MELJUN CORTES Value drivers and web attractors

E-Commerce E-Commerce StrategyStrategy

Value DriversValue DriversWeb AttractorsWeb Attractors

MELJUN CORTESMELJUN CORTESMELJUN P. CORTESMELJUN P. CORTES MELJUN P. CORTESMELJUN P. CORTES

Organizational StrategyOrganizational Strategy

What is strategy?What is strategy?

• A broad-based formula for how A broad-based formula for how a business is going to compete, a business is going to compete, what its goals should be, and what its goals should be, and what plans and policies will be what plans and policies will be needed to carry out those goalsneeded to carry out those goals

MELJUN P. CORTESMELJUN P. CORTES MELJUN P. CORTESMELJUN P. CORTES

E-COMMERCE STRATEGYE-COMMERCE STRATEGY


E-commerce Strategy…………E-commerce Strategy…………

The formulation and execution of a The formulation and execution of a vision for how a new or existing vision for how a new or existing company intends to do business company intends to do business electronicallyelectronically


Process of Strategy………..Process of Strategy………..

STRATEGY INITIATION

STRATEGY FORMULATION

STRATEGY IMPLEMENTATION

STRATEGY ASSESSMENT


Strategy Initiation…………….Strategy Initiation……………. The initial phase of strategic planning in The initial phase of strategic planning in

which the organization examines itself and which the organization examines itself and its environmentits environment

Outcomes from strategy initiation phaseOutcomes from strategy initiation phase• Company analysis (including value proposition)Company analysis (including value proposition)• Core competenciesCore competencies• ForecastsForecasts• Competitor (industry) analysisCompetitor (industry) analysis


Planning Tools………………….Planning Tools………………….


SWOT MATRIXSWOT MATRIX


Marketing Strategy…………….Marketing Strategy…………….

PlaceProduct

Price Promotion

C


Competitor analysis gridCompetitor analysis grid: A strategic : A strategic planning tool that highlights points of planning tool that highlights points of differentiation between competitors and differentiation between competitors and the target firmthe target firm

Scenario planningScenario planning: A strategic planning : A strategic planning methodology that generates plausible methodology that generates plausible alternative futures to help decision makers alternative futures to help decision makers identify actions that can be taken today to identify actions that can be taken today to ensure success in the futureensure success in the future

Competitor analysis gridCompetitor analysis grid: A strategic : A strategic planning tool that highlights points of planning tool that highlights points of differentiation between competitors and differentiation between competitors and the target firmthe target firm

Scenario planningScenario planning: A strategic planning : A strategic planning methodology that generates plausible methodology that generates plausible alternative futures to help decision makers alternative futures to help decision makers identify actions that can be taken today to identify actions that can be taken today to ensure success in the futureensure success in the future


Return on investment Return on investment (ROI)(ROI): A ratio of required : A ratio of required costs and perceived costs and perceived benefits of a project or an benefits of a project or an applicationapplication

Balanced scorecardBalanced scorecard: An : An adaptive tool that adaptive tool that assesses organizational assesses organizational progress toward strategic progress toward strategic goals by measuring goals by measuring performance in a number performance in a number of different areasof different areas


Strategy Formulation…………Strategy Formulation…………

The development of strategies to The development of strategies to exploit opportunities and manage exploit opportunities and manage threats in the business environment threats in the business environment in light of corporate strengths and in light of corporate strengths and weaknessesweaknesses


Strategy Implementation…….Strategy Implementation…….

The development of detailed, short-The development of detailed, short-term plans for carrying out the term plans for carrying out the projects agreed on in strategy projects agreed on in strategy formulationformulation


Strategy Assessment………….Strategy Assessment………….

The continuous evaluation of The continuous evaluation of progress toward the organization’s progress toward the organization’s strategic goals, resulting in strategic goals, resulting in corrective action and, if necessary, corrective action and, if necessary, strategy reformulationstrategy reformulation


Objectives of assessmentObjectives of assessment Measure the extent to Measure the extent to

which the EC strategy and which the EC strategy and ensuing projects are ensuing projects are delivering what they were delivering what they were supposed to deliversupposed to deliver

Determine if the EC Determine if the EC strategy and projects are strategy and projects are still viable in the current still viable in the current environmentenvironment


Reassess the initial strategy in order Reassess the initial strategy in order to learn from mistakes and improve to learn from mistakes and improve future planningfuture planning

Identify failing projects as soon as Identify failing projects as soon as possible and determine why they possible and determine why they failed to avoid the same problems on failed to avoid the same problems on subsequent projectssubsequent projects


Value Drivers and Web Value Drivers and Web AttractorsAttractors


VALUE DRIVERSVALUE DRIVERS


Definition:Definition:An activity or organizational An activity or organizational focus which enhances the focus which enhances the perceived value of a product perceived value of a product or service in the perception of or service in the perception of the consumer and which the consumer and which therefore creates value for therefore creates value for the producer. Advanced the producer. Advanced technology, reliability, or technology, reliability, or reputation for customer reputation for customer relations can all be value relations can all be value drivers. drivers.


