Strategies For E Business Creating Value Through Electronic and Mobile Commerce Concepts and Cases Third Edition Edition Enders All Chapter
Strategies For E Business Creating Value Through Electronic and Mobile Commerce Concepts and Cases Third Edition Edition Enders All Chapter
Strategies For E Business Creating Value Through Electronic and Mobile Commerce Concepts and Cases Third Edition Edition Enders All Chapter
Third Edition
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concEpTs and casEs
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Strategies for e-Business
tawfik Jelassi
albrecht enders
Francisco J. Martínez-López
iii
the rights of tawfik Jelassi, albrecht enders and Francisco J. Martínez-López to be identified
as authors of this work have been asserted by them in accordance with the Copyright,
designs and patents act 1988.
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trademark in this text does not vest in the author or publisher any trademark ownership
rights in such trademarks, nor does the use of such trademarks imply any affiliation with or
endorsement of this book by such owners.
Contains public sector information licensed under the open Government Licence (oGL)
v1.0. www.nationalarchives.gov.uk/doc/open-government-licence.
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Brief contents
List of exhibits xx
Foreword xxiii
preface xxvii
authors’ acknowledgements xxxiii
the authors xxxv
publisher’s acknowledgements xxxvii
Part 1
Introduction 1
1 Key terminology and evolution of e-business 3
Part 2
The e-business strategy framework 31
2 overview of the e-business strategy framework 33
3 external analysis: the impact of the Internet on the macro-environment
and on the industry structure of e-business companies 40
4 Internal analysis: e-business competencies as sources of strengths
and weaknesses 79
5 strategy options in e-business markets 104
6 sustaining a competitive advantage over time 127
7 exploiting opportunities of new market spaces in e-business 152
8 Creating and capturing value through e-business strategies: the
value-process framework 174
9 Choosing the appropriate strategy for the internal organisation
of e-business activities 195
10 Choosing the appropriate strategy for interaction with suppliers 218
11 Choosing the appropriate e-business strategy for interacting with users 232
12 Moving from wired e-commerce to mobile e-commerce
and u-commerce 265
Part 3
A roadmap for e-business strategy implementation 297
13 a roadmap for e-business strategy implementation 299
Part 4
Case studies 315
Index 717
vi
List of exhibits xx
Foreword xxiii
Preface xxvii
Authors’ acknowledgements xxxiii
The authors xxxv
Publisher’s acknowledgements xxxvii
Part 1 Introduction
Chapter at a glance 3
Learning outcomes 3
Introduction 4
1.1 Key terminology 4
1.1.1 e-Business 4
1.1.2 electronic commerce 4
1.1.3 Mobile e-commerce 4
FT article It’s too early for e-business to drop its ‘e’ 5
FT article From netscape to the next Big thing: how a dotcom decade
changed our lives 22
vii
summary 28
Review questions 28
discussion questions 28
Recommended key reading 29
Useful third-party weblinks 29
notes and references 30
Chapter at a glance 33
Learning outcomes 33
Introduction 33
2.1 Key challenges in e-business strategy formulation 34
2.2 A systematic approach to e-business strategy formulation 35
summary 38
Review questions 38
Recommended key reading 39
note and reference 39
Chapter at a glance 40
Related case studies 41
Learning outcomes 41
Introduction 41
3.1 Examining trends in the macro-environment 42
3.1.1 the political and legal environment 42
FT article online gambling: the sector has been able to cash in on a regulatory
regime set up in alderney 43
viii
FT article Michael porter, management thinker – academic who shares his values 53
3.3 Complementing the five forces framework with the co-opetition framework 62
summary 76
Review questions 76
discussion questions 76
Recommended key reading 76
Useful third-party weblinks 77
notes and references 77
Chapter at a glance 79
Related case studies 79
Learning outcomes 80
Introduction 80
4.1 Understanding core competencies in e-business 80
4.1.1 Competencies and core competencies: a brief overview 80
4.1.2 sources of value and core competencies in e-business 82
ix
Critical perspective 4.1 Compatibility between the resource-based view and the
market-based view of strategy 91
4.4 Selecting activities for online interaction with customers – the ICDT framework 92
4.4.1 Information activities 92
FT article advertisers rush to master fresh set of skills 93
summary 100
Review questions 100
discussion questions 101
Recommended key reading 101
Useful third-party weblinks 102
notes and references 102
5.4 Creating a fit between the chosen strategy and the value chain 120
5.4.1 Consistency between activities 120
