ESTHER W. MAINA D61/70649/2008 MANAGEMENT INFORMATION SYSTEMS SEMINAR CASE STUDY CRITICAL SUCCESS FACTORS FOR E-COMMERCE IN THAILAND: CULTURAL AND INFRASTRUCTURAL INFLUENCES

INTRODUCTION  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 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.INTRODUCTION

 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.INTRODUCTION

LITELATURE 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

METHODS  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.

METHODS  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.

METHODS Limitations 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

RESULTS  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

DISCUSSION E-commerce development in 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.

DISCUSSION CSFs for e-commerce in developed countries  Various developed countries were survey for this case study.  Each country identified different, varying CSFs for e-commerce success in its respective country

DISCUSSION Analysis 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.

OVERVIEW  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