Research On Risk Factors Of Traditional Retail E-commerce

In recent years, the development of traditional retail was subjected strong impact edbye-commerce, and the growth of the nation’s total retail sales has slowed markedly. Theupgrading and transformation trend of traditional retailis inevitable with the rapiddevelopment of internet. Since2010, many traditional retail enterprises have began to join the"electric shock " troop, and have sought the e-commerce road. However,none of thetraditional retail enterprises is successful in the transformation so far. The reason why they arefailure is that when they analyze the difficulties of e-commerce and how to deal with thesedifficulties without considering the characteristics of the industry.This paper analyzes the risk factors of traditional retail e-commerce, and help enterprisesidentify the obstacles and manage risks during the development of e-commerce. The full textmainly studies three questions (1)What are the risk factors of traditional retail e-commerce?(2)What is the evaluation results of the risk factors model?(3) What is the relationship of theinternal structure of risk factors?For the study of these three questions, the qualitative and quantitative combiningresearch methods was used.First, using qualitative research methodof literature study combined with interviewcorrection to identify risk factors of traditional retail e-commerce. The results suggests thatthere is16risk factorsfrom the dimensions of platform business risk, risk managementandinformation technology risk.Besides, this paper has designed27questionnaire items based onthe content of16risk factors and the opinions of the experts.Second, establishing amodel of risk factors evaluation which containing three indicatorsand using the factor analysis method to evaluate the thirdindicators,and the results of riskfactors evaluation is polymerizing16secondary risk factors indicatorsinto eight riskfactors.According to the eight risk factors’ weights,wesort them as follows: the markettransparency risk, the organizational strategic risk, the IT infrastructure building risk, themarketing and services risk, the logistics distribution risk, the human resource risk, the onlineto offline risk, the operational data risk.Then,building the interpretive structural model of traditional retail e-commerce with themethod of interpretive structural model. The model suggests that Human resource risk andmarket transparency risk are root risk factors.Finally, using the multiple case study method to study the"electric shock" of G companywhich is relative failure and L company which is relative successful.The aim of the case study is to demonstrate the effectiveness of the previous research results and at the same time toshow the diversity and complexity of the research subject.In summary, the research on traditional retail e-commerce follows the principle ofintegrity and systematic in this paper. The process of risk factors identified, evaluated,analyzed and verified can provide guidance for the traditional retail enterprises that want tocarry out or have been developing e-commerce to some extent.