6.2.3 Raising the right questions to recognise the threats of disruptive innovations 138
6.2.4 Finding ways to deal with disruptive innovations 139
FT article Light reading 140
6.2.5 selecting the appropriate mental frame for efficient reactions 143
summary 149
Review questions 149
discussion questions 149
Recommended key reading 150
Useful third-party weblinks 150
notes and references 150
xi
7.1 Gaining insights into new market spaces through the value curve 153
7.2 Looking outside one’s own box 154
FT article the way we shop now 156
Blog box Google just got a whole lot smarter, launches its knowledge graph 163
xii
9.5 Managing conflicts between online and offline distribution channels 211
9.5.1 Understanding conflicts in distribution channels 212
9.5.2 the channel conflict matrix 213
FT article expedia stops american airlines ticket sales 214
summary 215
Review questions 216
discussion questions 216
Recommended key reading 216
notes and references 217
Chapter 10 Choosing the appropriate strategy for interaction with suppliers 218
xiii
summary 229
Review questions 230
discussion questions 230
Recommended key reading 230
Useful third-party weblinks 231
notes and references 231
Critical perspective 11.2 Is there unlimited choice and does it create unlimited demand? 261
summary 261
Review questions 262
xiv
FT article the online challenges facing retailers – stores tap into shoppers as
mobiles ring the changes 285
12.3 Ubiquity and u-commerce: strategy for the ultimate evolution
of commerce 286
12.3.1 What is u-commerce? 287
12.3.2 Main features of u-commerce 287
12.3.3 From wired e-commerce to u-commerce: the definite evolution 288
12.3.4 types of u-commerce and new forms of marketing 289
FT article Welcome to a new reality 291
summary 293
Review questions 293
discussion questions 293
Recommended key reading 294
Useful third-party weblinks 294
notes and references 294
xv
13.6 Should we implement our e-business strategy alone or with external partners? 309
13.7 What organisational structure should our e-business activities have? 309
13.8 What is our cost and revenue model? 309
13.8.1 What is the cost structure of our e-business activities? 310
13.8.2 What is the revenue structure of our e-business activities? 310
13.9 How should we align our physical-world strategy with our e-strategy? 311
summary 312
Review questions 313
discussion questions 313
Recommended key reading 313
notes and references 314
xvi
Strategy in action 14.1 Business thinking: on finding the right balance between
analysis and intuition 327
14.4.1 extending the breadth of the analysis 330
14.4.2 extending the depth of the analysis 331
Strategy in action 14.2 ‘Why?’ – the importance of questions in strategy formulation 332
summary 334
Review questions 334
discussion questions 335
Recommended key reading 335
Useful third-party weblinks 335
notes and references 336
xvii
Case studies
1 From A(pples) to Z(oom lenses): extending the boundaries of multichannel
retailing at Tesco.com 357
2 From e-banking to e-business at Nordea (Scandinavia): the world’s biggest
clicks-and-mortar bank 373
3 Ducati (Italy) vs. Harley-Davidson (USA): innovating business processes and
managing value networks 389
4 American Well – the doctor will e-see you now 403
5 IBX (Northern Europe): expanding B2B e-purchasing from indirect to direct
goods and services 424
6 Satec (Spain): business transformation through IT value reinvention and
organisational redesign 441
7 Otis Elevator: accelerating business transformation with IT 454
8 TopCoder (A): developing software through crowdsourcing 469
9 Appirio: new venture on a cloud 486
10 ITC e-Choupal: corporate social responsibility in rural India 495
11 e-Government in Estonia: establishing the world’s leading information society 513
12 ICT in Tunisia: a strategic lever for building a knowledge-based economy 530
13 Fostering innovation in the public sector: VivekKundra@USgovernment 543
14 Knowledge management at Booz & Company: towards a culture of knowledge
sharing and collaboration 561
15 Spreadshirt: mass-customization on the Internet 577
16 When digital David meets physical Goliath: the case of Brockhaus vs. Wikipedia 597
17 Nettwerk: digital marketing in the music industry 608
18 Licia Chery and MyMajorCompany: crowd funding to stardom 621
19 Novartis SMS for Life (A): a public–private collaboration to prevent stock-outs of life-
saving malaria drugs in Africa 639
xviii
Index 717
xix
p.1 the cases cover several industries and focus on different themes xxxi
1.1 electronic business includes electronic commerce and mobile electronic commerce 5
1.2 the focus of the cases is on corporate-level and business unit strategy 8
1.3 technological revolutions move through different stages as their diffusion increases 10
1.4 Major technological revolutions during the past two centuries show similar
patterns of evolution 12
