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08 30069jas120516 68 79 PDF
08 30069jas120516 68 79 PDF
08 30069jas120516 68 79 PDF
org
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Journal of American Science 2016;12(5) http://www.jofamericanscience.org
development on Internet and new technologies will and profitability goals you set for your e-commerce
lead to organizational success on the other hand many channel.
managers has misunderstanding of the relationship Positive relationship.
between both variables. The researchers has found a We concluded that the e-commerce market space
chance to investigate the determinants and is seen as promising and that it could generate positive
consequences of e-commerce and its effect on performance implications if it is reflected in corporate
business strategy. strategy. This conclusion is interesting in light of the
Research Questions: recent numerous dot-com failures and suggests that e-
Based on research problems, the following questions commerce must be given priority in corporate
have been formulated. strategy. (Chang, K, Jackson, J, Grover, V.2003)
1. What is E-commerce and its parameters? found positive relationship between e- commerce and
2. Explore the new approach of marketing mix Business Strategy.
4P+7C and how it related to e-commerce? Adopting of e-commerce:
3. Is e-commerce and e-business are same concept? Advantages of e-commerce are cost savings,
4. Describe the Business Strategic and its tasks and increased efficiency, and customization. In order to
plan? understand electronic commerce it is important to
5. How far is the impact of E- commerce on Business identify the different terms that are used, and to assess
Strategy? their origin and usage. These include information
Research Objectives: overload, reliability and security issues, and cost of
The main objectives: access, social divisions and difficulties in policing the
1. Explore e-commerce and its parameters. Internet. Successful e-commerce involves
2. Define marketing mix 4P+7C. understanding the limitations and minimizing the
3. Critically State the difference between E- negative impact. (Shahrzad. S, Mohammadreza. S,
commerce and E-business. Saeid. G, 2015) here coming up with the advantages
4. Defined the Business Strategy and its tasks and and negative effects that to be consider in the adopting
plan. of e-commerce into the organization.
5. Explore the impact of e-commerce on business Revolution in business
Strategy positively or negatively. Electronic commerce is a revolution in business
Research Methodology: practices. If organizations are going to take advantage
This study is descriptive based on the collection of new Internet technologies, then they must take a
and analysis of results of studies, reports, periodicals strategic perspective. That is, care must be taken to
and books related to the topic of study in order to make a close link between corporate strategy and
investigate the impact of e- commerce on Business electronic commerce strategy (Richard T, Pierre B,
Strategy. Leyland F, and George M. 2008).
Research limitation: Process variables (PVs)
This research has driven theoretically to PVs are the key variables (or other equivalent
investigate the relationships between E-commerce and terms in the case of other fields) in the process domain
Business Strategy. based on the collection and that characterizes the process that can generate the
analysis of studies, reports, periodicals and books in specified DPs.
order to identify E-commerce characteristics and how
it effect on Business Strategy. However, the
researchers is looking for conducting analytical study
to evaluate Business Strategy elements and e-
commerce by using statistical methods.
Literature Review:
E-commerce and organization strategic plan
Levy, P, (2012) mentioned that e-commerce
concept that must be considered in the organization
strategic plan: Although traditional business-building Figure-.1: Domains of the Design World
strategies can be effective in improving online
revenues, the Internet marketplace also offers its own The customer domain is characterized by
unique challenges and opportunities for attracting customer needs (or the attributes) the customer is
customers and building customer loyalty. In particular, looking for in a product, process or system. In the
the online payment process plays a significant—and functional domain, the customer needs are specified in
sometimes overlooked—role in achieving the growth terms of functional requirements (FRs) and constraints
(Cs). In order to satisfy the specified FRs, we
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Journal of American Science 2016;12(5) http://www.jofamericanscience.org
conceive a design described by design parameters (1) When the access to new resources, core
(DPs) in the physical domain. Finally, to produce the competence or distribution channels can use type
design product specified in terms of DPs, we develop stock of innovative ways to supply similar
a process that is characterized by process variables products or services in the past.
(PVs) in the process domain. (MARTIN, B & Kerim, (2) In some ways lag of the enterprise, can use the
A. 2001). incremental approach to innovation, adding new
E-commerce growth elements in the current business model in order to
The different characteristics of each enterprise strengthen the competitive advantage, such as the
choose e-commerce applications for business model value chain is the key part of the change.
innovation mode is also different. Through the case (3) With new technology, and can grasp the
study, can be divided into stock of the innovative opportunity of enterprise can be in the process of
ways of innovation, incremental innovation and whole new markets for business model innovation.
new three categories: (Yaqi. G, HU. J, 2014).
Many countries are developing e-commerce those of other countries, in order to promote success
strategies and plans, and analyzing and benchmarking in this new competitive economic environment.
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Journal of American Science 2016;12(5) http://www.jofamericanscience.org
Business to business (B2B) e-commerce is transactions in Korea. This trend is also evident in the
increasing more rapidly than business-to consumer U.S. (Hong, M. 2000).
E‐commerce merchants must also have a Online merchants without strategies will soon be
strategy to succeed in the online marketplace. Many overwhelmed by such issues.
people start websites because they think it is a quick Enterprise Resource Planning (ERP) and e-
and easy way to make cash, but in fact it takes a commerce
much greater investment than most people expect. ERPs are often called “back‐office” systems.
