Activity 10: Disruptive Technology: E-Commerce

Civilization has indeed come a long way, which can be primarily attributed to the
progression driven by technological advancements. However, there is still continuous
development in the field of technology that is bringing paradigm shifts. These technologies are
often referred to as disrupted technology, which was also defined by Smith (2022) as an
innovation that brings a revolution in various industries and systems. Moreover, despite being
called ‘disrupted’ which may have negative connotations, this concept is often perceived in a
positive light. Frequently, new technologies that are being generated, mostly from start-up
businesses, make the lives of people more convenient, hence, is known as an upgrade (Provato
Group, 2020). Mentioning start-up businesses, various online shopping platforms were launched
and have taken the market by storm, especially during the pandemic. In fact, the sales generated
by e-commerce during the pandemic were approximately 870 billion USD (Forbes, 2022).
Therefore, in the field of commerce, many businesses went online and built their online
presence. This phenomenon was evident in the rising share of digital retail trade in the global
market from 14 percent pre-pandemic (2019) to 17 percent during the onset of the pandemic
(2020) (UNCTAD, 2021).

In line with this, online shopping platforms, as disruptive technology, were revealed to
alter consumer behavior. Consumers experienced convenience given that they can shop wherever
they are as long as they have the access to the Internet and a compatible smartphone. Then, the
goods and services can be delivered right in their footstep. Therefore, impulse buying was
recorded worldwide to spike due to the online platform, especially since there were discount or
voucher strategies that were implemented (Dujardin, 2022). Additionally, online marketing was
also found to significantly influence consumer behavior as it can reach and acquire more
customers, which will be more attractive if the product is sold online (Jawaid & Karim, 2021).
Additionally, one huge benefit of e-commerce was the ability of companies to penetrate the
international market. Through online shopping platforms, local business can offer their products
to international consumers and have them delivered (Kiran, 2020). Thus, instead of the
traditional way of being a multinational company, firms today have a more convenient way in
pursuit of growth.
 Meanwhile, in the Philippines, it was revealed that e-commerce contributed 5.5 percent to
the national economy. Thus, it paved the way for MSMEs to recover from the repercussions of
the pandemic where it can be remembered that they were forced to stop or pause their business
operations (Humarang, 2022). With the help of online business platforms, local businesses were
able to continue their operations and even gave an opportunity for new firms to enter the market.
In fact, Hani (2021) stated in their article that e-commerce and the digital economy took the spot
of one of the key engines of economic growth in the country, whereas, from 599 billion pesos in
2020, the contribution of e-commerce in GDP grew to 1.2 trillion pesos in 2022.