chapter  8
29 Pages

E-business strategy: formulation

Chapter 8 is the first of three chapters that focus on the strategic elements of undertaking e-business. The chapter begins by defining

what strategic management is and highlights the key elements of objective setting for organisations in an e-business environment. This is followed by an explanation of the strategic process that firms can follow as a framework for choosing and implementing strategies to achieve stated aims. The chapter then offers an overview of the internal analysis as part of the strategic process. There are many factors that form a typical internal analysis and the most important ones are highlighted and discussed. However, emphasis is placed on value chain analysis to determine what activities undertaken by an e-business can lead to added value and, ultimately, competitive advantage. There then follows discussion of the external environment as

part of the strategic process. This section uses Porter’s (1985) five forces model to identify the key factors that determine the

e-business competitive environment. The chapter concludes with analysis of competitive strategies in the context of e-business. This chapter is the precursor to analysing the implementation of strategy in Chapter 9 and the strategy evaluation in Chapter 10.