E-Business

E-Business Strategy

Bhawani Nandan Prasad

Management Education from IIM Calcutta and Stratford University, USA

Bhawani Nandan Prasad

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What Is Strategy

• A strategy consists of a pattern of decisions that set the goals and objectives that lead to long run competitive advantages for a firm.

– Undertake a SWOT analysis. – Determining distinctive competencies. Determining the competitive arena. – Develop a plan to reach the business goals.

Bhawani Nandan Prasad

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Definitions:

• A value chain is a way of envisioning the collection of activities that a business undertakes to design, produce, market, deliver, and support products or services. • The Competitive Arena is the competitive environment in which a business competes. • Distinctive Competencies are unique areas of advantage where a firm can differentiate itself from competitors.

Bhawani Nandan Prasad

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Steps for Strategy Development

• Undertake a SWOT analysis.

– Evaluate the Strengths, Weaknesses, Opportunities, and Threats facing a business.

• Determining distinctive competencies.

– Analyze a business’s value chain to help identify internal strengths and weaknesses that can help determine how a business can compete.

Bhawani Nandan Prasad

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Steps for Strategy Development

• Determining the competitive arena.

– Determine the competitive environment in which a business competes • Helps set the mission • Indicates the windows of opportunity to be pursued • Identifies the competitive environment.

• Develop a plan to reach the business goals.

– Outline the strategic actions and tactics a business must undertake to move from where and how it currently competes to where and how it needs to compete given its distinctive competencies.

Bhawani Nandan Prasad

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Model of Strategy Development

Value Chain (Strengths & Weaknesses) Strategy

Environmental Forces

Bhawani Nandan Prasad

Competitive Threats

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Strategic Drivers

Business Models

• A business...