3. INFORMATION SYSTEM
Analysing the buying
behaviour and adding
personal touch.
BUSINESS CHALLENGES
1.Reductions Of Cost
and Duplication Of
Products.
2.Paytm’s challenge is
to compete with the
companies like
vodafone mpesa,
amazon, snapdeal.
BUSINESS SOLUTION
1. Paytm should have
it's checking
department for
inspection.
MANAGEMENT
Revised Business
Strategies
ORGANIZATION
organization has to set
up it’s own warehouse
or if they can have the
checking deparment at
third party fulfillment
centres.
TECHNOLOGY
Easy to access
application.
4. BUSINESS SOLUTION
Hiring private company for
handling the data of the
customers.
BUSINESS CHALLENGES
Security.
MANAGEMENT
Look up on security
checks.
INFORMATION SYSTEM
Providing maximum
security to the customers.
ORGANIZATION
Working upon customer
satisfaction by solving
their security problems.
TECHNOLOGY
Adding extra security
check points at the time of
access.
7. PAYTM
1. BARGAINING POWER OF SUPPLIERS
The bargaining power of suppliers is also described as the market of inputs. Suppliers are the
manufactures of finished products. For any products there are many suppliers online, so they can’t
show power on online retail companies. For example, if you take computer category, there are as
many suppliers like HP, Apple, Lenevo, etc. everyone wants to sell their products through online
retails like Paytm. Selling online saves a lot of money for the manufacturers, and as many people
now a days prefer purchasing products through online stores, companies cannot afford to lose this
channel. So in this industry the supplier power is low.
2. BARGAINING POWER OF CUSTOMERS
The bargaining power of customers is also described as the market of outputs. Buyers in this
industry are customers who purchase product online. Since this industry is flooded with so many
players, buyers are having lot of option to choose. With many competitor’s like Amazon, Snapdeal,
Flipkart, etc. customers get a wide range of choices. Customers would prefer the one who would
provide goods at reasonable price, deliver it fast and provide them with other benefits like COD,
EMI facilities, other offers, etc. Hence buyers have more power.
8. 3. COMPETITIVE RIVALRY
For most industries the intensity of competitive rivalry is the major determinant of the competitiveness of the
industry. Competition is very high in this industry with so many players like Snapdeal, Amazon, etc. many
competitors means more choices for the customers to choose from. This also increases the cost incurred by the
company to stay in the customers mind i.e. on promotions and advertisements etc. giving the customers better
deals, making customers experience delightful and continuous innovation can help a company to stay at top
even with tons of competitors around.
4. THREAT OF SUBSTITUTE PRODUCTS OR SERVICES
Substitute foe this industry as of now is physical stores. Their threat is very low for the industry because
customers are going for online purchases instead of going to physical stores as it will save time, efforts and
money. With the advent and penetration of internet and smartphones, future in retail belongs to online retail.
When we compare relative quality, relative price of product a person buys online with physical stores, both are
almost same and in some cases, online retail stores offers more discounts and this attracts the customers to
purchase product online.
5. THREAT OF NEW ENTRANTS
Threat of new entrants is very high in this online retail industry because there are very less barriers to entry like
less capital required to start a business, less amount of infrastructure required. Also Indian government helps
allowed 51% FDI in multi-brand online retail and 100% FDI in single brand online retail so this means foreign
companies can come and start their own online retail companies. All you need is to tie up with suppliers or
products and you need to develop a website to display products so that customers can order products, and a
tie up with online payment gateway provider like bill desk.
9. PAYPAL
• 1. BARGAINING POWER OF SUPPLIERS
High levels of competition among suppliers acts to reduce prices to producers and the more diverse
distribution channels become the less bargaining power a single distributor will have. This is a
positive point for PayPal.
2. BARGAINING POWER OF CUSTOMERS
When customers require special customizations, they are less likely to switch to producers who have
difficulty meeting their demands, so buyers customization positively affects paypal. Secondly when
buyers have limited information, they are at a disadvantage in negotiations with sellers. Thirdly
when customers cherish particular products they end up paying more for that one product. And at
last when there are large numbers of customers, no one customer tends to have bargaining
leverage. So all these points acts as a positive strength for paypal.
3. COMPETITIVE RIVALRY
"Paybox As A Strong Competitors has a significant impact, so an analyst should put more weight
into it. "Paybox As A Strong Competitors will have a long-term positive impact on the this entity,
which adds to its value. Fewer firms are competing for the same customers and resources, which is
a positive for PayPal. Large industries allow multiple firms and produces to prosper without having
to steal market share from each other.
10. 4. THREAT OF SUBSTITUTE PRODUCTS OR SERVICES
Substitute has lower performance i.e. lower performance product customer is less likely to switch
from PayPal to another product or service. Substitute product is inferior i.e. customer is less likely to
switch from PayPal to another product or service. A limited number of substitutes mean that
customers cannot easily find other products or services that fulfil their needs.
5. THREAT OF NEW ENTRANTS
Weak distribution networks mean goods are more expensive to move around and some goods don’t
get to the end customer. The expense of building a strong distribution network positively
affects PayPal. Advanced technologies make it difficult for new competitors to enter the market
because they have to develop those technologies before effectively competing. If existing
competitors have the best geographical locations, new competitors will have a competitive
disadvantage. It takes time and money to build a brand. When companies need to spend resources
building a brand, they have fewer resources to compete in the marketplace.
14. Conclusion
Ecommerce is much more than mere selling of goods online, business can save lot of
costs by just managing transactions with their suppliers and buyers.
So by using Information System efficiently firms can achieve following-:
• Operational Excellence
• Customer Satisfaction
• Competitive advantage
• Survive in the market
It also helps to improve decision making and helps to predict the future of the company
when company wants to come up with new product and services.
15. Efficient Data management can also reap lot of benefits to Paytm such as
•Personalization
•Inventory management
•Optimized Pricing
•Provide Customers with A Better Experience
Efficient Data management can also reap lot of benefits to PAYPAL such as
• Helping prevent fraud
• Delivering relevant offers and opportunities
• Optimizing operations and efficiency
Editor's Notes
Paytm
Charging according to the product and demand.
Paypal
Directed towards right bank,money goes into right hands
Tracing the purchase history PayPal is able to present relevant offers from merchants to consumers – such as discounts when using PayPal as payment.
faster, smarter decisions for our customers.