Importance of E-Commerce in India and Competition Issue

E-commerce in India and the potential competition issues With special reference to credit cards market in India Submitted to Mr. Rakesh Kumar, Joint director (economics), Competition Commission of India Submitted by Ankita Pahuja M.sc economics ,2nd year, TERI University, Vasant Kunj, Delhi 1 Disclaimer This project report/dissertation has been prepared by the author as an intern under the Internship Programme of the Competition Commission of India for academic purposes only. The views expressed in the report are personal of the intern and do not reflect the view of the commission or any of its staff or personnel and do not bind the commission in any manner. This report is the intellectual property of the Competition Commission of†¦show more content†¦Resultantly, Internet growth has led to a host of new developments, such as decreased margins for companies as consumers turn more and more to the internet to buy goods and demand the best prices, as observed by C.K Prahalad , Professor, Business School, University of Michigan. 1The internet means that traditional businesses will change because ‘’incumbents (in markets ) and large firms do not have the advantage ‘’ just by virtue of being there first or by being of big , he said. The implication of pe rfectly competitive market as the world will observe is that markets will produce an efficient allocation of resources. Internet has truly been an effective agent in changing the fundamental ways of doing business. In any market with no entry barriers – the Net is biggest of them, the continuous influx of competition will , automatically , drive down the prices. In such a case , in long term all firms could only earn normal profits.2 E- commerce Electronic commerce (or e-commerce) encompasses all business conducted by means of computer networks. Advances in telecommunications and computer technologies in recent years have made computer networks an integral part of the economic infrastructure. More and more companies are facilitating transactions over web. There has been tremendous competition to target each and every computer owner who isShow MoreRelatedA Descriptive Study Of Indian Scenario1483 Words   |  6 Pagesof changes in almost all facets of life. In the Banking Industry, it has been in the form of online or e-banking, which is now replacing the traditional banking practice. The e-banking constitutes an electronic alternative network of payments and benefit of services. E-banking has the potential to transform the banking business as it significantly lowers transaction and delivery costs. 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