E-Business Strategy. The case study is focussed on a company that manufacture, maintain, service, and support scientific equipment. The company has a well established IT infrastructure and have recently recruited an IT Director in order to further deve

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Student ID: 1005747        19th January 2011

Masters in Business Administration P/T

E-business Strategy: Case study

Date: 19/01/2011

Page Count: 4,037

Word Count:        ~3,510 [with exclusions]


TABLE OF CONTENTS

  1. ABSTRACT        
  2. A: E-BUSINESS STRATEGY & ANALYSIS        
  3. Introduction        
  4. Application of Analytical Tools        
  5. SWOT Analysis        
  6. Ansoff's Matrix        
  7. Value Chain Analysis        
  8. McFarlan’s Strategic Grid        
  9. PEST Analysis        
  10. Proposed E-business Strategy        
  11. E-Business – Strategic Objectives        
  12. E-business – Strategic definition        
  13. B: CRITICAL SUCCESS FACTORS        
  14. C: PROCESS ANALYSIS        

REFERENCES        


ABSTRACT

This assignment will evaluate the case study provided in the assessment with respect to E-business. The case study is focussed on a company that manufacture, maintain, service, and support scientific equipment. The company has a well established IT infrastructure and have recently recruited   an IT Director in order to further develop the company. 

The IT Director, Andrew Oakes, has presented his vision of ICT for the company emphasising a need for a suitable e-business strategy, and integrated infrastructure, investments, education and training.

The study of this company will evaluate the following areas as detailed in the


A: E-BUSINESS STRATEGY & ANALYSIS

Introduction

The intention of this task it to establish an effective E-business strategy for the company referenced in the case study. Conducting analysis specific to the company aids the planning and construction of the e-business strategy.

The analysis will follow the concept suggested by Jelassi & Enders in which consideration will be given in the analysis for both internal and external factors. (2008, p.39)

From ‘external analysis’ we can gain an understanding of change and development externally that may have an impact on the companies e-business strategy which Jelassi & Enders suggest includes “technological change, economic developments or societal change.” (2008, p.39)

The intention of the ‘Internal analysis’ is to look at what capabilities and key resources the company has such as finance, brand, quality and reputation in order to be able to not only implement a specific e-business strategy but also to sustain it. (Jelassi & Enders, 2008, p.39)

The analysis detailed in the following pages will look at these factors and accordingly develop a suitable e-business strategy.

Application of Analytical Tools

SWOT Analysis

SWOT Analysis allows us to look at both “internal and external parameters” (Pahl & Richter, 2009, p.2). External parameters are considered threats and opportunities and Internal parameters are considered strengths and weaknesses. The information obtained from this analysis flows into e-business strategy formulation. The diagram shown in fig.1 depicts the relationship between ‘SWOT Analysis’ and ‘Strategy Formulation’. Adapted from Harvard Business School Press (2005, p.3) by Pahl & Richter, (2009, p.5).

Strengths:

  • Part of a larger group
  • Exceptional quality products
  • Over 150 years’ experience in its workforce
  • Focus on customer satisfaction
  • Good relationship with manufacturers and developers
  • Competitive advantage through low pricing
  • Sole authorised manufacturer of parts for previous owners
  • Web presence allowing customer enquiries and contact

Weaknesses:

  • No E-commerce presence
  • Product range is dated
  • Lack of creativity within the company
  • Limited profit margins
  • Limited capital investment
  • Lack of resources

Opportunities:

  • Allow transactions to made via the website
  • Develop more technologically advanced machinery
  • Move into new territories worldwide
  • Create strategic alliance with similar organisations
  • Improvements to existing ICT and integration of e-business

Threats:

  • Competitors may also become authorised manufacturers of parts for service sector.
  • Competitors may already have E-commerce presence
  • Web site restricted to contact and information only
  • Competitors may provide more up to date and technologically advanced products
  • In competition with much larger companies

Ansoff's Matrix

Ansoff’s Matrix is a simplistic tool which Bachmeier states is utilised “for decision making and forecasting” (2008, p.2), assisting managers in choosing market growth strategies. Here we can use the tool with respect to e-business to help determine which direction the company should take with regards to developing e-business. Using Ansoff’s matrix, Bachmeier suggests also allows us to look at “several strategies simultaneously” (2008, p.2).

The diagram shown in Fig. 2, adapted from (Bachmeier, K, 2008, p.3) depicts A version of Ansoff’s Matrix.

Market Penetration:

  • Advertise existing products to increase sales i.e. industry related magazines etc.
  • Drop mail/call clients that have already purchased machinery with regards to service & parts.
  • Increase sales force
  • Form strategic alliances with local agents
  • Allow customers to register their equipment, book services, buy spares etc. from the web site.

Market Development:

  • Form strategic alliances with global agents
  • Set up global sales team/office in strategic locations
  • Look at other industries that could make use of existing equipment
  • Implement the “Information to transaction model” by Quelch and Klein (1996)(Andersen, K et al, 2003, p.293).
  • License patented solutions and products to other companies.

Product Development:

  • Improve/enhance existing products i.e.additional function, range, software updates/interface etc.
  • Update existing dated product range with new more technologically advanced equipment.
  • Utilise new and updated technologies i.e. increased processing speeds, small memory chips, efficient motors etc.
  • Develop new innovative products to compliment existing equipment i.e. new scientific instruments not currently available in the product range or accessories for existing equipment.
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Diversification:

  • Look at other equipment that could be manufactured using existing capabilities  within the group but for new sectors.
  • Offer a test and analysis service for customers who do not want to purchase equipment i.e. Small companies unable to fund equipment, or companies carrying out activities outside of their normal business, ‘one-off’ tests etc.

Value Chain Analysis

Michael Porter introduced the value chain model in his book ‘Competitive advantage’ (1985). The model allows companies to better understand what actions are required in order to develop competitive advantage. These actions can be broken down into a series of activities that ...

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