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INFORMATION SYSTEM IN E-COMMERCE A CASE STUDY OF EFIRST

ASIA INDONESIA
SULASTRI

55519110022

MERCU BUANA UNIVERSITY

ABSTRACT
Today, Indonesian people in urban areas has strong engagement to internet. Almost every activities are necessarily involves
the internet and information technology. So, no wonder if the internet now are very demanding to society. This phenomena
also arising the enablement of business that using internet as main platform or known as e-commerce. E-commerce is
defined as the process of purchasing, sales, transfer or exchange products, services or information via computer network
over the internet. With business activity in e-commerce, it can be extending activity and reach consumers more easily. Also
the process of transactions are so far in nature conventional modernized by providing online transaction. This article is
intended to analyze and discuss about the types of business e-commerce in Indonesia based on the phenoimena and
development of the theory underlying information system.

Keywords: E-commerce, management information system, users satisfaction, webqual

INTRODUCTION

The internet or world wide web (www) had dramatically affect conduct business. The market, , industry and
business is change meet the demands of the economy and technology. Information technology (IT) now be used
to encourage business activity and. marketIn an era now, the internet into the mechanism of constant
communication and could help facilitate the development and processing business transactions.This has led to
substantial changes in industry. The internet offers an opportunity to make the sale of products necessities of life
sehari-hari directly to customers who are on the market consumption (consumer market) or buyers in the
industrial market. The sale of goods and services directly (direct selling) through the internet called with the term
“electronic commerce”. The definition of electronic commerce (e-commerce) according to laudon and laudon
(2009 is a process of buying and selling poduct electronically by the consumer and of the company to company
with computer as an intermediary business transactions .E-commerce useful in reducing costs administration and
the time of a cycle of business process , and improve relations with both business partner and the customer
(charles,1998).
According to industry experts, the ID e-commerce industry Indonesians spent US$ 20.3 billion online in
2018, an increase of US$ 3.3 billion – or 20 percent – compared to 2017. That figure is set to rise even higher

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this year, and so now is the best time to get involved in the marketplace. All retailers, regardless of the products
they sell, should aim to make headway online if they haven’t done so already. There are many benefits to
launching an e-commerce site, but the most important one is that brands can sell to customers all over the world.
With that in mind, there are also a lot of common mistakes entrepreneurs make when investing in the strategy.
Hopefully, the seven simple suggestions published below will assist business owners in avoiding the pitfalls and
getting things right first time around.
There are several why company run of a business by using e-commerce facilities :
1. Can reach an audience worldwide
2. Can do for efficient interactive communication
3. Can reach the target certain consumers
4. Easier to change information such as price changes or other information
5. Improve the service to customers because of the availability of access for 24 hours, seven days a week
6. Gain of a feedback immediately of consumers.
7. Distribution is the alternative
8. Provide for the dissemination of information brand efficient

E-commerce transactions in which means paperless innovations such as electronic data exchanging, for
electronic mail, electronic bulletin boards , of the funds transfer electronic and other tissue technology based on
tissue generally applied , e-commerce is strategy leading to the quality improvement of new commercial products
and services and the renovation in the level of service the temporary provision of link the requirements
organization , suppliers , and consumers toward the reduce the money (shaw, 2012). E-commerce business is a
new approach in the field of electronic and use the network and the internet .With this way bottom up process of
sale or exchange products , services and information through computers do communication and tissues including
the internet (turbans et al., 2006).
Currently, we live the world that increasingly is collecting lots of data, processing it and making business
sense out of the data. It is not by accident that it is regarded as the ‘information age’ because of how much we rely
on information (White et. al, 2014). Information has revolutionized the way business is done when used well
companies are able to operate at a lower price, and they are able to stay with a competitive edge over others. For
this reason, information is E-commerce is becoming an increasingly important economic activity.
In the current business world, retailers are faced with a problem of meeting customers’ hopes and optimisms
about the service offered to them and at what price the service comes (Han & Han, 2001). For them to keep the
competitive advantage, they must know about their customers shopping behaviors. They must know what they are
likely to buy, what they like buying, how often they buy and many more traits of people’s shopping traits (Laudon
& Traver, 2004). These businesses also need to know how their competitors are doing, how their supply chain is
handled, how their customers are managed and also about their products.

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For a business that survives online, information is fundamental to its survival. If there is any barricade to this
information, it should be removed as soon as possible. Otherwise the business is on a failing journey (Mansoory
& Mehra, 2010). Nonetheless, possessing the accurate information is as important as for the company to manage
and keep this information successfully. Managing information is a universal business problem as shown by
freeform dynamics research. Because of the many technologies that are evolving today and the widely adopted
use of the Internet, information systems have empowered E-Businesses to thrive greatly. Information Systems are
simply data stores that support demanding applications.
Information Systems have a lot of capabilities; they can receive data, store it and also transmit it across many
platforms. This data can be of text, audio, video and graphical nature. One acknowledges Information Systems as
a set of technologies that are capable of conversion, assembly, recovery, and processing of information. That is to
say, any tool that enables data transmission, processing and communication electronically qualify as an
Information System.
In this article an online company called Efirst Asia will be examined, the analysis in accordance to how the
use of information systems has enabled their growth and stay on top of their market will be seen. The role of a
strategic manager as to make sure the company continues to have a competitive advantage will also be examined.
We will look at the information flow and how it is organized providing an understanding of the use of this
information. Lastly, the factors that affect the company internally and externally.

