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- W346965783 abstract "Introduction This article identifies, analyzes, evaluates and proposes an action plan and a set of recommendations specifically for E-commerce strategy decisions. It focuses on current trends in E-commerce relative to impact on strategy decisions. Both strengths and weaknesses, opportunities and threats in E-commerce are reviewed in order to provide a balanced view of E-commerce strategy today. The work is undertaken in light of existing academic thought on E-commerce strategy. A general typology is presented for categorizing academic thought and various current strategy tools. That typology describes conditions under which certain tools are useful when considering strategy including E-commerce strategy, and provides framework for academicians and practitioners considering new strategy tools and theories. Nature of Strategy Questions for E-commerce E-commerce is simultaneously described as different from, and similar to, traditional business environments (Amit & Zott, 2001; Porter, 2001). It is Michael Porter (2001, p. 63) who cautions against considering Internet as rendering all old rules about companies and competition obsolete. Amit and Zott (2001), on other hand, put forth notion that issues central to E-business are not yet detailed. Now that E-business has followed a path of enthusiasm in late 1990s to one of more realism, a recent Business Week article points to fact that 40% of publicly held Internet companies were profitable in 2002 (Business Week, 2003). Those companies using Internet are slashing costs, innovating and increasing productivity, but as many as fifty business models may exist for business on Internet (Lam & Harrison-Walker, 2003). Questions remain about which, if any, of strategy tools available today might apply to E-commerce in terms of positive business outcomes, and which new tools might be applicable in this more realistic E-commerce environment. This article provides a typology for conceptualizing a potential fit for strategy tools available today, and also provides a framework for considering new tools and theories. At same time, it identifies, analyzes, evaluates and proposes an action plan and a set of recommendations specifically for E-commerce strategy decisions. Academic Review This section of article covers meaning and differences between business models and strategy and explains role of typologies. Specific journal and text citations support view that strategy includes business model but is much broader in scope. Typology for Strategy Choices Typologies are used to bring tacit understanding about phenomena to explicit conceptualization. Essentially, it is a mental map of classification that allows for easier recognition of complex subjects and enables readers to classify them into fewer categories, maintain Lam and Harrison-Walker (2003, p. 18). With there being as many as 50 E-business models (Lam & Harrison-Walker, 2003), those considering E-business for first time, or those evaluating historical E-business decisions, need strategic tools that succinctly address specific concerns. Those tools are for ultimate purpose of leading to positive business outcomes. Role of Business Models First, business models are plans a firm has for making money, or providing its services in a non-profit environment, and a conceptualization of where firm lies in value chain (Chesbrough & Rosenbloom, 2002; Rappa, 2004). According to Chesbrough and Rosenbloom (2002, p. 536), the business model mediates between technical and economic domains. Some of popular business models for E-commerce mimic those models in traditional business environments, such as bargain discounter, brand builders, buyer cooperatives, and dealer support organizations among others. Some of popular business models for Ecommerce are unique to Internet environment, such as following: bundlers, offering online and offline products in a group to create more value for users; collaborative designers, where several firms use Internet on a real-time, or near real-time basis, to collaborate on design issues; library where free library services are provided; freeware provider who gives away software; or virtual malls where multiple firms may provide content on a single web site (Afuah & Tucci, 2001; Bambury, 1998; Chen, 2003; Eisenmann, 2002; Lam & Harrison-Walker, 2003; Rappa, 2004a; Rappa, 2004b; Strauss and Frost, 2001). …" @default.
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- W346965783 date "2005-01-01" @default.
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- W346965783 title "A Strategy Typology and Application to E-Commerce" @default.
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