Question: Laudon & Laudon(2021) state “ e-commerce has become more social, mobile and local” (p.406).

Laudon & Laudon(2021) state “ e-commerce has become more social, mobile and local” (p.406).

Critically assess the validity of this statement in the context of the current e-commerce environment.

Your report should also include a critical assessment of any identified barriers or issues.

Please note:

Your assignment should include the following:

• Analysis of the Statement: Provide an in-depth critique of Laudon & Laudon's assertion. Determine if it resonates with the current state of e-commerce. Investigate whether e-commerce has indeed become more social, mobile, and local. Support your analysis with relevant data and arguments.
• Discussion of Potential Challenges: Identify any potential barriers that might hinder e-commerce from becoming more 'social, mobile, and local.
• Real-world Company Examples: Use examples from actual companies that either support or contradict Laudon & Laudon's assertion. 
• Academic References: Back your analysis with references from relevant academic articles and publications.

DRAFT / STUDY TIPS

Analysis of the Statement:

Laudon & Laudon's assertion that "e-commerce has become more social, mobile, and local" is largely valid in the current e-commerce landscape.

Social: Social commerce has witnessed significant growth, with platforms like Instagram and Facebook integrating shopping features directly into their platforms. Social media influencers have become key players in driving sales through their recommendations and sponsored content. According to a report by eMarketer, social commerce sales in the US alone are projected to reach $80 billion by 2022, highlighting the increasing social aspect of e-commerce.

Mobile: The proliferation of smartphones has transformed e-commerce into a predominantly mobile activity. A study by Statista reveals that mobile commerce accounted for 72.9% of all e-commerce sales globally in 2021. The convenience of shopping on mobile devices, coupled with the rise of mobile payment options like Apple Pay and Google Pay, has contributed to this trend.

Local: The localization of e-commerce is evident through the rise of initiatives like "buy online, pick up in-store" (BOPIS) and same-day delivery services. Retail giants like Walmart and Target have invested heavily in expanding their omnichannel capabilities to cater to local preferences and offer faster delivery options. Additionally, the pandemic accelerated the adoption of hyper-local e-commerce platforms that connect consumers with nearby retailers and service providers.

Discussion of Potential Challenges:

Despite the progress made in making e-commerce more social, mobile, and local, several barriers remain:

Digital Divide: Not everyone has access to high-speed internet or smartphones, limiting their participation in e-commerce activities, especially in rural and underserved areas.

Logistical Challenges: Ensuring timely delivery for local orders can be challenging, particularly in areas with limited infrastructure or high population density. Additionally, managing inventory across multiple local fulfillment centers can be complex and costly for retailers.

Privacy Concerns: The increasing integration of social features into e-commerce platforms raises concerns about data privacy and security. Consumers may be hesitant to share personal information or make purchases through social media channels due to fears of data breaches or misuse.

Real-world Company Examples:

Supporting Laudon & Laudon's Assertion: - Etsy: Etsy's marketplace connects buyers with independent sellers, often offering unique and locally crafted products. The platform fosters a sense of community among buyers and sellers, aligning with the "social" and "local" aspects of e-commerce. - Shopify: Shopify provides e-commerce solutions for businesses of all sizes, empowering merchants to create mobile-friendly online stores. Its integration with social media platforms enables merchants to sell directly through social channels, emphasizing the importance of social and mobile commerce.

Contradicting Laudon & Laudon's Assertion: - Amazon: While Amazon dominates the e-commerce market, its platform prioritizes convenience and selection over social and local elements. The company's focus on efficiency and scale often comes at the expense of personalized and community-oriented shopping experiences. - Alibaba: Alibaba's platforms, like Taobao and Tmall, incorporate social features such as live streaming and community forums to engage users. However, the company's origins in China and its global expansion strategies may not fully align with the localization aspect of e-commerce in other regions.

Academic References:

• Li, X., & Hitt, L. M. (2008). Self-selection and information role of online product reviews. Information Systems Research, 19(4), 456-474.
• Verhoef, P. C., Kannan, P. K., & Inman, J. J. (2015). From multi-channel retailing to omni-channel retailing: Introduction to the special issue on multi-channel retailing. Journal of Retailing, 91(2), 174-181.
• Kim, H. W., Chan, H. C., & Gupta, S. (2007). Value-based adoption of mobile internet: An empirical investigation. Decision Support Systems, 43(1), 111-126.