Change in business model in Nepal after e-commerce evolution

Abstract

The thesis focused on understanding the change in Nepal's business model after the evolution of e-commerce. The research has adopted qualitative methods to understand the company's adaptation to e-commerce. The study included four companies from three different industries. The research included interviews with company representatives to understand their business operations prior to e-commerce, changes to adapt to e-commerce, and the benefits and challenges of the new model. The interview questions were divided into themes and categories.

The interviews showed that traditionally, companies need lots of paperwork, with most of the tasks needing to be completed manually. The primary way to connect with the customers is physically from their own shops, branches, distributors, or agents based on the size and operations. Rent, salary, and other in-house expenses were the company's significant expenses, and selling products or services was the primary revenue source. Companies have adapted to digitalization with a different approach. Most companies have built their own digital platforms to make online sales smooth and convenient. Digitalization has reduced paperwork and brought more automation into operations. The companies have heavily focused on social media presence, and it remains the top way to promote, reach, and communicate with customers. Companies have collaborated with digital payment providers to run online operations smoothly. Companies must train their staff to adapt to digitalization and effectively perform online activities. Digitalization has increased the technological costs for companies but, on the other hand, helps to reach a large audience and raise revenue. The lack of digital skills among customers of old age, security related issues, data protection, and competition are significant challenges for e-commerce companies.

The thesis analyzed different e-books, journals, and online materials to provide an understanding of the business models and e-commerce. Interviews were used to collect answers and provide an understanding of the changes made by companies to adapt to e-commerce evolution. The collected data was arranged according to theme, categorized in the tables, and analyzed in detail. The research findings were interpreted and provided an overview of the business model changed by researched companies after the evolution of e-commerce.