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OHT 5.1
Chapter 5
E-business Strategy
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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.
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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?
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OHT 5.4
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.
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OHT 5.5
Different forms of organizational strategy
Figure 5.1 Different forms of organizational strategy
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OHT 5.6
Relationship between e-business
strategy and other strategies
Figure 5.2 Relationship between e-business strategy and other strategies
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OHT 5.7
A generic strategy process
model
Figure 5.3 A generic strategy process model
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OHT 5.8
Dynamic e-business strategy
model
Figure 5.4 Dynamic e-business strategy model
Source: Adapted from description in Kalakota and Robinson (2000)
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OHT 5.9
Elements of strategic situation
analysis for the e-business
Figure 5.5 Elements of strategic situation analysis for the e-business
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OHT 5.10
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
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OHT 5.11
Adoption steps of e-business
services
Figure 5.6 Adoption steps of e-business services
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OHT 5.12
Summary applications portfolio
analysis for the B2B Company
Figure 5.7 Summary applications portfolio analysis for The B2B Company
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OHT 5.13
SWOT analysis for the B2B
company
Figure 5.8 SWOT analysis for The B2B Company
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OHT 5.14
Customer demand for e-marketing
services for The B2B Company
Figure 5.9 Customer demand for e-marketing services for The B2B Company
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OHT 5.15
Competitive threats acting on
the e-business
Figure 5.10 Competitive threats acting on the e-business
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OHT 5.16
Porter’s five forces
Bargaining
powers of
customers
Power of
suppliers
The business
Extent of rivalry
between
competitors
Threat of
subsitutes
substitutes
Threat of new
entrants
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OHT 5.17
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
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OHT 5.18
Elements of strategic objective
setting for the e-business
Figure 5.11 Elements of strategic objective setting for the e-business
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OHT 5.19
Direct and indirect Internet
contributions for fast growth companies in the US
Figure 5.12 Direct and indirect Internet contributions for fast-growth companies
in the USA
Source: PricewaterhouseCoopers (2000)
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OHT 5.20
Grid of product suitability against
market adoption for transactional
e-commerce (online purchases)
Figure 5.13 Grid of product suitability against market adoption for transactional
e-commerce (online purchases)
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OHT 5.21
Elements of strategy definition for
the e-business
Figure 5.14 Elements of strategy definition for the e-business
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OHT 5.22
Strategic options for a company in
relation to the importance of the
Internet as a channel
Figure 5.15 Strategic options for a company in relation to the importance of the
Internet as a channel
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OHT 5.23
Assessment of risk for market and
product development for the B2B company
Figure 5.16 Assessment of risk for market and product development for The
B2B Company
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OHT 5.24
New product development – Smile online banking
(www.smile.co.uk)
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OHT 5.25
Dabs.com (www.dabs.com)
Figure 5.18 Dabs.com (www.dabs.com)
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OHT 5.26
Elements of strategy
implementation for the e-business
Figure 5.19 Elements of strategy implementation for the e-business
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