E-Business Strategy

Flipkart

In 2010, it diversified into becoming a generic e-commerce website, selling mobile phones, laptops, music CDs/DVDs, movies, games and software

acquired a California-based company social book discovery service weRead.

E strategy Implementation

Gaurav Burse

• Founded in October 2007,
• Flipkart was a humble online book retailer which went on to become the largest online bookstore in India
• Within next two years, surpassing its rivals such as Infibeam, Landmark and Indiaplaza.

• The development of detailed, short-term plans for carrying out the projects agreed on in strategy formulation
• Specific activities and outcomes from the strategy implementation phase include:
• Project planning
• Resource allocation
• Project management

Strategy Implementation Issues

• Application development
• Partners’ strategy
• (outsourcing)
• Business alliances and virtual corporations
• virtual corporation (VC)
• co-opetition
• Redesigning business processes
• Business Process Reengineering and Business Process Management

Evolving Strategy

Mohit Sharma

Planning and Execution

Control and Management

• Create a Web Team
• Start with a Pilot Project
• Allocate Resources
• Manage the Project

• Measuring Results and Using Metrics
• Metric
• Corporate (business) performance management (CPM, BPM)
• The Objectives of Assessment
• Measure the extent to which the EC strategy and ensuing projects are delivering what they were supposed to deliver
• Determine if the EC strategy and projects are still viable in the current environment
• Reassess the initial strategy in order to learn from mistakes and improve future planning
• Identify failing projects as soon as possible and determine why they failed

Strategic Analysis

Internet And Value Chain

Kasturi Das

Strategy Definitions

The process of Strategic Analysis can be assisted by a number of tools, including:

PEST Analysis - a technique for understanding the "environment" in which a business operates

Scenario Planning - a technique that builds various plausible views of possible futures for a business

Five Forces Analysis - a technique for identifying the forces which affect the level of competition in an industry

Market Segmentation - a technique which seeks to identify similarities and differences between groups of customers or users

Key Takeaways

Flipkart - From Bookstore to Store

Strategic Shift

• Reflecting the change in the business strategy, the tagline of Flipkart has also changed from
• " The bookstore at your door " to " The store at your door ".
• From a simple , clutter free online bookstore, the brand has now become an online store selling not only books but mobiles, music videos and gift vouchers.

• Anticipating the need to make bold strategic shifts is one of the most pressing tasks facing CEOs and investors.
• And missing the appropriate window for an effective strategic shift can be dire: A generation ago, Digital Equipment Corporation—then a leader in the minicomputer business—missed the personal computer era, fell into decline, and was acquired by Compaq in 1998.

Strategic Analysis is said to be:

‘… the process of conducting research on the business environment within which an organization operates and on the organization itself, in order to formulate strategy.’

-BNET Business Dictionary

• Market Capitalization leverage their reputation for superior customer service and delivery network to their advantage
• Short term Contracts with the supplier.
• As Flipkart follows an inventory-based business they use predictive analytic for a product’s demand in the future.
• Increasing reach to Tier II and Tier III cities will make Flipkart more attractive for the suppliers, enhancing Flipkart’s bargaining power
• Increase the switching cost for the buyers by offering them heavy discounts and exclusive offers through online wallet facilities
• Increase engagement with the potential customers through social media to increase their exposure with Flipkart
• Tie up with traditional retail stores to leverage their trust and collective reach in the market.

Why?

E-Business Strategy

• The aim of strategy analysis is to divide the objectives into more consistent smaller sub-units that may compose the core for a project
• Each of the sub-units of the objective can represent an alternative strategy for the future project
• The project objectives set the framework for the strategy of the project

SWOT Analysis of Flipkart

INTERNET

What do these technologies have in common with the Internet?

Introduction to E-Business Strategy

• Hailed as India’s Amazon.com,
• Flipkart raised $150 million in a PE round of funding from General Atlantic Partners in one of the biggest ever deals for an Indian Internet firm,
• Flipkart is the first Indian Internet company to sport a billion dollar valuation, as revealed by VCCircle.

Aditya Kunturkar

The key question is whether or not to deploy Internet technology –companies have no choice if they want to stay competitive, but how to deploy it.

-Michael Porter

• Printing press
• Telephone
• Automobile
• Airplane
• Television

Porter Five Forces Analysis

• Over-night delivery
• Facsimile machine
• Cellular phone
• Personal computer

Dynamic e-business strategy model

Imperatives of E Business strategy

Deepanhu Sharma

• What will happen if E Business strategy is not clearly defined:
• Missed opportunities due to lack of evaluation of opportunities.
• Losing competitive advantage
• Limited integration of e business at a technical level may cause information silos.
• Resource wastage due to duplication of e business development at different functions.

In order to avoid these problems in implementing E Business in traditional organization E business strategies should be based on corporate objectives like which markets to target , what is the target for revenue generation from electronic channels.

Strategy

A generic strategy process model

• Strategy defines future direction and actions of an organization
• E business strategy is no different than corporate ,business and marketing strategy:
• ‘Is based on current performance in marketplace’
• ‘Defines how company meets it objectives’
• ‘Sets resources to meet those objectives.’
• ‘Provide long term plan for development of business and beating the competition’

Value Preposition from Flipkart website

Strategy process models

E-Channel strategies

Forms of organizational strategy

A management team needs to agree on the framework they will follow

Common element:

• Internal and external environment scanning
• A clear statement of vision and objectives
• Can be broken down to option generation, evaluation and selection
• Implementation
• Control is required

Suggestions on e-business strategy

Synonyms for E-Business strategy.

How a company should set specific objectives and develop specific differential strategies for communicating with its customers and partners through e-media

Aim is:

‘to define goals and approaches for using electronic channels.’

‘to Utilize full potential for making an organization more effective through E Business.’

• Hackbarth and Kettinger (2000)

=Four-stage ‘strategic e-breakout’

• Deise et al. (2000)

=Approach based on work conducted on PWC

• Rowley (2002)

=Strategy development similar with other business context

• Venkatram (2000)

=Five-stage strategy process

Relationship between e-business strategy and other strategies

And then came the INTERNET!!!!

E-Business Strategy

Presented by(Group #1)

Mihika Baisya, Chaitanya Atre, Aditya Kunturkar, Mohit Sharma, Kasturi Das, Deepanshu Sharma, Gaurav Burse