Strategies of E-Business, E-Commerce Video Lecture | E-Commerce - B Com

welcome to mastering makes a business
lecture series from this episode we are
talking about how the strategies could
be used in businesses before jumping
into a strategy fundamentals let's see
what is meant by the strategy management
a strategy management process a is
concerned with the decisions
organizations make about their future
direction the decisions in the
development and implementation of the
strategies which will enhance the
competitiveness now what is a strategy
strategy can be explained as the cause
of action including the specification of
resources required to achieve a specific
objective nowadays most of the
contemporary organizations thinks that
it is an integral part of the strategy
to transform the organization into a
businesses with this kind of reverse
affection they are targeting to achieve
the objective of providing more business
value to the corporation and its
shareholders now if you want to answer
the question what is a strategy you can
always use these codes we have listed
down here these typical codes
summarize the essence of a strategy the
first one when we defining a strategy it
should be based on current performance
in the market place it is really very
dangerous to come up with a strategy
without analyzing the market place
because doing a good thing at the wrong
time is much worser than doing a wrong
thing at the wrong time or good time in
such instance you have to work with your
luck rather than your friends they are
for always based on current performance
in marketplace when you are coming up
with a strategy the second one strategy
defines how we will meet our objectives
when we plan our course of action it
should always targets on achieving an
objective now the third one says
strategies assets allocation of
resources to meet goals and that's true
when we define the strategy it should
include both cause of action as well as
the specification of resources the next
one say is strategy Siletz prefer
strategy options to compete within a
market now we come up with strategies
just not for fun we have to target on
specific objective and with that we
should be empowered to compete within a
market the last one says it provides a
long-term plan for the development of
the organization now the course of
action may be a short-term thing but the
reason behind it
should be come from a long-term plan
okay now we are talking about this
transformation businesses into a
businesses you may be asked why we need
a separate e-business strategy rather
than using the same business strategy
now the rapid advances in the
information technology and the emergence
of the Internet have transformed
transactional based commercial
activities we have listed down here
information gathering shopping trading
brokering banking accounting and
factoring distributing servicing and
retailing much of what we know about the
everyday conduct of business will
continue to change and old organizations
large or small will how to deal with the
challenges brought about by these
developments a famous example is Barnes
& Noble the largest retail bookstore
chain in u.s. they had to change their
retailing strategy after Amazon launched
its online bookstore you know the change
creates both risks and opportunities and
carefully planned business strategies
and models are necessary to identify
rising opportunities to develop Mayo
competitive advantages now think about
the implications if the e-business
strategy is not clearly defined in an
organization the first one is missed
opportunities and with that surely you
will lose in the competition the next
one is inappropriate direction you will
lead for a long part
and at some point you will get lost the
third one is isolation of information in
different systems at a technical level
with the limited integration of systems
it will result the isolation of
information producing information in a
one place ordering information in
another
place and inventory information in
another place and production information
in another place the information is
separated isolated and remoted because
no is strategy now the last one is
resource wastage resource wastage troll
application of e-business development in
different functions and limited sharing
of best practices for instance each
business unit or region may develop
separate websites to interact with their
business partners even they can perform
the same thing using a one website so
hope you got the point what would happen
without any business strategy now the
e-business strategy development is not a
banco process it has mainly three steps
planning implementation and operation
now the planning step is the most
difficult one if you do not get it done
correctly you will meet the same fate as
we discussed in the previous slide
therefore the planning should be
accurate to the point now let's
elaborate the planning step in the
planning step we have to do two things
we have to come up with the e-business
strategy and based on that read how to
come up with the implementation plan
when developing the strategy first we
have to think what type of a business we
are going to do whether it is b2b b2c or
c2c or something like that and then we
have to think why we need to develop
that type of e-business based on the
pros and cons we have identified we have
to come up with a conclusion doing that
type of a business is beneficial for us
at this point we have come up with the
e-business strategy now we have to move
towards the implementation plan in there
we have to think how to develop the
chosen a business type in the planning
step there is another important thing we
have to do we have to propose our future
situation and it is what we expected
after implementing the strategy
now this proposition should be specific
it should be time scale and figure it
you and also this proposition can be
either profit oriented or cost oriented
or client oriented if I propose a profit
oriented future situation it is
something
like increase revenue by 30% in two
years now it is time scale two years and
figure to 30% so this is a perfect
profit oriented proposition if we are
more into profit oriented propositions
we have to incorporate revenue
generation techniques in our strategy
now if I propose a cost oriented future
situation it is something like reduce
cost by 20 percent in one year it is
also time specific and figure two one
year and 20 percent if you are making a
cost oriented proposition in your
strategies you have to incorporate
techniques to be efficient now if I say
increased client satisfaction by 50
percent in two years that is a client
oriented proposition so if you make such
kind of statements in your strategies
you have to incorporate techniques to
improve the customer service
okay now the strategies you have come up
with may be newly innovated or else it
may be already common in usage if they
are newly innovated that means you are a
first mover but if you are using a
strategy that is commonly already in use
that means you are a follower now we are
talking about what are the advantages
and disadvantages being a first move
rather than a follower when becoming the
first mover there is a high chance to
capture the market in lunch because
there is no one in the industry doing
such a strategy you are the first one so
the market is all yours the next
advantage is you can establish a brand
name of becoming the first mover of that
strategy you are the first one so you
got the name the third advantage is
exclusive strategic alliances if you are
the first mover and you are doing good
everyone may need to partner up with you
because you are doing good and you are
the only one doing that so these are the
major advantages and not only advantages
there are are disadvantages too the
first one is high cost because you are
the first one there is no one to learn
from
and also you need to do it perfect so
you have to spend some money the cost of
developing the initiative is usually
very high and there is a high risk the
chance of failure is very high now if
this strategy is doing good in the
industry soon enough there may be
followers for your new strategy and they
may be better than you so if you do not
being enough innovative and the second
wave arrivals your system may be
obsolete now the final disadvantage we
are talking about is no support services
at the beginning as no one has the
experience there are no support services
so you how to prepare the environment
all by yourself and that's all what we
got here in this episode we mainly
talked about how the strategies should
be developed in businesses thank you for
watching and stay tuned on with mass
remix