LITERATURE REVIEW
The following is an explanation on five stages of the process of purchasing decisions according to kotler and
keller ( 2009: 185 ):
1. The introduction of a problem. The purchase process started when the buyers realize a problem or needs
triggered by internal or external stimuli. With internal stimuli, one of the needs of normal someone:
hunger, thirsty and lain-lain could ascend to the maximum degree and be a boost, or of necessity can arise
due to external stimuli.
2. Search information. At this level a person or consumers is just becoming more receptive to information
about a product .In the next degree , a person can possessing information search active: search for reading
materials , call a friend , online activities in defiance of a , and visits stores to study of these products.
3. Alternative evaluation.First, customers would soon needs to satisfy a.Second, consumers seek products
certain benefits of a solution.Third, consumers see each attributes the product as a group ability to
conduct a benefits needed to satisfy this need.Customers would soon pay attention largest in the attribute
of being in benefits that would meet the needs.
4. The purchase decision .In the stage of evaluation , consumers form preference antar-brand in some a
collection of choice .Consumers may also form a view to buy the most favorite brand .In carrying out the

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purchase intent , consumers can form five sub-keputusan: a / brand , channeling , the quantity , time , and
method of payment.
5. Post purchasing behaviour. After purchase, consumers may be in conflict features certain worrying due to
see or hear hal-hal fun about other products and be aware of information that supports his
decision.Marketing communications was supposed to supply the confidence and evaluation that
strengthens consumer choice and help her feel comfortable.

Definition
Electronic commerce (E-commerce) is a powerful concept and process that has fundamentally changed the
current of human life. Electronic commerce is one of the main criteria of revolution of Information Technology
and communication in the field of economy. Thisstyle of trading due to the enormous benefits for humanhas
spread rapidly. Certainly can be claimed that electronic commerce is canceled many of the limitations of
traditional business. For example,form and appearance of traditional business has fundamentally changed. These
changes are basis for any decision in the economy. Existence of virtual markets, passages and stores that have not
occupy anyphysical space, allowing access and circulation in these markets for a moment and anywhere in the
world without leaving home is possible. Select and order goods that are placed in virtual shop windows at
unspecified parts of the world and also are advertising on virtual networks and payment is provided through
electronic services, all of these options have been caused that electronic commerce is considered the miracle of
ourcentury.
Interaction between communication systems, data management systems and security, which because of them
exchange commercial information in relation to the sale products or services, will be available, so the definition,
the main components of electronic commerce are: communication systems, data management systems and
security.
Frameworks
Electronic commerce framework is comprised of three levels that this framework is needed to for
successful electronic commerce.
 Infrastructure
The first part of the framework for electronic commerce is including hardware, software, databases and
communications. It is used in term of World Wide Web on the Internet or other message switching
methods on the Internet or other telecommunication networks.
 Services
The second part of the framework include a wide range of services that provide the ability to find and
present of information and are including the search for trading partners, negotiation and agreements.

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 Products and Structures

This section of the electronic commerce frameworks consist forecasts and direct provision of goods,
services and trade-related information to customers and business partners, cooperation and sharingof
information within and outside the organization and organizing of environment of electronic marketplace
and chain of supply and support.

Advantages & Disadvantages

The invention of new telecommunication networks and modern online devices has resulted in a new business. In
fact,electronic commerce has become one of the most popular activities on the web. Electronic commerce created
many benefits for companies and users however, some disadvantages and serious problems stem from this issue.
Advantages
 Buying 24/7
We can also sell any time, night or day, 365 days a year. Even while we are resting, our users can visit
our web site, search our goods, services, and determine their orders.
 Decrease Transaction Costs
If we buy from online store, we spend low operational cost, we have better quality of service, and we can
cut the many unnecessary costs. For example, if our goods or services downloadable, we will have
transport costs completely cancel.
 Conduct a Business Easily
In electronic commerce, we do not need to physical company setups or there are not any crowds to deal
with. We can buy from our house comfortable; users can easily choose goods from various procedures
without moving around physically.
 Comparison in Prices
Everyone can easily compare fees among the various web sites. We can usually earn discounts on fees
when compared with normal shop fees.

Disadvantages
 Security
Security pursues to be a main problem in electronic commerce. Everyone good or bad can easily open a
web site, and there are many bad sites, which their aim is user’s money.
 Guarantee

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There is no guarantee for product quality. Our orders might bedamage in the post or things may look
different online to what you actually receive for example, slightly different colors and feel of clothes or
the freshness of vegetables and fruits.

