How Companies Use Their Website to Gain and Sustain Competitive Advantage

Only available on StudyMode
  • Download(s) : 256
  • Published : March 20, 2011
Open Document
Text Preview
Long Island University|
E-Commerce Project|
How Companies Use Their Website to Gain and Sustain Competitive Advantage| Course:MBA 620-001Instructor:Dr. Shailendra C. Jain Palvia| Li, YiLiao, JiaxingLin, FangyunLuo, Kaikai|
12/1/2009|

|

1. Background
Electrical commerce, commonly abbreviated to e-commerce, generally consists of the developing, marketing, selling, delivering, servicing, and paying for products and services over electronic systems such as the Internet and other computer networks. With widespread Internet usage, the amount of U.S. e-commerce growth has dramatically increased in last decade. In today’s competitive jungle, providers of any kind and consumers with any need are utilizing the growing omnipresence of the Internet to improve their utility.

2. Companies for research
1. IBM Global Services
2. Accenture
3. Capgemini
All these three companies are the leading consulting and outsourcing services companies. For more specific, IBM Global Services is the largest information services company in the world. According to its financial report, IBM Global Services has more than twice the revenue of its close competitors such as Accenture and Capgemini. Although IBM Global Services has such strong leadership performance in the market, it still faces intense competition from Accenture and Capgemini. Our goal is to analyze the superiors and inferiors of these three companies, based on the studies and observations of the features and characteristics of their websites. A professional website is essential to business since millions of people are surfing internet each day. It allows them to provide customers with information of their products and services. A quality website can even improve customer interaction with your business. A good website can effectively benefit your business by attracting and sustaining customers and competitive advantages. Therefore, we apply 2 major models of business performance analysis onto these three leading consulting and outsourcing services companies, based on their websites and a series of relevant information resources.

3. Industry Analysis: Porter’s Five Forces Model
Porter’s Five Forces Modal is a framework for the industry analysis and business strategy development that identifies five competitive forces. In this paper, we tried to use this model to analysis the leading consulting and outsourcing services industry on a large-scale company basis thereby to emphasize that it is critical important to maintain and gain competitive advantages by utilizing effective approach including web-based technology.

High
Compete with companies of
Similar Size
Medium Size
Small Size
High
Compete with companies of
Similar Size
Medium Size
Small Size
Weak

Weak

High

High

Moderate to high

Moderate to high

Moderate to high
Moderate to high

3.1 Potential new entrants
Potential new entrant also known as barriers to entry, are sometimes blocked by the cost or difficulty of entering a market. Since the power of the Internet has turned the world into a relative village. With widespread of the Internet, the barriers to entry will be lowered beyond our imagination. Companies of similar and smaller size worldwide those with adequate technical capability and resources are able to step into the market much easier than before, which brings moderate-to-high level threat to the existing companies. 3.2 Bargaining power of buyers

Bargaining power of buyers can greatly influence the strategy of a company. The increasing usage of the Internet and blast of information technology revolution have made information of any kind available at a dramatically higher speed. As a result, people are able to get as much information as they like. Businesses of information technology have to realize that the landscape you see where the power-shift is enormous. What the customers asking for are cost reduction and quality guarantee, therefore...
tracking img