Overview:The process of strategy formulation challenges organizational leaders to integrate their insights gained from analyzing both their external macro environments and their internal organizational capabilities. This module addresses this challenge by exploring some of the methods by which the firm can come up with a e-commerce strategy that not only is consistent with its internal resources, but is also responsive to the challenges inherent in their strategic context. We will explore specific strategies and associated business models that have proven successful over the past few decades where e-commerce has emerged on the business scene.Development of such coherent strategies is greatly facilitated by having tools that enable leaders and analysts to see their firm as what we will call a “value chain”. This framework allows us to understand the firm’s operations by analyzing subcomponents that are explored from the standpoint of the economic value they generate. This value chain analysis is also useful in sizing up one’s competitors as it promotes understanding of their basis of competitive differentiation, cost structure and key strategic tradeoffs.The second half of the module deals with the phenomena of disruptive innovation as articulated by Clayton Christiansen. Dr. Christiansen is widely recognized as one of the world’s leading experts in the area of competitive strategy. His theories of disruptive innovation highlight a paradox that has perplexed many of the world’s premier businesses. In fact, one of his best-selling books is titled “The Innovators Dilemma” because it addresses a counterintuitive trade-off between serving your most profitable customers and putting forward your most sophisticated products versus pursuing seemingly fewer desirable customers, with lower margins and products of lesser performance. The dynamics of this strategic paradox are fascinating and illuminated in this module. This is an important theory because there are significant e-commerce opportunities as well as threats that arise from the dynamics of disruptive innovation as modeled by Dr. Christiansen. These theories also allow the entrepreneur to develop “David and Goliath” strategies where small emerging entrepreneurial organizations can target vastly more established industry titans (e.g., Apple vs. IBM circa 1980’s and 90’s).Key Terms and Concepts· Price/benefit ratio-value for money analysis· Threshold features· Critical success factors· Cost leadership strategy· Differentiated strategy· Strategic Game-board Framework· Value drivers in the value creation process· Categories in the revenue generation model· Outpacing strategy· Economies of scale· Economies of scope· Factor costs· Learning effects· Disruptive versus sustaining innovation· Mental frames governing managerial response to disruption Resources:Atanacio, A. (2012). Five marketing strategies for B2B e-commerce. https://www.forbes.com/sites/theyec/2020/12/23/five-marketing-strategies-for-b2b-e-commerce/?sh=25695701113eDonici, A. N., & Maha, A. (2012, January). E-commerce across United States of America: Amazon.com. https://www.researchgate.net/publication/309904098_E-Commerce_across_United_States_of_America_AmazoncomTED. (2004, February). Technology’s long tail [Video]. TED. https://www.ted.com/talks/chris_anderson_technology_s_long_tailAssignment:For each of the following points/questions, write an essay. Be sure to completely answer all the questions for each bullet point. Support your ideas with at least three (3) citations in your essay. Combine the two sections into one paper. Make sure to reference the citations using the APA writing style for the essay. The cover page and reference page do not count towards the minimum word amount. Review the rubric criteria for this assignment.Case Analysis:Write a 1,000-word essay on one of the following options and the following analysis:Select a company with a significant e-commerce component. Analyze the strengths and weaknesses of their e-commerce strategy using strategic analysis tools gained in this course and other courses that can enrich this analysis. Discuss such issues as the strategic choices they have made to achieve competitive advantage and their ability to actually realize this advantage as they have executed their strategy. Discuss whether you believe their chosen strategy is sustainable.Analysis:Write a minimum of 600 words on the following questions:Using Microsoft as an example, discuss some of the challenges they have faced from disruptive innovation. What were these disruptive business models? Critique how Microsoft has responded to potential disruptive threats. Did they recognize these threats in a timely fashion? If not, what factors might have caused their blindness to these disruptive influences? Where has Microsoft been effective in addressing challenges from disruptive business models? If you were a high-level consultant to senior leadership at Microsoft, what recommendations would you offer in terms of emerging threats from disruptive technologies?
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