 Social Relationships
Electronic commerce allows to users that buying and selling goods and services without geographic
limitations but in this method we have not any contacts and relationships with other persons and loss our
social contacts.
 Impact
Electronic commerce is a new method business that mixes all of the prior methods and transaction styles.
Electronic commerce and electronic business have impact on many districts of business for instance,
economics, marketing, computer science, finance and accounting, production and operation management,
management information system, human source management, business law and ethics.The following are
some of the factors describe:
 Marketing
The raise of information technologies and computer networks has many effects in business especially in
field of marketing. Everyone can make markets work with more efficient and they can improve their
career with information management within a group. In this case, they candecrease cost of operations and
catch new markets and new opportunities for selling and transactions
 Economics
In industry world, managers must encourage and conduct employees to devise plans to take advantages
of new economic opportunities. Electronic commerce is creating new opportunities to the global
economic, for example in global travel and tourism industry. Transforming from traditional business
method to electronic commerce method is hard and there were many different factors for companies to
adapt them with electronic commerce factors. For this work, they must used Internet and many other
online networks, because for grow and use from new economic opportunities in each industry it is
necessary to be match with new technologies.

Finance and Accounting

Two decades of progress in information technology and development of its applications in the field of
economic and social to form a new chapter of relations between people, institutions, companies and governments
and new concepts are emerging on literature of economic and trade. Internet as a global network, as well as
prerequisite of electronic commerce, for reason flexibility, attractive, ease for use, low cost access and ubiquity,

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is changing the traditional business moreover, electronic commerce had a significant impact on finance and
accounting that include saving time, disinflation, increase productivity, reduce the demand for money (reduce the
cost of publishing) and etc

Production and operation management

The outcomes of manager’s work, by ontime product qualify productions and with the least cost is
determined. For this purpose, first requirement is correct information. Electronic commerce is the best way to
have the most accurate and correct information for managers because, consumers transmit their demands to
managers directly.

Limitations
There are some barriers for electronic commerce setup, which include:
 Lack of knowledge and necessary information for use of electronic commerce and Internet network
 Protection of consumer rights in electronic commerce
 Lack of legal infrastructures in electronic commerce such documents that are not acceptable and
electronic signature
 Low security of electronic funds transfer in some countries
 Lower speed and limitations on the use of Internet
 Lack ofinformation intermediary institutions and manufacturing companies of the benefits of Internet
business
 The security and confidentiality of information exchanged

Electronic Commerce & Information Technology
Information technology has changed the manner of acts of people, organizations, governments and so
economic, social affairs and even the mentality of people has changed. Education, health, industry,
manufacturing, trade, banking and even of all entertainments services have effected and changes with technology.
Information technology creates new jobs, new industries, change lifestyle and has brought new creativity in all of
the dimensions of our life. Understanding of people together, adapted cultures and decrease of incompatibility are
examples of theseconsequences. From scientific perspective, Information Technology and Genetic Engineering
with aerospace knowledge is one of the leading branches of knowledge and constructor of civilization of human
in the future. Advances in Information Technology have expanded to the point that some experts with phenomena
such as “inventing steam engine” have equated. In economic dimension, “the importance of rapid access to
accurate information” is the key to success in global competition. Electronic commerce is one ofthe important

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branches of Information Technology that has been emerged as the result of development of Information
Technology.

Websites & Electronic Commerce

Websites are effective in acts of business corporations. Websites are gateways to business brands, products
and services of manufacturers. A company that does not care about its websites ultimately will be bankruptcy in
business. The websites that are not adapted are like an old and faded showcase in a traditional business.
Therefore, companies should have a strong background and exact planning in Internet search. For many users,
the site of search (search engine) is the entry point to the Internet. For many changes in the world around us, each
organization or agency should coordinate itself with the changes and enhance its work efficiency. Internet
especially websites can be suitable means to achieve this goal. For instance, web can use up to extend markets by
facilitating the presentation and repartition of existing products in to new business centers. The web can also be a
workmanship that facilitates products development, as companies who their existing customers well create
exciting, new or alternative offering for them.

Types of Electronic Commerce

There are many various classifies of electronic commerce and many different methods to characterize these
clusters. Academics determined a number of frameworks for classifying electronic commerce but each one want
to illustrate it form a unique perspective. The main different classifies of electronic commerce are Business-to-
Business (B2B), Business-to-Consumer (B2C), Consumer-to-Consumer (C2C), Consumer-to-business (C2B) and
Mobile Commerce (M-Commerce).

B2B
Business-to-Business is a type of commerce transaction that exists between businesses or a transaction that
occurs between a company and other company to transfer of services and products. A possible explanation for
this might be that Business-to-Business includes online wholesaling in which businesses sell materials, products
and services to other businesses on the websites.

B2C
Business-to-Consumer refers to transactions between a business and its end consumer and so it create electronic
storefronts that offer information, goods, and services between business and consumers in a retailing transaction
or it is an Internet and electronic commerce model that indicates a financial transaction or online sale between a
business and consumer.

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C2B
Consumer-to-Business is the transfer of services, goods or information from persons to business or it is a
business model where end users create products and services that are used by business and institutions.

