Determinants for Profitability of E- Commerce Operations of Companies in the Communication Sector in Nairobi County, Kenya
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Date
2015-03
Authors
Mutuku, Morrison Kaunda
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Abstract
Selling and buying through electronic media is one of the fastest growing methods of trading
worldwide. Organizations are engaging in Business to business (B2B) trading where companies
trade and exchange information using the World Wide Web. Organizations and consumers are
transacting through Business to consumer (B2C) or Consumer to Consumer (C2C) where
companies deal directly with customers through electronic media. This study sought to determine
the effect of e-commerce on business profitability in the communication sector. The population of
the study was 218 firms as listed by CCK. The data was gathered using a questionnaire and this
analyzed using a combination of descriptive, inferential and relational statistics. The findings of the
study indicate that e-commerce leads to an increase in turnover and customers which ultimately
leads to an increase in profitability. Further the studies pointed out that focus on having an online
presence, online lead generation and online sales led to increased business profitability. This
information is useful to both the Government and businesses keen on adopting e-commerce. The
study further recommends faster adoption of 4G networks and also laying of sea cables to make
internet charges competitive and affordable to both businesses and consumers.
Description
Journal article
Keywords
Competitive Advantage, Online Sales, Consumer to Consumer, Business to Consumer, Business to Business, Communication Sector, Profitability, E-Commerce
Citation
International Journal of Education and Research Vol. 3 No. 3 March 2015