ESTHER W. MAINAESTHER W. MAINAD61/70649/2008D61/70649/2008

MANAGEMENT INFORMATION SYSTEMS MANAGEMENT INFORMATION SYSTEMS SEMINARSEMINAR

CASE STUDYCASE STUDY

CRITICAL SUCCESS FACTORS FOR E-

COMMERCE IN THAILAND:

CULTURAL AND INFRASTRUCTURAL

INFLUENCES

INTRODUCTIONINTRODUCTION Purpose of the case study• To identify and explore Critical Success

Factors (CSF) for electronic commerce in Thailand• To explain major influences behind these

factors. The phenomenal growth of the

internet since the mid 1990s has fundamentally changed the global economy.

Developing economies have adopted e-commerce to boost their economies and competitiveness to a new level.

There has been a 69% growth rate for the 5years following 2002. Despite this growth rate, it has been identified there are a number if failed e-commerce ventures in developing countries.

Martison (2002) identifies copying e-commerce business models from developed countries as one possible explanations why e-commerce ventures failed in developing countries.

INTRODUCTIONINTRODUCTION

Critical Success Factors have been identified to provide guidelines to develop e-commerce businesses with similar business and e-commerce related infrastructure and cultural influences.

The title and purpose of the case study is exploratory and explanatory research.• There have been few or no earlier studies to

which references can be made for information. The aim is to look for patterns, ideas or hypotheses rather than testing or confirming a hypothesis. There is also research of these issues in more depth, through interviews, to provide a deeper understanding.

INTRODUCTIONINTRODUCTION

LITELATURE AND THEORYLITELATURE AND THEORY The case study was well researched

as presented by the various literature referenced in this case study.

National and Regional literature• E-commerce and Development Report,

2002• Thailand Internet User Profile, 2004

survey

METHODSMETHODS Various methods were used during

research of this case study. Nine e-commerce companies from

different industries in Thailand were studied.

An expert panel was studies at least 2 successful e-commerce companies were used for this study.

In-depth interviews and open-ended questions were used to investigate factors interviewees believed were critical to the success of e-commerce.

METHODSMETHODS Only 2 successful companies were

selected per quadrant. It should have included more companies which are diverse and fall in the same quadrant.

Two methods of conducting the survey were used. Other methods like questioners should have been used.

Business to Business (B2B) and Business to Customer (B2C) e-commerce were used in this study.

Criteria for selecting above depended on whether its main e-commerce revenue source came from consumers or business clients.

METHODSMETHODSLimitations• Limited number of successful e-

commerce companies in different industries• Different types of e-commerce models• 2X2 matrix dimensions were

considered too broad• The subject companies may not

perfectly represent the total e-commerce population.• Some CSFs in some matrix were

ignored as they don’t fit the specific quadrant

RESULTSRESULTS Page 7: Table: Critical Success Factors

for e-commerce: Its well labeled but it should state it continues on to Page 8

Page 9: The figure is not clearly labeled Page 10: The topic 6 is not labeled. Page 14: Table 3: CSFs for e-commerce

in Thailand vs CSFs for e-commerce in developed countries is not well aligned.

Page 15: Figure 2: The figure is not clear.

Page 16, 17,19: Table 4,5,6

DISCUSSIONDISCUSSIONE-commerce development in E-commerce development in Thailand Thailand

Was identified as difficult due to shortage of IT infrastructure, lack of confidence in electronic legal framework and payment system, high internet costs poor service, limited choices

Reasons identified preventing Thai users from making online purchase• Lack of trust• Processes too complicated• Viruses• Slow internet speeds e.t.c.

DISCUSSIONDISCUSSIONCSFs for e-commerce in CSFs for e-commerce in developed countriesdeveloped countries

Various developed countries were survey for this case study.

Each country identified different, varying CSFs for e-commerce success in its respective country

DISCUSSIONDISCUSSIONAnalysis of the findingsAnalysis of the findings

Challenges identified for Thailand• How to convince Thai customers to

shop/use online services• Focus more efforts on factors related

to customers• Convenience• Trust

• Table 4 and 5 highlights the main reasons against internet purchases and perceived problems concerning internet in Thailand.

OVERVIEWOVERVIEW Nine CSF related to e-commerce

were identified and examined• Convenience of the website• Quality of internet connection• IT capability• Large Product selection• Online security and privacy• Brand name recognition and

reputation• Customer support and relationship• Delivery• Industry Key Success Factors