Effect of e-commerce strategy on satellite options and solutions limited in Kenya

Abstract

Most organizations around the globe now depend on electronic commerce to a very significant degree. Electronic commerce therefore provides new channels for the global marketing of tangible goods and presents opportunities to create new businesses providing information and other knowledge-based intangible products. Although most EC is currently at the inter-corporate and inter-organizational level, services targeted at individual customers are evolving rapidly. The purpose of this study was to establish the effect of e-commerce strategy on Satellite Options and Solutions Limited. The study sought to achieve two objectives: to establish the extent to which the company had adopted e-commerce and to determine the effect of e-commerce on Satellite Options and Solutions Limited. The study adopted a case study research design and data was collected through an interview guide from 10 senior managers of the company. The findings indicate that the company uses electronic procurement to advertise its tenders and to finalize on all the transactions related to their procurement needs. It was also clear from the study that Satellite Options and Solutions Limited uses e-commerce in making electronic payments for any information technology equipment that it purchases. The customers also get to learn about the products of the company through advertisements over the internet and most of the transactions with the customers are mainly electronic . The adoption of e-commerce strategy by Satellite Options and Solutions Limited has had a number of effects on its business operations. The first effect is the enhancement of the market share and customer base; the reduction of costs of doing business as well as an increase in the revenue of the company. The study recommends that it will be important for the company to pursue other avenues of increasing its revenues through e-commerce strategy. The other recommendation is that it will also be prudent for the management to explore more ways through which e-commerce can lead to further reduction in operating costs in order to increase the revenue of the company.