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Strategic Management (MGT-603) Announcement of Graded discussion 


Opening Date and Time: Oct 24, 2012 At 12:00 AM (Mid-Night)

Closing Date and Time: Oct 25, 2012 At 11:59 PM (Mid-Night)

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Covering from lecture # 01 to lecture # 04

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Topic Background:


Electronic Commerce (e-commerce) refers to using the Internet to market and sell goods and services. It involves the buying and selling of products and services by the businesses to customers through an electronic medium. Electric commerce has become a vital strategic-management tool, as a successful ecommerce business strategy can make online purchasing an enjoyable and profitable. The Internet has changed the very nature and core of buying and selling in nearly all industries. It has fundamentally changed the economics of business in every single industry worldwide.



Discussion Question:


In strategic management point of view, how e-commerce acts as an instrument for Pakistani organizations to become successful in competitive world? Discuss with logical points.

plzz post the solution...

As e-commerce is a new way of doing business, many 
countries have yet to draw up a proper set of operating principles to govern legal, regulatory, and enforcement 
issues. There is a gradual evolution of commercial international practices.
E-commerce is a new world for the Pakistani business and financial sector entities
. In Pakistan, mostly all 
governmental organizations do not have a computerized system. Furthermore, these organizations are lacking 
of skills/qualified staff to manipulate such a computerized system. Both reasons are a mayor obstacle for a 
paperless environment and subsequently for the recognition, validation and common use of electronic
transactions, messages, documents, etc.

There is a current lack of domestic laws dealing with e-commerce.

 E-commerce stands for Electronic Commerce. With the revolution of internet, the usage of internet has increased a lot. It has changed the overall working and living style of the people. It has a great impact in many fields of life. It has converted the world into a global village.

E-commerce is basically means doing the business online. It includes selling, buying, advertising and contacting buyers and users through internet. In the more detail we can describe E-commerce is using the techniques and tools of internet in ones business for several purposes like offering a retail shop online, like choosing a product from visiting the online store and then making payments online. Order can be placed for some products and they are delivered to the door steps of the user and payment can be done by cash.

  • The trend of e-commerce can be observed as the fastest growing business of the world. To start speeding up E-commerce business in Pakistan, we should recognize e-commerce activity takes place in the USA that is almost 78 per cent. As the January 2000, over 110 million people have internet access there compared to 279 million the world over.
  • The numbers of internet users are speeding more and more time in all around the world and same is the trend can be observed in Pakistan. In 1995, almost .01% of Pakistan population use internet but in 2010 this rate goes high and now it’s almost 15.1% of the total population. People are getting more aware about the internet usage and Pakistan businessmen can make good opportunity out of it.
  • As far as E-commerce in Pakistan is concerned, a research was conducted to find some hard realities. According to the result of research a significant number of Pakistan population do not have internet which is a basic ingredient of e-commerce. Another result was concluded that people are insecure about misuse of credit cards for online transactions. Despite of all this, the research findings suggests that online stores are the best options for your shopping as they are time, money and other resource saving.

Research Findings

1) Do you use internet: 65 % people use internet: at least once a week

2) Are you satisfied with downloading speed of internet: 98% were not satisfied?

3) Have you bought Online (if yes then what is frequency): 2% people have bought online out of which 99% people bought only once.

4) Do you feel Secure Doing Online Transaction: 99% people feel insecure doing Transaction Online?

5) Are you satisfied with shipment: 100% were satisfied with shipment?

6) Is it convenient to buy Online: 100 % were saying that purchasing online buying is convenient?

  • Foreign interest in Pakistan’s technology sector has been increasing. Local entrepreneurs have set up around 100 call centers in recent years in Pakistan.
  • As government realizes the importance of e-Commerce, the universities are forced to introduce E-Commerce in their syllabus.
  • No rules have been established on how to tax e-commerce or determine “electronic residence” in Pakistan.

It can be resulted that there is a lot of scope of e-commerce in Pakistan, and most companies are willing to enter into digital world, but at present E-commerce is not expected to increase in near future due to low PC literacy and internet penetration in Pakistani Culture.

It can be concluded that there is a lot of scope of e-commerce in Pakistan, and most companies are eager to going to the digital world, but at present E-commerce is not expected to increase in near future due to low PC and internet penetration. Industry, businesses and trade people prefer to use traditional ways of business enjoying personal contacts and mode of payments. We think that companies have started realizing the potential of ecommerce and electronic data interchange In Pakistan, especially in the Banking sector. So the future of Ecommerce in Pakistan is bright. We will embrace ecommerce by desire or by force as more and more international transactions are undertaken electronically.