1.5 since the mid-1990s, e-business companies have passed through four distinct
periods, as is reflected in the evolution of the nasdaQ 13
2.1 the goal of e-business strategy is to achieve (long-term) success by building up
one or more sources of competitive advantage 35
2.2 the e-business strategy framework consists of three main steps 36
2.3 e-Business strategy formulation entails an internal and an external analysis to
identify strengths, weaknesses, opportunities and threats 37
3.1 e-Business companies are impacted by their industry and macro-environment 43
3.2 Five forces influence the attractiveness of an industry 52
3.3 the Internet has a profound impact on the five forces that influence industry
attractiveness 63
3.4 the value network outlines the main players in the co-opetition framework 63
3.5 the e-business market segmentation matrix classifies different types of interaction
between consumers, businesses and governmental agencies 69
3.6 segmentation variables are the basis for strategic customer analysis 71
3.7 target-market selection depends on the number of markets served and the
number of different products and services offered 74
4.1 distinctive e-business competencies result from the combination of unique
resources and capabilities 81
4.2 the core competence approach cuts across different functional areas within a firm 82
4.3 sources of value creation in e-business 83
4.4 an extensive e-business capability model 85
4.5 a company’s value chain consists of distinct value-adding activities 87
4.6 the Internet impacts on all activities in the value chain 89
4.7 the virtual value chain illustrates how information captured in the physical value
chain can be used to develop new markets 90
4.8 the ICdt model describes the four main usage dimensions of the Internet in the
virtual market space 92
4.9 the value network includes numerous partners with differing functions 98
5.1 the strategic triangle addresses the main drivers of competitive advantage 106
5.2 Impact of threshold features and critical success factors on consumer benefit 107
5.3 there are two generic approaches to achieve a competitive advantage 108
5.4 economies of scale lead to a decrease in per-unit costs as output increases, whereas
dis-economies of scale lead to an increase in per-unit costs 109
5.5 tangible and intangible sources of differentiation 112
5.6 perceived performance and relative price position determine a firm’s strategy 114
xx
5.7 the strategic gameboard helps to formulate consistent business strategies 116
5.8 Components of an e-business model 117
6.1 a company can build up numerous barriers against imitation 129
6.2 s-curves of e-commerce innovation: from i-, m- to u-commerce 132
6.3 disruptive innovations enter the market from below and improve over time until
they meet the demands of mainstream customers 134
6.4 to overcome organisational rigidities, incumbents who are faced with disruptive
innovations need to adopt two contradicting cognitive frames 148
7.1 the value curve provides insights into new market spaces 154
7.2 the six paths framework suggests different starting points for creating value
innovations in e-business 155
8.1 Value is created if the perceived use value exceeds costs 176
8.2 the price indicates how the value created is distributed between the producer
and the consumer 177
8.3 producers completely capture the value created in a (quasi-)monopolistic
environment 178
8.4 the competitive discount is equal to the consumer surplus provided by the strongest
competitor 179
8.5 the VpF – to achieve profitability, companies must be able to create and capture value 180
8.6 the VpF integrates different strategy analyses 181
8.7 Value is created by the individual business activities of the value chain 182
8.8 porter’s five forces influence the cost lever and competitive discount 183
8.9 porter’s strategy models can be used to analyse the levers of the VpF 184
8.10 a value chain analysis of the MVno project reveals numerous value and cost drivers 185
8.11 Multiple value drivers create perceived use value mainly in three dimensions 186
8.12 perceived use value and costs for the sony BMG MVno would both have been high 187
8.13 the German wireless telecommunications industry is of relatively low attractiveness 189
8.14 the five forces analysis indicates a high competitive discount 190
8.15 perceived use value has to be extremely high to achieve profitability 191
9.1 during the 1990s, the pC industry became increasingly fragmented 197
9.2 the clicks-and-mortar spectrum spans from integration to separation of a
company’s e-business activities 203
9.3 the traditional corporation can be unbundled into three distinct businesses 210
9.4 different businesses within a corporation have different imperatives regarding
economics, culture and competition 211
9.5 alternative views to the conflict–performance link in distribution channels 212
