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Defining tasks and goals in e-

commerce business strategy
Chapter 2

A generic strategy process model

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Element of strategic objective setting

The objectives
should be SMART
• Specific
• Measurable—
both efficient and
effective
• Actionable
• Relevant
• Time-Related

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Defining vision and mission

• Vision or mission statements for e-businesses are a concise
summary defining the scope and broad aims of digital channels in
the future, explaining how they will contribute to the organization
and support customers and interactions with partners. Jelassi and
Enders (2008) explain that developing a mission statement should
provide definition of:
• Business scope (where?). Markets including products, customer
segments and geographies where the company wants to compete online.
• Unique competencies (how?). A high-level view of how the company
will position and differentiate itself in terms of e-business products or
services.
• Values (why?). Less commonly included, this is an emotional element of
the mission statement which can indicate what inspires the organization
or its e-business initiative.

Vision
• Vision
A vision statement describes what a company desires to
achieve in the long - run, generally in a time frame of five to
ten years, or sometimes even longer. It depicts a vision of what
the company will look like in the future and sets a defined
direction for the planning and execution of corporate-level
strategies.
• Key Elements of a Good Vision Statement
 Forward-looking
 Motivating and inspirational
 Reflective of a company’s culture and core values
 Aimed at bringing benefits and improvements to the organization in
the future
 Defines a company’s reason for existence and where it is heading

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Mission
• A mission statement is a short statement of why an organization
exists
• Mission statement should ([Link]
statement):
• State what your company does
• State how your company does what it does
• State why your company does what it does
• Example
• Link In: To connect the world’s professionals to make them more productive
and successful
• Microsoft: Empower every person and organization on the planet to achieve
more
• Amazon: Amazon is guided by four principles: customer obsession rather than
competitor focus, passion for invention, commitment to operational
excellence, and long-term thinking. Amazon strives to be Earth’s most
customer-centric company, Earth’s best employer, and Earth’s safest place to
work
• Starbuck coffee: With every cup, with every conversation, with every
community—we nurture limitless possibilities of human connection.
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Core values
• Core values are the fundamental beliefs and principles that
guide the behavior and actions of an individual or
organization
• They act as a compass, influencing decision-making and
fostering a sense of shared purpose
• In essence, core values define what is important and guide
how individuals and organizations operate and interact
• Examples of core values:
 For individuals: Honesty, integrity, respect, responsibility,
compassion, creativity, and perseverance
 For organizations: Innovation, teamwork, customer satisfaction,
quality, in tegrity, and social responsibility

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Core values
• [Link] (Amazon web
service)
• [Link] (Shopee Singapore)

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Objectives/Goals

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Objectives/ Goals
Balance scorecard

Example vision or mission statements from e-

businesses
 [Link] Our vision is to be earth’s most customer-centric
company, to build a place where people can come to find and
discover anything they might want to buy online.
 Dell Dell listens to customers and delivers innovative technology
and services they trust and value.
 eBay eBay pioneers communities built on commerce, sustained by
trust, and inspired by opportunity. eBay brings together millions of
people every day on a local, national and international basis through
an array of web sites that focus on commerce, payments and
communications.
 Facebook Facebook is a social utility that helps people
communicate more efficiently with their friends, family and co-
workers. The company develops technologies that facilitate the
sharing of information through the social graph, the digital mapping
of people’s real-world social connections. Anyone can sign up for
Facebook and interact with the people they know in a trusted
environment.
 Google Google’s mission is to organize the world’s information and
make it universally accessible and useful.

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15

Eight key elements of a Business Model

• Value proposition
• Revenue model
• Market opportunity
• Competitive environment
• Competitive advantage
• Market strategy
• Organizational development
• Management team

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Value proposition

Reading material: Value proposition guidelines

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Revenue Model
• How will you earn money?
• Functions of a Business Model
• Articulate a customer value proposition
• Identify a market segment
• Define the venture’s specific value chain structure
• Estimate the cost structure and profit potential
• Describe the venture’s positioning within the value network linking suppliers and
customers
• Formulate the venture’s competitive strategy

EC Business Models

• Web catalog Revenue Models

• sell goods and services on the Web using an adaptation of a
mail-order catalog revenue model
• the seller establishes a brand image, and then uses the strength
of that image to sell through printed information mailed to
prospective buyers

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Online revenue model

• Digital Content Subscription Revenue Models
• Legal Content
• Academic Research Content
• Business Content
• Technical Content
• Advertising-Supported Revenue Models

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Online revenue model

• Advertising-Subscription Mixed Revenue Models

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Online revenue model

• Fee-for-Transaction Revenue Models
• Travel
• Automobile Sales
• Stockbrokers
• Insurance Brokers
• Event Tickets
• Online Banking and Financial Services
• Real Estate and Mortgage Loans
• Online Music
• Electronic Books
• Fee-for-Service Revenue Models
• Online Games
• Professional Services
• Free for Many, Fee for a Few

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Discussion

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Discussion
• Find an example of digital business / e – commerce strategy of
company in the area:
• Advertising (google, facebook)
• B2C e-marketplaces (amazon…)
• B2B e – marketplaces (Alibaba,
• E-logistic company
• Fintech company
• Developer/ IT solutions (Base VN, haravan,
• Distributor ( Lazbao, )

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