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Chapter 14: E-Commerce Strategy and Implementation, Strategies for EC,…
Chapter 14: E-Commerce Strategy and Implementation
14.1-14.2 Concepts, Overview & Justification :star:
Organizational Evaluation Tools
SWOT
Porter's 5 Forces
Initiation
Core Competencies: unique capabilities of companies, which are difficult to imitate
Forecasts
First Mover Advantage
Entrepreneurs
Market Research
What is an organizational strategy?
Comprehensive framework for expressing the manner in which a business plans to achieve its mission
Basics of Strategy
Difference Between a Strategy and a Tactic
Levels of Business Strategies
Formulation
Planning
Risk Analysis
E-commerce risk: likelihood that an negative outcome will occur in the course of developing and operating a new e-commerce initiative
Collaborative Efforts
Pricing Strategy
Cost-plus: determining the expenses associate with producing a product (production cost) by adding up all the costs involved
Competition-based model: determines price based on what competitors are charging for similar products
Multi-EC Model Strategy
Mergers/Acquisitions
Pros and Cons
Partnerships
Joint Venture
Difference b/w JV and Partnership
Selection
Justification
Qualitative
Financial
Cost-Benefit Analysis: comparing the costs of each projects against its benefits
Quantatative
Metrics
Implementation
Resource Allocation
Project Management
Assessment
Metrics
KPIs
Web analytics
Financial Reports
Marketing Data
Balance Scorecard
Customer
Financial
Internal Business
Learning Growth
Improvement and Management
Innovations
14.3 Globalization
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Advantages :check:
Ability to conduct business at any time, from anywhere, at a reasonable cost
Social media allows companies to interact directly with customers
Barriers :warning:
Cultural Differences
Social norms, local habits, spoken languages
Solution :bulb: Different sites for different countries
Legal Issues
Adoption of E-Commerce Legislation Worldwide
Link Title
Language Translation
Example
People prefer websites available in their own language
Problem: Speed & Cost
Solution :bulb: Machine Translator
Google translate or paid for translation services
Facebook
multilingual plug-ins
improved global gateway
multilingual user profiles
Economic & Financial issues
Government tariffs, customs, and taxation
Be strategic
Know your audience
Localize
Think Globally, Act consistently :<3:
14.4 SMEs
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Advantages of EC
Inexpensive sources of information
Easier competitive analysis
Creating and maintaining a website are relatively easy and cheap
Reinforces brand
Disadvantages of EC
Lack of funds to fully exploit the potential of EC
Less risk tolerance than a large company.
COVID19 Impact
Spanish SMEs are consistently among the more pessimistic (Exhibit 3).
Link Title
Impact of financial position of SME's
Government assistance is critical
Reduced Revenu
Survival depended on adaptation of EC
Increased importance of Social Commerce
SME's & Social Media
market to potential customers
support existing customers
interact with peer groups outside their immediate geographical area to exchange ideas
gather feedback about their services and products
14.5 Implementation
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Factors
Justification/Economics
System Acquisition of Development
Organizational Readiness
Organizational Impacts
How do we do it?
Resource Allocatoin
Project Management
Shopify
Squarespace
14.6 Developmental Strategies
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Insourcing
Advantages
Saves time and money compared to in-house development
No need to hire outside workers
The company knows the system and its capabilities
Disadvantages
May not be exactly what company needs
Can be expensive
Risk factor
Outsourcing Options
Building and implementing EC solutions
Launching and maintaining social media campaigns
Development of websites
Development of mobile applications
App Builders
Selecting a Development Option: consider the following
Customers
Merchandising
Sales service
Promotion
Transaction processing
Marketing data and analysis
Branding
14.7 Opportunities and Avoiding Failure
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Success factors
User-friendly website
Good customer relationships
Integration with internal and external information systems
Effective leadership of the digital business team
https://www.brightdesign.co.uk/5-of-the-best-website-designs-according-to-the-internet
Success Categories
product, industry, seller, and consumer characteristics
Failure in B2C EC
excessive risk exposure
high cost of customer acquisition
poor website design
Financial: lack of funding and incorrect revenue models
Social Media
high cost-to-benefit ratios
Poorly planned campaigns
improper interactions that decrease customer loyalty
Viral Errors
Fake reviews
can hurt the products’ perception
Strategies for EC
Create value for all participants
Digital partnerships
Social media engagement must be authentic
Campaigns must be memorable and funny to gain traction or go viral
Strategy-Performance Cycle
