Question

In: Accounting

Write a short report of a company that is not in real life (an imaginary company)...

Write a short report of a company that is not in real life (an imaginary company)

Description: The company is special in e-commerce it focuses on selling computer parts    

1- Major demographic, economic, social and cultural Factors about the company

2- Major Players

3- Nature of the Industry

4- Trends in the Industry

5- Government Regulation

Solutions

Expert Solution

Answer

  • Demographic Factor: Demographic denotes characteristics of population in an area, disrtrict, country or in world. Some of the demographic factors have great impact on the business. Factors such as general age profile, sex ratio, income, growth rate affect the business with different magnitude .
  • Economic Factor: Economic environment determines the strength and size of the market. The purchasing power in an economy depends on current income, prices, savings, circulation of money, debt and credit availability. Income distribution pattern determines the marketing possibilities. The important point to consider is to find out the effect of economic prospect and inflation on the operation of the firms.
  • Socio-Cultural: Social concern, such as the role of business in society, environmental pollution, corruption,use of mass media and consumerism. Social attitude and values, such as expectation of society from business, social customs, beliefs, rituals and practices, changing lifestyle patterns and materialism. Also it includes family structure and changes in it, role of women in society, position of children and education level/awareness.

2- Major Players: Currently many of e commerce companies running all over the world, some of them are Amazon, Jingdong, Alibaba group holding ltd, eBay inc. , Rakuten Inc, Zalando, Flipcart, Gropon etc. The direct sale model is the most commonly revenue earning model adopted by the e-commerce companies.

3. Nature of Industry: E-commerce means buying and selling of goods, products or services over the internet. E-commerce is also known as electronic commerce or internet commerce. These service provide online over the internet network. Transaction of money, funds and data are also considered as E-commerce.There is no physical market places and the entire process of marketing and selling of goods, takes place on line or electronically.

4.Trends in the industry: Trends are grouping of similar or related events that tend to move in a given direction, increasing or decreasing in strength of frequency of observation. Trends in e commerce industry emerges from various things. How customer shop. What they buy and how they respond to marketing tactics.

5. Government Regulation: The information and regulation act, 2000 is the law that regulates the electronic commerce system. The main aim of this law is to regulate the new technology, innovation and their application, and this law is also implementing the new technological and scientific applications for the right to education.


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