E-Commerce Strategy and Global EC
How should the Internet and EC be considered by business strategic planners? By IS strategists and by ICT planners?
Electronic commerce and internet play an important role in the formulation and implementation of the strategy that indicates that how a new or an existing company aims to conduct its business electronically. While developing strategic plan, the concerned authorities shall pay reasonable attention to out sourcing, application development and business process re-engineering. In addition to that, the ICT strategists shall also ensure that there is sufficient flow of relevant information within the organization. Moreover, the strategists shall ensure that their product or business is real time and can be easily integrated on web. (Clark, 2012)
Apart from that, the IS strategists shall keep in mind that the competition levels in e-commerce and internet have reached new unidentifiable levels. Therefore, they shall train, develop and orient the employees and shall ensure that they are equipped with the necessary skills required by E-commerce. (Clark, 2012)
Describe the advantages, risks, and success factors that first movers face.
The main advantage that the first movers gain from electronic commerce is flexibility. These organizations can perform their business operations from anytime and anywhere. Even though, the implementation of e-commerce strategy and adaption of e-commerce provides the firm with competitive advantage and enables them to conduct their operations flexibly, the first movers are confronted with a risk of failure of e-commerce strategy; this is because the failure of this strategy can cause the organization to suffer great loss. The main success factors for e-commerce are; the technological equipment of the proprietor, the ability of the proprietor to use scarce resources, the ability to switch costs and the efficiency of network structures. (Turban and Lee et al., 2006)
A craftsperson operates a small business making wooden musical instruments in a small U.S. town. The business owner is considering using EC to increase the business’s reach to the nation and the world. How can the business owner use EC to increase richness to make the products more attractive to consumers?
Through the use of E-commerce, the crafts person can advertise his products by posting banners on less expensive websites. In addition to that, a good web structure can also enable the craftsman to integrate his products on the internet. The craftsman, through the use of electronic commerce, would be able to attract more consumer base. (Turban and Lee et al., 2006)
What are industry characteristics in EC? What are seller characteristics in EC? List at least three reasons as to why EC failure should not come as a surprise. What are some reasons for EC success? Relate EC to cultural differences. Be sure to support your answers.
The seller characteristics that determine the EC success are the information base, reliability, skills and abilities of the seller. The industry characteristics, on the other hand, that affect the success of EC include, the scope of technology in the specific industry, patents, laws and regulations and standards and structure of web security in that industry. (Turban and Lee et al., 2006)
EC failure shall not come as surprise because; A) the technology becomes obsolete with a small passage of time. For instance, few years before people were not even aware of online shopping but now it is very common. B) In addition to that, security issues can also lead towards failure in this industry. C) Transaction costs are also very high in the E-commerce industry as the organizations undergo rapid changes. (Turban and Lee et al., 2006)
The success of E-commerce is triggered by a number of factors. The major factors that lead towards EC success include; technology orientation, management orientation and culture. The better the technology the enhanced would be the EC operations. Apart from that, appropriate management also enhances the productivity of the E-commerce industry. Culture also plays an important role in the success of EC as consumer perspectives vary from culture to culture and they may hamper the growth of EC. (The Revolution Is Just Beginning, 2008)
Clark, G. (2012). E-business Strategic Planning. Redlands: Key Custom Design. pp. 1-4. http://keycustomdesign.com/resources/articles/ecommerce,7/ebusiness-strategic-planning,10.html.
Turban, E., Lee, J., King, D. And Viehland, D. (2006). Electronic Commerce: A Managerial Perspective. 4th ed. London: Pearson Education Inc.
Unknown. (2008). The Revolution Is Just Beginning. London: Pearson Education Inc. pp. 1-52. http://www.pearsonhighered.com/samplechapter/0131735160.pdf [Accessed: 18 Sep 2013].
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