ENT600

CASE STUDY REPORT

“CYBERPRENEURSHIP: ONLINE SHOPPING”

Lecturer’s Name : Adlan Bakri

Programme : EH220

Group : EH2207G

Name ID
Emalyn Damyra Idza Azizul Izham 2016250026
Nur Alia Syafieqa Mohd Yuslan 2016238886
Nur Fatihah Abdul Rahman 2016249808
Nurul Nadiah Mohd Yusof Zaki 2016249794
Contents
1.0 INTRODUCTION ............................................................................................................... 1
2.0 IDENTIFICATION OF MAIN ISSUES PROBLEMS ....................................................... 2
2.1 LATE DELIVERY .............................................................................................................. 2
2.2 SYSTEM IS UNSECURED, NOT PROTECTED .............................................................. 2
2.3 GOODS RECEIVED ARE DAMAGED, BROKEN .......................................................... 3
2.4 LACK OF CONSENSUS REGARDING IDENTIFICATION OF BOTH PARTIES ....... 4
3.0 SWOT ANALYSIS TOOL .................................................................................................. 5
3.1 SWOT Analysis ................................................................................................................... 6
3.1.1 Strength ......................................................................................................................... 6
3.1.2 Weakness ...................................................................................................................... 6
3.1.3 Opportunities................................................................................................................. 6
3.1.4 Threats........................................................................................................................... 6
4.0 CASE STUDY OF LAZADA ............................................................................................. 7
5.0 CONCLUSION .................................................................................................................... 8

List of Table
Table 1: The Characterization of Case Study ............................................................................ 5
1.0 INTRODUCTION
E-commerce is and electronic commerce of buying and selling goods and services on
the internet. Other than buying and selling, many people use internet as a source of an
information to compare prices or look at the latest products on offer before making a purchase
online or at a traditional store. E-business is sometimes used as another term for the same
process. More often, though, it is used to define a broader process of how the internet is
changing the way companies do the business, of the way they relate to their customers and
suppliers and of the way they think about such functions as marketing and logistics. For the
purpose of this study e-commerce is taken to mean doing business electronically.

E-commerce is playing a more important role in the business growth and plan and
operating structure. Today’s business are faced with the challenge of whether to incorporate an
e-commerce strategy into their business model and if so, how they will do it. The retail business
has been greatly affected by e-commerce. Customers now have the choice to purchase goods
online rather than physically going to the store. The internet has allowed consumers to research
products more thoroughly and partake in comparison-shopping more easily. This has resulted
in a more educated and informed customer. With the ability to easily purchase goods online
and a more educated consumer, retail business are directly faced with the competitive nature
of online purchasing.

With the increasing number of retail business implementing e-commerce strategies as

a business model, retail business today are constantly faced with competition and for
identifying techniques to meet or exceed their competition. Achieving customer satisfaction
also has become more important in today’s competitive retail marketplace. To achieve this
goal, business look for strategies to market their products in a better manner or a more unique
way. The revolution of e-commerce gives retail business a new way to sell to customers. Not
only does it give customers another medium for purchasing goods, but also gives the customer
a quicker and easier way. Retail business now recognize the efficiency it can offer its customers
and are looking for procedures to use e-commerce to reach their target market.

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2.0 IDENTIFICATION OF MAIN ISSUES PROBLEMS

2.1 LATE DELIVERY

Shopee is one the leading eCommerce platforms in Southeast Asia. It has a wide
selection of product categories ranging from consumer electronics to home & living, health &
beauty, baby & toys, fashion and fitness equipment. It also has an in-app chat function that
allows buyers to chat with sellers, as well as a rewards section that allows users to redeem
Shopee Coins and exchange them for vouchers (Tay, 2019). The problems frequently faced are
scam sellers, slow in resolving problems, product received is different from the one that is
ordered. Late delivery is among the most being complaint by customer. In the system it is stated
that the item will be received within two days after the purchased being made, however the
item only gets delivered late than the expected date. This troubles the customer as they need to
free their time in order to receive the parcel but when they do, the delivery is late and it does
not get delivered on time.

2.2 SYSTEM IS UNSECURED, NOT PROTECTED

Anything that customer purchases affects environment by means of delivery,
whether they have the product shipped at home or drive to a brick and mortar store
(supermarket). In earlier days people used to go to different shops before purchasing as they
didn’t have a great deal of easy access to information on products. Due to the development of
World Wide Web it has now become easy to access the products available worldwide without
wasting time, money and other resources apart from helping environment. Centre for Energy
and Climate Solutions suggests that we can protect land and save energy by shopping online.

purchase intentions.

