STRATEGIES FOR COMPETETIVE ADVANTAGE IN ELECTRONIC COMMERCE

Authors

  • Siamak Azadi

DOI:

https://doi.org/10.5195/emaj.2011.13

Abstract

Despite rapid and sustained development of electronic commerce, many companies doing e-business are still in the investment and brand-building phase and have yet to show a profit. However, as e-businesses shift their focus from  building a customer base to increasing revenue growth and profitability, they should reevaluate their current business strategies, if any, and develop strategies that provide a clear path to profitability. This study uses McCarthy’s four marketing mix model and Porter’s five competitive forces model to identify strategies for Internet companies that respond to the five competitive forces and thereby achieve a competitive advantage. The study provides significant new insights into the development and implementation of e-business strategies that contribute to increased profit.

References

Allen, E. and Fjermestad, J.( 2000), “E-Commerce Strategies: The Manufacturer Retailer Consumer Relationship,”

Amazon.com is Adding a Warehouse, The New York Times,( January 8, 1999).

Bakos, Y. (August 1998), “The Emerging Role of Electronic Marketplaces on the Internet,” Communications of the ACM, 41(8), , pp. 35-42.

Betts, M. (, June 2000 ),“It's Official: There really is a 'Digital Economy',” Computerworld.

Carter, B .( December 18, 2000), “Dying Dot-coms, Dwindling TV Ads,” The New York Times.

De Figueiredo, J.M.( Summer 2000), “Finding Sustainable Profitability in Electronic Commerce,” Sloan Management Review, , pp. 41-52.

Deutsch, C.H.( October 30, 2000), “Bricks-and-Clicks World Needs Commercial Space,” The New York Times.

Elliott, S. and Rutenberg, J. “Weak Retail and Dot-coms Take Toll (December 11, 2000): After Many Solid Years, Marketers See Stalling,” The New York Times.

Evans, P. and Wurster, T.S.( November- December 1999) “Getting Real About Virtual Commerce,” Harvard Business Review , pp. 84-94.

Gosh, S.( March 1998), “Making Business Sense of the Internet,” Harvard Business Review, , pp. 126-135.

Gulati, R. and Garino, J. ( May-June 2000), “Get the Right Mix of Bricks and Clicks,” Harvard Business Review.

Hansell, S.( June 6, 2001 ), “Amazon.com is Planning to Sell PC’s for First Time,” The New York Times,

Hoffman, D.L. and Novak, T. “How to Acquire Customers on the Web,” Harvard Business Review, May-June 2000.

McCarthy, E.J., Basic Marketing,(1960): A Managerial Approach, Homewood, IL: Richard D. Irwin.

Perreault, Jr. W.D. and McCarthy, E.J. Basic Marketing,( 1999): A Global-Managerial Approach, (13th ed.). Homewood, IL: Irwin.

Porter, M ( March-April 1979 ),“How Competitive Forces Shape Strategy,” Harvard Business Review.

Porter, M.( 1980), Competitive Strategy, New York: Free Press.

Porter, M.( 1985), Competitive Advantage, New York: Free Press.

Porter, M.( May-June 1987 ),“From Competitive Advantage to Corporate Strategy,” Harvard Business Review.

Porter, M,( November-December 1996). “What is Strategy?” Harvard Business Review, pp.61-78.

Porter, M. (, March 2001 ),“Strategy and the Internet,” Harvard Business Review, pp. 62-78.

Porter, M. and Millar, V.E. (July-August 1985 ),“How Information Gives You Competitive Advantage,” Harvard Business Review, 63(4), , pp. 149-160.

Proceedings of the 5th Americas Conference on Information Systems.

Schiesel, S. (, June 11, 2001 ),“Planning the Digital Smorgasboard: For This Media Conglomerate, the Future is All-You-Can-Eat,” The New York Times.

Sealey, P.( July-August 1999 ),“How E-Commerce Will Trump Brand Management,” Harvard Business Review, , pp. 171-176.

Sinha, I. “Cost Transparency: The Net's Real Threat to Prices and Brands,” Harvard Business Review, MarchApril2000.

Tedeschi, B.( December 18, 2000), “Internet Merchants, Seeing Landscape Shift, Adapt to Survive,” The New York Times,.

Viswanathan, S,( 2000) “A Model of Competition Between Online and Traditional Firms,” Proceedings of the 5th Americas Conference on Information Systems.

Published

2011-11-20

Issue

Section

Articles