Chapter 14 E-Commerce Strategy and Global ec
Chapter 14 E-Commerce Strategy and Global EC
Learning objectives Describe the strategic planning process 2. Describe the purpose and content of a business plan 3. Understand how e-commerce impacts the strategic planning process 4. Understand how EC applications are formulated justified, and prioritized Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 2 Learning Objectives 1. Describe the strategic planning process. 2. Describe the purpose and content of a business plan. 3. Understand how e-commerce impacts the strategic planning process. 4. Understand how EC applications are formulated, justified, and prioritized
Learning objectives 5. Describe strategy implementation and assessment, including the use of metrics 6. Evaluate the issues involved in global EC 7. Analyze the impact of EC on small and medium sized businesses Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 3 Learning Objectives 5. Describe strategy implementation and assessment, including the use of metrics. 6. Evaluate the issues involved in global EC. 7. Analyze the impact of EC on small and mediumsized businesses
Organizational Strategy Concepts and Overview strategy a broad-based formula for how a business is going to compete, what its goals should be, and what plans and policies will be needed to carry out those goals Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 4 Organizational Strategy: Concepts and Overview strategy A broad-based formula for how a business is going to compete, what its goals should be, and what plans and policies will be needed to carry out those goals
Organizational Strategy Concepts and Overview e-commerce strategy(e-strategy) The formulation and execution of a vision of how a new or existing company intends to do business electronically Electronic Commerc Prentice Hall 2006 5
Electronic Commerce Prentice Hall © 2006 5 Organizational Strategy: Concepts and Overview e-commerce strategy (e-strategy) The formulation and execution of a vision of how a new or existing company intends to do business electronically
Exhibit 14. 1 how the internet Influences Industry Structure (+)By making the overall Threat of substitute more efficient. the Inter products or expand the size of the services substitution threats Bargaining power of Rivalry among Bargaining Bargaining competitors channels end users (-)Reduces differences among (+)Eliminates (-)Shifts tends to ompetitors as offerings are bargaining difficult to keep proprietary power to e ( Migrates competition to price mproves ()Widens the geographic market bargaining (-)Reduces ( The Internet provides a channel increasing the number of switching for suppliers to reach end users, competitors traditional reducing the leverage of (-) Lowers variable cost relative to ntervening companies fixed cost, increasing pressures (-)Internet procurement and digital for price discounting markets tend to give all companies equal access to suppliers, and gravitate procurement to standardized products that reduce differentiation (- Reduces barriers to entry such as the Barriers to entry (-)Reduced barriers to entry and need for a sales force. access to channels and physical assets-anything that he proliferation of competitors downstream shifts power to nternet technology eliminates or makes easier to do reduces barriers to entry pplications are difficult to keep proprietary from new entrants (-) Aflood of new entrants has come into Electronic Commerc Prentice Hall 2006 6
Electronic Commerce Prentice Hall © 2006 6 Exhibit 14.1 How the Internet Influences Industry Structure
Organizational Strategy Concepts and overview The Strategic Planning process Strategy initiation Strategy formulation Strategy implementation Strategy assessment Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 7 Organizational Strategy: Concepts and Overview • The Strategic Planning Process – Strategy initiation – Strategy formulation – Strategy implementation – Strategy assessment
EXhibit 14.2 The Strategic Planning Process Strategy Initiation (14.4) Strategy Strateg Assessment Formulation (147) (14.5) Strategy Implementation (14.6) Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 8 Exhibit 14.2 The Strategic Planning Process
Organizational Strategy Concepts and Overview The Strategic Planning process strategy initiation The initial phase of strategic planning in which the organization examines itself and its environment Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 9 Organizational Strategy: Concepts and Overview • The Strategic Planning Process strategy initiation The initial phase of strategic planning in which the organization examines itself and its environment
Organizational Strategy Concepts and overview Specific outcomes from the strategy initiation phase include Company analysis value proposition The benefit that a company's products or services provide to customers, the consumer need that is being fulfilled Core competencies Forecasts Competitor(industry) analysis Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 10 Organizational Strategy: Concepts and Overview – Specific outcomes from the strategy initiation phase include: – Company analysis value proposition The benefit that a company’s products or services provide to customers; the consumer need that is being fulfilled – Core competencies – Forecasts – Competitor (industry) analysis
