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.

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

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

Exhibit 2.2 The e-business strategy framework consists of three main steps 12 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

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

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