COMP7880:E-BusinesssStrategiesSummaryandOutlookDickson K.W. ChiuPhD,SMIEEE,SMACM,LifeMHKCS
1 Dickson K.W. Chiu PhD, SMIEEE, SMACM, Life MHKCS COMP7880: E-Business Strategies Summary and Outlook
3 main steps of e-business strategyMobilee-commercestrategyE-businessstrategyStrategicStrategyStrategy formulationanalysisimplementationExternalanalysisInternalStrategyorganisationoptionsOpportunities/threatsSustainingExploringStrengths/Interaction withnew marketcompetitiveImplementationweaknessessuppliersadvantagespacesInternalanalysisCreating andInteraction withcapturingusers/customersvalueCOMP7880-Intro-2
Strategy options External analysis Internal analysis Sustaining competitive advantage Internal organisation Implementation Exploring new market spaces Interaction with suppliers Interaction with users/customers Creating and capturing value Strategic analysis Strategy implementation E-business strategy Mobile e-commerce strategy Opportunities/ threats Strengths/ weaknesses 3 main steps of e-business strategy Strategy formulation COMP7880-Intro-2
HierarchyofGoalsCompanyvisionMissionstatementsStrategicobjectivesCOMP7880-I/E-3
COMP7880-I/E-3 Hierarchy of Goals Company vision Mission statements Strategic objectives
E-business strategy formulationSWOT AnalysisKeyenvironmental/ExternalindustrydevelopmentsAnalysisThreatsOpportunities.Do we have.DowehaveStrengthsthe strengths tothestrengthstofend offpossibleseize possibleopportunities?threats?Firmcharac-teristics.Whichopportunities.TowhichthreatsdoWeaknessesdowemissbecauseourweaknessesof ourdeficits?expose us to?InternalAnalysisCOMP7880-I/E-4
Firm characteristics Key environmental/ industry developments Opportunities Threats Strengths Weaknesses • Do we have the strengths to seize possible opportunities? • Do we have the strengths to fend off possible threats? • To which threats do our weaknesses expose us to? • Which opportunities do we miss because of our deficits? E-business strategy formulation SWOT Analysis COMP7880-I/E-4 External Analysis Internal Analysis
Porter's 5 force modePotential entrantsThreat ofnewentrantsBargaining powerofbuyersIndustrycompetitionBuyersSuppliersRivalry amongexisting firmsBargainingpowerof suppliersThreat ofsubstitutesSubstitutesOneassumptionofPorter'sfiveforcesmodelisthatsomeindustriesareinherentlymoreattractivethanothers;i.e.,theprofitpotentialforcompaniesinthatindustryishigherAs this figure indicates,the interaction and strength offive forces influencesprofitabilityCOMP7880-I/E-5
Industry competition Potential entrants Suppliers Buyers Substitutes Threat of new entrants Bargaining power of suppliers Threat of substitutes Bargaining power of buyers Rivalry among existing firms Porter’s 5 force model One assumption of Porter’s five forces model is that some industries are inherently more attractive than others; i.e., the profit potential for companies in that industry is higher. As this figure indicates, the interaction and strength of five forces influences profitability. COMP7880-I/E-5