Strategies for e-Commerce

E-commerce
involves business communication and transmissions over
networks and through computers, specifically the buying and
selling of goods and services, and the transfer of funds
through digital communications.
Whats the big deal?
Perspectives

Communications
Business
Service
Online

Key Elements Supporting

E-commerce
Internet
History

Intranet
Internal Internets
What do they do?

Extranet
Business partners

Types of E-commerce
Interorganizational E-commerce

Supplier management
Inventory management
Distribution management
Channel management
Payment management

Intraorganizational E-commerce
Workgroup communications
Electronic publishing
Sales force productivity

Business-to-Consumer E-commerce

Product information
Sales
Service
Payment
Marketing research

The Strategic Role of E-commerce

What can it do?
Communication device with customers
Alternative distribution channel
Valuable medium for delivering services
Tool for gathering marketing research data
Method for supply chain integration

Extends reach
Integrate into day-to-day

The Strategic Role of E-commerce

Internet can cause some companies to fail
How?

Internet should complement existing

technology
Porters take

The Strategic Role of E-commerce

What else can it do?
Enhance customer focus, responsiveness, and
relationships
Reduces transaction costs
Integration into supply chain
Focus on core business
Access global markets

Crafting an E-commerce Strategy

Look at:
Customers and markets
Competitive threats
People and infrastructure
Sources and operations

Delineating Objectives
Synchronize with strategy

Crafting an E-commerce Strategy

Target a specific market
Build recognition of
company name
Convey a cutting edge
image
Conduct market research
Interact with existing
customers
Real-time information
about customers, products,
etc.

Sell products and services

Sell more efficiently
Advertise in a new medium
Generate leads
Provide customer service
medium
Build strong relationships

Internet Strategy Implementation

Internet Product

Website
Successful design
Internet catalogs
Reverse auctions

Channel Considerations
Automated services
Effect on Current Intermediaries
Disintermediation
Can be a cheap method of distribution

Internet Strategy Implementation

Internet Pricing
Impact of new markets
Real-time advantages
Levels

Online information
Database publishing
Customer self-service
Transactions

Internet Strategy Implementation

Internet Promotions
Meet Customer Requirements
Complements personal selling

Role of sales force

Other promotions