1 EC Strategy

2 AMAZON.COM - TWO HOME PAGES FOR DIFFEERENT CUSTOMERS

3 Industry and Competitive Analysis zMonitoring, evaluating, disseminating of information from the external and internal environments zSWOT Analysis yINTERNAL AND EXTERNAL Strengths Weaknesses Opportunities Threats

4 Strengths (S)Weaknesses (W) Opportunities (O) Threats (T) INTERNAL FACTORS EXTERNAL FACTORS SO Strategies use strengths to take advantages of opportunities WO Strategies take advantage of opportunities that overcome weaknesses ST Strategies use strengths to avoid threats WT Strategies minimize weaknesses and avoid threats Industry and Competitive Analysis External and Internal Perspective

5 EC STRATEGY QUESTIONS? How is Electronic Commerce going to change our business? How do we uncover new types of business opportunities? How can we take advantage of new electronic linkages with customers and trading partners? Will intermediaries be eliminated in the process? Or do we become intermediaries ourselves? How do we bring more buyers together electronically (and keep them there)? How do we change the nature of our products and services? Is the Internet affecting other companies more than ours?Why? How do we manage and measure the evolution of our strategy

6 FRONTAL COMPETITION FLANKING BYPASS FLANKING ENCIRCLEMENT GUERRILLA Karl von Clausewitz 1780 –1831 OFFENSIVE

7 FRONTAL COMPETITION Frontal Assault Attacker must have superior resources and willingness to persevere Barnes and Noble.com vs Amazon.com

8 COMPETITION FLANKING Flanking Maneuver Attack the market where the competitor is weakest Ebay, Craigslist, E*Trade, Ameritrade or Virtual Vinyard vs Conventional CARS, COPIERS MOTORCYCLES

9 COMPETITION BYPASS Bypass Attack Cut market from established defender by offering new product making theirs unnecessary Netflicks, E-books? Web-tickets? Expedia SWISS – CITIZENS, SIEKO

10 COMPETITION ENCIRCLEMENT Encirclement Greater variety and/or serves more markets Google, AOL, CNN.COM, YouTube, Amazon SHELFSPACE

11 COMPETITION GUERRILLA Guerrilla Warfare Use of small, intermittent assaults on different market segments held by the competitor Purpose: not to win but concessions Specialty books, BEST BUY, Podcasts Vs printnews, Wikipedia

12 COOPERATIVE STRATEGY SOME REASONS FOR 1.Obtain technology/manufacturing capabilities 2.Access to specific markets 3.Reduce financial or political exposure/risk 4.Achieve competitive advantage 5.Use capacity 6.Combine areas of excellence

13 THE END OF THE TRAIL