In Pakistan, e-commerce is still in its infancy and faces many barriers to grow. The notable barriers are:

  • Misconception of e-Commerce in Pakistan
  • Mistrust
  • Low Literacy Rate
  • Access to Technology is late
  • Policies of Government
  • unavailability of proper infrastructure [telephone line of stem lines of steam age, frequent failures of power]
  • limited user of internet hardly one per cent of the entire population have access to the internet]
  • the issue of security of transactions on the internet
  • high bandwidth rates
  • the rigid and monopoly role of the PTCL.

However, the Government has recently put a crack on the barriers when it approved the merchant ID accounts to facilitate online transactions. But there is still a long way to go and requires government to continue to grease the wheels of e-commerce to speed up the process.



Those who create, distribute, and sell goods and services to consumers also have reason to look forward to this new mechanism. All enterprises, including the small and medium sized can reach customers throughout the world instantly and comparatively inexpensively. Many vendors can sell globally without the costly infrastructure of worldwide retail stores, sales offices, distributors, or warehouses.


Pakistan is still an under developing country and is in a process of making their way towards the road of technology. The internet is prevailing like dark cloud on Pakistan and it will hit the Pakistan economy positively in the near future. People are getting aware of the importance of business on the internet rapidly and this will prove good in the favor of Pakistan.


Pakistan Government is taking bold steps when it came to the concern of e-Commerce. Calling FDI, making laws so that they could be able to invest more in Pakistan in the field of Technology. The policies of decreasing the rigidity and monopoly of PTCL will help in this regard. These steps will lead to more investment in the field and towards a bright future of e-Commerce in Pakistan.

Banks are playing an important role in increasing the awareness of e-Commerce in Pakistan. The banks start e-Banking and also the availability of merchant account that will help the investors to invest in the internet business.


The literacy rate of the country is a big block when we thought of the future of e-Commerce in Pakistan. It will take a lot of time in increasing the literacy rate of the country and more time will be required to give awareness to the people about the e-Commerce.


Pakistan became a member of AFACT in September 2000 at Taipei, Taiwan and was nominated its Chairman last month at AFACT 2002 held in Kuala Lumpur, Malaysia. Which surely reflects that e-Commerce got a very bright future in Pakistan.


The young entrepreneurs can also play an important role in making the e-commerce a bright activity in the business field. Fresh students who know about the internet and the business over it will focus on the internet business as it requires fewer budgets and it pays more.


Freelance software designers and developers can also earn a handsome amount as foreign currency reserves for Pakistan by providing online services world wide.

E-commerce, short for electronic commerce, is conducting business online, including buying and selling products with credit card or digital cash, by transfer of data between different companies using networks, such as the Internet. More precisely e-commerce is the collection of tools and practices involving Internet technologies that allow a company to create maintain and optimize business relations with consumers and other businesses.


However, in general, if we use any type of electronic devices in getting orders and sending catalogues, like telephone, fax or any other such instruments, we are supposed to be applying electronic business techniques. However, the real sense of e-commerce is the business on the internet of which there are different modes, like opening a retail store on internet, where all transactions are done on line, from selection of product to payment of bills.

warming up to global e-commerce in Pakistan, we must understand that almost 78 per cent of the e-commerce activity takes place in the USA, obviously driven by the use of internet in that country. As the January 2000, over 110 million people have internet access there compared to 279 million the world over.


The amount of internet users are speeding up day by day all over the world and same is the trend with Pakistan. In 1995, the number of internet users in the world was almost 16 Millions but now in 2010 it fly high to almost 1600 Million. This shows that the internet usage is increasing with the passing minute and this will grow more rapidly. In 1995, almost .01% of Pakistan population use internet but in 2010 this rate goes high and now it's almost 15.1% of the total population.


The people in Pakistan are slowly getting aware of the fact that business on the internet is less costly and are more beneficial.


Nevertheless, Pakistan can make good use of this opportunity with proper planning and execution. To begin with, let us focus on the domestic front before going all out for the global market.

Domestic activity


Offer for improving and productivity to bring it to the excellent level. It also allows our entrepreneur to test their web business and marketing skills before taking on the international markets. E-commerce is not for all but for those who understand it. Yet, e-commerce is not a technology.