The findings of this study confirm the conjecture that risk associated with online
shopping is multifaceted. Moreover, due to the multifaceted nature of risk perceptions
associated with online shopping, the impact of previous online shopping experience differs by
specific type of risk perceived. Although risk perceptions and their impact on online purchase
intentions are rarely examined by product type with only a few exceptions such as Biswas and
Biswas [2004], the findings of this study call for attention to the idea that the impact of risk
perceptions on purchase intentions is not universal across all types of risk or product categories.
Depending on the category of product being purchased online, certain types of risk perceptions
are more salient to shoppers than are other types. This study shows that with increased online
shopping experience, shoppers perceive reduced product, financial, and privacy risks when

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shopping online for non-digital products, providing support for conjecture that previous
purchase experience via a given shopping channel is negatively related to perceived risks
associated with future purchase in that channel. From previous experience, shoppers develop a
knowledge base regarding online retailers’ capability of fulfilling online orders and meeting
shoppers’ expectations for product performance. However, perceived privacy risk is not
affected by online shopping experience for digital products. It may be that shoppers are
required to provide more personal information such as sizes and home addresses for delivery
to complete a transaction when buying apparel products online whereas buying downloadable
MP3 or MP4 files requires less information. Therefore, shoppers’ perception of privacy risk
does not seem to be influenced by previous shopping experience for digital products as for non-
digital products.

2.3 GOODS RECEIVED ARE DAMAGED, BROKEN

Shopee customer complaint service often receives that sometimes when they
were making purchases, and when they are not satisfied with the products, they wanted a
refund. Shopee responded by saying that the purchase is not covered by Shopee warranty and
the refund is not valid. Some even sell counterfeit products to the customer while claiming it
is authentic. When the customer received the goods, they can identify it themselves the
authenticity. When complaint is made, Shopee generally said that it is the customer’s
responsibility to ensure the authenticity of the product they are buying. Moreover, when a
complaint is made, it is not appointed to only a person in managing the complaint until the end.
It always turns to another person after the first time it got through. Then the customer needs to
repeat again all the details, information and complaint to the person in charge which makes it
harder for both parties. Then the problem is not solved in a short amount of time. It requires
several days before it is settled or sometimes the problem just dies down quietly without being
solved. Returning the item if it does not meet the customer’s satisfaction is not convenient.
Sometimes the item received is in a very poor condition where the packaging is torn, broken,
or missing some part of the item. Then returning it is a problem when the customer needs to
pay for the delivery charge to return the item. Unlike other online shopping business, Shopee
should be covering the delivery fee for the customer to return the item as it is their fault the
item was not in a good shape.

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2.4 LACK OF CONSENSUS REGARDING IDENTIFICATION OF BOTH PARTIES
Despite the growing population of online shoppers, fifty-eight percent of Internet users
describe online shopping as a frustrating, confusing, and overwhelming activity. In addition,
high abandonment rate of online transactions continues to be a concern. Past research has found
that a major inhibitor of online shopping is the uncertainty, or perceived risk associated with
online purchasing. The uncertainty associated with online shopping represents not only a
challenge but also an opportunity to online retailers if a better understanding of the relationship
between risk perceptions and online purchase intentions is warranted (Suk,2014).

Shopping has long been regarded as a risky activity as shoppers may be uncertain of a
purchase decision and the consequences of a poor decision. In the online shopping context, the
level of perceived risk may be magnified due to limited physical access to products and sales
personnel, thereby discouraging shoppers from purchasing via the Internet. Yet, there is a lack
of consensus regarding the identification of and relative impact of dimensions of perceived risk
among studies regarding online shopping. Although there are different views regarding the
conceptualization of perceived risk (i.e., two components with subdimensions vs.
unidimensional concept), the present study follows perspective by recognizing multiple
dimensions of perceived risk associated with online shopping. Results of previous studies
demonstrate little consensus with respect to the relative strength of the various types of risk on
purchase intentions. Plus, online purchase intentions are measured in a general sense without
asking participants to respond to the question pertaining to the same online retailer with which
they report their rating on experience and risk perceptions. Typically, retailers’ websites offer
different security features and thus participants may hold varying perceptions and have
different purchase intentions across different shopping websites even within the same product
category. Future studies should examine the effect of experience and risk perceptions on
purchase intention pertaining to consistent operationalization of the context to provide more
generalizable results.

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3.0 SWOT ANALYSIS TOOL
Table 1: The Characterization of Case Study

Lazada Problems faced Shopee Alibaba MULDOON’ Online

s Men’s Shopping
Wear Experience
Impact
Case Study 1 Case Study 2 Case Study 3 Case Study 4
 Late delivery  
System is unsecured,  
not protected
 Good received are   
damaged, broken
Lack of consensus 
regarding
identification of both
parties

Based on Table 1 above, we can clearly see few common problems faced by online
shoppers or also known as cyberpreneurs. From those case studies, common problems reported
were lacking in consensus related to identification issues, late delivery problem, unsecured
system and receiving broken goods and among all these problems, lacking in consensus related
to identification and broken goods recorded the highest count of 3 which a major problem
faced. Online shopping has long been regarded as a risky activity as shoppers may be uncertain
of a purchase decision and the consequences of a poor decision due to limited physical access
to products and sales personnel [Forsythe and Shi 2003; Park and Stoel 2005], thereby
discouraging shoppers from purchasing via the Internet. As for the damaged goods, it is related
to poor improper handling of goods during delivery period. 22% of customer experiences
damaged goods purchased upon received. Furthermore, market research shows that 75 percent
online shoppers report considerable concerns regarding the security of their personal and credit
card information they have to provide in order to complete online transactions [Horrigan 2008].
These imposed a huge challenge to the cyberpreneur in maintaining and sustain their ongoing
business.

