1.0 2017). This diagram below shows the

1.0  
Introduction:

Over
the previous 12 years, the new technology that known as the Internet has transformed
the way that we use to buy and sell goods and services. E-commerce means
the buying or selling of goods and services over the Internet. E-commerce in Southeast
Asia is getting higher day by day. Southeast Asia have been growing strongly
and successfully in online shopping, they still account for less than 4
percent of overall retail purchases in the region. (Roos, 2017). This diagram below
shows the amazing jump of the ecommerce in the area.   

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Jonathan Camh, (2017)

Online
shopping has become very popular in the last few years with the advent of
numerous online shopping portals in Cambodia. There are significant problems
associated with physical retail stores such as the almost never-ending traffic
congestions on roads and people thronging super markets to get their monthly
shopping done due to the emergence of E-commerce in the last years.

 

 

 

 

2.0 PEST
Analysis:

PEST study that describes a context of macro-environmental aspects
used in the environmental scanning element of planned management.

1-politic aspect

A-New government
policy:

The
main objective of the new policy is to connect the public administration in
order to provide efficient public services to the citizen in the country.
Furthermore, government believe that the new rules and policies will create new
business environment called cyberspace policy.

Cambodia’s
E-commerce theory is on the edge of getting to be an effective. As of late Cambodian
service of trade declared that those 90 articles in length demonstration is, no
doubt finalized also if a chance to be demonstrated to parliamentary Audit
Throughout future. Fact on E-commerce regulations in the locale were set Toward
the e-ASEAN skeleton assertion starting with 2000 done which the part nations
vowed to authorize measures managing E-commerce, also urged Eventually Tom’s
perusing Cambodian participation clinched alongside WTO Previously, 2004.
Still, to 2016 Cambodia stays the most recent ASEAN nation not on need
sanctioned E-commerce theory. (Schmitt & Orlov, 2016)

B-Politic stability:

Thanks
to the domestic political stability, Cambodia has been achieving economic and
social development and that leading to increase the E-commerce potential at the
country, boasting an average growth rate of 7.7% over the last two
decades,” Hun Sen said at the event, which was organized by the “Japan
External Trade Organization and the Japan Cambodia Association”. Some 250
business leaders and investors attended. Steven Path, chair of the ICT association
Cambodia, supposed that those E-commerce activities might incredibly profit
Cambodia toward advertising entry will a totally system for E-commerce shareholders
and Givers for example, Chinese E-commerce titan Alibaba. He likewise restated
the Dire necessity to the administration will affirm the E-commerce regulation in
this way that significant global group of actors might start will take a gander
at Cambodia Furthermore help create the segment. (Gaudemar, 2017)

 

 

2-Economic aspect:

A-Inflation rate:

The rate of inflation in Cambodia was standard at 3.5 percentage in
2015. It be in the region of 5.3 percent from 2002 to 2015, in May of 2008 as a
small, exposed economy, Cambodia is mainly complex to price developments in the
world economy. Due to its total dependence on outside-supplied energy bases, those
climb in the worldwide oil cost in the past quite a while Also not long from
now might have been Hosting a sway on Cambodian inflation rate. Surging
worldwide nourishment costs needed likewise driven nearby costs will rise,
pushing Cambodia’s inflation rate to a top for 25 percent, and record low from
claiming as -0. 7 percent on 2009. (Cole, 2017)

(Tranding
Economics, 2017)

low
inflation affects the demand for E-commerce goods or services since it increases
the consumers capacity to afford product. … low Inflation rate also reduce
the expenses of your inputs, such as electricity, Internet, online advertising
and computer maintenance. Based on number of the inflation rate in Cambodia
there potential to expend e commerce in the near future.

 

 

 

 B- GDP rate:

GDP
rate is used to trials of general income and output for a given country’s
economy. The gross domestic product is equal to the overall expenditures for
all last goods and services produced inside the country in a specified period. The
rate of the it in Cambodia was valued 18.05 billion US dollars in 2015. The GDP
worth of Cambodia characterizes as 0.03 percentage of the whole world economy.
GDP rate in Cambodia about 4.93 USD Billion from 1960 till 2015, accomplishment
an all-time high of 18.05 USD billion in 2015 and a record low-slung of 0.51
USD billion in 1972. (Tranding Economics, 2017)

(Tranding
Economics, 2017)

GDP
rate dictate the availability and affordability of production. Furthermore,
when the rate of gross domestic product(GDP) is high this mean the people can
buy more due the high stranded of living and that, will increase the chances of
expending the potential of having good e commerce in the country. 

