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What is E-Commerce?
The conduct of selling, buying, logistics, or other
organization-management issues via the WEB.
OR
Technology mediated exchanges between parties
(individuals and/or organizations) as well as the
electronically based intra- or interorganizational activities
that facilitate such exchanges.
HISTORY
E-commerce actually began in the 1970s when larger
corporations started creating private networks to share
information with business partners and suppliers.
This process, called Electronic Data Interchange (EDI),
transmitted standardized data that streamlined the
procurement process between businesses, so that
paperwork and human intervention were nearly
eliminated.
Example: www.speakout.com
Convergence
of e-Commerce Categories
Business
Consumers
And Selling to
Business
Publishers order
paper supplies from
paper companies
Amazon orders
from publishers
Consumers buy
thousands of Harry
Potter books from
Amazon
Consumers
Consumers
aggregate to bulk
purchase from
Amazon
Consumers resell
copies on eBay
Position
Resources
Simple Rules
Strategic Logic
Establish position
Leverage resources
Strategic Steps
Identify an attractive
market
Locate a defensible
position
Fortify and defend
Establish a vision
Jump into the confusion
Build resources
Keep moving
Leverage across markets Seize opportunities
Finish strong
Strategic Question
Source of
Advantage
Works Best In
Moderately changing,
well structured markets
Rapidly changing,
ambiguous markets
Duration of
Advantage
Sustained
Sustained
Unpredictable
Risk
Performance Goal
Pursue opportunities
How should we
proceed?
Key processes and
unique simple rules