9.6 the channel conflict matrix analyses how different types of channel conflicts
should be resolved 213
10.1 the B2B e-commerce matrix classifies different types of B2B e-marketplaces 223
10.2 e-procurement solutions cover different parts of the supply chain 227
11.1 evolution of the business–customer mind-set with the advent of Web 2.0 234
11.2 evolution of the Web and related applications 236
11.3 Web 2.0: a four-factors model 237
11.4 activities for embracing Web 2.0 in existing Internet businesses 238
11.5 social networking sites help users to pursue their motives of discovery, homogeneity
and sharing by providing various communication tools 242
11.6 the advanced capabilities of the Internet help to dissolve the trade-off between
richness and reach 244
11.7 Customer relationship management consists of four elements 246
xxi
xxii
We are over a quarter of the way into the second half of the Information Age revolution. Very
little of what is now accepted management practice and application opportunity today was
even conceived of some 15 years ago. The first half of the Information Age took place between
1955 and 1995. 1955 was the year when IBM built, in short order, its 701, 702 and 703 com-
puters, while Univac launched its Univac I. Large, rather unreliable and with a vastly limited
processing capacity in terms of today’s machines, those machines and their clumsy (by today’s
standards) languages nonetheless provoked a revolution in back-office transaction process-
ing, leading to sharp improvements in cost, quality and services. Insurance, banking, airline
reservations were where some of the most exciting IT applications took place in those early
days, with the structures of those industries being profoundly impacted over a long period of
time (over 15 years, for example, one insurance firm’s premium notice department gradually
withered from 150 people to one). Additionally, a heavy focus, of course, was on financial
processes relating to accounting, payroll, etc., with overall IT responsibility being most often
housed in the financial function. All of this was done mostly in the context of home-grown
systems, where the prevailing model was to build and run. Large IT departments, filled with
highly specialised technical skills, emerged to develop and operate these systems. They made
intense efforts to learn how to plan their activities, better manage projects and assess and
manage risk. This work evolved in a more or less linear way over two decades, creating the
great legacy systems, many of which still run today. How to cope managerially with this world
was captured by the first generation of IT literature, which was heavily executional in its focus.
In the late 1970s, a sharp shift in the technology cost performance allowed the emer-
gence of the PC, with desktop computing soon becoming a standard part of corporate life.
The technology rapidly spread across the desktops of the firm, causing great angst to the
operators of large data centres, whose processes were severely challenged. Nevertheless, all
through the 1980s much of the prevailing focus of a firm’s IT activities still remained in the
build and run category. Near the end of the decade, however, the first big outsourcing of IT
resource deals emerged. This fact, combined with the explosion of the applications software
industry (SAP, Oracle, etc.), caused the monopoly role of the in-house IT department to
build and deliver systems to begin to disappear. It was increasingly replaced by the source
and manage model. This resulted in a genuine revolution. Early adapters, Eastman-Kodak
and General Dynamics, found fundamentally different, and more effective, corporate oper-
ating models.
Increasingly, over the next two decades, managers came to focus on how IT could de-
liver a competitive advantage and they worried less about the mechanics of how to build
and operate systems, but turned that over to the burgeoning software and service industry
xxiii
(represented by companies such as IBM, Accenture, CSC and EDS, plus a host of smaller
ones.) Conventional wisdom about how to manage IT and its impact was severely chal-
lenged, creating a new literature. For the first time, IT as a competitive weapon began to be
extensively talked about.
The thunder clouds of even more dramatic changes, however, were to emerge. Tom
Friedman, in his remarkable book The World is Flat (Farrar, Straus& Giroux, 2005), identified
three dominant events that have shaped this new world. From the 1990s until today, the first
was the fall of the Berlin Wall in 1989, which, combined with the emergence of China, effec-
tively delivered more than 3 billion people into the world markets (this topic is not dealt with
in this text), creating new sources of supply and demand for all forms of products and services,
and turning the IT world inside out.
