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Importation of Television Sets from AFKA Group International - Case Study Example

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The paper "Importation of Television Sets from AFKA Group International" highlights that the global financial crisis will create an opportunity for sites like Alibaba.com in that these small and medium enterprises will have the ability to create employment and be able to re-invent various processes…
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Importation of Television Sets from AFKA Group International
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The product chosen for this research is the LED television sets and the supplier is the AFKA Group International, Inc, which is a manufacturing company of various home appliances and is located in the United States of America. The company manufactures products that are specially designed for the home, commercial, institutional as well as meeting the industrial needs. The product is a TFT LED TV of model APLT-2698 whose screen size ranges from 32’’ to 55’’. The rationale for the choice of this supplier is that the company uses up to date technology that produces the best quality, it uses reliable testing techniques and various quality assurance principles that make its products more appealing and long-lasting (Licari 2005).

Vasková and Vasková (2010) point out that the benefit of using this type of website in conducting business is that the efficiency of communication between the supplier and the buyer is greatly improved that the buyer can easily communicate with the supplier on the type of products that are available and even the ordering process of the available products by the buyer is made easy. One drawback of using this website is that there are various security concerns that might jeopardize the transaction process.

The main security threat is that the information of the transaction can be accessed by the hackers who are malicious and can use the information to their own advantage, for example, these individuals can access the bank details thus stealing money from either the supplier or the buyer. It is reasonable to speculate that most trade SME’s will take place in the context of sites like Alibaba.com because most of the sites are growing at a faster rate and are categorized as either medium or small enterprises as this will help to drive innovation and competition in the various existing economic sectors.

The transactions that are conducted in the various sites that are available today help in building trust in the people that use the site to conduct business, therefore, the transparency of any site depends on the honesty of the owners in delivering what they are mandated to do. Fraud is a usual occurrence on the internet since there are many fraudsters who act as imposters for their own selfish gains, therefore, any individual who conducts business through various sites should be cautious of the fraudsters in the marketplace.

One of the threats is that the crisis will cause an increase in the input costs, which will eventually lead to an increase in the prices of products. The result is that buyers will shy away from purchasing various products from these sites (Carter 2011).

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