Swot Analysis Of Ecommerce Industry

pien

Introduction

The Electronic Commerce, or e-commerce industry, is one of the most conductive sectors of the economy. E- Commerce is an interesting combination of business models and new information technologies as it deals with the buying and selling of goods and services over the Internet. The three major electronic commerce categories are: business –to- consumers (B2C) e-commerce, business-to-business (B2B) e-commerce and consumer-to-consumer (C2C) e-commerce. In this research paper, I will execute a SWOT analysis for the E-commerce Industry and provide an opinion of the future outlook. The analysis of three companies and their performances will also be included.

Industry

The e-commerce industry is one of most profitable segments in the US economy as well as global economy. E- Commerce Industry Report underlines that all companies which are included in the statement have remarkable revenue growth. While the global economy continues to improve, many consumers in North America and Europe continue to invest heavily in the market and in the IT technology. The data protection and security are significant factors for investors and consumers. Moreover, e- commerce is an example of an industry that grows by acquisitions which provide a greater opportunity to penetrate new geographic platforms.

Solera Holdings, Inc., and Open Text Corporation have been recognized on the market for their performance and high business development. According to US Census Bureau “total e-commerce sales for 2013 were estimated at $263.3 billion, an increase of 16.9 percent (±4.9%) from 2012. Total retail sales in 2013 increased 4.2 (±1.6%) percent from 2012. E-commerce sales in 2013 accounted for 5.8 percent of total sales.” In other words, total sal...

... middle of paper ...

...unning the supply chain more efficiently.

Furthermore, Solera Holdings, Inc., has emphasized that it obtained 100 percent of Autosoft S.r.l, an Italian division that affords “workflow, damage assessment and claims management for insurance companies” and auto repair firms in Italy.

“With over 37 million vehicles, Italy has the second largest car parc in the European Union. Strengthening our footprint and platform coverage in the Italian market is a key objective of our strategy for the region”, said Tony Aquila, Solera's founder, Chairman and Chief Executive Officer. Aquila underlines that Solera Holdings, Inc., has been running its services in the Italian market for the last three years and he believes that right now is the perfect time to increase investments. He attests that this acquisition has been a successful decision to improve investments in the country.