Transcript Chapter2: Understanding E

E-Business Strategy
For use with Strategic Electronic Marketing:
Managing E-Business 2e
Copyright 2003 South-Western College Publishing
Chapter 11 Slide: 1
What Is Strategy?
• A strategy consists of a pattern of decisions
that set the goals and objectives that lead to
long-run competitive advantages for a
firm.
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Determine the competitive arena.
Undertake a SWOT analysis.
Determine distinctive competencies.
Develop a plan to reach the business goals.
For use with Strategic Electronic Marketing:
Managing E-Business 2e
Copyright 2003 South-Western College Publishing
Chapter 11 Slide: 2
Definitions:
• A value chain is a way of envisioning the
collection of activities that a business
undertakes to design, produce, market,
deliver, and support products or services.
• The Competitive Arena is the competitive
environment in which a business competes.
• Distinctive Competencies are unique areas
of advantage where a firm can differentiate
itself from competitors.
For use with Strategic Electronic Marketing:
Managing E-Business 2e
Copyright 2003 South-Western College Publishing
Chapter 11 Slide: 3
Steps for Strategy Development
• Determining the competitive arena.
– Determine the competitive environment in
which a business competes
• Helps set the mission
• Indicates the windows of opportunity to be
pursued
For use with Strategic Electronic Marketing:
Managing E-Business 2e
Copyright 2003 South-Western College Publishing
Chapter 11 Slide: 4
Steps for Strategy Development
• Undertake a SWOT analysis.
– Evaluate the Strengths, Weaknesses,
Opportunities, and Threats facing a business.
For use with Strategic Electronic Marketing:
Managing E-Business 2e
Copyright 2003 South-Western College Publishing
Chapter 11 Slide: 5
Steps for Strategy Development
• Determining distinctive competencies.
– Analyze a business’s value chain to help
identify internal strengths and weaknesses that
can help determine how a business can
compete.
For use with Strategic Electronic Marketing:
Managing E-Business 2e
Copyright 2003 South-Western College Publishing
Chapter 11 Slide: 6
Steps for Strategy Development
• Develop a plan to reach the business goals.
– Outline the strategic actions and tactics a business must
undertake to move from where and how it currently
competes to where and how it needs to compete given
its distinctive competencies.
For use with Strategic Electronic Marketing:
Managing E-Business 2e
Copyright 2003 South-Western College Publishing
Chapter 11 Slide: 7