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 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 opportunitystore product suitability showroomwindow lowlow 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 bewareinteractive technicaladvisor complexity WYSIWYGfull lowinformation 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