C2C
Consumer-to-Consumer is an electronic Internet facilitated medium, which involves transactions among users
and it is a business model which two consumers deal business with each other directly.

RESEARCH METHODS
To measure the performance of the the information system to e-commerce , there are several methods can be
used, among others the theory the quality of website quality (website quality- WebQual ), the theory of
technology (Theory Acceptance Model) integrated model and the receipt and use of technology (unified teory of
acceptance and use of technology - UTAUT). In this research, used observatik descriptive analysis for analysis
findings that is.

FINDINGS AND DISCUSSION

Efirst Asia Indonesia Business Model

A business model is an explanation of business on how it profits and develops in theoretical terms (Curtis &
Cobham, 2008). This is to build customer value and allow them to have a competitive advantage. In the four
categories of E-Commerce, E-First Asia uses two models--Business to Customer (B2C) and Customer to
Customer (C2C). Efirst Asia using these two models has enabled traders to grow their sales and their business
ever larger. This has allowed basic traders to show their products online which has led to the growth of the side
and the number of merchants carrying out a trade on the site. “The site has allowed people to reach great places
they would not have achieved if they were making ordinary trade, for us it is a great thing that we are doing with
ordinary people giving them a longer ‘hand’ in business.” This model also gives customers the autonomy of
shopping from a very wide variety of products and more so compare different prices. These two models used by
Efirst Asia enable them to reduce the cost of business while maximizing profit at the same time. This style of
trade also enables infant businesses to ease their way into the market without a lot of hiccups.

Data Warehouse and Data Marts

One of the main businesses processes in Efirst Asia is a warehouse of data. It is a backing system used by
managers to come to sound business decisions. It comprises of all data like products and their prices, inventory,

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shipping, promotions and analytics. Efirst Asia survives on different sectors of its business processes and data
warehousing is one of them, its multi layers frameworks extend through numerous levels of management. This
allows managers to make better decisions due to the data they obtained.

Figure 1. Data Warehouse and Data Marts of Efirst Asia

Tactical decisions can also be enhanced through warehousing data. Data collected like data traffic, which
kind of people frequently buy and which products attract people more or has the most views all can be very
helpful in making these tactical decisions. Efirst Asia also generates custom reports for managers to have an
insight on how the business is fairing which is handy when making business decisions like diversifying.

Microsoft Dynamics With CRM

For a significant number of businesses introducing CRM has been a great achievement towards their success
in recent years, Efirst Asia has been one among those that have implemented this model into their business, and it
is still producing for them great rewards. Customer Relationship Management (CRM) can be termed as policies
and technologies companies practice to succeed and understand customer relations and data throughout the
consumer lifecycle, so as to improve business relations with customers and motivating sales growth (Vanitha,
2012). Microsoft Dynamics is a couple of business solutions that energizes and empowers customer involvement
with real-time information and collaboration. As the world becomes a super global village, it is important for
managers to manage their end to end business processes there the use of such information systems helps a great
deal.

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CRM has been implemented in every activity of Efirst Asia to make sure customer satisfaction is a
guarantee. The website is also designed in an easy to used in a friendly way and also there is an integration of the
customer support system. Different ways have been developed to satisfy customer needs like different
communication systems for example SMS, e-mail, fax and IM to make sure customers feel comfortable
communicating. This information is then analysed and more knowledge is acquired about what customers need
and how to address those needs. Information about products is also adequately provided regularly to make
customers have a sense of belonging to the company, for example, information about new products, promotions,
upgrades in the system or scheduled downtimes.

Figure 2. Efirst Asia Microsoft Dynamics CRM

Point Of Sale (POS)

POS system is used by merchants at the point when goods are being exchanged for money. These systems
due to their automation have been welcomed by most businesses. Efirst Asia uses POS for transactions and also
collect data about the goods sold which makes the operational manager have a cutting edge about his business
and also enjoy the economy of no cash that is trending.

The POS in Efirst Asia was adopted after customers complained of cash on the delivery method being too
rigid only to allow money and also not safe for the delivery team that has to carry cash around. When customers
need a service, a POS machine is carried along with the delivery team and goods are delivered easy and
straightforward. Using POS in Efirst Asia has improved the understanding of customers by the managers. They
are able to know customers’ patterns of purchase, sales and analytics for report generation.

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The Role of a Strategic Manager in Efirst Asia

A strategic manager in Efirst Asia or any organisation is the most significant contributor to the growth of an
organisation. The strategic manager Efirst Asia is there to make sure the company achieves its mission and
vision. He and the Chief Finance Officer, Chief Information Officer and Chief Commercial Officer work hand-
in-hand in developing strategic plans for Efirst Asia.

The strategic manager at Efirst Asia is supposed to offer solutions on the main complex issues that could
help ways of doing business. “I usually have to look at a lot of figures every day sometimes they don’t make
sense but I have to find the little sense in them. Sometimes the big bunch of nonsense figures is the ones that
have the smallest helpful info, so we have to be careful all the time” said the strategic manager. This, therefore,
means that to be in this role one has to examine vast amounts of data at all time. Along with the other team of
managers mentioned above, they come up with solutions for the problems and also eliminate the root cause of the
challenges faced so as not to have the same experience again.

