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Published byLewis Walton Modified over 9 years ago
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Competitive advantage through e-commerce Acknowledgements to Euan Wilson (Staffordshire University)
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Network age commerce business networks cross company boundaries –integrating business activities –accessing inter-enterprises’ IS –sharing information/knowledge –imaginative business
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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
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Demands of business today reduced product lifecycles –time to market market share profitability survive increased cost pressures –need to control costs
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Demands of business today increased demand for quality & customer services –responsiveness changing market –rapid reaction to constantly changing market via IT
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Demands of business today new business models –teleworking –virtual corporations –collaborative product development –integrated supply chain management
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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
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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
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Electronic retailing conflicting signals about competitive advantage –Amazon.com vast customer numbers gained in 2 years profit? –PC gifts & flowers 25000-30000 hits daily sales orders?
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Key competitive advantage factors product attributes –delivery –description –after sales supplier attributes –trustworthiness –reputation –warranty/returns policy –transaction safeguards
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Good supplier attributes conventional trading –brand image –marketing expertise first mover advantage –rapid reputation –prime site ‘hoarding’
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First ‘commercial’ framework high opportunitystore product suitability showroomwindow lowlow high supplier trustworthiness
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Framework categories showroom –low/low catalogue/product descriptions limited e-commerce opportunity opportunity –high/low ‘chance’ finds/ purchases ‘risky’ purchasing decisions
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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
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Second ‘technical’ framework high buyer bewareinteractive technicaladvisor complexity WYSIWYGfull lowinformation low high information accessibility
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Framework categories WYSIWYG –low/low basic products/ minimum description minimum after sales service buyer beware –high/low lacking information to buy lost sales threat
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Framework categories full information –low/high open information source trustworthiness ‘assurances’ expected interactive advisor –high/high encourage dialogue/enquiries use advice after sales service
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Good ‘store’ site attributes buying ease & safety trustworthiness browsing activity reproduction packing & shipping ease
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