Competitive advantage through e-commerce Acknowledgements to Euan Wilson (Staffordshire University)
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Transcript of Competitive advantage through e-commerce Acknowledgements to Euan Wilson (Staffordshire University)
Competitive advantage through e-commerce
Acknowledgements to Euan Wilson (Staffordshire University)
Network age commerce
• business networks cross company boundaries– integrating business activities– accessing inter-enterprises’ IS– sharing information/knowledge– imaginative business
Network age commerce
• alliances provide growth of opportunities– international or interdependent
• IT in era 4– collaboration– electronic integration- ‘virtual
organisation’– communication & knowledge – any
time, any place, in any form
Demands of business today
• reduced product lifecycles– time to market
• market share profitability
• survive
• increased cost pressures– need to control costs
Demands of business today
• increased demand for quality & customer services– responsiveness
• changing market– rapid reaction to constantly changing
market via IT
Demands of business today
• new business models– teleworking– virtual corporations– collaborative product development– integrated supply chain management
Competitive advantage through e-commerce
‘the conduct of business & the execution of business transactions using a combination of structured message exchange (EDI), unstructured message exchange (e-mail)…. across the entire range of networking technologies & across both public & private sectors’
ECA 1998
E-commerce types
• electronic trade– commercial/non-commercial activities– shared IS/IT as delivery channel
• electronic retailing– ‘home’ shopping– ‘internet’ shopping
• electronic inter-organisational transactions– ‘business to business’ marketing– electronic trade
Electronic retailing
• conflicting signals about competitive advantage– Amazon.com
• vast customer numbers gained in 2 years
• profit?
– PC gifts & flowers• 25000-30000 hits daily
• sales orders?
Key competitive advantage factors
• product attributes– delivery
– description
– after sales
• supplier attributes– trustworthiness
– reputation
– warranty/returns policy
– transaction safeguards
Good supplier attributes
• conventional trading– brand image– marketing expertise
• first mover advantage– rapid reputation– prime site ‘hoarding’
First ‘commercial’ framework
high
opportunity store
product
suitability
showroom window
low low high
supplier trustworthiness
Framework categories
• showroom – low/low
• catalogue/product descriptions
• limited e-commerce opportunity
• opportunity– high/low
• ‘chance’ finds/ purchases
• ‘risky’ purchasing decisions
Framework categories
• window– low/high
• primarily information source• ‘influences’ buying decisions
• store– high/high
• focused on making buying activity easy• enacts buying transactions• goods readily shipped
Second ‘technical’ framework
high
buyer beware interactive
technical advisor
complexity
WYSIWYG full
low information
low high
information accessibility
Framework categories
• WYSIWYG– low/low
• basic products/ minimum description
• minimum after sales service
• buyer beware– high/low
• lacking information to buy
• lost sales threat
Framework categories
• full information– low/high
• open information source• trustworthiness ‘assurances’ expected
• interactive advisor– high/high
• encourage dialogue/enquiries• use advice• after sales service
Good ‘store’ site attributes
• buying ease & safety
• trustworthiness
• browsing activity reproduction
• packing & shipping ease