In alignment with the company vision, the strategic manager is responsible for the long-term goals for the
company that will thrive on in the future. The strategic manager makes sure that his long-term goals also align
with the vision of the Chief Executive Officer and where he wants to see his company in that time. The strategic
manager also makes sure that he takes the external factors into consideration to as to make use of them and with
all the team of chief officers, they are able to make sound business strategies for the company to keep functioning
well.

The strategic manager also exercises his entrepreneurial skills recognizing opportunities for new products
and services. He is also responsible for innovation as he thinks of new possibilities that are not available to other
service providers in the same business. Furthermore, he is supposed to take calculated risks when implementing
or buying new ideas into the company and also when discovering talent to employ in the company.

Challenges Faced By The Strategic Manager

Internal and external challenges for managers are always present on a daily basis but with the vast amounts
of information, they collect it is a little better to handle these challenges. The following are challenges faced by
the strategic manager at Efirst Asia.

The immediate and the most consistent challenge is the information overload that is ever increasing as more
information is being collected and new ways of collecting, even more, information are being invented. And with
the vast amounts of data collected it is crucial to have the right information that will make the business
successful. A lot of information is gathered and processing all of it is a challenge faced by strategic managers
daily.

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The ever changing environmental intricacies cause many problems to strategic managers as they can
sometimes directly affect the business. The strategic manager has to be careful of competitors not to find
loopholes in their business so as not to capitalize on them. The strategic manager also has to weigh his options on
decisions to make when it comes to the government policies, his stand on privacy and data protection of
customers, his financial strength and the company’s market share. All the above are challenges that affect the
company in either way and they have to be balanced.

Uncertainty of the business environment also continues to be challenging. With this that are hard to control
or unforeseen and also sometimes volatile like a change in consumer buying habits and foreign exchange
fluctuations, strategic managers face a daunting challenge to cope with all these issues and continue to head the
company in the right direction and also ensure customer satisfaction.

Information Delivery at Different level in Efirst Asia

The importance of information at different managerial level cannot be overemphasized in an
ORGANISATION such as Efirst Asia.com. The information required at various levels vary in structure, content
and form. Thus, it is necessary for the data collected to be properly analysed, disseminated in forms that can be
understood and appropriately used in making decisions. Due to the rapid change in the underlying forces of the e-
commerce market, the overall methods in decision making has similarly changed in Efirst Asia so as to match the
competitive level seen in the e-commerce market in Indonesia. All decisions are approved considering a range of
analytic information utilizing both internal and external methods. It is crucial to understand the weakness and
strength of an ORGANISATION, and this can only be possible by obtaining the appropriate information.
Organisations now use various (IS) tools in gathering, processing, utilising and distributing information (Hitt,
Ireland and Hoskisson, 1999). Efficient use of this information systems in taking or making decisions helps an
ORGANISATION to succeed. There are mainly three (3) kinds of managerial hierarchy in Efirst Asia.com, with
each management level requiring its own kind of information and information system (IS).

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Figure 3 Information Delivery (www.acowtancy.com/)

Strategic Managers
The managers at this level are also referred to as the top-level managers. The strategic managers at this level
have the responsibility of using strategic information to take strategic decisions and also create policies, define
organisation objectives, implementation and acquisition of co-operating resources. These managers in Efirst Asia
plan business ideas and develop strategies to meet the stakeholders plan, hence, they need reliable information to
reach these goals. The managers at this level in Efirst Asia.com require leading information from both internal
and external environment of the ORGANISATION. Strategic decisions made by strategic managers at Efirst
Asia.com are the most important because of the role it plays regarding the ORGANISATION growth. This
growth includes development and update of the current website so as to serve a large number of merchants, legal
laws, human resource, profit and loss, acquisition and merger, and market share. The internal information is less
important than external information at this level of management in Efirst Asia.com because information is needed
from market research, competitive intelligence (competitor information), new products, services, and historical
growth of market share of various companies. These are the information needed by top-level or strategic
managers in Efirst Asia.com.

Submission Date: 01/09/2019,

No. 1, Vol. 1, Issue 1, Sept 2019
Accepted Date: 11/09/2019,
Published Date: 21/09/2019, Page: 14
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Tacticals Managers
In Efirst Asia.com, the middle-level managers also are known as the tactical-level managers have the
responsibilities of making sure the goals of the company is met. The information at the middle-level in Efirst
Asia.com is the combination of both the internal and external sources. What managers at this level focus on is
how employees can be aided with the right resources to decrease the cost of operation and increase customer
service. They also make sure the goals of the ORGANISATION are met and propose ideas to the strategic
managers how they can be corrected or achieved. Over the years, ideas suggested by the tactical managers in
Efirst Asia has improved the ORGANISATION performance. One of such idea was the "Buy and get the same
day delivery service." tactics. The information required by the middle-level managers are more in a compiled
form. They get the most information from the operational level managers in report forms. Some of this
information needed by the middle-level managers in Efirst Asia include advertisement strategies, customer
demand survey, outstanding payment, performance appraisal, information regarding the time of sales campaign,
and staff morale.

