OHT 5.

1
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Chapter 5
E-business Strategy
OHT 5.2
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Learning objectives

Follow an appropriate strategy process model

for e-bsiness!

"pply tools to generate and select e-bsiness

strategies!

#tline alternati$e strategic approaches to

achie$e e-bsiness%
OHT 5.3
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ssues !or "anagers

&ow does e-bsiness strategy differ from

traditional bsiness strategy'

&ow shold we integrate e-bsiness strategy

with e(isting bsiness and I) strategy'

&ow shold we e$alate or in$estment

priorities and retrns from e-bsiness'
OHT 5.#
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$ichae% &orter on the nternet

*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%+
,orter- M% .200/0 )trategy and the Internet-
Harvard Business Review, March 200/- 12234%
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'i!!erent !or"s o! organi(ationa% strategy
)igure 5.1 5ifferent forms of organi6ational strategy
OHT 5.*
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+e%ationship bet,een e-business
strategy an- other strategies
)igure 5.2 7elationship between e-bsiness strategy and other strategies
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/ generic strategy process
"o-e%
)igure 5.3 " generic strategy process model
OHT 5.0
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'yna"ic e-business strategy
"o-e%
)igure 5.# 5ynamic e-bsiness strategy model
ource8 "dapted from description in 9alakota and 7obinson .20000
OHT 5.1
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E%e"ents o! strategic situation
ana%ysis !or the e-business
)igure 5.5 :lements of strategic sitation analysis for the e-bsiness
OHT 5.12
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3hat happens ,here there is
no e-business strategy4

Missed opportnities for additional sales on

the sell-side and more efficient prchasing on
the by-side

Fall behind competitors in deli$ering online

ser$ices 2 may become difficlt to catch p-
e%g% ;esco- 5ell

,oor cstomer e(perience from poorly

integrated channels
OHT 5.11
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/-option steps o! e-business
services
)igure 5.* "doption steps of e-bsiness ser$ices
OHT 5.12
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Su""ary app%ications port!o%io
ana%ysis !or the 525 Co"pany
)igure 5.. )mmary applications portfolio analysis for ;he <2< =ompany
OHT 5.13
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S3OT ana%ysis !or the 525
co"pany
)igure 5.0 )>#; analysis for ;he <2< =ompany
OHT 5.1#
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Custo"er -e"an- !or e-"ar6eting
services !or The 525 Co"pany
)igure 5.1 =stomer demand for e-marketing ser$ices for ;he <2< =ompany
OHT 5.15
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Co"petitive threats acting on
the e-business
)igure 5.12 =ompetiti$e threats acting on the e-bsiness
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&orter7s !ive !orces
,ower of
sppliers
<argaining
powers of
cstomers
:(tent of ri$alry
between
competitors
;hreat of
sbsittes
;hreat of new
entrants
;he bsiness
;hreat of
sbstittes
OHT 5.1.
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/ctivity 8 "pact o! nternet

For one of the indstries below- assess how

the Internet has changed the competiti$e
forces- e%g% has it increased or decreased
power of sppliers and cstomers'

Indstries8
2
<anking
2
)permarkets
2
#il indstry
2
7ail indstry
OHT 5.10
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E%e"ents o! strategic objective
setting !or the e-business
)igure 5.11 :lements of strategic ob?ecti$e setting for the e-bsiness
OHT 5.11
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'irect an- in-irect nternet
contributions !or !ast gro,th co"panies in the 9S
)igure 5.12 5irect and indirect Internet contribtions for fast-growth companies
in the @)"
ource8 ,ricewaterhose=oopers .20000
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Arid of prodct sitability against
market adoption for transactional
e-commerce .online prchases0
)igure 5.13 Arid of prodct sitability against market adoption for transactional
e-commerce .online prchases0
OHT 5.21
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E%e"ents o! strategy -e!inition !or
the e-business
)igure 5.1# :lements of strategy definition for the e-bsiness
OHT 5.22
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Strategic options !or a co"pany in
re%ation to the i"portance o! the
nternet as a channe%
)igure 5.15 )trategic options for a company in relation to the importance of the
Internet as a channel
OHT 5.23
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/ssess"ent o! ris6 !or "ar6et an-
pro-uct -eve%op"ent !or the 525 co"pany
)igure 5.1* "ssessment of risk for market and prodct de$elopment for ;he
<2< =ompany
OHT 5.2#
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:e, pro-uct -eve%op"ent 8 S"i%e on%ine ban6ing ;
,,,.s"i%e.co.u6<
OHT 5.25
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'abs.co" ;,,,.-abs.co"<
)igure 5.10 5abs%com .www%dabs%com0
OHT 5.2*
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E%e"ents o! strategy
i"p%e"entation !or the e-business
)igure 5.11 :lements of strategy implementation for the e-bsiness