E-commerce Strategies for Business Markets

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E-commerce Strategies for Business Markets

• Chapter 13

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E-commerce

• 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.
• Whats the big deal?
• Perspectives
• Communications
• Business
• Service
• Online

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Key Elements Supporting E-commerce

• Internet
• History
• Intranet
• Internal Internets
• What do they do?
• Extranet
• Business partners

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Types of E-commerce

• 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

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The Strategic Role of E-commerce

• 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

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The Strategic Role of E-commerce

• Internet can cause some companies to fail
• How?
• Internet should complement existing technology
• Porters take

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The Strategic Role of E-commerce

• 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

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Crafting an E-commerce Strategy

• Look at
• Customers and markets
• Competitive threats
• People and infrastructure
• Sources and operations
• Delineating Objectives
• Synchronize with strategy

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Crafting an E-commerce Strategy

• 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.

• Sell products and services
• Sell more efficiently
• Advertise in a new medium
• Generate leads
• Provide customer service medium
• Build strong relationships

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Internet Strategy Implementation

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

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Internet Strategy Implementation

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

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Internet Strategy Implementation

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