E business strategy

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E business strategy

  1. 1. OHT 5.1 E-business Strategy © Marketing Insights Limited 2004
  2. 2. OHT 5.2 Learning objectives• Follow an appropriate strategy process model for e-business;• Apply tools to generate and select e-business strategies;• Outline alternative strategic approaches to achieve e-business. © Marketing Insights Limited 2004
  3. 3. OHT 5.3 Issues for managers• How does e-business strategy differ from traditional business strategy?• How should we integrate e-business strategy with existing business and IS strategy?• How should we evaluate our investment priorities and returns from e-business? © Marketing Insights Limited 2004
  4. 4. OHT 5.4 How does e-business strategy differ from traditional business strategy?• In the one-to-many hierarchical information flow that characterized the Industrial Age, information flowed one way, from the producer to the consumers. The Internet has changed this in three important ways. – the Internet allows consumers to talk to consumers – consumers can find and access information much easier than before – enables the information flow to be reversed so © Marketing Insights Limited 2004 customer-centric companies can pull
  5. 5. OHT 5.5 Michael Porter on the Internet• ‘The key question is not whether to deploy Internet technology – companies have no choice if they want to stay competitive – but how to deploy it.’ Porter, M. (2001) Strategy and the Internet, Harvard Business Review, March 2001, 62–78. © Marketing Insights Limited 2004
  6. 6. OHT 5.6 Different forms of organizational strategyFigure 5.1 Different forms of organizational strategy © Marketing Insights Limited 2004
  7. 7. • Corporate Strategy – What business should OHT 5.7 you be in? Looks at the whole range of business opportunities• Business Strategy – Battle plans, tactics used to fight the competition in the industry that your company currently participates in (see Competitive Strategies and Competitive War Games)• Functional Strategy – Operational methods and value adding activities that you choose for your business (venture strategies, technology strategies, diversification strategies, marketing strategies, differentiation strategies, etc.) © Marketing Insights Limited 2004
  8. 8. OHT 5.8 Relationship between e-business strategy and other strategiesFigure 5.2 Relationship between e-business strategy and other strategies © Marketing Insights Limited 2004
  9. 9. OHT 5.9 A generic strategy process modelFigure 5.3 A generic strategy process model © Marketing Insights Limited 2004
  10. 10. OHT 5.10 Dynamic e-business strategy modelFigure 5.4 Dynamic e-business strategy modelSource: Adapted from description in Kalakota and Robinson (2000) © Marketing Insights Limited 2004
  11. 11. OHT 5.11 Elements of strategic situation analysis for the e-businessFigure 5.5 Elements of strategic situation analysis for the e-business © Marketing Insights Limited 2004
  12. 12. OHT 5.12 What happens where there is no e-business strategy?• Missed opportunities for additional sales on the sell-side and more efficient purchasing on the buy-side• Fall behind competitors in delivering online services – may become difficult to catch up, e.g. Tesco, Dell• Poor customer experience from poorly integrated channels © Marketing Insights Limited 2004
  13. 13. OHT 5.13 Adoption steps of e-business servicesFigure 5.6 Adoption steps of e-business services © Marketing Insights Limited 2004
  14. 14. OHT 5.14 Summary applications portfolio analysis for the B2B CompanyFigure 5.7 Summary applications portfolio analysis for The B2B Company © Marketing Insights Limited 2004
  15. 15. OHT 5.15 SWOT analysis for the B2B companyFigure 5.8 SWOT analysis for The B2B Company © Marketing Insights Limited 2004
  16. 16. OHT 5.16 Customer demand for e-marketing services for The B2B CompanyFigure 5.9 Customer demand for e-marketing services for The B2B Company © Marketing Insights Limited 2004
  17. 17. OHT 5.17 Competitive threats acting on the e-businessFigure 5.10 Competitive threats acting on the e-business © Marketing Insights Limited 2004
  18. 18. OHT 5.18 Porter’s five forces Bargaining powers of customers Power of Threat of of Threat The business suppliers subsitutes substitutes Extent of rivalry Threat of new between entrants competitors © Marketing Insights Limited 2004
  19. 19. OHT 5.19 Activity – Impact of Internet• For one of the industries below, assess how the Internet has changed the competitive forces, e.g. has it increased or decreased power of suppliers and customers?• Industries: – Banking – Supermarkets – Oil industry – Rail industry © Marketing Insights Limited 2004
  20. 20. OHT 5.20 Elements of strategic objective setting for the e-businessFigure 5.11 Elements of strategic objective setting for the e-business © Marketing Insights Limited 2004
  21. 21. OHT 5.21 Direct and indirect Internet contributions for fast growth companies in the USFigure 5.12 Direct and indirect Internet contributions for fast-growth companiesin the USASource: PricewaterhouseCoopers (2000) © Marketing Insights Limited 2004
  22. 22. OHT 5.22 Grid of product suitability against market adoption for transactional e-commerce (online purchases)Figure 5.13 Grid of product suitability against market adoption for transactionale-commerce (online purchases) © Marketing Insights Limited 2004
  23. 23. OHT 5.23 Elements of strategy definition for the e-businessFigure 5.14 Elements of strategy definition for the e-business © Marketing Insights Limited 2004
  24. 24. OHT 5.24 Strategic options for a company in relation to the importance of the Internet as a channelFigure 5.15 Strategic options for a company in relation to the importance of theInternet as a channel © Marketing Insights Limited 2004
  25. 25. OHT 5.25 Assessment of risk for market and product development for the B2B companyFigure 5.16 Assessment of risk for market and product development for TheB2B Company © Marketing Insights Limited 2004
  26. 26. OHT 5.26 New product development – Smile online banking (www.smile.co.uk) © Marketing Insights Limited 2004
  27. 27. OHT 5.27 Dabs.com (www.dabs.com)Figure 5.18 Dabs.com (www.dabs.com) © Marketing Insights Limited 2004
  28. 28. OHT 5.28 Elements of strategy implementation for the e-businessFigure 5.19 Elements of strategy implementation for the e-business © Marketing Insights Limited 2004

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