Professional Documents
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Learning objectives
What is e-commerce? What are the e-challenges? What are the strategies for e-commerce?
Learning objectives
What is e-commerce? What are the e-challenges? What are the strategies for e-commerce?
E-commerce definition
Technology-enabled transactions and technologymediated exchanges of digitized information between parties (individuals or organizations) as well as the electronically based intra-organizational or inter-organizational activities that facilitate such exchanges
E-commerce definition
Scope of e-commerce: 1. Exchange of digitized information 2. Technology-enabled transactions 3. Technology-mediated relationships 4. Intra- & inter-organizational activities
E-commerce definition
Business originating from . . .
Business Business Consumers
B2B
C2B
Consumers
B2C
P2P
E-commerce categories
Business originating from . . .
Business Business
Publishers order paper supplies from paper companies Amazon orders from publishers
Consumers
Consumers
E-commerce definition
E-COMMERCE vs TRADITIONAL COMMERCE Key elements Value Creation Strategy E-commerce Information Sense and respond Simple rules Competitive edge Speed Competitive force Low barriers of entry Power of customers Resource focus Demand side Customer interface Screen-to-face Communication Technology-mediated channels Accessibility 24 x 7 Customer Self-service interaction Consumer behavior Personalization One-to-one marketing Promotion Word of mouth Product Commodity
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Traditional commerce Product/Service Classical Quality/Cost Power of suppliers Product substitution Supply side Face-to-face Personal Limited time Seller influenced Standardization Mass/one-way marketing Merchandising Perishables, feel & touch
E-commerce definition
1995-2000 Innovation Technology-driven Revenue growth focus Venture capital financing Entrepreneurial Disintermediation Perfect markets Pure-play First-mover advantages 2001-2006 Consolidation Business-driven Earnings & profits focus Traditional financing Traditional/old economy Strengthening intermediaries Imperfect markets, brands, network effects Bricks & clicks Strategic follower 2006-future Reinvention Audience, customer, community-driven Audience & social network growth focus Merger & acquisition Large pure Web-based firms Proliferation of small online intermediaries Online market imperfections New market (pure play); Retail (bricks & clicks) New market (1st mover)
Learning objectives
What is e-commerce? What are the e-challenges? What are the strategies for e-commerce?
Finance
Marketing
Entrepreneurship
Accounting
Technology
New Media
Establish Goals
Formulate Strategy
Drive Implementation
Strategy: tradeoffs Implementation: technology & media knowledge Accountability: performance & results
E-commerce challenges
Understanding customer evolution
Invest ahead of customer needs
Expanding globally
Deal with complex internationalization issues
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Learning objectives
What is e-commerce? What are the e-challenges? What are the strategies for e-commerce?
E-commerce strategies
Mission
Objectives
External Analysis
Implementation
Strategic Planning
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E-commerce strategies
Sense and respond Experimenting with intuitive, actionable, easy to implement ideas Proactively soliciting feedback from customers
Simple rules
Type
How-to rules
Purpose
They spell out key features of how a process is executed "What makes our process unique?" They focus managers on which opportunities can be pursued and which are outside the pale. They help managers rank the accepted opportunities.
Example
Akamai's rules for the customer service process: staff must consist of technical gurus, every question must be answered on the first call or e-mail, and R&D staff must rotate through customer service. Cisco's early acquisitions rule: companies to be acquired must have no more than 75 employees, 75% of whom are engineers. Intel's rule for allocating manufacturing capacity: allocation is based on a product's gross margin.
Boundary rules
Priority rules
Timing rules
They synchronize managers with the pace of emerging opportunities and other parts of the company.
They help managers decide when to pull out of yesterdays opportunities.
Nortel's rules for product development: project teams must know when a product has to be delivered to the leading customer to win, and product development time must be less than 18 months.
Exit rules
Oticon's rule for pulling the plug on projects in development: if a key team membermanager chooses to leave the project for another within the company, the project is killed. Home Based Part Time Jobs at www.earnrupees4you.com
E-commerce strategies
Position approach
Where should we be?
Resources approach
What should we be?
E-commerce strategies
Position
Strategic Logic
Establish Identify
Resources
Leverage
Simple Rules
Pursue Jump
position
resources
opportunities
an attractive
Establish
Strategic Steps
Strategic Question Source of Advantage Works Best In Duration of Advantage Risk Performance Goal
should we be?
should we be?
should we proceed?
Unique,
valuable position with tightly integrated activity system changing, wellstructured markets
Unique,
Key
Slowly
Moderately
Rapidly
Sustained It
Sustained Company
Unpredictable Managers
Profitability
Long-term
Growth
E-commerce strategies
E-commerce strategy formulation process
Business Model
Customer Interface
Implementation
Metrics