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3.1 SWOT Analysis
SWOT Analysis is a useful technique for understanding strengths, weaknesses opportunities
and threats of Lazada company.

3.1.1 Strength
The product range of Lazada is very wide compared to other e-commerce online shopping
website. The range of products: men’s and women’s clothing, groceries, electronics, personal
care, appliances, and more. Customers may even buy prepaid cellphone load from Lazada.
Lazada has over 10 million products versus the latter’s three million active listings.

3.1.2 Weakness
The problems that are reported range from missing order after payment has been made, missing
deliveries, unprocessed refunds as well as non-responsive customer service.

3.1.3 Opportunities
Lazada needs to enhance their security when making through payment. Although it has the
Lazada Payment Protection that “protects and covers you from unauthorized transactions made
using your Lazada Wallet, saved credit/debit cards, and/or saved bank account.” Oddly enough,
Lazada doesn’t specify how this feature actually helps customers.

3.1.4 Threats
Nowadays, there is a lot of online shopping website rising through the competition of being
the most well-known website. For example, Shopee, Zalora, and so many more.

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4.0 CASE STUDY OF LAZADA
Lazada Group was founded in 2011 by Rocket Internet in Singapore with the intention
of establishing "the Amazon.com of Southeast Asia" to take advantage of the nascent online
consumer market and Amazon's weak presence there (Mac, 2014). Rocket is a German
incubator that builds companies that copy the business models of successful US tech companies
(Mac, 2014). Lazada's e-commerce websites soft launched in 2012 in Indonesia, Malaysia, the
Philippines, Thailand and Vietnam (Jon Russell, 2012).

Lazada is one of the big retailers widely known in Asia pacific region. After the
customer purchase, what comes after is the customer service. This is significant as it shows the
loyalty of customer towards the company’s brand name. Customer care service works by
providing the needs of customer when they are facing any difficulties, or problems. The
company have to fulfill all the customer’s needs in order to meet the customer’s expectations
and satisfaction.

The problems faced by Lazada are making mistakes in listing selling price, poor quality
commodities originated from China, late delivery, to products warranty and customer services
after purchasing their products (Pikri, 2017; Yau, 2017). All these difficulties are based on
business value chain approach. These resulting in many serious consequences to the business’
brand and damaging the customer’s feeling. Almost all e-commerce enterprise is competing
with each other to dominance the market position in this market. In the year 2013, Lazada
received lots of cases regarding complaints and the product warranty policies of company
(Pikri, 2017; Yau, 2017). The lack of communication with clients, the unprofessional working
ethics and the time consuming for products guaranteed are the examples of complaints
received.

As shown in the case study findings, it is found that the most of the problems faced by
all the online shopping is scam sellers. Victims which is the purchaser of this scam are often
allured by what seems like a good deal. They transfer payment to the “seller” who promises
delivery of the item. In some cases, sellers claim further payment for duties or delivery charges
after the first payment is made. In order to overcome scam seller or also known as fraud, the
organizations or the company should assign responsibility for fraud incident management to
an appropriate person as a precursor to create an incident management plan.

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5.0 CONCLUSION
To conclude, across the time, online shopping growth eases the society besides other
advantages they have shown. Online shopping can provide a win–win situation for both sellers
and buyers in a number of ways. For example, it can provide an expanded marketplace with
enhanced functionality that improves market experience for both sellers and buyers. Online
stores are not restricted by the physical limitations of store space and can carry more varieties
of products.

Despite all those advantages, online shopping imposed few disadvantages towards both
customer and the seller. Few cases reported against online shopping activities are broken or
damaged goods upon receive, uncertainty towards the seller, unsecured system and late
delivery. The majority problem faced by almost all 4 cases study were late delivery and
damaged goods.

Comparing Lazada’s operation in Malaysia with all four case studies earlier, Lazada
faced a totally different challenges with was scammer’s activities. Instead of damaged goods,
Lazada’s customers received a bad quality of products shipped from China and this caused
customer to lose their trusts towards Lazada. More ethical problems were being related to
Lazada. Therefore, we can clearly see that, different online shopping company faced different
kind of problems. Online shopping that might bring ease and joy towards customer was actually
causing a lot more complex problems compared to retail sales.

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