 

 

 

 

3-Social aspect:

A-Consumer
behavior:

While 32.5% of the Cambodians using internet, only 8% of them using
internet to shop – Ahead standard for Ghana, Egypt, Furthermore Myanmar (whose web is
essentially worse), as stated by Kantar TNS’s joined life report card. It
intends Cambodians likewise miss out looking into a significant number
arrangements similar to “Singles’ Day,” November 11, a shopping “holiday”. Started by Chinese E-commerce giant Alibaba that is now the biggest
shopping day in the world. the brands still have a lot of work to make inroads
with Cambodian shoppers. (Kemp, 2012)

Nowadays,
Cambodians are spending more time interacting with varieties of brands on
social media too, with technology brands present 3 of the top 5 most ‘Liked’
Facebook pages in the country. Portion of this growth has been fueled by a
surge in the number of internet providers, along with a 33% jump in the number
of internet cafés in just the past few months. However, the growth in the
number of card users for online shop is very convincing. According to this
article, the total number of people using cards has grown by around 25% over
the period from 2008 to 2015. (Reansey, 2017)

4-Technological aspect:

A-Internet and
smartphone use 

Telecommunications Regulator of
Cambodia state that the number of internet users has touched 5 million, about
one third of the Cambodia population in 2014. In April, Cambodian Minister of
Posts and Telecommunication Prak Sokhonn said that he” expects to range 9.5
million people by 2020″. The minister had also said phones operators had sold
20.45 million SIM cards by the end of last year. Mr. Tech said that smartphones
are Cambodians’ major way of opening internet. “however, many businesses firms previously
used websites, they are now changing on their websites to be compatible with portable
phones,”. (Kossov, Un Raksmey and Igor, 2015)

(Khmer Times, 2014)

Cambodia’s
internet speed of 5.9Mbps is higher than more than half of the ASEAN member
nations. Amongst ASEAN, Singapore recorded the fastest speed at 66.6Mbps,

followed
by Thailand at 18.9 Mbps, Vietnam at 14.2Mbps and then Cambodia. The examination
was directed by Ookla – a international broadband stimulating web-based network
diagnostic requests company that identify the download, upload and line quality
of broadband connections.  (Khmer Times,
2014)

based
on this numbers of internet speed in Cambodia this is a clear prove that will
be a lot of online transection in the future. This will lead to increase the
potential of expending the E-commerce in the country few years later.

B-Poor logistics

Poor
logistics in Cambodia still a large barrier for E-commerce, including issues
related “to last mile” deliveries, which make it hard for logistics players to
deliver directly to individual homes other tests incorporate an Insufficient
what’s more obsolete national postal framework absence of a systemised address
system, including costs also period will be delivering products, the report
said. “It takes weeks for a thing on arrive from abroad What is more without an
electronic system, beneficiaries frequently must find their one bundle at
those post office by nation of inception done transcribed notebooks,” it
noted. “Finding a deliver Also ‘last mile’ conveyance about bought goods,
available critical mitochondrion and tests – particularly for littler
vendors.80% of Cambodians still live in rural areas with limited technological
infrastructure. (Gaudemar, 2017)

Conclusion:

All in all, the potential of online
shopping in Cambodia is very bright based on many factors. According to my
research, several factors have contributed to the evolution and rapid growth of
E-commerce in Cambodia, the biggest including rising internet penetration rate
and the prevalence of cheaper and seamless internet connectivity options. With
the internet becoming more and more widespread, mobile phones have come to
assume the status of necessities. Furthermore, due to the stable politic
environment in Cambodia there will bright potential of E-commerce in the
country few years later. In addition, the growth of the economic rate in the
country will push the possibility of expending the potential of E-commerce in
the future.

 Recommendation:

There some issues have been
highlighted by researchers such as, the poor logistic in Cambodia and it need
to improve and fix it to optimize the potential of expending E-commerce in the
country. For example, the issues that is related to poor logistic which is
related “to last mile” deliveries, which make it hard for logistics players to
deliver directly to individual homes. This can be improved by changing the
unintuitive numbering system of house, apartment, building, and road. Secondly,
the country must adopt novel and distinctive ways of marketing themselves so
that they are able to break through the clutter of online ventures and marketplaces
and create an indelible impact.  

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