Competıtıve Envıronment And Development Trends In The Dıgıtal Market Of Azerbaıjan

Abstract

An in-depth review of the digital marketplace in Azerbaijan as a whole will be provided in this paper together with an assessment of its existing level of competition and where it is heading. The last few years have witnessed the accelerated growth of ICT and Internet infrastructure; alongside this boom has been the state's digitalization strategy and has provided a sound foundation for building a digital economy within Azerbaijan. E-commerce, and digital banking, and online service platforms, together with startup ecosystem, represent the most active digital market sectors. This study assessed three main participants in the competitive environment to include local companies, International Platforms and State Support Mechanisms. This study revealed that competition is primarily based on technological innovation, quality of service, price policy and consumer-based digital solutions. The application of global companies with high market capitalisation creates a competitive ground for local firms. Research on the digital market in Azerbaijan has shown that artificial intelligence (AI), big data (BD), cloud computing, fintech solutions, and digital platformization will continue to accelerate as development trends in the digital market of Azerbaijan. The market is facing some very significant challenges regarding the limited human resources and the disparity in digital literacy levels and limited development of the legal framework regulating this area.