The second event was the stream of activities that were triggered by the Netscape IPO in
October 1995. This is widely seen as the beginning of the Internet I Era, the emergence of
e-business, and the concurrent propulsion of the world towards open systems and widely
accessible data. The third event was the massive overinvestment by telecommunications
companies in fibre networks, which collectively created the wide, almost zero-cost highways
for today’s digital economy. Tom notes that these trends led to the words insourcing, out-
sourcing and offshoring, supply chaining and informing, which fundamentally transformed
the operation and performance of global enterprises. This text wisely ignores the issues of
where work is done globally (a separate book by itself), and chooses instead to focus on the
other aspects of this revolution – namely, on how the core processes and products of a firm
are shaped by these new opportunities in a world of essentially free telecommunication and
Internet-enabled interconnections. In doing this, they bring enormous insight to the task.
The text is a tour de force:
1 First, the text is grounded in a deep sense of history. It richly catches the forces that led
to the emergence of the e-business world and to its tremendous growth, which ultimately
led to the Bubble. They effectively document the Bubble’s collapse, the underlying reason
for it, and identify the exciting opportunities beyond. As one reads about the brief exist-
ence of Webvan, for example, nostalgic memories surge of an exciting, yet fundamentally
flawed vision. The text captures brilliantly both the opportunities and the drivers towards
excess of the early days. It provides useful warnings for today.
2 Secondly, the text has deep and informed command of the relevant literatures as they
relate to company and industry competitive strategy and dynamics (Porter et al.). The
discussion of the opportunities and risks of new technologies are firmly rooted in value
chain and other contemporary forms of strategic analysis. It is worth noting that there is
not a strategic framework the authors use that existed before 1982. They avail themselves
of the latest insights in this area. In short, the text combines the latest of strategic think-
ing with the opportunities posed by the new technologies.
3 The text is built on informed understanding of detailed management practice. A particu-
lar strength is the assembly of a rich collection of articles from the Financial Times, which
illustrate the key moves made by different players during this period and, in so doing, give
useful insight on the breadth of applications. Those articles ensure that the book is as well
rooted in management practice as theory, and make the text as relevant to the manager as
to the MBA student.
4 The text demonstrates a broad command of the general IT literature (summarised in the
Appendix, now on the Companion Website, along with an appropriate set of technical
xxiv
definitions for those new to this area). This link between strategy, theory, IT application
literatures and the world of practice makes this a very unusual and impactful text.
5 The text reaches from the past to the absolute current leading edge of practice and
application. For example, the chapter on Internet II is as good a piece as I have seen on
this rapidly emerging technology.
6 Behind the articles for those readers who are interested in more ‘depth of applications’
lie a series of intensively researched and comprehensive IT application case studies.
Some 23 detailed, leading-edge, field-based case studies from different industries and
countries are presented for those who need deeper insight in the issues of contemporary
management practice. Combined with the chapters, these cases make this a compelling
text for MBAs.
This, however, is much more than just a text for an MBA course, although it has all the
material for a first-rate course. It is also a text for the thoughtful practitioner who is trying to
position his/her organisation to take advantage of these fast-moving technologies. The text
gives a detailed structure and guidance for how to find profitable business opportunities. It
contains a panoply of practical, easy-to-understand examples of applications. It also spends
an appropriate amount of time on the problems of implementation.
In short, the text is rich, high impact and very well thought-out.
xxv
people tend to over-estimate new technology in the short run and under-estimate it in the
long run. (Roy Amara, Institute for the Future)
When we talked to colleagues and friends in autumn 2003 about writing the first edition of
our e-business book, many of them asked whether we were arriving too late with the text.
They reminded us that the Internet bubble had burst three years ago and that most online
companies had since gone bankrupt. Since then, the thinking has changed. Both traditional
bricks-and-mortar corporations such as Tesco, Sony BMG or Mercedes-Benz and pure on-
line companies such as Amazon, Google or eBay have continued to develop and implement
e-business strategies, albeit initially with less public attention and media coverage than be-
fore. Due to the recent rapid growth of so-called Web 2.0 applications, online companies
such as Facebook and Twitter once again dominate the headlines of the business press.
