00. Case Study Analysis Guide

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Case study analysis guide E-COMMERCE 2011 Nguyn Th Hng Vân, MBA

Transcript of 00. Case Study Analysis Guide

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Case study analysis guide

E-COMMERCE 2011Nguyễn Thị Hồng Vân, MBA

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Case study analysis objectives

1. Describe the core components of an e-businessmodel of a company or in an industry

2. Discuss the keys to success or failure

3. Discuss the lessons for Vietnamese companies.

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Analysis tools

• Key Ingredients of a Business Model

• Revenue models

• Porter’s competitive forces model 

•SWOT

• 8 C’s to Effective Web Site Design

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Key Ingredients of a Business Model

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Value Proposition

•Defines how a company’s product or service fulfillsthe needs of customers

• Questions to ask:

• Why will customers choose to do business with

your firm instead of another?• What will your firm provide that others do not or

cannot?

• Examples of successful value propositions:

Personalization/customization• Reduction of product search, price discovery

costs

• Facilitation of transactions by managing productdelivery

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Revenue Model

• Describes how the firm will earn revenue, generateprofits, and produce a superior return on investedcapital

• Major types:

• Advertising revenue model

• Subscription revenue model

• Transaction fee revenue model

• Sales revenue model

• Affiliate revenue model

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Typical Revenue Models for EC

• Most important ingredient of business model

• How will the firm earn revenue?

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Market Opportunity

•Refers to a company’s intended marketspace andoverall potential financial opportunities available tothe firm in that marketspace

• Marketspace

• Area of actual or potential commercial value inwhich company intends to operate 

• Realistic market opportunity

• Defined by revenue potential in each of marketniches in which company hopes to compete

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Competitive Environment

•Refers to the other companies selling similarproducts and operating in the same marketspace

• Influenced by:

• Number of active competitors

• Each competitor’s market share 

• Competitors’ profitability 

• Competitors’ pricing 

•Includes both direct competitors and indirectcompetitors

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Competitive Advantage

•Achieved when a firm can produce a superiorproduct and/or bring product to market at a lowerprice than most, or all, of competitors

• First mover advantage• Unfair competitive advantage

• Perfect market: No competitive advantages orasymmetries

• Leverage: When a company uses its competitive

advantage to achieve more advantage insurrounding markets

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Market Strategy

• Plan that details how a company intends to enter anew market and attract customers

• Best business concepts will fail if not properly

marketed to potential customers

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Organizational Development

• Plan that describes how the company will organizethe work that needs to be accomplished

• Work is typically divided into functional

departments

• Hiring moves from generalists to specialists ascompany grows

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Management Team

• Employees of the company responsible for makingthe business model work

• Strong management team gives instant credibility to

outside investors

• Strong management team may not be able tosalvage a weak business model, but should be ableto change the model and redefine the business as it

becomes necessary

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Porter’s Competitive Forces Models: Howthe Internet Influences Industry Structure

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 8 C’s to Effective Web Site Design

•Context- Layout and Design

• Content- Text, pictures, sound and video

• Community- Enables user to user interaction

• Customization- Ability to tailor site to different users and

personalize the site• Communication- Enables easy two way communication

• Connection- Degree to which the site is linked to other sites

• Commerce- Capability to enable commercial transactions- $$

• Change- Ability to prepare and change to meet marketconditions/ competitor’s strategies 

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Individualization and Interaction

Dell Computer’s Approach to Customer Interaction 

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Refferences

• Efraim Turban (2010). Electronic commerce 2010 Amanagerial perspective. Prentice Hall

• Dave Chaffey (2007). E-business and E-commerceManagement 3rd. Prentice Hall

• Ward Hanson, Kirthi Kalyanam (2007). InternetMarketing & e-Commerce. Thomson

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ANY QUESTIONS?

How canI show

the

LecturerI’m a

“good”student?

Whatcan Ido toget

anA?

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In-class discussion

•Chose 01 e-commerce website and analyze the 8C’smodel.

• Guide:

• Example of e-commerce website: Dell, Amazon,eBay, Alibaba, ect.

• Work in group of 3 to 5

Discuss and summarize into one A4 page longessay.

• Submit paper at 5pm