1. Chapter 5 E-business Strategy

2. Learning objectives
Follow an appropriate strategy process model for e-business;
Apply tools to generate and select e-business strategies;
Outline alternative strategic approaches to achieve e-business.

3. Issues for managers
How does e-business strategy differ from traditional business strategy?
How should we integrate e-business strategy with existing business and IS strategy?
How should we evaluate our investment priorities and returns from e-business?

4. Michael Porter on the Internet
‘The key question is not whether to deploy Internet technology – companies have no choice if they want to stay competitive – but how to deploy it.’
Porter, M. (2001) Strategy and the Internet,
Harvard Business Review, March 2001, 62–78.

5. Different forms of organizational strategy
Figure 5.1  Different forms of organizational strategy

6. Relationship between e-business strategy and other strategies
Figure 5.2  Relationship between e-business strategy and other strategies

7. A generic strategy process model
Figure 5.3  A generic strategy process model

8. Dynamic e-business strategy model
Figure 5.4  Dynamic e-business strategy model
Source: Adapted from description in Kalakota and Robinson (2000)

9. Elements of strategic situation analysis for the e-business
Figure 5.5  Elements of strategic situation analysis for the e-business

10. What happens where there is no e-business strategy?
Missed opportunities for additional sales on the sell-side and more efficient purchasing on the buy-side
Fall behind competitors in delivering online services – may become difficult to catch up, e.g. Tesco, Dell
Poor customer experience from poorly integrated channels

11. Adoption steps of e-business services
Figure 5.6  Adoption steps of e-business services

12. Summary applications portfolio analysis for the B2B Company
Figure 5.7  Summary applications portfolio analysis for The B2B Company

13. SWOT analysis for the B2B company
Figure 5.8  SWOT analysis for The B2B Company

14. Customer demand for e-marketing services for The B2B Company
Figure 5.9  Customer demand for e-marketing services for The B2B Company

15. Competitive threats acting on the e-business
Figure 5.10  Competitive threats acting on the e-business

16. Porter’s five forces
Threat of substitutes

17. Activity – Impact of Internet
For one of the industries below, assess how the Internet has changed the competitive forces, e.g. has it increased or decreased power of suppliers and customers?
Industries:
Banking
Supermarkets
Oil industry
Rail industry

18. Elements of strategic objective setting for the e-business
Figure 5.11  Elements of strategic objective setting for the e-business

19. Direct and indirect Internet contributions for fast growth companies in the US
Figure 5.12  Direct and indirect Internet contributions for fast-growth companies in the USA
Source: PricewaterhouseCoopers (2000)

20. Grid of product suitability against market adoption for transactional e-commerce (online purchases)
Figure 5.13  Grid of product suitability against market adoption for transactional e-commerce (online purchases)

21. Elements of strategy definition for the e-business
Figure 5.14  Elements of strategy definition for the e-business

22. Strategic options for a company in relation to the importance of the Internet as a channel
Figure 5.15  Strategic options for a company in relation to the importance of the Internet as a channel

23. Assessment of risk for market and product development for the B2B company
Figure 5.16  Assessment of risk for market and product development for The B2B Company

24. New product development – Smile online banking (www.smile.co.uk)

25. Dabs.com (
Figure 5.18  Dabs.com (

26. Elements of strategy implementation for the e-business
Figure 5.19  Elements of strategy implementation for the e-business