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EBEC Session 2

Management

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35 views31 pages

EBEC Session 2

Management

Uploaded by

archanaganeshan3
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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E-Business and E-Commerce

Session 2 – Strategy for E-Business – Omnichannel Strategy


• ‘The key question is not whether to
deploy Internet technology –
companies have no choice if they
want to stay competitive – but how
to deploy it’

Porter, M. (2001) Strategy and the Internet, Harvard Business Review, March 2001, 62–78.
E-Business Strategy
E-Business Strategic Decisions

7. Internal
1. E-business knowledge
6. SCM capabilities
channel priorities management
capabilities

2. Market and 8. Organizational


5. Marketplace
product resourcing
restructuring
development capabilities

3. Positioning and 4. Business, Service


differentiation and revenue
strategy models
Digital-physical Mashups
Darrel K Rigby, HBR, 2014
Digital-physical Mashups
Darrel K Rigby, HBR, 2014

DIGICAL
Innovation

“The whole world is “Offline experience


going online only. of touching and
All we are going to feeling clothes isn’t
do is be online.“ going away”
Rule #1: Build your strategy around digital-physical
fusion. It can be your new competitive edge.
2005 Scenario when Ralph Norris took over

• Ranked worst in customer satisfaction


• Reduced branches
• Every touch-point criticized
• Long lines
• High error rate

Fusion based Strategy & Digical Fusion

Core banking Real estate app Kaching App Videoconferencing


modernization to bank specialists
Rule #2: Ad links and strengthen linkages in the customer
experiences
Digical innovations don’t change existing products or services, instead it allow the companies to identify
adjacencies that strengthen base business and create new revenue streams

Sell online, 1999 Nike+ App, 2006 Nike+ Fuelband SE, 2012
Rule #3: Transform the way you approach innovation (deeper integration)

https://www.youtube.com/watch?v=HX0TV4p4p4I
Rule #4: Organizational separation is just an interim step

https://www.youtube.com/watch?v=jYJ-0xJeesw
Rule #5: Build digital-savvy leadership team that includes
the CEO

CEOs task is to change the mix of business not the


fundamental capabilities

CEOs lead the digical transformation face a more


complex task

Digitally challenged CEOs starve digital investments,


encourage bad ideas and kill good ones
Nykaa – Omnichannel

• First Indian e-commerce platform for


beauty products

• Refused to sacrifice profitability – no


discount

• Omnichannel approach – Phygital -


100+ stores

• Inventory led model & sale-or-return


basis

• Vertical expansion – Beauty and


personal care → Fashion and lifestyle
Alternatives in Omnichannel

Showroom
Traditional
Face-to-face + Home
Retail
delivery

Information
Online
Online
Information
Information
Online + Home
+ Pickup
Delivery

Pickup Home Delivery


Fulfillment
Bell, D.R., Gallino, S. and Moreno, A., 2014. How to win in an omnichannel world. MIT Sloan Management Review.
Proposed the GRAVITY framework to
understand real-world/virtual world
interaction

Geography

How the Real World Organizes: Individual


Decisions, Neighborhood Composition, and
Country-Level Patterns
Resistance

Why Frictions Exist and How to Overcome


Them
Adjacency

Why Proximity Matters: Individual Interaction,


Mechanics of Adjacency, and Neighborhood
Effects
Vicinity
Ties That Bind: Physical Distance, Social
Distance, and the Spatial Long Tail
Isolation

Why Isolation Offline Means Liberation Online:


How the Virtual World Empowers “Preference
Minorities”

Topography
The Evolving Landscape of the Real and Virtual
Worlds: People, Goods, and Information in Play
and on the Move

You

Making GRAVITY Work For You


Thulasi Pharmacy: Riding the Digitalization
Wave to Omnichannel Retailing
Case: Thulasi Pharmacy

• How is the distribution of pharma industry? What


are the challenges it faces?
Pharma Distribution

Carrying Forwarding Agent Customer

Stickists Retailer
Case: Thulasi Pharmacy

• What is the potential of e-pharma as an industry?


• Impact of COVID 19 on e-pharma industry?
• Challenges in India
ePharma
operating
models

Marketplace Inventory Franchise


ePharma
Market Share

Challenges?
Case: Thulasi Pharmacy

• What are the opportunities and challenges Thulasi


will face as an e-pharma company?
Opportunities Challenges

- Broader market - Change in supply chain


- Turn profitable in tier-1 cities operations
- Cashing on years of efforts - Heavy competition
- Brand development - Transition from tier-2 to tier-1
- Exposure for its label cities
- Expand to online doctor - Brand building expenses
consultation - Current regulation challenges
- Get feedback on wellness - Lose current value proposition
products (discount, experience,
counseling)
Case: Thulasi Pharmacy
• How can Thulasi address the challenges posed by
the online business?
How to address?
• Focus on Tier-1 market
• Brand building
• Address supply chain issue
• Which operating model to choose?
• Popularize own label
Case: Thulasi Pharmacy
• What are the organizational changes Thulasi need
to go through?
Case: Thulasi Pharmacy
• What are the competencies Thulasi need to
develop, and what will it lose? How can Thulasi
develop these competencies?
Thank You

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