Beruflich Dokumente
Kultur Dokumente
Thinking Strategically
Strategy is an approach to achieving a series of objectives Corporate strategy describes how a firm will achieve the vision of its senior management Corporate strategy and IT strategy are intertwined The new economy has created threats and opportunities for corporate strategy
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E-Business
An e-business
Recognizes that IT is a fundamental driver of success Uses technology extensively in all its operations
E-commerce
Consists of two broad categories
Business to consumer (B2C) E.g., Buying books and music CDs over the internet Business to business (B2B) E.g., Companies buying goods from their suppliers
Has stimulated much greater competition and the rapid creation of new firm-specific resources (e.g., cash flows and venture capital) In a hypercompetitive economy, successful strategies allows firms to sustain competitive advantage for over a year
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Description
Pervasive use of technology in the firm
Example
E-mail, electronic conferencing, automated transactions processing, ERP, CRM, knowledge management systems, etc.
Amazon.com
The Internet and electronic commerce have impacted the traditional value chain
E.G., Amazon.com has no physical stores and hence a smaller infrastructure which is easier to manage
Comparing value chains can highlight the differences among business models based on the internet and web
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A firm has competitive advantage when it creates a successful non-duplicable strategy and immobile, heterogeneous resources that are rare, valuable, inimitable, and non-substitutable
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Summary
To gain competitive advantage, firms have to create resources that are rare, valuable, inimitable, and non-substitutable The objective of a firm is to create an initial advantage, sustain that advantage, and to appropriate benefits from its innovative activities
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Summary (Continued)
A firm cannot succeed with a strategy alone and must first devise a business model Executing the business model and strategy requires highly capable managers who can respond to changes in the economy, environment, technology, and competitor actions
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