NNoveltyovelty Schumpeter defined Schumpeter defined

innovation as the innovation as the introduction of new introduction of new products or services, new products or services, new methods of production, methods of production, distribution, or marketing, distribution, or marketing, or as tapping new markets. or as tapping new markets. None of these modes of None of these modes of innovation, however, innovation, however, captures the essence of the captures the essence of the novelty introduced by novelty introduced by companies such as eBay, companies such as eBay, Priceline.com, and Priceline.com, and Autobytel.com. Autobytel.com.


Lock-Lock-IInn The value-creating potential The value-creating potential

of a business model also of a business model also depends on the extent to depends on the extent to which it is able to motivate which it is able to motivate customers to engage in customers to engage in repeat transactions. This repeat transactions. This characteristic can be characteristic can be described as the “stickiness” described as the “stickiness” or “lock-in” property of a or “lock-in” property of a business model. It refers to business model. It refers to the switching costs faced by the switching costs faced by customers who consider using customers who consider using alternative businesses.alternative businesses.


There are several ways in There are several ways in which customer retention can which customer retention can be enabled by a business be enabled by a business model. model. • First, the development of loyalty First, the development of loyalty

programs that reward repeat programs that reward repeat customers with special bonuses. customers with special bonuses. These programs are similar to These programs are similar to airline frequent flyer reward airline frequent flyer reward programs. programs.

• Second, establishing trustful Second, establishing trustful relationships with customers, for relationships with customers, for example, by offering them example, by offering them transaction safety and reliability transaction safety and reliability guaranteed by independent and guaranteed by independent and highly credible third parties. highly credible third parties.


CComplementaritiesomplementarities

Complementarities are present Complementarities are present whenever having a bundle of goods whenever having a bundle of goods together provides more value than together provides more value than the total value of having each of the the total value of having each of the goods separately.goods separately.


EEfficiencyfficiency The greater the transaction The greater the transaction

efficiency gains that are efficiency gains that are enabled by a business model, enabled by a business model, the more valuable that the more valuable that business model will be. business model will be. Efficiency enhancements can Efficiency enhancements can be realized in a number of be realized in a number of ways, one of which is by ways, one of which is by reducing information reducing information asymmetries between buyers asymmetries between buyers and sellers through the and sellers through the supply of more up-to-date supply of more up-to-date and comprehensive and comprehensive information. information.


WEB ATTRACTORSWEB ATTRACTORS


Streaming MediaStreaming Media

Streaming multimedia is multimedia Streaming multimedia is multimedia that is constantly received by, and that is constantly received by, and normally presented to, an end-user normally presented to, an end-user while it is being delivered by a while it is being delivered by a streaming provider (the term streaming provider (the term "presented" is used in this article in a "presented" is used in this article in a general sense that includes audio or general sense that includes audio or video playback.) The name refers to video playback.) The name refers to the delivery method of the medium the delivery method of the medium rather than to the medium itself.rather than to the medium itself.


Flash AnimationFlash Animation

A Flash animation or Flash cartoon is an A Flash animation or Flash cartoon is an animated film which is created using animated film which is created using Adobe Flash animation software and often Adobe Flash animation software and often distributed in the .swf file format. It can be distributed in the .swf file format. It can be created in Flash or with other programs created in Flash or with other programs capable of writing .swf files. The term capable of writing .swf files. The term Flash animation not only refers to the file Flash animation not only refers to the file format but to a certain kind of movement format but to a certain kind of movement and visual style which, in many circles, is and visual style which, in many circles, is seen as simplistic or unpolishedseen as simplistic or unpolished


Sample Websites:Sample Websites:• http://www.ecodazoo.com/http://www.ecodazoo.com/• http://www.flashchess3.com/http://www.flashchess3.com/• http://www.francksorbier.com/http://www.francksorbier.com/


Web BannerWeb Banner

A web banner or banner ad is a form A web banner or banner ad is a form of advertising on the World Wide of advertising on the World Wide Web. This form of online advertising Web. This form of online advertising entails embedding an advertisement entails embedding an advertisement into a web page. It is intended to into a web page. It is intended to attract traffic to a website by linking attract traffic to a website by linking to the website of the advertiser.to the website of the advertiser.


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MELJUN CORTES Value drivers and web attractors

Business

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