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Strategies for e-Business

Strategies for e-Business

Tawfik Jelassi | Albrecht Enders | Francisco J Mart’nez-L—pez

(2015)

Additional Information

Book Details

Abstract

Strategies for E-Business provides realistic and compact coverage of the key concepts linking strategy and e-business, illustrated by original case studies. Ideal for MBA students and upper level undergraduates, this book utilises extensive research, strategic frameworks, a methodological toolset and original real-world case studies to link e-business to overall corporate strategy. It builds awareness and sharpens students' analytical understanding of how companies have developed and implemented electronic and mobile commerce strategies in the real world and the issues and challenges that e-commerce strategies and applications present.


Table of Contents

Section Title Page Action Price
Brief contents v
Contents vii
Exhibits xx
Foreword xxiii
Preface xxvii
Authors' acknowledgements\r xxxiii
The authors xxxv
Publisher's acknowledgements\r xxxvii
Part 1: Introduction\r 1
Chapter 1: Key terminology and evolution of e-business\r 3
Chapter at a glance 3
Learning outcomes 3
Introduction 4
1.1 Key terminology\r 4
1.1.1 e-Business\r 4
1.1.2 E lectronic commerce\r 4
1.1.3 Mobile e-commerce\r 4
It's too early for e-business to drop its 'e'\r 5
1.1.4 The concept of strategy\r 6
1.1.5 The concept of value creation and capturing\r 9
1.2 The evolution of e-business\r 9
1.2.1 The grassroots of e-business\r 14
EDI update\r 14
1.2.2 The rise of the Internet\r 16
Boo.com founder fears net bubble\r 17
1.2.3 The crash\r 18
Webvan's billion-dollar mistake\r 21
1.2.4 The synergy phase\r 22
From Netscape to the Next Big Thing: how a dotcom decade changed our lives\r 22
Blog box: Google acquires Internet (May 2017)\r 27
Summary\r 28
Review questions\r 28
Discussion questions\r 28
Recommended key reading\r 29
Useful third-party weblinks\r 29
Notes and references\r 30
Part 2: The e-business strategy framework\r 31
Chapter 2: Overview of the e-business strategy framework\r 33
Chapter at a glance 33
Learning outcomes 33
Introduction 33
2.1 Key challenges in e-business strategy formulation\r 34
2.2 A systematic approach to e-business strategy formulation\r 35
Summary\r 38
Review Questions\r 38
Recommended key reading\r 39
Note and reference\r 39
Chapter 3: External analysis: the impact of the Internet on the macroenvironment and on the industry structure of e-business companies\r 40
Chapter at a glance 40
Related case studies 41
Learning outcomes 41
Introduction 41
3.1 Examining trends in the macro-environment\r 42
3.1.1 The political and legal environment\r 42
Online gambling: the sector has been able to cash in on a regulatory regime set up in Alderney\r 43
Publishers sued over e-book price 'collusion'\r 45
3.1.2 The economic environment\r 46
3.1.3 The social environment\r 46
UK online economy valued at £82bn\r 47
3.1.4 The natural environment\r 47
A social network links our personal and office lives\r 48
Blog box: How Facebook got its green back\r 49
3.1.5 The technological environment\r 50
Trying on the future\r 51
3.2 Examining industry structure with the five forces framework\r 51
Michael Porter, management thinker – academic who shares his values\r 53
3.2.1 Industry rivalry\r 54
3.2.2 Barriers to entry\r 55
Cloud computing cuts start-up costs\r 57
3.2.3 Substitute products\r 59
3.2.4 Bargaining powers of buyers and suppliers\r 59
Facebook shows it gets the message with Instagram deal\r 60
Google buys UK price comparison website for £37.7m\r 61
3.3 Complementing the five forces framework with the co-opetition framework\r 62
Nokia and Microsoft talk up benefits of co-dependence\r 64
Critical perspective 3.1: Benefits and drawbacks of industry analysis tools\r 66
3.4 Defining industries, segmenting markets and targeting markets in e-business\r 67
3.4.1 Defining an industry\r 67
3.4.2 Segmenting markets in an industry\r 67
e-business Concept 3.1: The e-business market segmentation matrix\r 68
Vodafone and Facebook team up on smartphone\r 72
3.4.3 Targeting specific markets in an industry\r 73
Google searches to become personalised\r 75
