E-Commerce Essay
Technologies of Global e-Commerce
Successful
E-Commerce
Web site
Porter’s Generic Strategy -Value Proposition -Egg Diagram -Resource System -Revenue Model
Cultural considerations
Business Principles Write-up must have:
My Website is:
Selling Workout Equipment
My Target Market is:
US, Saudi Arabia, Canada
My Porter’s Generic Strategies is:
Differentiation/Focus better product and service.
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Write-up
8-15 pages text (discussion); exhibit or table space does not count as discussion space.
Use sub-headings on various sections.
Use exhibits to shorten text and then use text to go in-depth on exhibits. Walk reader through exhibits. Don’t throw in exhibits as after thought.
Number all pages and exhibits.
Proof read - no grammatical or spelling errors.
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To be effective, organization goals, objectives, culture, and activities must be consistent with organization strategy.
Porter’s Four Competitive trateges
Components of a Business Model
Value Cluster
Marketspace Offering
Resource System
Financial Model
Developing a business model in the networked economy requires four key choices on the part of the senior management:
Specify the value proposition or the value cluster for the business
Articulate the online product, service and information offer
Define how the company needs to align its resources to deliver the value proposition
Define and select the most appropriate revenue model to pursue
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Value Proposition/Cluster
Target
Segments
The definition of the value proposition is the result of a combination of choices about the customers, the benefits offered and the unique capabilities of the firm:
Key Benefits
Offered
Unique
Capabilities
Value
Proposition
+
+
Here is my value Proposition:
“Exercise Equipment offers all the devices you need. We will provide you with best devices in the market. We guarantee the high quality of our devices and reasonable prices.”
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Decision Process
Need Recognition
Search for Ideas and Offerings
Purchase Decision
Message Selection
Post-Sale Support and Perks
Build Relationship
Egg Diagram
Evaluation of Alternatives
Product/Service Offering
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Case Study: Schwab Resource System
Schwab’s resource system is centered around Schwab’s three main benefits: low price, innovative products and superior services.
Optimize Staff in Branches
Lower Prices
Train IT Staff
24/7 Access
Media General
S&P
Hoovers
Phone
Branch
Online
Charge for Value- Added Services
Provide
Lower
Commission
for Frequent
Traders
Innovative Products
Center of Knowledge and Innovation
Invest-ment in R&D
Cutting-Edge Technology
Investment in IT
System Reliability
Multiple Points of Access
Hire IT Staff
Competitive Commission Rates
Streamlined Operations
Learning Center
= Resources
= Capabilities
= Core Benefits
Superior Service
Partnerships with Content Providers
Invest in CSR Training
Align CSR
Compensation
with Quality
of Service
Customer Service
OneSource
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Revenue Models
While firms can pursue a number of revenue models, some are used most frequently:
Advertising
Advertising revenues can be generated through the selling of ads, site sponsorships, event underwriting, etc. (e.g., Yahoo, AOL, Business2.com)
Product, Service, Information
Revenues can be generated from the sales of goods and services (e.g., Amazon, CDNow, Buy.com)
Transaction
Revenues can be accrued from charging a fee or taking a portion of the transaction sum for facilitating a customer-seller transaction (e.g., Schwab, eBay)
Subscription
Website can gain revenues by offering subscription services for information (e.g., FT.com, NYTimes.com)
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Cultural Considerations
Hofstede’s Cultural Dimensions
Make assumptions for each of the four dimensions and discuss site adjustments as a result for each of your targeted markets
Language Translation issues
Other cultural issues such as color etc.
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