Operational Managers
The Operational managers are at the base of information delivery management hierarchy and are called
supervisors in Efirst Asia. They get day-to-day information about the ORGANISATION, and daily activities
carried out. Information needed at this level of the directorate are mostly on short term basis but are well
structured and reported in details. The operational managers at Efirst Asia supervise daily non-managerial
employees carrying out their primary activities. This includes drivers, delivery men, customer service delegate,
among others. Information needed by them include absenteeism, seasonal variation, customer classification,
payment, payroll receipt, leave record, sales target on achievement and skills inventory.

The e-commerce sector in Indonesia is currently dominated by various online platforms known as the
competitive forces. The forces are both external and internal (within the ORGANISATION). This plays a
significant role in decision marking by strategic managers. Efirst Asia competes against online platforms such as
Konga. Kaymu, Deal day, Yudala and other e-commerce platforms. The competition with these online e-
commerce companies focuses on brand image, pricing, merchandise mix and promotion. To properly analyse in
details Efirst Asia competitive forces, the PORTERS FIVE FORCES and SWOT ANALYSIS will be used.

Porter’s Five Forces

The porter's five force is one of the most popular tool used for analysing the level of competition within an
ORGANISATION and business strategy development (Rajagopal and Rajagopal, 2007). This tool was designed
to help companies strategize on how to remain competitive. In addition, applying this unique business model,

Submission Date: 01/09/2019,

No. 1, Vol. 1, Issue 1, Sept 2019
Accepted Date: 11/09/2019,
Published Date: 21/09/2019, Page: 15
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companies have been able to make a significant return more than the industry average. The Porter's five forces
include:

 Threat of new entrants

 Threat of substitute products or services

 Bargaining power of customers (buyers)

 Bargaining power of suppliers

 Intensity of competitive rivalry

Figure 4 Porter's Five Forces (www.cleverism.com)

Threat of New Entrants

Threats of new entrants are threats that new competitors in an industry pose on existing competitors
(Hitt, Ireland and Hoskisson, 1999). An Industry which is profitable attracts more competitors who have goals of
making profits. These threats involve entry barriers, which can be further broken down as the strategic and
structural barrier. Structural barrier are obstacles that cannot be controlled by a firm while strategic barriers rely
on decisions initiated by a firm in order to deter entry. The structural barriers in e-commerce industry under the
Indonesia Trade Act impose capital requirements for e-commerce entry in Indonesia. Entering the e-commerce

Submission Date: 01/09/2019,

No. 1, Vol. 1, Issue 1, Sept 2019
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Published Date: 21/09/2019, Page: 16
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business in Indonesia is capital intensive. Efirst Asia came into the market with a whopping amount of $35
million in Series B funding from Millicom. In the country, the exit barrier is also high for e-commerce business.
ORGANISATIONs are also accountable for debt cases that might arise if the company is charged to court,
leading to large amount settlement in assets or money. Currently, these structural barriers limit the possibility of
new companies coming into the market. Efirst Asia possesses high strategic barrier to new entrants because of
their high financial status. They have been able to maintain a leading standard for years in Indonesia as a result of
the high degree of brand loyalty. Efirst Asia has also set high standards for new entrants in the quality of their
services, coverage, promotion and prices. Also, another vital new entrant strategic barrier Efirst Asia possess is a
large number of top brand reliable suppliers.

Threat of Substitute Products or Services

Efirst Asia faces the huge threat of substitute products or services. It was stated earlier that Indonesians
prefer buying products from local markets, where goods and services are instantly exchanged for cash between
the sellers and the buyers. Further, Efirst Asia also faces threat on second-hand products as these markets sell
their products cheap, making it difficult for Efirst Asia to switch cost for customers who buy from them. As a
result of this, Efirst Asia launched the Efirst Asia.com marketplace for high borough merchants and street traders,
creating an avenue for them to showcase their products and services on its online platform (www.Efirst
Asia.com.ng).

Low Bargaining Power of Customers (Buyers)

Customer sometimes reduces the price of a product and its value due to demand for better service and
quality or changing from industry to another as a result of incentives. Considering the number of e-commerce
companies competing such as Konga.com, Dealday.com among others, switching or changing cost is relatively
low making buyers have unyielding bargaining power. Efirst Asia has been able to counter this by continuously
monitoring their online customer sensitivity to the price of various products. Efirst Asia also advises merchants to
reduce constructively prices to avoid losing buyers to other competitors

High Bargaining Power of Suppliers

Sometimes, suppliers could want to gain more by regulating services and quality, and charge high prices. In
Efirst Asia, suppliers bargaining power is very low as a result of the capability and financial strength of the
company. Further, Efirst Asia offers their suppliers incentives that other competitors cannot give. The strategy
used by Efirst Asia to handle inventories of their suppliers and distribution of their product is the Efirst Asia
online marketplace platform. Another important reason for low bargaining power regarding suppliers is that the
cost of switching to a different e-commerce company is very high.