Similar to other important technological revolutions, such as railways or steam engines,
the Internet has also undergone a typical cycle of boom and bust. Following a bust, techno-
logical revolutions rebound, and it is only then – during the ‘golden age’ – that they show
their true impact. At the time of writing this third edition of the text, it looks as if e-business
has entered this golden age.
During our research for this text, we found very few books published after the collapse of
the dotcom bubble that specifically address e-business strategy issues. We also noticed that
there were many excellent books on strategy and many books on e-business, yet there were
relatively few books that attempted to bring the two fields together in a comprehensive and
rigorous manner.
This text, as its title suggests, attempts to close this gap. It aims at providing readers with
a holistic and integrated view of the realms of strategy and e-business by focusing on stra-
tegic management concepts and linking them to actual case studies of companies engaged
in e-business activities. It also aims at going beyond the hype by closely analysing examples
of failure as well as success, in order to help readers assess the underlying drivers for a suc-
cessful e-business strategy.
Target readers
Strategies for e-Business is a text targeted at senior managers, business strategists, entre-
preneurs and consultants, as well as participants enrolled in MBA, Masters and executive
education programmes and students in the final year of their undergraduate education. It
should be of interest to general management programmes and seminars, as well as to those
xxvii
Key features
Content-wise, Part 1 presents the broader context of the text. It introduces the key terminol-
ogy and evolution of e-business and provides an historic overview of the distinct phases that
technological revolutions typically go through before reaching their full potential.
Part 2 suggests a strategy framework for the formulation of e-business strategies. Chap-
ter 3 discusses the external environment of e-business ventures. This includes an analysis
xxviii
of the macro-environment and the industry structure. Chapter 4 focuses on the internal
dimension of e-business strategy formulation. Chapter 5 is concerned with generic strat-
egy options, which determine the overall strategic direction of an e-business venture. The
issue of sustaining a competitive advantage over time and the dangers that threaten to erode
such an advantage are discussed in Chapter 6. Chapter 7 provides a systematic approach
for developing innovations that aim to make the competition irrelevant. Chapter 8 presents
the value-process framework, which integrates different perspectives of strategy into a
holistic model. Chapters 9 to 11 address three strategic issues that are of special relevance
for e-business companies. These include the internal organisation of an e-business venture
(Chapter 9), its relations with suppliers (Chapter 10) and its relations with customers/
users (Chapter 11). Chapter 12 presents conceptual frameworks that are specific to mobile
e-commerce applications.
Part 3 provides a roadmap for the formulation of an e-business strategy. Through the use
of cross-references, this roadmap (presented in Chapter 13) is closely linked to the e- busi-
ness strategy framework presented in Part 2.
Part 4 first provides an introduction to case study work by discussing how the concepts
and cases presented in the text can help managers and students interested in e-business
strategies to expand their skills along the dimensions of creativity and analytical ability
(Chapter 14). Following this, a brief synopsis section provides an overview of the key topics
in the cases, which is then followed by the full-length case studies.
In order to benefit most from this text, we recommend that you try to achieve the following
when working through the chapters:
● Thoroughly understand the theoretical concepts presented in the e-business strategy
framework.
● Critically assess the strengths and weaknesses of each concept and determine the context
for its appropriate use.
● Apply the concepts when analysing the case studies and make action-orientated recom-
mendations backed up by logical reasoning and supporting arguments.
● Expand the usage of the concepts and the frameworks into other business situations that
you encounter in your daily work or study.
To make your learning experience more effective and enriching, the text contains the fol-
lowing features:
● Chapter at a glance at the beginning of each chapter provides a quick overview of the most
important topics discussed in the chapter.
● Related case studies are included at the beginning of each chapter to illustrate which
cases are most relevant for the topics discussed. For more information on this, Exhibit
P.1 on p. xxxi illustrates the relationships between the case studies and specific chap-
ters and sections of the text.
● Learning outcomes offer a brief description of what you should have achieved after read-
ing the chapter.
xxix
● Different types of boxes are contained in the text body of each chapter to provide added
information about the concepts that are discussed:
– FT articles are taken from the Financial Times to provide a journalistic perspective
(within the timeframe context) of the issue discussed in the section.
– Critical perspectives present a different, if not opposing, view to the position taken in
the main text of the chapter. For instance, the resource-based view is presented as a
critical perspective on Porter’s market-based view to strategy formulation. Weighing
the merits of each view is a valuable exercise for gaining a more in-depth understand-
ing of the concept that is presented.
