Electronic Commerce

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Chapter 15

E-Commerce Strategy and Global EC

Learning Objectives

Upon completion of this chapter, you will be able to:
1. Describe the strategic planning process.
2. Understand how e-commerce impacts the strategic planning process. 3. Understand how EC applications are formulated, justified, and prioritized. 4. Describe strategy implementation and assessment, including the use of metrics. 5. Understand the causes of EC failures and lessons for success. 6. Evaluate the issues involved in global EC.

7. Analyze the impact of EC on small businesses.

Content

Lonely Planet Travels from Place to Space
15.1Organizational Strategy: Concepts and Overview
15.2EC Strategy: Concepts and Overview
15.3E-Strategy Initiation
15.4E-Strategy Formulation
15.5E-Strategy Implementation
6. E-Strategy and Project Assessment
7. Keys to EC Success
15.8Going Global
15.9EC in Small- and Medium-Sized Enterprises
Managerial Issues
Real-World Case: IBM’s E-Business Strategy

Answers to Pause/Break Section Review Questions

Section 15.1 Review Questions
1.What is strategy? What is e-commerce strategy?

A strategy is a broad-based formula for how a business is going to compete, what its goal should be, and what plans and policies will be needed to carry out those goals. The elements of a strategy include forecasting, resource allocation, core competency, environmental analysis, company analysis, and business planning.

2.Which is more important, a plan or a planning process? Why?

Student answers will vary. It can be argued that a process is more important because it can lead to a plan and revisions.

3.Describe the four phases of strategic planning.

The four phases include strategy initiation, strategy formulation, strategy implementation, and strategy assessment.

4.Why is a cyclic approach to strategic planning required?

It allows business decision makers to evaluate and react to the success of past decisions.

5.Describe five tools that can be used for strategic planning.

SWOT analysis
Competitor analysis grid
Scenario planning
Return on investment
Balanced scorecard

Section 15.2 Review Questions

1.What factors make the “e-difference” in EC strategic planning?

These include reach/richness, decreased barriers to entry, virtual partnerships, and market niches.

2.What assets and liabilities do born-on-the-Net organizations have in developing an e-strategy?

These firms generally have the ability to be agile and adapt to changing conditions quickly. Their liabilities are in their lack of developed processes and channels.

3.What assets and liabilities do move-to-the-Net organizations have in developing an e-strategy?

These firms generally have developed processes and channels, but may be less agile.

Section 15.3 Review Questions

1.Describe the advantages, risks and success factors that first movers face.

The first mover in an industry has the advantage of being the first to offer a good or service to the market. This can help create an impression of them as the original or the initiator in the customers’ mind. Additionally, this firm will be able to capitalize on the demand for this good or service until another firm enters the market. First movers take the risk that new goods and services may not be accepted by the market.

2.What are the advantages and disadvantages of creating a separate online company?

Student responses will vary. Separate companies have the advantage of being free from existing procedures and bureaucracy. Separate companies can more easily be entrepreneurial and fast-moving. However, separate companies may not enjoy the support services provided by the parent firm and may lack the name recognition and respect that the parent firm may hold....
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