Submission Date: 01/09/2019,

No. 1, Vol. 1, Issue 1, Sept 2019
Accepted Date: 11/09/2019,
Published Date: 21/09/2019, Page: 17
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Intensity of Competitive Rivalry

In Indonesia e-commerce industry, there are lots of competitors. One of Efirst Asia's biggest rival is Konga.
The two companies have a very strong rivalry and competition in areas such as an advertisement, website
upgrade, the introduction of new products, and price. The rivalry between the two giant e-commerce companies
has surprised people with the different counteracting advert, sales splash and also using corresponding business
strategies but a different slogan. In Indonesia, the e-commerce industry has had tough competition in the market
share with both Efirst Asia and Konga because it is small between them and wide between the other companies.

SWOT Analysis (EFIRST ASIA)

SWOT Analysis is an abbreviation which stands for Strengths, Weaknesses, Opportunities, and Threats.
SWOT Analysis is a useful technique aimed at identifying the Strengths and Weaknesses of an
ORGANISATION. It is also implemented in the Identification of Opportunities which are accessible and
unrestricted in addition to Threats organisations deal with. With the successful implementation of the SWOT
analysis, an ORGANISATION can produce strategies in the direction of distinguishing its brand from the
multiple rivals, which will be able to support the company to effectively rival other enterprises in the industry.

Figure 5 SWOT Analysis of Efirst Asia (Authored by Group)

Submission Date: 01/09/2019,

No. 1, Vol. 1, Issue 1, Sept 2019
Accepted Date: 11/09/2019,
Published Date: 21/09/2019, Page: 18
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Strength
Over the years, Efirst Asia has stood out among others as a result of quality and efficiency in products and
services thus, increasing the reputation and improving the brand name. With all this, it gives the company an
edge on competitive advantage in the e-commerce industry. With the excellent workers on hand ready to serve
customers on time and the delivery of products, brings about a loyal customer base system as a result of how well
the services have been offered.

Weaknesses
As a consequence of their products only accessible online through the use of the internet, computers, mobile
handsets, and other devices, it limits their reach to other customers as there is no physical location. Though the
internet is wide and easily accessible, it places a restriction on other clients who are not currently in line with the
trend of shopping online.

Opportunities
Other small personal businesses owned by individuals register and open accounts with Efirst Asia online due
to the rate at which the internet world has grown and has created an increase in internet usage through mobile
handsets and other gadgets. Also, due to the cashless policy enforced by the Indonesian Government has made it
possible pay through Automated Teller Machine cards (ATM) which makes it easier for individuals to pay
directly from their accounts rather than paying with cash. Efirst Asia also offers promotional services to
customers who purchase several products over a certain quantity or price which other organisations cannot
compete with, thus bringing other customers and keeping customers as well to sustain a competitive advantage.

Threats
The existence of other numerous e-commerce organisations in Indonesia creates the danger of Efirst Asia
falling as a result of the surplus amount of other substitutes being offered by other rivals which in turn, gives
customers different options in the direction of choosing from a wide range (Porter, 2008).

Efirst Asia’s Is Strategic Aligment And Business Strategy

The inability of organisations to get a handle on their worth involving satisfaction from their undertakings is
as a result of lacking in the alignment of strategies (Ravasi and Phillips, 2011). Encouragements by Efirst Asia
proceeded to take notice of arrangements which ought to be a progression of intersections and commonly reliable
decisions through measures, for example, strategies involving business, Information Systems, arrangements of
organisations and procedures, and finally the arrangement and procedures of Information Systems. A brief take
on the alignment of strategies with strategies involving businesses and Information Systems making use of
Luftman’s (2000) alignment of strategies development model on Efirst Asia.

Submission Date: 01/09/2019,

No. 1, Vol. 1, Issue 1, Sept 2019
Accepted Date: 11/09/2019,
Published Date: 21/09/2019, Page: 19
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Be that as it may, there is the necessity to bridge on the Information System and procedures involving the
business of Efirst Asia. Right now, Efirst Asia assembles its strategies involving business around on some core
values like “best-in-class delivery”, “innovation”, and a “customer-centric approach at all times”. The
organisation is steered by its central mission which is “to revolutionize the concept of shopping by providing
customers with the best online shopping experience”. It will likely build benefit, consistent change and extend to
new markets. Another key objective of the ORGANISATION is to “enable safe, convenient and stress-free
shopping experiences in Indonesia”. Efirst Asia as an organisation is driven by the utilisation of Information
Technology. In 2013, Efirst Asia understood the necessity to establish a cooperatively oriented and resourceful
workstation as it grew in sales and innovative packages were realised. An establishment of a program for e-
learning that comprised of few elements. It remained mandatory that all employees take part in the project. The
objective existed to increase the upper hand by getting new abilities and information in a viable and quicker route
than its rivals. Additionally, Efirst Asia also understood the necessity for the sharing of information among all the
managerial levels of the organisation to bolster its strategy of expanding. Efirst Asia incorporated the utilisation
of tools used in sharing information like Microsoft SharePoint, which has given a more grounded joint effort
among groups and decreases in cost along these lines driving income and amplifying operations.

