As most of the issues that arise in terms
of E-commerce represent organisations entering the environment, it seems natural
to base discussion around this. Therefore, the bulk of the literature review
relates existing organisations entering into the E-commerce market environment.
In successfully identifying the relationship between E-commerce and strategy,
the issues are categorised as follows: 1. Strategic analysis · Understanding the
environment 2. Identifying the strategic options/SWOT analysis · Strategic
Advantages/Disadvantages · Advertising · Electronic cost
cutting/publishing/Process 3. Corporate level, Business level, d Marketing level
4. Retailing in E-commerce · Implementation Issues · Financial ·
Performance
monitoring 5. Conclusion · Based on current knowledge state To gain a clearer
understanding of the implication of E-Commerce in the formulation of marketing
strategy, it is imperative to gain a clear understanding of the environment and
it's relevant effects. This helps in understanding the rationale in a developing
marketing strategy, particularly the influences of E-Commerce on its make-up.
The next crucial element is to gain an understanding of E-commerce itself, as
well as the current and possible future developments. In understanding
E-commerce's impact on strategic foundations, an organisation's strategies can
be more clearly focused. Once the organisation and E-commerce's respective
environments are clear it is then possible to understand E-commerce's
implications in regards to fundamental marketing strategies. By focusing on
tools such as the competitive strategy framework we can gain a better
understanding of strategy formulation. By now it is easy to link E-commerce
ideals directly into the strategic planning sequence, and hence understand its
impact to the marketer. (Brown, 1997) By reviewing these traditional marketing
theories and practices, it's possible to see where, if at all E-commerce fit
into current frameworks.
This will provide relevant conclusions that can be made
based on the strategic implications of E-commerce, and it's attributes in the
marketing process. In doing so, this adds a vital dimension to the marketer in
an ever-growing technology based society, of which must be clearly understood.
Strategic analysis Understanding the Environment In order to gain an
understanding of E-commerce's impact to the modern organisation it is imperative
that the environmental issues are analysed and understood. The understanding of
the environment in which an organisation is involved is a fundamental element of
its strategic plan. In order to be successful in any industry the organisation
must have a sound understanding of influences that effect its product or service
offer. When conducting an environmental analysis in regards to the Internet, it
may seem that many of its attributes are present in traditional consumer
markets. However, E-commerce provides organisations with a unique medium to
analyse, requiring information relating specifically to it's environment.
(Strauss, J. Frost, R., 1999). E-commerce ideals place particular emphasis on
environmental factors, due to the high rate of change and development it
constantly undergoes. An understanding of both environmental influence on the
Internet and E-commerce, and that of a particular organisation is imperative
basing any strategic formulation. Strauss, J. Frost, R. (1999) includes these
macro and micro environmental factor as key issues, and they are extremely
useful in constructing a basic for strategic planning. Macro Environment
Technology Obviously technology is a key environmental issues that must be
addressed when analysing and understand E-commerce. Technology is ever-changing,
and as such E-commerce is absolutely influenced by it's evolution. Rapid changes
in recent technological advances have bought about the Internet and in turn
E-commerce, and such dramatic evolution is likely to continue.
|
