Despite the significant investments in online security, are still vulnerable to fraud committed with stolen information obtained electronically or in the physical, environment (Data, 2011). <> out of state commerce laws when conducting transactions over the internet. E-Commerce planning (if relevant) Change management strategy E-Business is multi-disciplinary, and therefore involves collaboration among stakeholders and … Courts have struggled to establish when companies must obey out-of-state commerce laws. . There are different types of strategies depending on the goals. E-commerce sales totaled. smartphone. payments. changing their strategies through three progressive levels (Straub and Klien, 2001): advantage by attempting to integrate e-commerce into the company’s overall business strategy, E-commerce is now situated at the very crux of the company’, this the case? The e-business strategic management process illustrated in Figure 1 is based on the traditional model of strategic management. This article analyses intangible constructs that affect sales on the Internet retailing industry. $165.4 billion in 2010 which is up 14.8% from 2009 according to the U.S. Commerce Department (Enright, 2011). Goal + Tactics + Strategy = E eCommerce marketing plan, Most businesses fail because they don’t ponder on setting their crucial (traffic/ conversion/ loyal customers). First, we will frame EC in a strategic management context where competitiveness, cost reduction, productivity, profitability and growth require that companies effectively implement EC strategies. Nitro Pro 9 (9. Although social media falls under 'act' it is important to use social media, as with any paid media, to reach your audience where they are. According to tax laws, internet sales income is taxable for income generated both domestically and overseas. It is a systematic process consisting of four interrelated steps: (1) Analyze the external and internal environments, (2) Select the e-business strategy, (3) Implement the e-business strategy, and (4) Evaluate the success of the e-business strategy. Many challenges remain. This process makes it much harder for hackers to gain, software and free PayPal access to merchants. Robust eCommerce operations management leads to greater backend efficiency. provide a basis for jurisdiction” (Minimum, 2011). The emerging phenomena has enabled consumers from anywhere in the world with access to the, internet to shop 24/7 all year long. For this reason, inventory management is a serious concern for any business, whether it is small scale or large or whether it is an online store or a bricks-and-mortar set… 8.2 Strategic Management Strategy is the consistent application of the business model as a long-term goal. Retailing industry including Fashion Retail and Grocery retailing have caught on to the bandwagon and have begun to offer E trading or Online Shopping. With the onset of e-commerce, a paradigm shift has emer, entrepreneurs need to open up brick-and-mortar stores that require considerable capital investments. The key is not how much they are investing in IT, getting out of their investments in IT (Reynolds, 2010). This paper defines first profitability and its measurement. 2019-11-08T11:50:12Z Research has shown that consumers still rely heavily on internet searches to do, research on products before they purchase. Once again Am, For example, they have developed the Kindle Fire to compete against Apple in the emer, niche market is another avenue where consumers can research and make purchases online. All content in this area was uploaded by Farrokh Mamaghani on Jun 15, 2017, Strategic Management of E-commerce: Issues and Challenges, This paper addresses several issues concerning e-commer, frame EC in a strategic management context where competitiveness, cost r. Next, we will highlight six important challenges companies must face when implementing their EC strategies: How should companies go about (i) EC IT investment, (ii) improve customer r. their strategic decisions and improve their EC operations. Companies are. Companies have found out that customers want, their websites to be set up in a way in which they can find what they are searching for quickly and easily, Companies have scrambled to tweak their website to develop smart interfaces and search tools within their sites to, to be a very powerful advocate or opponent of a firms goods/services. endobj Furthermore, companies have been creating and have thrived by facilitating and, enhancing e-commerce transactions. Begin, Lucie and Boisvert, Hugues (2002), “Strategically Deploying E-Commerce.” CMA Magazine, “Data Breaches and Ecommerce: Is There Promise in New Prevention Options” at the Catalyst Code.”, there-promise-in-new-prevention-options/.>, , “Payment Card Industry Data Security Standard.”. content that helps players advance in their virtual game. Nitro Pro 9 (9. Customers only need to have a PayPal account to shop with any participating merchant. Here is a summary of this article by an infographic. Am. E-commerce is a, dynamic and growing industry that companies are scrambling to take advantage of. Study and research alongside field experts at the internationally renowned Warwick Manufacturing Group. I have seen a lot of agencies vaguely implementing their strategies, instead of evaluating and deciding why an individual marketing channel is no working and which channel is giving me better ROI. anyone with access to a computer and an internet connection can create an e-business. E-Commerce & Strategic Management Chandra Shekhar Pandey Assistant Professor- SRCM 2. 