Competitive Advantage - E-Commerce - Lecture Slides, Slides of Fundamentals of E-Commerce

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Competitive Advantage

Traditional Competitors The firm New Entrants SubstituteProducts Suppliers Customers

Porter’s 5 forces

Business Responses to Competition

Product differentiation

focussed differentiation
data mining

Tight linkages to customers and suppliers

switching costs

Low cost producer

lower internal costs
lower price \ improved quality to customer

Porter’s Value Chain Model

Production consists of a series of activities thatadd a margin of value to a firm’s products orservices
The added value increases profits, enhancesasset value and competitive position
Primary activities
Directly related to production and distribution
Support activities
Make delivery possible
Include organisational structure, HR, technology andprocurement

Use of EC for Competitive Advantage

Strategic Systems

FedEx
American airlines

Use of EC for Competitive Advantage

Continuous Improvement
Productivity improvement
Just-in-time

TQM

Improved decision making
Managing information and knowledge
Innovation and creativity
Change management
Customer service

The Future of EC

Improve
Transform
Redefine