Summary\r 76
Review Questions\r 76
Discussion Questions\r 76
Recommended key reading\r 76
Useful third-party weblinks\r 77
Notes and references\r 77
Chapter 4: Internal analysis: e-business competencies as sources of strengths and weaknesses\r 79
Chapter at a glance 79
Related case studies 79
Learning outcomes 80
Introduction 80
4.1 Understanding core competencies in e-business\r 80
4.1.1 Competencies and core competencies: a brief overview\r 80
4.1.2 Sources of value and core competencies in e-business\r 82
IT linked to financial performance\r 84
4.2 Analysing the Internet-impacted value chain\r 86
4.3 Leveraging the virtual value chain\r 89
Critical perspective 4.1: Compatibility between the resource-based view and the market-based view of strategy\r 91
4.4 Selecting activities for online interaction with customers – the ICDT framework\r 92
4.4.1 Information activities\r 92
Advertisers rush to master fresh set of skills\r 93
4.4.2 Communication activities\r 95
Blog Box: \re-Diets.com 95
4.4.3 Transaction activities\r 96
4.4.4 Distribution activities\r 96
4.5 Moving beyond the value chain to value networks\r 96
Outsourcing supply chain operations\r 97
Summary\r 100
Review Questions\r 100
Discussion Questions\r 101
Recommended key reading\r 101
Useful third-party weblinks\r 102
Notes and references\r 102
Chapter 5: Strategy options in e-business markets\r 104
Chapter at a glance 104
Related case studies 104
Learning outcomes 105
Introduction 105
5.1 Understanding the fundamentals of competitive advantage in e-business\r 105
5.2 Examining the landscape of strategy options for e-business\r 107
5.2.1 Cost leadership strategies\r 108
5.2.2 Differentiation strategies\r 111
5.2.3 Outpacing strategies (and the risk of getting 'stuck in the middle')\r 113
5.3 Developing strategy alternatives\r 115
5.3.1 The strategic gameboard framework\r 115
5.3.2 e-Business models: a brief overview\r 117
Blog Box: Facebook made $9.51 in ad revenue per user last year in the US and Canada\r 119
5.4 Creating a fit between the chosen strategy and the value chain\r 120
5.4.1 Consistency between activities\r 120
Blog box: easyJet – setting up an organisation for a low-cost strategy\r 121
Airlines ditch simple model for complexity\r 122
5.4.2 Reinforcement of activities\r 123
5.4.3 Optimisation of efforts\r 123
Summary\r 124
Review Questions\r 125
Discussion Questions\r 125
Recommended key reading\r 125
Useful third-party weblinks\r 125
Notes and references\r 126
Chapter 6: Sustaining a competitive advantage over time\r 127
Chapter at a glance 127
Related case studies 127
Learning outcomes 128
Introduction 128
6.1 Building up barriers to imitation\r 128
6.2 Dealing with the threats of disruptive innovations in e-business\r 130
6.2.1 Understanding the fundamental process of disruptive innovations\r 130
Blog Box: Strategy for startups: the innovator's dilemma\r 132
6.2.2 Discovering the underlying reasons for incumbents' failure\r 135
Why disruption can be good for business\r 136
6.2.3 Raising the right questions to recognise the threats of disruptive innovations\r 138
6.2.4 Finding ways to deal with disruptive innovations\r 139
Light reading\r 140
6.2.5 Selecting the appropriate mental frame for efficient reactions\r 143
Snapshot of a humbled giant\r 144
Summary\r 149
Review Questions\r 149
Discussion Questions\r 149
Recommended key reading\r 150
Useful third-party weblinks\r 150
Notes and references\r 150
Chapter 7: Exploiting opportunities of new market spaces in e-business\r 152
Chapter at a glance 152
Related case studies 152
Learning outcomes 153
Introduction 153
7.1 Gaining insights into new market spaces through the value curve\r 153
7.2 Looking outside one's own box\r 154
The way we shop now\r 156
7.3 Pinpointing possibilities for new value creation\r 158
7.4 Finding the right time to enter a market\r 159
7.4.1 Early-mover advantages\r 160
The first-mover advantage myth\r 161
Blog Box: Google just got a whole lot smarter, launches its knowledge graph\r 163
Inside Match.com\r 165
7.4.2 Early-mover disadvantages\r 170
Summary\r 171
Review Questions\r 171
Discussion Questions\r 171
Recommended key reading\r 172
Useful third-party weblinks\r 172
