Potential Risks and Countermeasures for the E-Commerce Company’s Sustainable Development: Case Study of Alibaba Company


The age of the internet has been characterized by an increase in e-commerce and international trade Jang-Jaccard & Nepal, (2014). Some businesses have resorted to doing their trade purely online, e-commerce, or through mobile devices. However, e-commerce has led to the introduction of new challenges. Companies are required to have a clear picture of the security threats they are bound to face when conducting an online transaction. High-security standards are expected to be put into consideration during the e-commerce business setup  (Banda, 2019). Alibaba has emerged to one of the biggest e-commerce website within a short time Falk and Hagsten (2015). It will provide an important case for this research. On challenges in new security challenge and legal and financial liabilities ecommerce company face.

This research will explore previous literature about the subject matter. It will identify and classify different e-commerce challenges facing businesses using online platforms. Recommendations will later be made on methods of reducing or avoiding ecommerce risks.

Chapter 1. Introduction

Emergence of e-commerce has changed the way businesses interact with clients. However, it has been faced by various setbacks. This study will review various risks in e-commerce and countermeasures that can be applied to mitigate the risks. Chapter 1 introduces the research. It will begin by defining the main terminologies to be used in the rest of the chapter. To begin with, we need to introduce what e-commerce means. According to Khan, (2016), e-commerce is the activity of buying and selling goods and services over the internet.

There are set standards in security settings and networks available for e-commerce systems to read and implement. However, security threats such as trojan horse programs launched against client’s systems pose a great threat to online business. The trojans are a great threat since they can subvert or bypass most authentication mechanisms used in online transactions. The programs can be installed on the victim’s computer through simple methods such as emails  (A. Gurung, 2016).

Many businesses have adopted new models of business, either adding an online website or shifting entirely to online selling. Even today, the internet is dominated by the biggest retailers, now small businesses resorting to internet marketing and selling  (Lindsey, 2019). Currently, there are two main types of websites, mortar website and click website.

E-commerce provides an opportunity for businesses to integrate internal and external processes. This lowers transaction costs, increase sales and distribution channels. E-commerce has been introduced in many areas mainly classified into Business-to-Customer (B2C), business-to-business(B2B). Business-to-Business has grown much faster than Business-to-Customer (B2C). It has an increased exchange of electronic data interchange (EDI). B2C on the other hand has grown with the expansion of internet use over the last 10 years.


However, apart from many advantages, there are many challenges presented by e-commerce among them being technology and flow of information from business to business within the same business or inter businesses and from business to consumers. Businesses are also faced with an array of problems when dealing with multiple data formats (Bhowmik, 2019). Therefore, security issues have to be considered by any business conducting their businesses online. Businesses need to respond to these challenges in a quick, secure and reliable way to be able to stay ahead of competition. Security standards and discipline should be done to retain customer trust and confidence in the new type of economy. The research uses as a case study to understand the risks and appropriate countermeasures.

This paper explains the different security challenges that affect e-commerce. Chapter 2 will present a literature review of previous research. The chapter will discuss security challenges-commerce systems face. Chapter 3 of this paper will introduce the general methodology used in the research. Company valuation data for 3 major e-commerce companies; eBay, Alibaba and Amazon will be collected. The company with highest value will be used for the case study. The fourth chapter will discuss results from the research and provide recommendations for businesses using e-commerce .

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