Chapter 13

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“involves business communication and transmissions over networks and through computers, specifically the buying and selling of goods and services, and the transfer of funds through digital communications.”
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What’s the big deal?
Perspectives
• Communications
• Business
• Service
• Online

Key Elements Supporting
E-commerce
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Internet
• History
Intranet
• “Internal Internets”
• What do they do?
Extranet
• Business partners

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Interorganizational E-commerce
• Supplier management
• Inventory management
• Distribution management
• Channel management
• Payment management
Intraorganizational E-commerce
• Workgroup communications
• Electronic publishing
• Sales force productivity
Business-to-Consumer E-commerce
• Product information
• Sales
• Service
• Payment
• Marketing research

The Strategic Role of E-commerce
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What can it do?
• Communication device with customers
• Alternative distribution channel
• Valuable medium for delivering services
• Tool for gathering marketing research data
• Method for supply chain integration
Extends reach
Integrate into day-to-day

The Strategic Role of E-commerce
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Internet can cause some companies to fail
• How?
Internet should complement existing technology
• Porter’s take

The Strategic Role of E-commerce
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What else can it do?
• Enhance customer focus, responsiveness, and relationships
• Reduces transaction costs
• Integration into supply chain
• Focus on core business
• Access global markets

Crafting an E-commerce Strategy
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Look at:
• Customers and markets
• Competitive threats
• People and infrastructure
• Sources and operations
Delineating Objectives
• Synchronize with strategy

Crafting an E-commerce Strategy
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Target a specific market
Build recognition of company name
Convey a cutting edge image
Conduct market research
Interact with existing customers
Real-time information about customers, products, etc.
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Sell products and services
Sell more efficiently
Advertise in a new medium
Generate leads
Provide customer service medium
Build strong relationships

Internet Strategy Implementation
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Internet Product
• Website
• Successful design
• Internet catalogs
• Reverse auctions
Channel Considerations
• Automated services
• Effect on Current Intermediaries
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Disintermediation
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Can be a cheap method of distribution

Internet Strategy Implementation
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Internet Pricing
• Impact of new markets
• Real-time advantages
• Levels
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Online information
Database publishing
Customer self-service
Transactions

Internet Strategy Implementation
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Internet Promotions
• Meet Customer Requirements
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Complements personal selling
• Role of sales force
• Other promotions