Notes and references\r 172
Chapter 8: Creating and capturing value through e-business strategies: the value-process framework\r 174
Chapter at a glance 174
Related case studies\r 174
Learning outcomes\r 175
Introduction\r 175
8.1 The value-process framework for e-business strategies\r 175
8.1.1 Creating value\r 176
8.1.2 Capturing value\r 177
8.2 Integrating strategic management analyses through the VPF\r 181
8.2.1 The value chain analysis and the VPF\r 181
8.2.2 The five forces analysis and the VPF\r 182
8.3 Sony BMG (Germany): an actual application of the VPF\r 183
8.3.1 The business context\r 184
8.3.2 Value creation\r 184
8.3.3 Value capturing\r 188
8.3.4 Findings\r 190
Summary\r 192
Review Questions\r 192
Discussion Questions\r 192
Recommended key reading\r 193
Notes and references\r 193
Chapter 9: Choosing the appropriate strategy for the internal organisation of e-business activities\r 195
Chapter at a glance 195
Related case studies 195
Learning outcomes 196
Introduction 196
9.1 Reasons determining 'make-or-buy' decisions in e-business\r 196
9.1.1 Reasons favouring 'make' decisions\r 198
Everyone's a critic now – or are they?\r 201
9.1.2 Reasons favouring 'buy' decisions\r 201
9.2 Choosing the organisational structure for e-business activities\r 202
9.2.1 Separate e-business organisation\r 203
9.2.2 Integrated e-business organisation\r 204
Last bookstores standing may turn digital page\r 205
9.3 Value chain deconstruction over the Internet\r 206
Critical perspective 9.1: The limitations of deconstruction and unbundling\r 207
9.4 Unbundling the corporation over the Internet\r 208
Model that works even in turbulent times\r 208
9.5 Managing conflicts between online and offline distribution channels\r 211
9.5.1 Understanding conflicts in distribution channels\r 212
9.5.2 The channel conflict matrix\r 213
Expedia stops American Airlines ticket sales\r 214
Summary\r 215
Review Questions\r 216
Discussion Questions\r 216
Recommended key reading\r 216
Notes and references\r 217
Chapter 10: Choosing the appropriate strategy for interaction with suppliers\r 218
Chapter at a glance\r 218
Related case studies\r 218
Learning outcomes\r 218
Introduction\r 219
10.1 Advantages and drawbacks of online purchasing\r 219
Supply chain leaders identified\r 221
10.2 Classification of B2B e-marketplaces based on the purchasing process and the purchased products\r 222
Amazon noses into industrial supply chain\r 224
10.3 Classification of B2B e-marketplaces based on their degree of openness\r 225
10.4 Integrating e-procurement systems\r 226
Supply chain is a strategic discipline\r 228
Summary\r 229
Review Questions\r 230
Discussion Questions\r 230
Recommended key reading\r 230
Useful third-party weblinks\r 231
Notes and references\r 231
Chapter 11: Choosing the appropriate e-business strategy for interacting with users\r 232
Chapter at a glance\r 232
Related case studies\r 232
Learning outcomes\r 233
Introduction\r 233
11.1 The Internet and social commerce\r 233
11.1.1 The advent of Web 2.0\r 233
11.1.2 Implications of Web 2.0 for Internet business models\r 235
11.1.3 Understanding user behaviour on the social web\r 240
Facebook shows off new marketing tools\r 241
11.2 The trade-off between richness and reach\r 243
Critical perspective 11.1: The limitations to blowing up the trade-off between richness and reach\r 245
11.3 Increasing the richness of interactions with customers\r 245
11.3.1 Customer relationship management (CRM) in a digital context\r 246
Social CRM mirrors rise in customer power\r 249
11.3.2 The concept of mass-customisation\r 251
11.4 Increasing the reach of interactions with customers\r 252
Lights, camera, blender! How to create a hit\r 253
11.4.1 Viral growth\r 254
11.4.2 The 'tipping point' concept\r 255
11.4.3 The 'long tail' of Internet-based social networks\r 256
Lulu aims to wag the Internet 'long tail'\r 259
Critical perspective 11.2: Is there unlimited choice and does it create unlimited demand?\r 261
Summary\r 261
Review Questions\r 262
Discussion Questions\r 262
Recommended key reading\r 262
Useful third-party weblinks\r 263
Notes and references\r 263
Chapter 12: Moving from wired e-commerce to mobile e-commerce and u-commerce\r 265
