Effects of e-commerce on business profit ability in the Communication sector in Kenya: A case of selected companies in Nairobi County
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Date
2013-08-27
Authors
Mutuku, Morrisson 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 e.g. web pages where ordering is carried out online. 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 network and also laying of sea cables to make internet
charges competitive and affordable to both businesses and consumers.