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EC StrategyEC Strategy

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AMAZON.COM - TWO HOME PAGES FOR DIFFEERENT CUSTOMERSAMAZON.COM - TWO HOME PAGES FOR DIFFEERENT CUSTOMERS

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Industry and Competitive Analysis

Monitoring, evaluating, disseminating of information from the external and internal environments

SWOT Analysis INTERNAL AND EXTERNAL

Strengths Weaknesses

Opportunities Threats

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Strengths (S) Weaknesses (W)

Opportunities (O)

Threats (T)

INTERNAL FACTORS

EXTERNAL FACTORS

SO Strategies use strengths to take advantages of opportunities

WO Strategies take advantage of opportunities that

overcome weaknesses

ST Strategies use strengths to

avoid threats

WT Strategies minimize weaknesses

and avoid threats

Industry and Competitive Analysis Industry and Competitive Analysis External and Internal PerspectiveExternal and Internal Perspective

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EC STRATEGY QUESTIONS? • How is Electronic Commerce going to change our business?

• How do we uncover new types of business opportunities?

• How can we take advantage of new electronic linkages with

customers and trading partners?

• Will intermediaries be eliminated in the process?

• Or do we become intermediaries ourselves?

• How do we bring more buyers together electronically (and keep

them there)?

• How do we change the nature of our products and services?

• Is the Internet affecting other companies more than ours?Why?

• How do we manage and measure the evolution of our strategy

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FRONTAL

CO

MP

ET

ITIO

N

FLANKING

BYPASS

FLANKING

ENCIRCLEMENT

GUERRILLA

Karl von Clausewitz

1780 –1831

OFFENSIVEOFFENSIVE

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FRONTAL

CO

MP

ET

ITIO

N

Frontal Assault

Attacker must have superior resources and willingness to persevere

Barnes and Noble.com vs Amazon.com

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CO

MP

ET

ITIO

N

FLANKING

FLANKING

Flanking ManeuverAttack the market where the competitor is weakest

Ebay, Craigslist, E*Trade, Ameritrade or Virtual Vinyard vs Conventional

CARS, COPIERS

MOTORCYCLES

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CO

MP

ET

ITIO

N

BYPASS

Bypass Attack

Cut market from established defender by offering new product making theirs unnecessary

Netflicks, E-books? Web-tickets? Expedia

SWISS –

CITIZENS, SIEKO

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CO

MP

ET

ITIO

N

ENCIRCLEMENT

Encirclement

Greater variety and/or serves more markets

Google, AOL, CNN.COM, YouTube, Amazon

SHELFSPACE

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CO

MP

ET

ITIO

N

GUERRILLA

Guerrilla Warfare

Use of small, intermittent assaults on different market segments held by the competitor Purpose: not to win but concessions

Specialty books, BEST BUY, Podcasts Vs printnews, Wikipedia

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COOPERATIVE STRATEGY SOME REASONS FOR

1. Obtain technology/manufacturing capabilities

2. Access to specific markets

3. Reduce financial or political exposure/risk

4. Achieve competitive advantage

5. Use capacity

6. Combine areas of excellence

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THE END OF THE TRAIL