Chapter at a glance\r 265
Related case studies\r 265
Learning outcomes\r 266
Introduction\r 266
12.1 Mobility and unwired e-commerce\r 266
12.1.1 Understanding the value network of mobile e-commerce\r 267
12.1.2 Segmenting mobile e-commerce consumers and business services\r 270
The retailers' increasing use of smartphones to reach consumers – codes open new front in retail wars\r 273
12.1.3 Comparison of mobile e-commerce with wired e-commerce\r 274
12.2 Strategy and mobility\r 277
12.2.1 Leveraging wireless technologies to create a competitive advantage\r 277
12.2.2 Impact of wireless technologies on a company's value chain\r 278
Mobile: Nirvana is tantalisingly close\r 280
12.2.3 Influence of wireless technologies on the industry's five forces\r 281
12.2.4 Main challenges for mobile e-commerce companies\r 283
The online challenges facing retailers – stores tap into shoppers as mobiles ring the changes\r 285
12.3 Ubiquity and u-commerce: strategy for the ultimate evolution of commerce\r 286
12.3.1 What is u-commerce?\r 287
12.3.2 Main features of u-commerce\r 287
12.3.3 From wired e-commerce to u-commerce: the definite evolution\r 288
12.3.4 Types of u-commerce and new forms of marketing\r 289
Welcome to a new reality\r 291
Summary\r 293
Review Questions\r 293
Discussion Questions\r 293
Recommended key reading\r 294
Useful third-party weblinks\r 294
Notes and references\r 294
Part 3: A roadmap for e-business strategy implementation\r 297
Chapter 13: A roadmap for e-business strategy implementation\r 299
Chapter at a glance\r 299
Related case studies\r 299
Learning outcomes\r 300
Introduction\r 300
13.1 What is the mission of our company?\r 300
13.2 What are the objectives for our e-business strategy?\r 303
13.3 What value do we want to offer through our e-business strategy?\r 303
13.3.1 What type of competitive advantage do we aim for?\r 303
13.3.2 How much breadth do we want to have in our product and service offerings?\r 304
13.4 What are the customer segments to target and what is our value proposition for each segment?\r 305
13.5 What kind of ethical issues, privacy concerns and security risks do we need to consider?\r 305
13.5.1 Dealing with ethical issues and privacy concerns\r 305
13.5.2 Addressing security risks\r 306
LinkedIn vows to tighten security after password breach\r 307
13.6 Should we implement our e-business strategy alone or with external partners?\r 309
13.7 What organisational structure should our e-business activities have?\r 309
13.8 What is our cost and revenue model?\r 309
13.8.1 What is the cost structure of our e-business activities?\r 310
13.8.2 What is the revenue structure of our e-business activities?\r 310
13.9 How should we align our physical-world strategy with our e-strategy?\r 311
Summary\r 312
Review Questions\r 313
Discussion Questions\r 313
Recommended key reading\r 313
Notes and references\r 314
Part 4: Case Studies\r 315
Chapter 14: Building e-business competence through concepts and cases\r 317
Chapter at a glance\r 317
Learning outcomes\r 317
Introduction\r 318
14.1 Defining creativity and analytical ability\r 318
14.1.1 Creativity\r 318
Breaking the barriers to creativity\r 320
14.1.2 Analytical ability\r 322
14.2 Becoming a 'catalyst for change'\r 322
14.3 Learning about e-business through case studies\r 324
14.3.1 Case studies as a context for the analysis of e-business issues\r 324
14.3.2 Case studies as a context for the application of e-business concepts\r 324
14.3.3 Case studies as a stimulus for creative e-business strategies\r 325
14.4 Learning about e-business through concepts and frameworks\r 326
Strategy in action 14.1: Business thinking: on finding the right balance between analysis and intuition\r 327
14.4.1 Extending the breadth of the analysis\r 330
14.4.2 Extending the depth of the analysis\r 331
Strategy in action 14.2 'Why?' – the importance of Questions in strategy formulation\r 332
Summary\r 334
Review Questions\r 334
Discussion Questions\r 335
Recommended key reading\r 335
Useful third-party weblinks\r 335
Notes and references\r 336
A guide to the main focus of the case studies\r 337
Synopses of case studies\r 338