Application of Hot Lead Generation Strategy On Efirst Asia

For the most part, the important indicator of strategic alignment in the middle of Information Technology
and business exists if Managers perceive Information Systems in place of a business accessory involving
strategies. Efirst Asia’s IT sector happen to be regarded as outstanding in the performance of their duties, yet the
Business Managers of Efirst Asia perceive the Information System unit just as a provider of services for the
organisation. The consciousness of business inside Information Systems is completed by analysts who are in
charge of making an interpretation of the operational requirements to Information Technology staffs. Managers of
the strategic level are extremely mindful of the significance of Information Systems. Also, the CEO takes part
when actively performing duties in the business administration group. Amid usage of Information Systems
developments at the operational level, presently existing are different purposeful crews where an existing
working relationship in the middle of the IT and business workers is at hand. At the tactical level, strategies
communicated here is employed on the foundation with no official and consistent gatherings involving board
meetings.

As of now, Efirst Asia brings forth the enhancement of this division using putting extra significance upon
official Information System discussions, happening at least on one occasion for every month. Additionally,
business managers are encouraged to work very well with the Information System workers, in the direction of
cooperating and consideration of all assessments and thoughts by them, with regards to strategies and activities.

Submission Date: 01/09/2019,

No. 1, Vol. 1, Issue 1, Sept 2019
Accepted Date: 11/09/2019,
Published Date: 21/09/2019, Page: 20
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An additional, imperative component in the alignment of strategies of the organisation’s with Information System
are the knowledge and procedures involving information sharing between the business managers and Information
System workers. Efirst Asia consistently has enhanced its knowledge and procedures involving the exchange of
information by building up a system designed for the entire managerial levels, and all the same designed for their
traders. Existing at Efirst Asia is a reporting system which supports in skill tracking, information gathering and
the amount of time the effort of workers put on a particular errand or project.

RECOMMENDATIONS
In the e-commerce world, all organisations endeavour towards the sustenance of competitive advantage.
With Efirst Asia, strategies have been put in place to enable retention of customers, quick rate of communication
through emails, swift calls to their customers, proper marketing tools and strong delivery systems. From the
proper examination, it is noted that the business model of Efirst Asia remains reliant on the long term
development of the company, so far the model used to operate gives up the long term goals for the success of
short term. It would be necessary for Efirst Asia to adopt extra Information Systems for sole purpose of
discovering knowledge regarding data mining. Efirst Asia have a data warehouse full of rich data which has yet
to be utilised. With this known, through the application of data mining Efirst Asia will be able to collect vital
information of their customers based on their like, purchases and help them to understand the customer better.
Also, Efirst Asia should also hire a competent Manager who will be able to cultivate their expertise and network
of retail customers as well as study towards enthusiastically managing them. As a result, Efirst Asia will be able
to retain customers and as well, gain more customers strengthening themselves in the industry.

CONCLUSION
The industry involving e-commerce in the Indonesian economy and without a doubt the world over stands
not to be a build-up. The aforementioned stands as a technical leap forward which has given purchasers and
dealers to complete exchanges that originate from their households or places of work with only a touch of a key.
This paper has taken a glimpse at the part in which information systems in the e-commerce industry in giving the
upper hand with regards to competitive advantage. Organisations involved in electronic commerce are creating
and spending vast measures of cash upon Information Systems. As the division involving electronic commerce in
Indonesia turns out to be increasingly aggressive, there is the desire for it members to respond conclusively, with
the utilisation of Information Systems in their administrative operations. We have likewise taken a look at the
significance of processed data in Efirst Asia’s strategic environment. Controlling the correct processed data is the
foundation for the accomplishment of every single business. Strategic Managers need to break down the accurate
information, keeping in mind the end goal to settle on dependable choices. These options may exist, beginning
from internal or external settings equally understood from the commencement of this study. The significance of

Submission Date: 01/09/2019,

No. 1, Vol. 1, Issue 1, Sept 2019
Accepted Date: 11/09/2019,
Published Date: 21/09/2019, Page: 21
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tools for strategy have been seen such as the PESTEL framework, SWOT analysis and Porters five forces in
investigating the environment in which Efirst Asia competes. Be that as it may, the e-trade business requires
further developed Information System because the division is progressively extending. Numerous have planted
considerable conviction and confidence on their current systems thus overlooking that the division is turning out
to be more focused day by day, and their rivals are not dozing as they keep on seeking new approaches to adjust
to innovative systems to empower powerful information organising and circulation to every level of
administration. In support of Efirst Asia, the utilization of Information System remains an essential apparatus for
them.

Submission Date: 01/09/2019,

No. 1, Vol. 1, Issue 1, Sept 2019
Accepted Date: 11/09/2019,
Published Date: 21/09/2019, Page: 22
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Submission Date: 01/09/2019,

No. 1, Vol. 1, Issue 1, Sept 2019
Accepted Date: 11/09/2019,
Published Date: 21/09/2019, Page: 23