Level 4 ManagedE-business integrated.E-business part of departmental and business unit planning. Detailed performance measures of e-business process and applications collected and used forcontrol.Level 5 OptimizedExtended enterprise.E-business core part of corporate strategy, with continuous evaluation of digital business improvements enabled by quantitative feedback, piloting innovative ideas and technologies.Demand Analysis:assessment o the demand for e-commerce services amongst existing and potential customer segments – this is key in a digital marketing planAssessing Competitive ThreatsMichael Porter’s classic 1980 model of the five main competitive forces are still valid for reviewing threats in the digital business era.
Competitive Threats 1.Threat of new e-commerce entrantsThis has been a common threat for traditional retailers selling books and financial services. Example: banks in Europe have been threated by the entry of completely new start-up companies like Zoopa.com2.Threats of new digital productsCan occur from established or new companies, the threats are likely to occur where digital product fulfillment can occur over the internet. This may not affect 3.Threat of new business modelsCan also be from established or new companies, Sell-Side threats1.Customer power and knowledgeBiggest threat by electronic trading, the bargaining power of customer has greatly increased when they are using the Internet to evaluate products and compare prices. Commoditization: the process where product selection becomes more dependent on price than differentiating features, benefits and value-added services. In B2B markets, ease of the use of Internet channel makes it potentially easier for customers to swap suppliers, switching costs are lower now. Soft Lock-in: electronic linkages between supplierand customer increasing switching costs2.Power of intermediariesA significant downstream channel threat is the potential loss partners or distributors if there is a channel conflict resulting from disintermediation. The tensions between intermediaries and aggregators and strategies to resolve them. Buy-Side Threats1.Power of Suppliers
Can be considered an opportunity rather than a threat, companies can insist for reasons of reducing cost and increasing supply chain efficiency that their suppliers use electronic links such as EDI or Internet EDI to process orders2.Power of IntermediariesThese include costs of integration with such intermediaries, particularly if different standards of integration are required for each. They may pose a threat from increasing commission once they are establishedCo-opetition – interactions between competitors and marketplace intermediaries which ch=an mutually improve the attractiveness of a marketplace. These can include: Joint standards setting for technology and other industry standardsJoint developments for improving product qualityJoint lobbying for favorable legislation, perhaps through involvement in trade associations
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- Fall '17