• Therefore, before launching a site, businesses must ERP systems are management information systems
have strategies to handle issues large and small: that integrate and automate many of the business
How consumers will place orders, practices associated with operations or production
How deliveries will be made, aspects of a company. ERP software can aid in
How customer service issues will be handled? control of many business activities such as sales,
More broadly, how much do owners expect to delivery, production, billing, production, inventory,
earn over a certain period, how will consumers shipping, invoicing and accounting.
find the site, and how will success be judged.
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Journal of American Science 2016;12(5) http://www.jofamericanscience.org
organizations are going to take advantage of new aware that the e-commerce does not change the
Internet technologies, then organizations must take a business nature it is a complementary tool that
strategic perspective. That is, care must be taken to complements the overall strategy and enhances the
make a close link between corporate strategy and business performance. During e- commerce
electronic commerce strategy. A competitive implementation, organization my face different
advantage main impact of e-commerce on a business obstacles. Some of them are common, like lack of
strategy that by create the cost leadership, knowledge and skills, while others can appear due to
differentiation, focus, innovation, growth, and the character of the organizations lack of long-term
business alliances. It is important that a firm to be business strategy.
As Martin, B & Kerim, A. (2001) mentioned the organization. It is a wide range of online business
new marketing mix counting 4P+7C: activities for products and services relates to any
1. Content form of business transaction in which the parties
2. Customization interact electronically rather than by exchanges or
3. Convenience direct contact.
4. Connectivity A new marketing mix 4P+7C
5. Communication Companies have to rebuild the traditional
6. Community marketing strategies around the facts of the new
Customer care business environment and the Internet. In the
Should be considered. On the other hand to traditional economy, the marketing mix was could be
develop business strategies institutions need a deep explained with the 4P’s that are product, price, place
considerate of the driving forces of the new economy, and promotion In the new business environment and
and consider e-commerce solutions as integral. the network economy, a new marketing mix
Organizations are expanding their use of including 4P+7C (content, customization,
networked systems to improve internal business convenience, connectivity, communication,
processes as to coordinate product design, improve community and customer care) should be considered.
customer service, manage inventory and reduce The companies that desire to rank among the leading
administrative and managerial costs. ones in today’s competitive marketplace should adopt
E-commerce these factors successfully into their corporate goals
An E-commerce System is an information and implement the essential strategies efficiently
system that provides E-commerce capabilities for an (MARTIN, B & Kerim, A. 2001).
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Journal of American Science 2016;12(5) http://www.jofamericanscience.org
Figure 7: Total and e-commerce sales of U.S. electronic shopping and mail order houses in 2014, by merchandise line (in
billion U.S. dollars)
Types of E-commerce
(B2C)
Intra- Types of
organizati B2B
onal e-commerce
C2C
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Journal of American Science 2016;12(5) http://www.jofamericanscience.org
Figure 9: B2B e-commerce volume in the United States from 2006 to 2013 (in billion U.S. dollars)
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Journal of American Science 2016;12(5) http://www.jofamericanscience.org
1. Defining business and stating a vision and 3. Crafting a strategy to achieve objectives
mission 4. Implementing a strategy plan.
2. Setting SMART objectives 5. Evaluating performance of the strategy, auditing
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Journal of American Science 2016;12(5) http://www.jofamericanscience.org
new developments and taking corrective action 2. Cost saving: Less personnel and time to
maintain customer operation; decreased
A strategic Business plan material expenses.
Where the organization is headed Short and 3. Improved customer service: Offering
long-term performance targets and actions of many new services and improve the quality,
management to achieve desired outcomes consists of: with decreasing the time.
1. Mission statement 4. Reaching large number of customers:
2. Strategic and financial performance objectives Organizations able to reach new markets in
3. Comprehensive strategy for achieving the other countries. organizations can broaden
objectives their marketplace or widen the supplier base
The Impact of E-commerce on Business Strategic 5. Increased sales: E-commerce leads to
plan increased sales, as it is easy to monitor and
E-commerce is assisting organizations to lower adjust the demand of the product or service.
costs dramatically through their supply and demand 6. Improved distribution channel:
chains, take their customer service into a different Organizations can broadened their supplier
league, enter new marketplaces, create additional bases through the use of e-marketplaces
revenue streams and redefine their business 7. Better customer satisfaction through
relationships. unique products: Tailor unique customer
Information systems that have a strategic impact products and services to individual’s leads to
on a business help create a competitive advantage better customer satisfaction
for the business as cost leadership, differentiation, 8. Enhancing the communication: E-
focusing, innovation, growth and business alliances. commerce possess new possibilities for
Benefits of adopting-commerce in business as communication between partners
reflecting by the impact: 9. Better access to information: Increased
1. Improving the efficiency: access to products ability to gain information about customers
and services from customers. and suppliers, increased information
exchange
Negative Effects of E-Commerce their homes or spend the day fighting queues at the
E-commerce can be a great way for a businesses shopping mall to pick up the best deals.
to increase the sales and widen the reach. It is also However, e-commerce also has negative effects
convenient for consumers, without having to leave on both consumers and organizations that must be
kept in mind before launching an online shop.
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Figure 14: Retail e-commerce sales in the United States from 2013 to 2019 (in billion U.S. dollars)
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Mission
Strategy
Business
Strategy
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Stakehold
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