– Blog boxes contain excerpts from blog writers, who provide their opinions on current
developments in the e-business world. These excerpts provide an additional and at
times different perspective to the concepts discussed in the chapters.
– Strategy in action boxes are examples that provide additional background to the con-
cepts discussed in the chapters.
● Summaries at the end of each chapter allow you to review the most important points that
were discussed in the chapter.
● Review questions help you assess your understanding of the material presented in the
chapter. In general, the answers to these questions are straightforward since they are
based on the material presented in the chapter.
● Discussion questions help you to transfer the concepts from the chapter into different busi-
ness contexts. They are also meant as a starting point for discussion with your colleagues
and peers.
● Recommended key reading provides a select list of additional books and articles that you
can read if you wish to find out more about a specific topic.
● Useful third-party weblinks provide additional information on some material contained
in the chapter.
xxx
Exhibit P.1 The cases cover several industries and focus on different themes
Chapter
3 4 5 6 7 8 9 10 11 12 13
Internal organisation
New market spaces
Relashionship with
External analysis
users/ customers
Internal analysis
Strategy options
Implementation
e-Government
advantage
Case study
Case study name
type
1 Tesco ● ●●● ●● ● ●●● ●●
5 IBX ● ●● ●●● ●
9 Appirio ●● ● ●●● ●
10 e-choupal ●● ● ● ●● ●●● ●●
11 e-Estonia ● ●● ● ●●●
G2B2C
12 ICT in Tunisia ●● ● ● ● ●●● ●
e-government
13 Kundra@USgov ● ●● ● ●●● ●●
B2E
14 KM at Booz ●● ●●● ●● ●●
e-communities
15 Spreadshirt ●● ●●● ● ●● ●● ●●● ●
Brockhaus vs.
C2C 16 ●● ●● ●●● ●● ●● ●
Wikipedia
e-communities
17 Nettwerk ● ●●● ●● ● ●●●
20 NTT DoCoMo ●● ●● ●● ●
23 12snap ● ● ●●● ●● ●● ●
●●● Primary focus of the case study ● ● Secondary focus of the case study ● Tertiary focus of the case study
xxxi
Throughout the writing and publication process of this text, we have received valuable sup-
port and contributions from many people. Therefore, we would like to thank and express
our gratitude to the following individuals:
● Stephanie Ludwig, Research Associate at the ENPC School of International Management
(Paris), who has significantly contributed to the content of this text. Her strong dedica-
tion and quality management of the project were highly appreciated.
● Our colleague Professor Benoit Leleux at IMD, who kindly contributed some of his bril-
liant case study writing to this text.
● The authors who worked with us during the development of the case studies. These
include Kenneth Campbell (CEO of Tunisiana), Professor Charles Waldman (INSEAD,
France), Stefanie Leenen (BASS, Germany) and André Achtstätter, past MBA participant
at the ENPC School of International Management (Paris).
● Our colleagues and students at the Department of Management at the University of
Nuremberg (Germany), who conducted case study research with us. In particular, we
would like to thank our colleagues Prof. Harald Hungenberg and Andreas König, and
our students Sebastian Bartz, Henning Blarr, Hans Denker, Fernando Endarra, Thomas
Engelbertz, Sebastian Mauch, Matthias Promny and Maria Štšekotovitš. We also acknowl-
edge the help provided by Dhruv Bhatli, Research Associate, as well as Yingting Cheng
and Linda Crofton, Programme Coordinators, all at the ENPC School of International
Management.
● The authors who contributed the remaining case studies contained in the text. These in-
clude Professor F. Warren McFarlan, Professor John Deighton and Leora Kornfeld, as well
as Professor Karim Lakhani, David Garvin and Eric Lonstein (all from Harvard Business
School), Bala Iyer and Erik Noyes (both from Babson College), Saurabh Bhatnagar and Pro-
fessor Ali Farhoomand (both from University of Hong Kong), Professor Markus Kreutzer
and Marina Altuchov (both from University of St Gallen), Syeda Maseeha Qumer
and Debapratim Purkayastha (both from ICMR Centre for Management Research),
Professor Elie Ofek and Dr Ron Laufer (Indiana University Kelley School of Business),
Stephanie Weg (IMD Lausanne), as well as Catherine Daar and Victor Lugger (CommNa-
tion and MyMajorCompany).
