The E-Commerce Strategy

1019 words | 4 page(s)

Use of E-commerce technology is one of the most commonly used strategies for enhancing the performance of business. However, several crucial factors will be considered to ensure that the implementation of e-commerce is successful. One of the most fundamental issues is that the there is a substantial need for a viable business model. This model should be accompanied by a long-term sustainable strategy that will enhance the success of the firm. The e-commerce strategy for the business will be based on five crucial factors.

Chaffey notes that the first critical factor is the value propositions which covers the choice of focal customer benefits and the target segment (3). The business will focus on analyzing the benefits associated with the products offered to the customers. As well, as the products are sold online, the other critical issue is the uniqueness of these electronic products. In this case, the primary objective of the e-commerce strategy is to ensure that the needs of the customers are satisfied. In addition to the above, the e-commerce strategy will serve as a redesigning process that aims at enhancing the performance of the business. The other issue that the strategy will focus on target segmentation. The e-commerce strategy will focus on ensuring that the market is effectively segmented. This is the best way of ensuring that the products reach the right clients at the most appropriate time. For instance, social media platforms will be utilized to market the products. This is mainly because the majority of users buy the electronic products such as the mobile phones and TVs.

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Awa et al., indicate that the next issue to consider in the e-commerce strategy is the scope of offering which mainly entails the customer decision process (10). The website designed should make it easy for the customers to navigate and compare the prices of various products. As well, the products should be categorized in a manner that makes it easier for the customers to find the products that they are looking for. In addition to the above, there should be adverts that will play a crucial role in persuading the customers to make the decision to buy the electronic products. Other services such as phone calls will also be provided to assist the customers who are purchasing the products online. This is one way of ensuring that the purchasing process is efficient. Finally, the company will focus on ensuring that the right channels are used in the delivery of the products to ensure that it reaches the customer at a faster and convenient way.

Chaffey asserts that the resource capabilities and is the other crucial issue when implementing the e-commerce strategy (5). The company will ensure that all the necessary resources with the required capabilities of ensuring the e-commerce are successful are used. The systems should be unique in a manner that competitors cannot easily imitate them. As well, all the system capabilities should focus on supporting the needs of the customers. In addition to the above, the resources implemented should link all the stores of the company. According to Da Costa, This should also be subject to upgrading ensuring that in the future expansion of the business to cover greater locations across the globe is possible (7). The integrated online system where customers purchase their products should provide a unique customer experience. Issues such as downtime and system failures should be limited.

Finally, the e-commerce strategy should provide the business with a competitive advantage. In essence, the e-commerce implementation should focus on providing benefits over other electronic competitors regarding cost structure, product differentiation, and marketing.

The Organizational Structure and the Global Information Systems to Be Rolled Out In 2017
The company will be based on a functional organizational structure. In this case, various portions of the organization are grouped based on their responsibilities. For instance, the finance team will control finances while the market team will market the products. This structure will ensure that the performance of the company is enhanced.

The GIS to be implemented in 2017 will focus on strengthening four crucial functions of the company. Firstly, the system will serve as a store for the vast amount of company information. Some of the most common of the information include customer details, products available, prices, and related information. This will ensure that the company can make effective decisions in a reliable and accurate manner. The GIS will also serve as a provider of host optimization tools and techniques that will ensure that effective operations of the global logistics network are implemented. Thirdly, the GIS will easily interface intrafirm and interfirm software with the primary objective of providing IT backbone that spans all the countries the business operates. Finally, the implementation of this system will allow reliable sharing of information enhancing local customization.

The Key Challenges to Implementing the GIS System
According to Biehl, it is imperative to note that several changes may hinder successful implementation of the GIS system (53). One of the greatest challenges is a lack of top management support. The top management should be willing to support the implementation process from the start to completion, operations, and maintenance levels. Lack of team cooperation is other challenge that has been common in the implementation of such systems. All the members of the team such as professionals and management representatives should cooperate through the implementation process till completion. The other challenge when implementing the GIS system is the cost. The implementation involves use of hardware, software, personnel and even training programs. All the programs require funding and lack of adequate funds can negatively influence the success of the implementation. Therefore, to overcome these challenges, there is a considerable need for dedicated management support, team cooperation, and adequate funds.

  • Awa, Hart O., Ojiabo Ukoha Ojiabo, and Bartholomew Chinweuba Emecheta. “Integrating TAM, TPB and TOE frameworks and expanding their characteristic constructs for e-commerce adoption by SMEs.” Journal of Science & Technology Policy Management 6.1 (2015): 76-94.
  • Biehl, Markus. “Implementing global information systems: Success factors and failure points.” Communications of the ACM 50.1 (2007): 52-58.
  • Chaffey, Dave. E-business and E-commerce Management: Strategy, Implementation and Practice. Pearson Education, 2007.
  • Da Costa, Eduardo. Global e-commerce strategies for small businesses. MIT Press, 2016.

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