________________________________________________ SECTION C: PURCHASES . ___________________________________________________ iii. _____________________________________________________ ii. Have you ever made online purchases? o Yes o No 11. Do you think online sales could substitute your traditional purchases? o Yes o No 15.iii. __________________________________________________ iv. _____________________________________________________ 95 . ___________________________________________________ 12. __________________________________________________ ii. Which products do you buy more frequently? i. on Internet? o Frequently o Sometimes o Rarely 13. _____________________________________________________ iv.
Candida Costa 96 . If you already use Internet for sales. postal box. Do you have your own webmaster for your website or do you subcontract a company? o Webmaster o Subcontract another company o N/A 21. what is the % of web sales comparing your store sales? o %: _____ o N/A Thank you very much for you patience. what do you think are the major obstacles for the evolution of electronic commerce in Angola? (Please list as many as may apply by importance) o Language_____ o Academic level_____ o Electricity_____ o Internet cost____ o Payment issues_____ o Transparency issues_____ o Logistic issues (net deliveries. In a scale of 1 to 10. Do you use the Internet to promote your company? Sale? And provide after sales service? (Please choose as many as may apply) o o o o Company_____ Sales______ After Sales_____ N/A 19. In your opinion.o N/A 16. in 3 years time. etc)_____ o Other________________________ 17. the electronic commerce in Angola will: o o o o Grow significantly Grow decrease decrease significantly SECTION D: CORPORATE LEVEL 18. Does you company has a website? o Yes o No o N/A 20.