Académique Documents
Professionnel Documents
Culture Documents
Introduction
Strategy can be define in four ways: Pattern of choices made over time, as plan for possible actions, as a position relating to choice about which products or services to offers or as a perspective- presenting choices about how a business can be conceptualized.
Strategic
Strategy is the plan to gain advantage over the enemy in war. Strategy in business means to create new opportunities, position the product and beat competition.
E-strategy
E-strategy
E-strategy refers to the delivery of a powerful combination of strategy, issue advocacy, and cutting-edge webtechnology services (including all services that can come under umbrella of E) to empower, activate, educate, and mobilize/support business strategy, marketing strategy, IT and infrastructure strategy, and resources of a business to achieve business objectives.
The strategic planning process is about designing, monitoring and revising a plan of action for everyone working for the organization.
Mission Statement
A basic description of the fundamental purpose for the organizations existence. The mission statement is developed at the highest level of the firms management & ownership structure, including its board of directors. It should be relatively stable over long period of time.
Planning is organized hierarchically from the top down. Corporate-Level Planning Division/Strategic Business UnitLevel Planning Operating/Functional-Level Planning
Corporate-Level Planning
Planning at corporate level answers fundamental questions about the nature of the business. What business model, mission statement, who are our customers, will we have strategic alliances etc.. Planning Strategic Alliance: exists when the strategic planning of one firms is dependant on the corporate strategic planning of another. Partnership : represents a more permanent & longer term commitments between firms.
Corporate-Level Planning
Merger: is the combination of two more or less equal firms into a new firms. Acquisition: implies that a larger firm has bought a smaller operation & subsumed it into its organizational structure. Vertical integration: refer to a strategy of growth in which a firm takes on more activities either further up or further back in the production process.
Operating/Functional-Level Planning
Efficiency: doing things at a lower cost Quality improvements: making a better product & so, doing increasing customers perceived value. Innovation: refers to the idea of creating new product, design, style,& other features that are attractive to customers Customer responsiveness: refers how well the firm is serving & responding to the needs of its customers
Force two
Force Two: Bargain power of supplier E-Impact Reduced due to choices Commoditization of e-procurement and e-marketplaces More price driven E Strategy to make Business work Limit commoditization by new measurement Let business drive commerce Value for money
Force Three
Force Three: Threats of substitute products and services E Impact New product being introduced because of availability of knowledge and market place from different resources Monitoring such entry became easier Faster production of services E Strategy to make business work Proper tracking with technology Strategy to build barriers Innovation with E
Force Four
Force Four: Barrier to entry E Impact Reduced for service organizations and retailers who need mobile sales force Monitoring entrant became easier Easy for followers due to internet E Strategy to make business work Build barrier with innovation and new techniques Optimal use Barrier with service
Force Five
Force Five: Rivalry among existing competitors E Impact More intense because of shorter product life cycles Commoditization E Strategy to make business work Capturing complete value chain E-strategy to target niche market Knowledge enabled business
These Shifts do not need to be made by industry incumbents; they can be made by new entrants to a market or industry.
Value Chain
Moving to implementation
Moving from strategic choices, to business model, to implementation requires that organizations develop a wellthought-out process. the challenge of the Internet is less how to respond to a completely different channel structure than how to manage a more complex one in which a new Internet channel sits beside pre-existing channels and in which Internet technology alters how the existing ones function. Saloner and Spence, 2002 Implementation road maps Guy Kawasakis cynics checklist includes
the importance of strategic singleness of purpose through to assumptions about production, inventory, and distribution costs
Moving to implementation
Complementing Existing Non-InternetBased Plans Complexity and Time Concerns Motivating Acceptance of e-Business Plans
The Industry Supply Chain A Fragmented Industry Environment Industry Life Cycle Issues Global-Level Strategic Planning Issues
After selecting one or more e-business models that define the fundamental nature of the e-business, the strategic planning process begins with the clarification of the firms mission statement.
External and Internal factors that could affect planning should be researched and analyzed.