1. Chapter 2: The e-business strategy framework
After this session you should be able to
Understand the key challenges in e-business strategy formulation.
Have an understanding of the key elements of the e-business strategy framework.
After this session you should be able to:
Understand the key challenges in e-business strategy formulation.
Have an understanding of the key elements of the e-business strategy framework.

2. Exhibit 2.1 The goal of e-business strategy is to achieve (long-term) success by building up one or more sources of competitive advantage
Formulation
Environment
Goals
Market positioning
Competitive advantage
(Long-term) success
Resource exploitation
Resources
Implementation
Source: Adapted from H. Hungenberg (2006), p. 83

3. Competitive Advantage
Layman’s definition: Having something your competitors don’t.
It can be:
An protected asset – brand, patent, intellectual property…
A core competency – the ability to do something better than others…
Resource-based-view (RBV) – a resource that is:
Rare
Inimitable
Non-substitutable
Costly

4. Exhibit 2.2 The e-business strategy framework consists of three main steps12
Mobile e-commerce strategy
E-business strategy
Strategic
analysis
Strategy formulation
Strategy implementation 3
External analysis 5 9
Strategy options
Internal organisation
Opportunities/ threats 6 7 10 13
Sustaining competitive advantage
Exploring new market spaces
Interaction with suppliers
Implementation
Strengths/
weaknesses 4
Internal analysis
Creating and capturing value 8 11
Interaction with users/customers

5. Strategy requires consideration of internal, and external factors
Internal – Strengths, Weaknesses
External – Opportunities, Threats
A fit between external factors (market positioning) and internal factors (resource exploitation) can help a firm gain competitive advantage

6. Key environmental/ industry developments
Exhibit 2.3 E-business strategy formulation entails an internal and an external analysis to identify strengths, weaknesses, opportunities and threats
(SWOT Analysis)
Key environmental/ industry developments
Opportunities
Threats
Do we have the strengths to seize possible opportunities?
Do we have the strengths to fend off possible threats?
Strengths
Firm charac- teristics
Which opportunities do we miss because of our deficits?
To which threats do our weaknesses expose us to?
Weaknesses