Question: Explain The Main Elements of E-Business Strategy

Question: Explain the main elements of e-business
strategy.
Ans : The main elements of e-business strategy include:
1. Analysis:
Strategic analysis or situation analysis involves review of:
i. The internal resources and processes of the company to assess its e-business.
ii. The immediate competitive environment (micro-environment), including customer
demand and behaviour, competitor activity, marketplace structure and relationships
with suppliers, partners and intermediaries.
iii. The wider environment (macro-environment) in which Strategic a company
operates; this includes economic development and regulation by governments in the
form of law and taxes together with social and ethical constraints such as the demand
for privacy. These macro environment factors, including the social, legal, economic,
political and technological factors.
2. Strategic Objectives:
1. Defining and communicating an organization’s strategic objectives is a key
element of any strategy process model since:
i. The strategy definition and implementation elements of strategy must be
directed at how best to achieve the objectives.
ii. The overall success of e-business strategy will be assessed by comparing
actual results against objectives and taking action to improve strategy
iii. Clear, realistic objectives help communicate the goals and significance of an
e-business initiative to employees and partners.
2. Vision or mission statements for e-businesses are a concise summary defining
the scope and broad aims of digital channels in the future, explaining how they
will contribute to the organization and support customers and interactions
with partners.
3. From a sell-side e-commerce perspective, a key aspect of vision is how the
Internet will primarily complement the company’s other channels or whether it
will replace other channels. Whether the vision is to complement or replace it is
important to communicate this to staff and other stakeholders such as
customers, suppliers and shareholders.
4. The value of the objectives can be tested using the widely used SMART
mnemonic, i.e. are they specific, Measureable, Achievable, Realistic and time
constrained.
5. Online Revenue Contribution can be defined as direct or indirect contribution
of the Internet to sales, usually expressed as a percentage of overall sales
revenue.
6. Balanced scorecards can be defined as a framework for setting and monitoring
business performance. Metrics are structured according to customer issues,
internal efficiency measures, financial measures and innovation.
3. Strategy Definition:
4. Strategy Implementation:
i. After strategy development, enactment of strategy occurs as strategy
implementation.
ii. Strategy implementation includes all tactics used to achieve strategic objectives.
iii. Supply chain management includes coordination of all supply activities of an
organization from its suppliers and partners to its customers.
iv. E-marketing involves marketing objectives through use of electronic
communications technology.
v. Managing process, structural, technical, staff and cultural change within an
organization is called as change management.
vi. Analysis and design involves analysis of system requirements and design for
creation of system.
vii. Implementation involves creation of system modules by coding, scripting, module
integration, testing and changeover to the live system.
E- business strategies and
techniques:
Ans : With the advent of the Internet and plenty of web development technologies
around the world, e-business is the new mantra of businesses in today’s world.
The Internet has in many ways facilitated the development of businesses
worldwide that can reach out to a wider consumer base and advertises their
products more effectively and efficiently. Corporate communications, interface
designs, cutting edge applications are also found on the Internet. E business has
been added as the latest domain in business and has become a must-have in the
highly competitive technology driven open market. E Business Strategy can be
summarized as the strategies governing E Businesses through calculated
information dissemination.
Information dissemination has been widely regarded as the forte of ebusiness,

which uses information technology in a most efficient manner. Not only has e-
business has come to play an important role in the world trade scenario; there is
no business without an accompanying e-business in today’s world. E business
gives a business the opportunity to open its portal to the global market and
become a part of the global business community. The most important feature of
e-business is that the helps businesses move on to the international scene at
minimal cost but with maximum efficiency. E-business has achieved
unprecedented levels of success as business models, which have not been
enjoyed by any other business models. Some of the examples would be MRP
(Material Requirements Planning), EDI (Electronic Data Interchange) or ERP
(Enterprise Resource Planning). The essential features of e-business strategies
are supply chain management and email marketing.
A state-of-the-art E Business Strategy would generally include:
Supply chain management: effective management of the supply chain can be

handled with the help of e-business strategies, which will ensure better
coordination between the wholesalers and the retailers of various products.
Better integration of the supply chain right from the source till the final delivery of
the product can be effectively implemented using e-business strategy. This also
brings us to the point of e- commerce where a parallel network of buying and
selling can be observed using dissemination of information over the Internet.
Everything ranging from automobiles to electronic gizmos can be bought over the
Internet in a hassle free manner under the aegis of sound supply chain
management.
Customer service and customer relationship management: effective e-

business strategies would involve better customer service and customer
relationship management ensuring the highest level of consumer satisfaction. E
business is targeted at providing the customer-friendly services, which would
include the timely delivery of goods right at the doorstep of the consumer.
Inventory and service management integration: e business strategies can

also help in better inventory and service management integration through
formulating specific plans for inventory accumulation and purchasing machinery
and equipment which will avoid unnecessary purchases which can lead to higher
expenditures entailing different tax implications.
Tactical operations alignment: tactical operations directed towards short-term

goals as opposed to strategic planning aimed at long term goals can be better
coordinated implementing the e-business strategies.
E-business diverges from the traditional sphere of business by speeding up the

business activities and giving a totally new dimension and definition to
businesses worldwide be it whether partnerships, joint ventures or large
corporations. The internet, intranet, cellular networks and other forms of digital
technology have created a niche value chain among clients, employees,
suppliers, stakeholders and traders coordinated in the world of web marketing.
The tools and pillars of e-business strategies include acceptance of payments
over the Internet, online advertising, on-line trading and auction deals over the
Internet. E-business strategies will also differ for small and medium-sized
businesses. Apart from regular sources, e-business strategies can generate
revenue from maintenance of current channel integrity, revenue made from paid
marketing alliances, revenues derived from franchisees and subscriptions.

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Question: Explain the main elements of e-business

Information dissemination has been widely regarded as the forte of ebusiness,

A state-of-the-art E Business Strategy would generally include:

Supply chain management: effective management of the supply chain can be

Customer service and customer relationship management: effective e-

Inventory and service management integration: e business strategies can

Tactical operations alignment: tactical operations directed towards short-term

E-business diverges from the traditional sphere of business by speeding up the

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