The Quantitative Approach for e-Strategy - Seven Dimensions of e-Commerce
The way business or commerce gets conducted has undergone a great deal of change due to the advent of information and communication revolution. In the last two decades or so there has been a phenomenal growth in e-commerce. Electronic commerce or e-commerce consists of buying selling and auction of various products and services through an online medium such as the internet. The payment of transaction is done through a secure online payment system. All or majorities of todays companies either have websites or conduct e-commerce. In such a scenario, it becomes very important to have well defined business model and formulated e-commerce strategy.
The two very important factors which determines a successful strategy is customer requirements and commercial scalability. Without either, business will fail in its venture. Customers expect superior quality in product and service they purchase. For e-commerce, quality means easy negotiable website, secure transaction and web-site management.
For companies to develop and manage e-commerce sites, it has to invest in manpower and technology. E-commerce sites consist of complex software and hardware structure. Companies make a choice for technology to run its site based on cost-benefit analysis and project scalability.
Therefore, it is important for companies to undertake a quantitative approach towards e-commerce.
Seven Dimensions of e-Commerce
A successful e-commerce strategy model consists of organization structure policy and positional structure policy.
Organization structure is building block of successful strategy. It consists of leadership, infrastructure and organizational learning curve.
A successful strategy starts with vision and mission statement. This vision comes from corporate leadership. Corporate leadership should keep open mind about prevailing new technology and should be flexible in changing strategy to tune with an ever-changing world.
Another building block of successful strategy is technology infrastructure. The technology infrastructure has to be adaptive to constant innovation and requirements throughout the organization. The technology infrastructure needs to be cost effective, secure and manageable.
The last important portion of organizational structure is organizational learning. Organization needs to maintain and encourage culture of organizational learning. This prepares company for adaption of new strategy and introduction of new technology.
The second important factor of e-strategy is the organizational positioning in technology, brand, service and market.
Technology leadership provides companies the competitive advantage. Therefore, it is important to identify emerging trend and invest in that technology solution.
The internet has provided an alternate medium through which an organization can benefit in brand development. People are logging onto the internet more than ever. This has provided golden opportunity for organization to reinforce it brand leadership or create brand awareness.
Another dimension of successful organization positioning is service leadership. Service includes providing customer with delightful experience in pre and post sales scenario. Delightful service does not translate into revenue immediately, but helps in building relationship, creating brand awareness and creating brand ambassadors.
Organizations have managed to achieve phenomenal growth using the internet. They have assessed market conditions preemptively and responded by providing correct market offering.
Clearly from above in the current business environment, it is important to acknowledge importance of e-commerce and prepare a strategy which provides an organization competitive.
- Information and Strategy
- Value Chain and E-Strategy
- Components of Commercial Value Chain
- The Marketing Function
- Marketing Channel Systems
Authorship/Referencing - About the Author(s)
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