08-01-2013, 03:59 PM
NEW BUSINESS MODELS AND STRATEGIES FOR THE INTERNET ECONOMY
NEW BUSINESS MODELS AND STRATEGIES.ppt (Size: 1.09 MB / Downloads: 31)
Impact of the Internet and E-Commerce
Impact on external industry environment
Changes character of the market and competitive environment
Creates new driving forces and key success factors
Breeds formation of new strategic groups
Impact on internal company environment
Having, or not having, e-commerce capabilities tilts the scales toward valuable resource strengths or threatening weaknesses
Creatively reconfiguring the value chain will affect a firm’s competitiveness vis-à-vis rivals
Strategy-Shaping Characteristicsof the E-Commerce Environment
Internet makes it feasible for companies everywhere to compete in global markets
Competition in an industry is greatly intensified by new e-commerce strategic initiatives of existing rivals and by entry of new, enterprising e-commerce rivals
Entry barriers into e-commerce world are relatively low
On-line buyers gain bargaining power
Effects of the Internet and E-Commerce
Can produce important shifts in an industry’s competitive forces
Alters industry value chains, spawning substantial opportunities for increasing efficiency and reducing costs
Affects a company’s resource strengths and weaknesses
Rapid pace of technological change with an often uncertain direction
Strategy Options for Suppliers of Communications Equipment
Invest aggressively in R&D to win the technological race against rivals
Form strategic alliances to build consensus for favored technological approaches
Acquire other companies with complementary technological expertise
Hedge firm’s bets by investing sufficient resources in mastering one or more of the competing technologies