Status, Potential and Constraints in E-Business application in Bangladesh

Group Members Name :

Rubina Nazneen RothiID NO.11.01.02.013

Abdulla Al MahmudID NO.11.01.02.046

MD. Sifullah IslamID NO.11.01.02.009

Avijit KunduID NO.11.01.02.007

Mostafizur RahmanID NO.11.01.02.037

E-BUSINESS

STATUS POTENTIAL AND

CONSTRAINS OF E-

BUSINESS IN

BANGLADESH

E-BUSINESS

WHAT IS E-COMMERCE ??

E-BUSINESS

TYPES OF E-COMMERCE

1. B2B E-COMMERCE

+ =

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TYPES OF E-COMMERCE

1. B2C E-COMMERCE

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TYPES OF E-COMMERCE

1. C2C E-COMMERCE

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TYPES OF E-COMMERCE

1. B2G E-COMMERCE

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SOME OPERATING SECTORS OF

E-COMMERCE IN BANGLADESH

1. PAY BILL

2. HOTEL BOOKING

3. ONLINE SHOPPING

4. RMG SECTOR

5. ONLINE BANKING

6. EDUCATION

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PROCESS

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SOME E-COMMERCE WEBSITES OF

BANGLADESH:

1. Akhoni.com

2. Bikroy.com

3. Ekhanei.com

4. Cellbazar.com

5. E.t.c

STATUS OF E-COMMERCE IN

BANGLADESH

Emergence of E-Commerce in Bangladesh: with the increasing diffusion

of ICTs, more specifically the internet, the global business community is

rapidly moving towards Business-to-Business (B2B) e-commerce. The

buyers or importers gain a clear advantage when the Internet gives them

access to the global market, by which they can compare prices across

regions, find out whether prices vary by order fragmentation, get awareness

about alternative products. Consequently, the sellers or exporters make sure

that they are well portrayed in the cyber world through websites and

portals. Like buyers, sellers also benefit from increased and more efficient

access to the global market through the internet.

E-BUSINESS

E-BUSINESSThese positive indicators are favoring the

prospects of e-commerce in Bangladesh.

RMG Sector

Banking on the Web (Online Banking)

Online Shopping

Online cards, gifts

ADVANTAGES OF E-COMMERCE IN THE

PERSPECTIVE OF BANGLADESH

Expansion of the era of Business.

Reducing of unemployment problems.

Reducing of communication difficulties.

Access to the international market.

Competition against exporting in other countries.

Business in round the clock.

Helps to enhance the knowledge about business.etc.

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SWOT ANALYSIS OF E-COMMERCE

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Potentialities of E-commerce in Bangladesh

• Internet services are presently

available in Bangladesh. Its usage for

e-commerce by the Bangladeshi

producers to export as well as to

imports activities from abroad.

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• Increasing Number of MobileSubscribersThe telecommunication infrastructure any countryaffect the Internet services directly, cause it islargely depended on it and now a days more peopleare close to using e-commerce or participate in e-commerce activities.

• Increased number of Internet users

The number of internet users is increasing inBangladesh. In 2000, the number of internet userswas close to 30000, which is now (as of 2010) closeto 995,560.

E-BUSINESSTHREE DIMENSIONS OF E-COMMERCE

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Business-to-Consumer (B2C) Scenarios

• Business-to-Consumer (B2C) e-commerce is

unlikely to be of much use in the foreseeable

future in Bangladesh.

• Non-availability of international credit cards,

foreign currency remittance restrictions and

informal payments at customs clearance will

discourage B2C in Bangladesh.

E-BUSINESSBusiness-to-Business (B2B) Scenarios

• Business to Business (B2B) scenario prevails in

Bangladesh to a very limited extent. The B2B

scenario exists mostly in the export sector, especially

in the Ready Made Garments (RMG) industry.

• E-commerce through the Internet is an effective

business tool for the RMG exporters. The Internet

would enable them to seek information about

potential buyers as well as raw material suppliers.

• The effective use of e-commerce both for placing

orders, purchasing raw materials and for quick and

efficient payment for any organization to enhance its

ability.

E-BUSINESS

Business-to-Government (B2G) Scenarios

• The government is a major buyer of goodsand services from the private sector byinviting tenders.

• Bangladesh Telegraph and Telephone Board(BTTB) initiated publishing those tendernotices of selected projects in its website.

• It reducing the extra administrative burden ofBTTB, it also enabled BTTB to close thosebids within a reasonable timeframe.

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Constraints in

Implanting

E-commerce in

Bangladesh.

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Lack of Education :

Large Number Of people are illiterate

Don’t know how to use internet

Also don’t understand effectiveness of

e-commerce.

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Fragile Economy :

Fragile Economy status in our country

When we convert traditional commerce

into e-commerce transformational

requirement which are subject to

investment

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Power Shortage :

Power Problem is one of the burning problem

in our country.

Without power facility we can access internet

In Bangladesh large position of rural areas

are far away from the electricity.

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Unavailable Internet Facility

Lack of internet facility is major barrier in

implementing e-commerce.

Cost of internet packages is high.

Wi-Fi facility is not available in many

organization or areas.

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Lack of Standardized Bengali software:

For this problem the conveyed information is not understanding to all

people

Somehow it seems meaningless to that people who have not better

knowledge about English.

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Discontinuous Human Resource Support :

We have enough talented people in our

country but the scope of showing that talent

is limited.

Most of organization like to serve in

traditional way that’s why scope is limited

for showing talent.

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Major Constraints to E-Commerce:

There are various constraints to commerce and trade in general

and e-commerce in particular:

• Too few telephone connections

• Absence of a strong independent regulatory body for the telecommunication sector

• Absence of encryption law that precludes acceptance of digital signature.

• Strong dependence on Letter of Credit (L/C) to conduct international transactions.

• Non-issuance of international credit cards for cross border transactions.

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• Interest rate ceiling on export loans.

• High price of computer and hardware

• Lack of technically efficient personnel

• Lack of investment in hardware and software.

• Online banking connectivity is poor.

• Absence of sufficient cyber law

• Very slow & expensive Internet services.

• Lack of initiatives in taking e-commerce.

• Bureaucratic complexities

• Lack of awareness at government level of e-commerce issues

Major Constraints

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Recommendation:

To make ecommerce successful in our country we need the help of all aspect of people as well as govt. and business industry to cope up or overcome the following limitations

• Access to computer of household should be increased.

• User of software should be more simple for the easier use.The cost of using internet should be affordable to general people

• Its use should be made as easy as TV and newspaper so that it require unsophisticated skill.

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