The issue at the individual level, it is purely a business matter. At the govt. level, it is a matter of providing infrastructure for transactions on internet. E-commerce or business through internet is becoming very popular mode of trading around the world particularly in the developed world. E-commerce is a broad term used to quantify the trading taking place on the internet.


Most studies, however, suggest that e-commerce runs through four steps. The very first step is, to build a website to let the world know about your existence. The website contains information about the company, product/services and other related information, which can help visitors to learn more about the hosts. The second step involves asking customers to lose their pockets and buy on line.


This step requires adopting advance level of software capable of handling orders. In the third stage inventory, management adds to the system and lastly, providing provisions of payments through online banking partnership between buyers and sellers, the most difficult and complex part of e-commerce.


The most common and popular forms of e-commerce are business-to-consumers (B2C) and business-to-business (B2B). Business-to-government (B2G) and government-to-citizens (G2C) are other forms, running on the internet but with low steam. However, the use of former two still dominates the internet.


However, Pakistan is still far behind in chasing the west in this regard. Entrepreneurs in Pakistan are of the opinion that e- commerce means being able to make and receive payments through internet and any other activity through internet is not considered as e-commerce. This low level of understanding has led many Pakistani firms to give low priority to e-commerce due to unavailability of proper framework for the internet in the country.


Some activities that are being performed by the Government of Pakistan are:


Foreign Investment


Foreign investors are allowed to invest up to 100% in software companies, and foreign interest in Pakistan's technology sector has been increasing. Local entrepreneurs have set up around 100 call centers in recent years in Pakistan; one of the first was a call-centre that Align Technologies (US) set up in 2000.


Intellectual Property


According to an August 2006 report from the government, the Electronic Data Protection Act 2005, the revised Electronic Crimes Act 2004 and a law relating to electronic payments had been drafted and were ready for legislation, although there is no schedule to present them. The Electronic Data Protection Act would provide protection and safety to foreign data regarding the processing of such data in Pakistan; details for the other two acts were not yet available by August 2006.


Consumer Protection


The president passed the Electronic Transactions and Governance Ordinance 2002 in September 2002. It extends the coverage of laws concerned with physical contracts or documents to their electronic forms.


Basis of Tax


No rules have been established on how to tax e-commerce or determine "electronic residence" in Pakistan.


just idea use it in your own word n precise it

idea Solution 1 :

The benefits of Ecommerce in Pakistan:

  • Ecommerce allows people to carry out businesses without the barriers of time or distance. One can log on to the Internet at any point of time, be it day or night and purchase or sell anything one desires at a single click of the mouse.
  • The direct cost-of-sale for an order taken from a web site is lower than through traditional means (retail, paper based), as there is no human interaction during the on-line electronic purchase order process. Also, electronic selling virtually eliminates processing errors, as well as being faster and more convenient for the visitor.
  • Ecommerce is ideal for niche products. Customers for such products are usually few. But in the vast market place i.e. the Internet, even niche products could generate viable volumes.
  • Another important benefit of Ecommerce is that it is the cheapest means of doing business.
  • The day-to-day pressures of the marketplace have played their part in reducing the opportunities for companies to invest in improving their competitive position. A mature market, increased competitions have all reduced the amount of money available to invest. If the selling price cannot be increased and the manufactured cost cannot be decreased then the difference can be in the way the business is carried out. Ecommerce has provided the solution by decimating the costs, which are incurred.
  • From the buyer’s perspective also ecommerce offers a lot of tangible advantages.
    1. Reduction in buyer’s sorting out time.
    2. Better buyer descisions
    3. Less time is spent in resolving invoice and order discrepancies.
    4. Increased opportunities for buying alternative products.
  • The strategic benefit of making a business ‘ecommerce enabled’, is that it helps reduce the delivery time, labour cost and the cost incurred in the following areas:
    1. Document preparation
    2. Error detection and correction
    3. Reconciliation
    4. Mail preparation
    5. Telephone calling
    6. Credit card machines
    7. Data entry
    8. Overtime
    9. Supervision expenses
  • Operational benefits of e commerce include reducing both the time and personnel required to complete business processes, and reducing strain on other resources. It’s because of all these advantages that one can harness the power of ecommerce and convert a business to ebusiness by using powerful turnkey ecommerce solutions made available by ebusiness solution providers.


need relevent answer :( 

proper idea solution please 


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