INFARMATION MANAGEMENT ELSEVIER Information Management 40(2003)581-590 www,elsevier.com/locatedsw E-business development for competitive advantages a case study Dien d. phan Department of Business Computer Information Systems, St Cloud State University, St. Cloud, MN 56301, USA Received 5 July 2001; received in revised form 4 March 2002: accepted 20 July 2002 Abstract Electronic business(e-business)today plays a major role in the worlds economy. Forester Research estimated that, by 2003 the value of e-commerce of US and Europe will reach US$ 3 trillion. As the e-marketplace becomes more lucrative, it attracts new entrants and created turmoil in the market. There have been many spectacular successes and many failures This paper presents a study of e-business competitive advantage strategies using the s at Intel. After the initial deployment of its e-business pilot system in July 1998, Intel ramped USS I billion sales on e-business each month for the rest of the year. Intel became the fifth most profitable company in the Us in the year 2000, up from the rank of eighth in 1999. Despite the rapid decline in stock values of many Internet related companies and the recession, Intel is still successful. By the end of 2001, Intel was the seventh largest market capitalization company in the US C 2002 Elsevier Science B.V. All rights reserved. Keywords: E-business; E-commerce; B2B; Supply chain; Value chain: Competitive advantage; Strategy: Extranet 1. Introduction Gates, frequently expressed his fear that Microsoft is about 2 years away from failure, that somewhere out E-business has received much attention from entre- there is a formidable competitor, unborn and preneurs, executives, investors, and industry observers unknown, who will use better business models to cently. As information technologies (T) develop, put companies like Microsoft into obsolescence. novel ways of business process redesign succes emerged, creating turmoil in the industry. Organiza- probably those that can integrate Internet technology tions today frequently integrate Internet technology to to all activities of the enterprise-wide value chain ocesses in ways that strengthen their com petitive advantages. Success breeds imitation and Invites more entnes 2. Ebusiness concepts, strategies, and The rapid expansion of e-commerce values in the frameworks past few years convinced many people that a new economy has emerged. Chairman of Microsoft, Bill Based on various types of trading partners, there are many categories of e-business, for example: Business Tel:+1-320-255-2174;fax:+1-320-203-6074 to Business(B2B ), Business to Consumer (B2C) E-mail address: phan@stcloudstate edu(DD. Phan Consumer to Business(C2B), Consumer to Consumer 0378-7206/02/- see front matter c 2002 Elsevier Science B V. All rights reserved. PI:S0378-7206(02)00089-7E-business development for competitive advantages: a case study Dien D. Phan* Department of Business Computer Information Systems, St. Cloud State University, St. Cloud, MN 56301, USA Received 5 July 2001; received in revised form 4 March 2002; accepted 20 July 2002 Abstract Electronic business (e-business) today plays a major role in the world’s economy. Forester Research estimated that, by 2003, the value of e-commerce of US and Europe will reach US$ 3 trillion. As the e-marketplace becomes more lucrative, it attracts new entrants and created turmoil in the market. There have been many spectacular successes and many failures. This paper presents a study of e-business competitive advantage strategies using the success at Intel. After the initial deployment of its e-business pilot system in July 1998, Intel ramped US$ 1 billion sales on e-business each month for the rest of the year. Intel became the fifth most profitable company in the US in the year 2000, up from the rank of eighth in 1999. Despite the rapid decline in stock values of many Internet related companies and the recession, Intel is still successful. By the end of 2001, Intel was the seventh largest market capitalization company in the US. # 2002 Elsevier Science B.V. All rights reserved. Keywords: E-business; E-commerce; B2B; Supply chain; Value chain; Competitive advantage; Strategy; Extranet 1. Introduction E-business has received much attention from entre￾preneurs, executives, investors, and industry observers recently. As information technologies (IT) develop, novel ways of business process redesign (BPR) emerged, creating turmoil in the industry. Organiza￾tions today frequently integrate Internet technology to redesign processes in ways that strengthen their com￾petitive advantages. Success breeds imitation and invites more entries. The rapid expansion of e-commerce values in the past few years convinced many people that a new economy has emerged. Chairman of Microsoft, Bill Gates, frequently expressed his fear that Microsoft is about 2 years away from failure, that somewhere out there is a formidable competitor, unborn and unknown, who will use better business models to put companies like Microsoft into obsolescence. And the most successful new business models are probably those that can integrate Internet technology to all activities of the enterprise-wide value chain. 2. E-business concepts, strategies, and frameworks Based on various types of trading partners, there are many categories of e-business, for example: Business to Business (B2B), Business to Consumer (B2C), Consumer to Business (C2B), Consumer to Consumer Information & Management 40 (2003) 581–590 * Tel.: þ1-320-255-2174; fax: þ1-320-203-6074. E-mail address: phan@stcloudstate.edu (D.D. Phan). 0378-7206/02/$ – see front matter # 2002 Elsevier Science B.V. All rights reserved. PII: S 0378-7206(02)00089-7