● Professor F. Warren McFarlan (Emeritus Professor of Harvard Business School) for taking
time out of his busy schedule to write the foreword for the text.
● The students on several MBA and Executive MBA programmes in different countries,
as well as the managers in executive education programmes and seminars at business
schools, corporate universities and companies, who, through their analysis and discus-
sion of the case studies, contributed to the shaping of the text.
● The executives and managers of the companies featured in the case studies contained in
the text.
xxxiii
● The numerous reviewers who provided valuable insights through their detailed feedback
on the second edition of the text.
● Last, but not least, special thanks to our families, to whom we dedicate this text for their
unlimited support and much appreciated encouragement of this project. Furthermore:
– Tawfik Jelassi: I would like to dedicate this text to the digital generation in my home
country – Tunisia – who used information technology and Facebook to help topple
a 23-year-old dictatorship. The freedom, democracy and dignity which these youth
brought about inspired people’s revolutions in the Arab Spring countries and further
afield. I am very pleased that Albrecht Enders also joins me in this dedication.
– Francisco J. Martínez-López: I would like to deeply thank my co-authors Tawfik and
Albrecht for their kind invitation to join them in this new edition of the text; it has
been a really enriching experience. Also, a significant part of my work on this last edi-
tion was done during a stay as visiting scholar at the Zicklin School of Business, the
City University of New York (NY, USA). I am grateful to my colleague, Professor David
Luna, for his sincere and generous support during my stay there. Also, I really appre-
ciated the emotional support of my friends in NYC (Marta, Susan, Elizabeth, Chen,
Charles, Shirley, Gary and more) during my time writing this new edition of the text.
Finally, I thank the financial support received from ‘Programa José Castillejo’ (Ministry
of Education, Spain) and Research Project ECO2012-31712 (Ministry of Economy and
Competitiveness, Spain).
Feedback
We are interested in hearing your comments about this text. We appreciate both critical and
supportive feedback, which can help us to improve future editions of this text. You can reach
us via email at: [email protected], [email protected] and [email protected].
In the spirit of the concepts and case studies presented in this text, we also encourage you
to provide feedback on the Amazon.com websites so that others can find out about your
opinion.
xxxiv
Albrecht Enders is Professor of Strategy and Innovation at IMD. His major interest is the reac-
tion of companies to radical changes in their environment. He has worked for global corpora-
tions from different industries, including financial services,
consumer goods, industrial goods and the travel industry. In
addition to running highly customised company-specific pro-
grammes that focus on corporate transformation, he is also
the Program Director of Advanced Strategic Management,
one of IMD’s core general management programmes. Before
joining IMD, he was an Assistant Professor at the University
of Nuremberg and spent three years with The Boston Con-
sulting Group in the company’s Cologne office.
Professor Enders has published articles in academic jour-
nals such as Administrative Science Quarterly, Academy of
Management Review and Research Policy, and in practitioner-
orientated publications such as Harvard Business Manager,
xxxv
Management Information Systems Quarterly Executive and the Financial Times. His research
and case writing efforts have been recognised by awards from the BPS division of the Acad-
emy of Management in 2011 and 2012, EFMD in 1999, ECCH in 2001 and 2002 and SIM in
2005 and 2008.
Professor Enders holds a PhD in strategic management from the Leipzig Graduate School
of Management and a BA in economics from Dartmouth College.
xxxvi
Publisher’s acknowledgements
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In some instances we have been unable to trace the owners of copyright material, and we
would appreciate any information that would enable us to do so.
xliii
Part overview
this introductory part sets up the overall context for the text. It contains the following
elements:
● a definition of the key terminology used throughout the text;
● an overview of the evolution of e-business over time.
the goal of this introductory part is to provide a guide and a context for the content of
the text. Chapter 1 starts out with some definitions of the most important terms used
in the text, such as e-business, electronic commerce and mobile e-commerce, and the
concepts of strategy and value creation. It then provides an overview of the evolution of
e-business over the last decade and recognises four distinct periods: (1) the ‘grassroots
of e-business’, (2) the ‘rise of the Internet’, (3) the ‘crash’ (or the burst of the dotcom
bubble) and (4) the ‘synergy phase’.