Formulating_an_E_Business_Strategy

Formulating_an_E_Business_Strategy - Formulating an...

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1 Formulating an E-commerce Strategy Nilpa Shah and Ray Dawson Loughborough University, Loughborough, UK Email: [email protected] , [email protected] Category: Optimistic View (VG) and Socioeconomic breakthrough (NSB) Abstract The drivers for electronic commerce are both technological (under the tremendous pressure of innovation) and business oriented. This paper will highlight some guidelines for companies who are entering into E-commerce to create an E-commerce strategy or who already have an E-commerce presence to revise their existing strategy. E-Commerce is now seen as a reality for many businesses and a normal part of a business plan. The immediate benefits, in terms of cost savings, efficiencies and enhanced profitability are clear at every stage in the supply chain. Adopting e- business is no longer a competitive advantage, but a normal business process, without which an enterprise is unlikely to survive in the New economy [1]. Year 2000 saw many Dot-com companies built up and many companies going into E-commerce however now it is a different story, more and more companies are failing, and investors are becoming cautious to invest money into Internet ventures. There is more cash needed then was expected. Some of them had to get on the bandwagon as everybody else were and didn’t want to be left behind, and now that the bubble has burst they are facing the consequences. This paper will aim to help companies to realize what they need to follow to have a successful business if they plan well and have a good strategy. This paper also identifies that implementing an E-commerce strategy is neither straightforward nor cheap, for example it comprises a complete rethink of traditional modes of behavior, the need and importance to involve internal staff and external suppliers and customers right from the conceptual stage, need to re-evaluate company’s core competences, and requires substantial investment in IT. Executives of successful E-commerce companies need to be strategic thinkers focusing on customers, markets, and competitive positioning, as well as on internal operations. Determination of a suitable E-commerce strategy begins with identification of the opportunities and risks. The task of tracking the changing environments, understanding customer groups, requires formulating strategies and planning their implementation. The paper follows a structure of exploring ideas of having an online presence, going onto defining the business aims, looking at the feasibility of the project, where the industry environment and competitor analysis will be looked at moving on to the planning and design phase, and finally implementing and assessment which needs to be done continually as an iterative process to learn from mistakes, improve and further meet new aims. Throughout the various stages set of questions have been included that needs to be asked and answered by the organization.
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2 Introduction Many companies approach E-commerce with no clear idea of where they are going,
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This note was uploaded on 05/22/2011 for the course BU 36101 taught by Professor John during the Spring '11 term at University of Liverpool.

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Formulating_an_E_Business_Strategy - Formulating an...

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