E-commerce Strategies for Business Markets Chapter 13

E-commerce “involves business communication and transmissions over networks and through computers, specifically the buying and selling of goods and services, and the transfer of funds through digital communications.” “involves business communication and transmissions over networks and through computers, specifically the buying and selling of goods and services, and the transfer of funds through digital communications.” What’s the big deal? What’s the big deal? Perspectives Perspectives CommunicationsCommunications BusinessBusiness ServiceService OnlineOnline

Key Elements Supporting E-commerce Internet Internet HistoryHistory Intranet Intranet “Internal Internets”“Internal Internets” What do they do?What do they do? Extranet Extranet Business partnersBusiness partners

Types of E-commerce Interorganizational E-commerce Interorganizational E-commerce Supplier managementSupplier management Inventory managementInventory management Distribution managementDistribution management Channel managementChannel management Payment managementPayment management Intraorganizational E-commerce Intraorganizational E-commerce Workgroup communicationsWorkgroup communications Electronic publishingElectronic publishing Sales force productivitySales force productivity Business-to-Consumer E-commerce Business-to-Consumer E-commerce Product informationProduct information SalesSales ServiceService PaymentPayment Marketing researchMarketing research

The Strategic Role of E-commerce What can it do? What can it do? Communication device with customersCommunication device with customers Alternative distribution channelAlternative distribution channel Valuable medium for delivering servicesValuable medium for delivering services Tool for gathering marketing research dataTool for gathering marketing research data Method for supply chain integrationMethod for supply chain integration Extends reach Extends reach Integrate into day-to-day Integrate into day-to-day

The Strategic Role of E-commerce Internet can cause some companies to fail Internet can cause some companies to fail How?How? Internet should complement existing technology Internet should complement existing technology Porter’s takePorter’s take

The Strategic Role of E-commerce What else can it do? What else can it do? Enhance customer focus, responsiveness, and relationshipsEnhance customer focus, responsiveness, and relationships Reduces transaction costsReduces transaction costs Integration into supply chainIntegration into supply chain Focus on core businessFocus on core business Access global marketsAccess global markets

Crafting an E-commerce Strategy Look at: Look at: Customers and marketsCustomers and markets Competitive threatsCompetitive threats People and infrastructurePeople and infrastructure Sources and operationsSources and operations Delineating Objectives Delineating Objectives Synchronize with strategySynchronize with strategy

Crafting an E-commerce Strategy Target a specific market Target a specific market Build recognition of company name Build recognition of company name Convey a cutting edge image Convey a cutting edge image Conduct market research Conduct market research Interact with existing customers Interact with existing customers Real-time information about customers, products, etc. Real-time information about customers, products, etc. Sell products and services Sell products and services Sell more efficiently Sell more efficiently Advertise in a new medium Advertise in a new medium Generate leads Generate leads Provide customer service medium Provide customer service medium Build strong relationships Build strong relationships

Internet Strategy Implementation Internet Product Internet Product WebsiteWebsite Successful designSuccessful design Internet catalogsInternet catalogs Reverse auctionsReverse auctions Channel Considerations Channel Considerations Automated servicesAutomated services Effect on Current IntermediariesEffect on Current Intermediaries Disintermediation Disintermediation Can be a cheap method of distribution Can be a cheap method of distribution

Internet Strategy Implementation Internet Pricing Internet Pricing Impact of new marketsImpact of new markets Real-time advantagesReal-time advantages LevelsLevels Online information Online information Database publishing Database publishing Customer self-service Customer self-service Transactions Transactions

Internet Strategy Implementation Internet Promotions Internet Promotions Meet Customer RequirementsMeet Customer Requirements Complements personal selling Complements personal selling Role of sales forceRole of sales force Other promotionsOther promotions