B2C e-commerce\r 338
1 From A(pples) to Z(oom lenses): extending the boundaries of multichannel retailing at Tesco.com\r 338
2 From e-banking to e-business at Nordea (Scandinavia): the world's biggest clicks-and-mortar bank\r 339
3 Ducati (Italy) vs. Harley-Davidson (USA ): innovating business processes and managing value networks\r 340
4 American Well: the doctor will e-see you now\r 340
B2B e-commerce\r 341
5 IBX (Northern Europe): expanding B2B e-purchasing from indirect to direct goods and services\r 341
6 Satec (Spain): business transformation through IT value reinvention and organisational redesign\r 342
7 Otis Elevator: accelerating business transformation with IT\r 343
8 TopCoder (A): developing software through crowdsourcing\r 344
9 A ppirio: new venture on a cloud\r 344
10 ITC e-Choupal: corporate social responsibility in rural India\r 345
G2B2C e-government\r 346
11 e-Government in Estonia: establishing the world's leading information society\r 346
12 ICT in Tunisia: a strategic lever for building a knowledge-based economy\r 347
13 Fostering innovation in the public sector: VivekKundra@USgovernment B2E e-communities\r 348
B2E e-communities\r 348
14 Knowledge management at Booz & Company: towards a culture of knowledge sharing and collaboration\r 348
C2C e-communities\r 349
15 Spreadshirt: mass-customization on the Internet\r 349
16 When digital David meets physical Goliath: the case of Brockhaus vs. Wikipedia\r 350
17 Nettwerk: digital marketing in the music industry\r 351
18 Licia Chery and MyMajorCompany: crowd funding to stardom\r 352
Mobile commerce\r 353
19 SMS for Life (A): a public–private collaboration to prevent stock-outs of life-saving malaria drugs in Africa\r 353
20 NTT DoCoMo (Japan): moving from a mobile phone operator to a lifestyle service provider\r 353
21 M-PESA (Kenya): mobile financial services for the financially excluded in society\r 354
22 Tunisiana: leading a mobile telecom operator in post-Arab Spring Tunisia\r 355
23 12snap: reinventing mobile marketing\r 356
Case Study 1: From A(pples) to Z(oom lenses): extending the boundaries of multichannel retailing at Tesco.com\r 357
Case Study 2: From e-banking to e-business at Nordea (Scandinavia): the world's biggest clicks-and-mortar bank\r 373
Case Study 3: Ducati (Italy) vs. Harley-Davidson (USA): innovating business processes and managing value networks\r 389
Case Study 4: American Well – the doctor will e-see you now\r 403
Case Study 5: IBX (Northern Europe): expanding B2B e-purchasing from indirect to direct goods and services\r 424
Case Study 6: Satec (Spain): business transformation through IT value reinvention and organisational redesign\r 441
Case Study 7: Otis Elevator: accelerating business transformation with IT\r 454
Case Study 8: TopCoder (A): developing software through crowdsourcing\r 469
Case Study 9: Appirio: new venture on a cloud\r 486
Case Study 10: ITC e-Choupal: corporate social responsibility in rural India\r 495
Case Study 11: e-Government in Estonia: establishing the world's leading information society\r 513
Case Study 12: ICT in Tunisia: a strategic lever for building a knowledge-based economy\r 530
Case Study 13: Fostering innovation in the public sector: VivekKundra@USgovernment\r 543
Case Study 14: Knowledge management at Booz & Company: towards a culture of knowledge sharing and collaboration\r 561
Case Study 15: Spreadshirt: mass-customization on the Internet\r 577
Case Study 16: When digital David meets physical Goliath: the case of Brockhaus vs. Wikipedia\r 597
Case Study 17: Nettwerk: digital marketing in the music industry\r 608
Case Study 18: Licia Chery and MyMajorCompany: crowd funding to stardom\r 621
Case Study 19: Novartis SMS for Life (A): a public–private collaboration to prevent stock-outs of lifesaving malaria drugs in Africa\r 639
Case Study 20: NTT DoCoMo (Japan): moving from a mobile phone operator to a lifestyle service provider\r 653
Case Study 21: M-PESA (Kenya): mobile financial services for the financially excluded in society\r 670
Case Study 22: Tunisiana: a leading mobile telecom operator in post-Arab Spring Tunisia\r 690
Case Study 23: 12snap: reinventing mobile marketing\r 706
Index\r 717