Slide 2.1

Tawfik Jelassi and Albrecht Enders, Strategies for e-Business, 2nd edition, © Pearson Education Limited 2008

Chapter 2: The e-business strategy framework

After this session you should be able to:

Understand the key challenges in e-business strategy formulation.

Have an understanding of the key elements of the e-business strategy framework.

After this session you should be able to

Understand the key challenges in e-business strategy formulation.

Have an understanding of the key elements of the e-business strategy framework.

Slide 2.2

Tawfik Jelassi and Albrecht Enders, Strategies for e-Business, 2nd edition, © Pearson Education Limited 2008

Marketpositioning

Resourceexploitation

Competitiveadvantage

(Long-term)success

Environment Goals

Resources

Implementation

Formulation

Exhibit 2.1 The goal of e-business strategy is to achieve (long-term) success by building up one or more sources of competitive advantage

Source: Adapted from H. Hungenberg (2006), p. 83

Slide 2.3

Tawfik Jelassi and Albrecht Enders, Strategies for e-Business, 2nd edition, © Pearson Education Limited 2008

Competitive Advantage

Layman’s definition: Having something your competitors don’t.

It can be: An protected asset – brand, patent, intellectual property… A core competency – the ability to do something better than

others… Resource-based-view (RBV) – a resource that is:

Rare Inimitable Non-substitutable Costly

Slide 2.4

Tawfik Jelassi and Albrecht Enders, Strategies for e-Business, 2nd edition, © Pearson Education Limited 2008

Strategyoptions

Externalanalysis

Internalanalysis

Sustaining competitive advantage

Internal organisation

ImplementationExploring

new market spaces

Interaction with suppliers

Interaction with users/customers

Creating and capturing

value

Strategic analysis

Strategy implementation

3

4

5

6 7

8

9

10

11

13

E-business strategy

Mobile e-commerce strategy12

Opportunities/ threats

Strengths/weaknesses

Exhibit 2.2 The e-business strategy framework consists of three main steps

Strategy formulation

Slide 2.5

Tawfik Jelassi and Albrecht Enders, Strategies for e-Business, 2nd edition, © Pearson Education Limited 2008

• Strategy requires consideration of internal, and external factors• Internal – Strengths, Weaknesses• External – Opportunities, Threats

• A fit between external factors (market positioning) and internal factors (resource exploitation) can help a firm gain competitive advantage

Slide 2.6

Tawfik Jelassi and Albrecht Enders, Strategies for e-Business, 2nd edition, © Pearson Education Limited 2008

Firmcharac-teristics

Key environmental/industry developments

Opportunities Threats

Strengths

Weaknesses

• Do we havethe strengths to seize possibleopportunities?

• Do we havethe strengths tofend off possible threats?

• To which threats do our weaknesses expose us to?

• Which opportunitiesdo we miss becauseof our deficits?

Exhibit 2.3 E-business strategy formulation entails an internal and an external analysis to identify strengths, weaknesses, opportunities and threats (SWOT Analysis)