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EC Strategy

EC Strategy. AMAZON.COM - TWO HOME PAGES FOR DIFFEERENT CUSTOMERS. Industry and Competitive Analysis. Monitoring, evaluating, disseminating of information from the external and internal environments SWOT Analysis INTERNAL AND EXTERNAL. Weaknesses. Strengths. Threats. Opportunities.

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EC Strategy

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  1. EC Strategy

  2. AMAZON.COM - TWO HOME PAGES FOR DIFFEERENT CUSTOMERS

  3. Industry and Competitive Analysis • Monitoring, evaluating, disseminating of information from the external and internal environments • SWOT Analysis • INTERNAL AND EXTERNAL Weaknesses Strengths Threats Opportunities

  4. Industry and Competitive Analysis External and Internal Perspective INTERNAL FACTORS Strengths (S) Weaknesses (W) EXTERNAL FACTORS WO Strategies take advantage of opportunities that overcome weaknesses SO Strategies use strengths to take advantages of opportunities Opportunities (O) ST Strategies use strengths to avoid threats WT Strategies minimize weaknesses and avoid threats Threats (T)

  5. EC STRATEGY QUESTIONS? • How is Electronic Commerce going to change our business? • How do we uncover new types of business opportunities? • How can we take advantage of new electronic linkages with customers and trading partners? • Will intermediaries be eliminated in the process? • Or do we become intermediaries ourselves? • How do we bring more buyers together electronically (and keep them there)? • How do we change the nature of our products and services? • Is the Internet affecting other companies more than ours?Why? • How do we manage and measure the evolution of our strategy

  6. BYPASS FLANKING OFFENSIVE GUERRILLA COMPETITION FRONTAL Karl von Clausewitz 1780 –1831 ENCIRCLEMENT FLANKING

  7. Frontal Assault • Attacker must have superior resources and willingness to persevere • Barnes and Noble.com vs Amazon.com COMPETITION FRONTAL

  8. FLANKING • Flanking Maneuver • Attack the market where the competitor is weakest • Ebay, Craigslist, E*Trade, Ameritrade or Virtual Vinyard vs Conventional COMPETITION CARS, COPIERS MOTORCYCLES FLANKING

  9. BYPASS • Bypass Attack • Cut market from established defender by offering new product making theirs unnecessary • Netflicks, E-books? Web-tickets? Expedia COMPETITION SWISS – CITIZENS, SIEKO

  10. Encirclement • Greater variety and/or serves more markets • Google, AOL, CNN.COM, YouTube, Amazon SHELFSPACE COMPETITION ENCIRCLEMENT

  11. Guerrilla Warfare • Use of small, intermittent assaults on different market segments held by the competitor • Purpose: not to win but concessions • Specialty books, BEST BUY, Podcasts Vs printnews, Wikipedia GUERRILLA COMPETITION

  12. COOPERATIVE STRATEGY SOME REASONS FOR • Obtain technology/manufacturing capabilities • Access to specific markets • Reduce financial or political exposure/risk • Achieve competitive advantage • Use capacity • Combine areas of excellence

  13. THE END OF THE TRAIL

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