This paper focuses on investigating and analysing the state of e-commerce in Algeria, determining the nature of the barriers that are preventing the country from taking off as expected and proposing some solutions based on Porter's diamond model of national competitive advantage. This incorporates cross-industry institutions and networks as key determinants of national competitive advantage. Following Porter's model, Algeria has made progress in building the technical infrastructure for e-commerce, but it still suffers from a lack of a comprehensive regulatory framework and poorly developed supporting institutions and social networks. While e-commerce in Algeria is still in its initial stages compared to other developing countries, there is great potential for rapid and sustainable growth in the coming years.