Strategy e-Business

Strategy Planning Definition (Koetler & Keller, 2006): Managerial process of developing & maintaining a viable fit between the organization’s objectives, skills, and resources and its changing market opportunities Part of the process is to identify the firm’s goals: Growth Competitive Position Geographic Scope Other Objectives

Environment – Strategy - Performance Business Environment Legal, ethical, technological, competitive, market-related & other factors create opportunities & threats Firms perform SWOT analyses to discover strengths & weaknesses Business Strategy Firms select e-business model & formulate strategy & create marketing plan to accomplish its overall goals Performance Metric To determine the success of the strategies & plans by measuring results

Strategy The means to achieve a goal How the firm will achieve its objectives, not what its goals are The firm sets its growth & objectives, then decides which strategies will be used to accomplish them. Tactics are detail plans to implement the strategies

Electronic Strategy E-Business Strategy E-Marketing Strategy The deployment of enterprise resources to capitalize on technologies for reaching specified objectives that ultimately improve performance & create sustainable competitive advantage E-Marketing Strategy Design of marketing strategy that capitalizes on the firm’s information technology capabilities to reach specified objectives

Business Model E-Business Model Components of Business Model: Method by which the organization sustains itself in the long term using information technology, which includes its value proposition for partners & customers as well as its revenue streams Components of Business Model: Customer Value Connected activities Scope Implementation Price Capabilities Revenue sources Sustainability

E-Marketing contributes to E-Business Model (1) E-Marketing increases Benefits Online mass customization Personalization 24/7 convenience Self-service ordering & tracking One-stop shopping Learning from customers on social networking sites

E-Marketing contributes to E-Business Model (2) E-Marketing decrease Costs Low cost distribution of communication messages Low cost distribution channel for digital products Lower cost for transaction processing Lower cost for knowledge acquisition Create efficiencies in supply chain Decrease cost of customer service E-Marketing increases Revenues

E-Marketing contributes to E-Business Model (3) E-Marketing increases Revenues Online transaction revenues Add value to products/services and increase prices Increase customer base by reaching new markets Build customer relationship and increase current customer spending

E-Business Model Level of Commitment to e-Business Pure Play Enterprise Business Transformation Level of Business Impact Business Process Effectiveness – customer retention Activity Efficiency – cost reduction

E-Business Model Activity Level Cost reduction through e-business efficiencies Online Purchasing Order Processing E-mail Content publishing Business intelligence Online advertising & public relations Online sales promotions Pricing strategies

E-Business Model Business Process Level To increase firm’s effectiveness Customer Relationship Management (CRM) Knowledge Management (KM) Supply Chain Management (SCM) Community Building Affiliate programs Database Marketing Enterprise Resource Planning (ERP) Mass customization

E-Business Model Enterprise Level The firm automates many business processes in a unified system-demonstrating a significant commitment to e-business E-Commerce, direct selling & content sponsorship Portal Social networking Broker models Agent models

E-Business Model Pure Play Business that began on the internet, even if they subsequently added a brick-and-mortar presence Example: Amazon Office Depot E*TRADE

Performance Metrics Specific measures designed to evaluate the effectiveness and efficiency of an organization’s operations Web Analytics User engagement metrics