1. Strategy e-Business

2. Strategy Planning Definition (Koetler & Keller, 2006):
Managerial process of developing & maintaining a viable fit between the organization’s objectives, skills, and resources and its changing market opportunities
Part of the process is to identify the firm’s goals:
Growth
Competitive Position
Geographic Scope
Other Objectives

3. Environment – Strategy - Performance
Business Environment
Legal, ethical, technological, competitive, market-related & other factors create opportunities & threats
Firms perform SWOT analyses to discover strengths & weaknesses
Business Strategy
Firms select e-business model & formulate strategy & create marketing plan to accomplish its overall goals
Performance Metric
To determine the success of the strategies & plans by measuring results

4. Strategy The means to achieve a goal
How the firm will achieve its objectives, not what its goals are
The firm sets its growth & objectives, then decides which strategies will be used to accomplish them.
Tactics are detail plans to implement the strategies

5. Electronic Strategy E-Business Strategy E-Marketing Strategy
The deployment of enterprise resources to capitalize on technologies for reaching specified objectives that ultimately improve performance & create sustainable competitive advantage
E-Marketing Strategy
Design of marketing strategy that capitalizes on the firm’s information technology capabilities to reach specified objectives

6. Business Model E-Business Model Components of Business Model:
Method by which the organization sustains itself in the long term using information technology, which includes its value proposition for partners & customers as well as its revenue streams
Components of Business Model:
Customer Value
Connected activities
Scope
Implementation
Price
Capabilities
Revenue sources
Sustainability

7. E-Marketing contributes to E-Business Model (1)
E-Marketing increases Benefits
Online mass customization
Personalization
24/7 convenience
Self-service ordering & tracking
One-stop shopping
Learning from customers on social networking sites

8. E-Marketing contributes to E-Business Model (2)
E-Marketing decrease Costs
Low cost distribution of communication messages
Low cost distribution channel for digital products
Lower cost for transaction processing
Lower cost for knowledge acquisition
Create efficiencies in supply chain
Decrease cost of customer service
E-Marketing increases Revenues

9. E-Marketing contributes to E-Business Model (3)
E-Marketing increases Revenues
Online transaction revenues
Add value to products/services and increase prices
Increase customer base by reaching new markets
Build customer relationship and increase current customer spending

10. E-Business Model Level of Commitment to e-Business
Pure Play
Enterprise
Business Transformation
Level of Business Impact
Business Process
Effectiveness – customer retention
Activity
Efficiency – cost reduction

11. E-Business Model Activity Level
Cost reduction through e-business efficiencies
Online Purchasing
Order Processing
Content publishing
Business intelligence
Online advertising & public relations
Online sales promotions
Pricing strategies

12. E-Business Model Business Process Level
To increase firm’s effectiveness
Customer Relationship Management (CRM)
Knowledge Management (KM)
Supply Chain Management (SCM)
Community Building
Affiliate programs
Database Marketing
Enterprise Resource Planning (ERP)
Mass customization

13. E-Business Model Enterprise Level
The firm automates many business processes in a unified system-demonstrating a significant commitment to e-business
E-Commerce, direct selling & content sponsorship
Portal
Social networking
Broker models
Agent models

14. E-Business Model Pure Play
Business that began on the internet, even if they subsequently added a brick-and-mortar presence
Example:
Amazon
Office Depot
E*TRADE

15. Performance Metrics
Specific measures designed to evaluate the effectiveness and efficiency of an organization’s operations
Web Analytics
User engagement metrics