DD Phan/Information Management 40(2003)581-590 Gaining competitive advantage requires building on salty, and e-trust. Because the use of e- the proven principles of effective strategy. Business commerce technology tends to reduce the switching enterprise can gain competitive advantage by opera- cost, it is important for e-business companies to build tional effectiveness, doing the same as your compe- its strategic position by focusing on e-loyalty which tutors do but doing it better, and by strategic encompasses good relationships and trust with value positioning, doing things differently from competitor chain partners. B2B procurement of direct go in a way that delivers a unique type of value to requires a relationship, usually long-term, with a customers. Key principles of strategic positioning who will deliver are: goals that aim at long-term return on investment, With mission critical buying, companies cannot just distinctive value chains, trade-offs for uniqueness in buy from anyone in the e-marketplace. If an order for the market, strategies that fit together, and continuity supplies goes unfilled, the missing goods could shut of corporate direction. down a production line or an entire factory. In B2B Porter also argued that Internet technology should procurement of direct goods, tight integration with be used as a"complement to "rather than a"cannibal major suppliers along the supply chain is absolutely of"traditional ways of competing. The companies essential that will be most successful will be those that use e Major success factors for e-business include business to make traditional business processes better [5,11,15 and those that invent and implement new combina- tions of virtual and physical activities. Without under- Internet technology fully integrated into the com- pany's overall strategy. standing how to deploy Intemet technology, entering Competitive advantage maintained in both opera e-business can bring disastrous consequences In recent years, the business community and the tional efficiency and distinctive strategic position public have been confused by distorted market signals of many dotcoms, such as the exponential growth in Basis of competition not shifted from traditional number of customers, artificially-low operation costs, competitive advantage, such as cost, profit, quality, and inflated revenues. Some companies even resorted service. and features. to dubious accounting methods to inflate revenues and Companys strategic positioning well maintained. deflate costs. Somehow these distorted signals have Support from top management. misled many people into a belief that the e-market- Buyer behavior and customer personalization places have rendered old rules of competition obso- Quick time to market. lete. As a consequence, many companies decided to Right systems infrastructure Good cost control ift their fundamental ways of doing business from quality, feature, innovations, service, and profits Good e-business education and training to employ toward mainly low price and revenue growth. Without ees, management and custom long-term profits, they failed. Customers and partners'expectations well-mana To succeed, companies will need to search and implement innovative strategies that capitalize on both Good products and services offered by e-business. the power of the Internet and the changes in both Current e-business systems expanded to cover entire supply chain. traditional and electronic markets. Companies that run New competitors and market shares tracked e-business should have tight supply chain relation hips with customers, suppliers, and distributors [12] Website of high quality that meets or exceed user In addition, the supply chain within e-business com- expectations. panies also continues to change. Businesses need to be Companys virtual marketplace established sure that customers and suppliers can easily gain access to their websites to gain important product 3. Intel and its e-business development strategies information for decision making. Currently, the major barrier to customersand Intel Corp. located in Santa Clara, California, is the suppliers access to the is ease and speed of world's largest producer of Integrated Circuits ChipsGaining competitive advantage requires building on the proven principles of effective strategy. Business enterprise can gain competitive advantage by opera￾tional effectiveness, doing the same as your compe￾titors do but doing it better, and by strategic positioning, doing things differently from competitors in a way that delivers a unique type of value to customers. Key principles of strategic positioning are: goals that aim at long-term return on investment, distinctive value chains, trade-offs for uniqueness in the market, strategies that fit together, and continuity of corporate direction. Porter also argued that Internet technology should be used as a ‘‘complement to’’ rather than a ‘‘cannibal of’’ traditional ways of competing. The companies that will be most successful will be those that use e￾business to make traditional business processes better and those that invent and implement new combina￾tions of virtual and physical activities. Without under￾standing how to deploy Internet technology, entering e-business can bring disastrous consequences. In recent years, the business community and the public have been confused by distorted market signals of many dotcoms, such as the exponential growth in number of customers, artificially-low operation costs, and inflated revenues. Some companies even resorted to dubious accounting methods to inflate revenues and deflate costs. Somehow these distorted signals have misled many people into a belief that the e-market￾places have rendered old rules of competition obso￾lete. As a consequence, many companies decided to shift their fundamental ways of doing business from quality, feature, innovations, service, and profits toward mainly low price and revenue growth. Without long-term profits, they failed. To succeed, companies will need to search and implement innovative strategies that capitalize on both the power of the Internet and the changes in both traditional and electronic markets. Companies that run e-business should have tight supply chain relation￾ships with customers, suppliers, and distributors [12]. In addition, the supply chain within e-business com￾panies also continues to change. Businesses need to be sure that customers and suppliers can easily gain access to their websites to gain important product information for decision making. Currently, the major barrier to customers’ and suppliers’ access to the web is ease and speed of access, e-loyalty, and e-trust. Because the use of e￾commerce technology tends to reduce the switching cost, it is important for e-business companies to build its strategic position by focusing on e-loyalty which encompasses good relationships and trust with value chain partners. B2B procurement of direct goods requires a relationship, usually long-term, with a vendor who will deliver a known quality of goods. With mission critical buying, companies cannot just buy from anyone in the e-marketplace. If an order for supplies goes unfilled, the missing goods could shut down a production line or an entire factory. In B2B procurement of direct goods, tight integration with major suppliers along the supply chain is absolutely essential. Major success factors for e-business include [5,11,15]: Internet technology fully integrated into the com￾pany’s overall strategy. Competitive advantage maintained in both opera￾tional efficiency and distinctive strategic position￾ing. Basis of competition not shifted from traditional competitive advantage, such as cost, profit, quality, service, and features. Company’s strategic positioning well maintained. Support from top management. Buyer behavior and customer personalization. Quick time to market. Right systems infrastructure. Good cost control. Good e-business education and training to employ￾ees, management and customers. Customer’s and partners’ expectations well-mana￾ged. Good products and services offered by e-business. Current e-business systems expanded to cover entire supply chain. New competitors and market shares tracked. Website of high quality that meets or exceed user expectations. Company’s virtual marketplace established. 3. Intel and its e-business development strategies Intel Corp. located in Santa Clara, California, is the world’s largest producer of Integrated Circuits Chips D.D. Phan / Information & Management 40 (2003) 581–590 583