2019-11-08T11:50:10Z Recent economic outlook projects a rising trend for e-, commerce due to consumers added comfort level in online purchases and added avenues to shop online via, emerging technologies in mobile commerce and in the tablet computing. Amazon and BestBuy are two companies who have already been very aggressive in trying to capture, mobile commerce market. it to gain very valuable insight on consumer tastes, habits and can use this information to respond more accurately to the needs and wants of the consumers, (Thompson and Strickland, 2001). compliance alone was not sufficient (Data, 2011). 5. Abstract-: in the recent rapidly changing business environment, electronic commerce plays an important role in strategic management, many enterprise have developed internet programs in a new environment to ensure the continuous competitive advantage. In the early 1990s we saw Companies setting up websites with very little understanding of E Commerce and Consumer behaviour. “As firms, start to understand the true cost of security and vulnerabilities, some merchants have begun to implement end-to-. The success of this investment depends greatly on how, well it lines up with the company’s strategy to enable a firm to produce and distribute its goods/services m, Furthermore, by doing this it enables the organization to become more nimble and agile which helps it to acquire, emerging technologies before its competitors with the hope of achieving a sustainable competitive advantage in, the market in which it operates. This phenomenon known as “the network effect” has led to the success of companies like, Other more ad-based e-businesses have taken the network effect and started social media sites. This is especially true in regards to the dynamic, Organizations need to understand these variables and how they impact their value chain which is the internal. issues regarding e-commerce transactions. In consequent analysis, I add more variables to the model, such as profitability, labour productivity, and other controlling variables. Am, interact with the consumer using product reviews, personalization (emails about products they might like), and. In the, current highly competitive e-commerce landscape it is imperative that companies know what their competition is, doing and then alter their strategy to compete and better position themselves in the market place. W, time mail order companies have become obsolete and an ubiquitous online marketplace now connects buyers and, sellers with the click of a mouse. great value to its customers. Although this sounds relatively an easy process, however, this is a very challenging endeavor in which many companies have failed because there are m, and challenges that impact the success of strategic management. Another issue is how an or, Does the organization have the resources and capabilities to invest aggressively in R&D and IT to win the, technological race against its competitors? “The trademark act, or ‘Lanham Ac. preinstalled shopping application to help its users’, a 30 day subscription to Amazon Prime which further increases the traf. These security problems, come with significant costs, as well as harder-to-quantify costs to consumer confidence and brand reputation”, A noteworthy advance in e-commerce security was a push by the m, or transmit cardholder data. Missing just one piece has negative repercussions for the strategy as a whole, but an eCommerce operations strategy that addresses every detail of warehouse and logistics operations leads to smooth fulfillment processes and greater efficiency. An e-commerce manager guides the development of an electronic footprint. uuid:eda3d086-5626-49fb-9f6f-fd38c6af4263 What is E-Commerce?• Electronic commerce is the electronic exchange of information, goods, services, and payments and includes the creation and maintenance of Web-based relations• It uses internet, intranets, extranets, electronic data interchange (EDI) 3. Join ResearchGate to find the people and research you need to help your work. actual numbers are stored in a secure token storage system. The potential in this marketplace is still untapped. While some of the most profitable online businesses have not sought to sell any particular good or service, however they have created electronic marketplaces where sellers attract buyers which connects more sellers and, buyers. Your marketing plan, budget, and the stage of the life cycle you are in will help you decide the right approach for yours. Now,the internet and e-commerce brought a revolution in the economic world which is also impactful for the strategic management. One example of how dynamic e-commerce technology is, is the rise in the use of m-commerce (mobile, commerce). E-commerce has dramatically changed the competitive playing field. Another important legal issue for e-commerce is trademarks. As a result. Companies need to be informed on how to best set up its websites for both desktop and mobile, searches using key words in its set up to get the maximum hits per search. International Journal of Business Research, A structural model for sales in the e-retailing industry, Assess profitability of non-financial firms. Crossref Yugang Yu, Libo Sun, Xiaolong Guo, Dual-channel decision in a shopping complex when considering consumer channel preference, Journal of the Operational Research Society, … It is essential for companies to achieve ‘blogs, commerce sales. 5. E-commerce sales are expected to account for 8 percent of total US retail sales by 2014. T, the way in which companies can attract and retain customers. respective subsidiaries of banking institutions. This is not only vital in attracting customers and growing sales but it is also, important to keep informed about the changes in the consumers’, Firms need to constantly adjust and adapt their value chains to take advantage of emerging technologies such as, mobile commerce and social networking. German athletic brand PUMA thrived by facilitating and, enhancing e-commerce transactions buy. 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