STRATEGIC MANAGEMENT Essay Example | Topics and Well Written Essays - 6000 words

STRATEGIC MANAGEMENT - Essay Example Tutor Signature: Date: Table of Contents Introduction 4 Theoretical Background 5 Advantages and Disadvantages of E-commerce 6 E-business strategies 8 Implementation Challenges 12 Conclusion 13 References 15 Introduction With the evolution of technology and introduction of the Internet, there is great change in the business environment. Every organization whether it is large or small scale, is trying to adopt and incorporate in business models based on technology into their system. This adoption of web based technology in the business lead to the emergence of E-commerce. In the current business scenario, e-commerce playing a crucial role and changed the way business is conducted around the globe. E-commerce is forcing the companies to find the new ways of expanding their market in which they compete (Plant 2000). To compete and sustain in the new markets, it become more crucial for the organization to not only attract the customers, but also to retain by tailoring the products and ser vices according to their needs and demand. Apart from redefining the products and services, organizations are also forced to restructure their business processes in order to deliver the products and services more effectively and efficiently (Reynolds 2004). ... In this report two business models has been used- McCarthy’s four marketing mix model and Porter’s five forces model to identify the strategies for organizations which want to enter in the field of e-commerce. The overall goal of this study is provide significant insights onto the challenges and advantages of e-commerce and business strategies. Theoretical Background (a) McCarthy’s Four Marketing Mix Model As per the McCarthy, a firm defines its marketing strategies after identifying the target market for its products or services. On the basis of the target market, organization then develops a marketing mix is a combination of product, price, promotion, and place designed according to the target market with the aim of enhancing the sales (Blythe 2009). The unique marketing mix allows the organization to sustain and compete more effectively, thus ensures the profitability and sustainability. For example, by offering different products with an attractive sales prom otion and effective logistics, a firm can increase its sales and revenues. This concept is also applicable on the e-commerce, and organizations working in this field are required to develop strategies for their target market by taking the unique nature of online marketing into the consideration (Napier et al 2006). (b) Porter’s Five Competitive Forces Model This five competitive forces model of Porter’s says that every organization develop its business strategies with the aim of gaining competitive advantage over its competitors. Organization can develop its strategies by focusing on five primary forces: (a) threat of new entrants, (b) rivalry among existing firms within an industry, (c) the Strategic management Essay Example | Topics and Well Written Essays - 750 words - 3 Strategic management - Essay Example (p. 96) They are pivotal in generating competitive advantage because they reinforce an organization’s functions such as marketing, production or research and development. For instance, in the marketing department, the strategy would work by featuring real-life customers in direct-response print and television advertisements that would steer them towards the company website. In the application of a functional management strategy, the functions as well as the roles assigned will be able to manage corporate level strategies and their activities in such a way that they optimize their functional performance resulting to positive results that contribute to the overall company performance. Ray maintained that there are two kinds of competitive management strategies: the offensive and defensive strategies. The first is concerned with the strategy that usually takes place in an established competitor’s market location, while the latter takes place in the organization’s own current market position as a defense against possible attacks by a rival. (p. 13) However, the case is, the goal is the same: to secure market share, acquire new customers, maintain current ones and cultivate customer loyalty. In the case of this company, a combination of these two strategies would be used, although with more emphasis on the offensive strategy, considering the fact that most of its products claim less than 3 percent of the market, with only one product dominating 40 percent in its own market location. In terms of offensive strategy, the competitive advantage that drives the attraction of new customers is fuelled by innovation and customer value. Currently, the focus of t he organization on innovation has been reaping rewards already. According to Pieper, corporate strategy is the setting of a company’s long-term goals, major policies and plans, and the