Even though the three websites evaluated within this report meet the basic costumer expectation of being visible on the net, they seem to miss the motivation to reconstruct their value chain and build an eBusiness design that could be used as a tool to invent new products from costumer wants. The reverse value chain business model that empowers costumers and encourages interactive communication is therefore not yet fully implemented.
1. Introduction
This report is initiated to discover how much I can learn about eBusiness design by evaluating the business model embedded in three business web sides of my own choice. In order to reflect on the value proposition, the competitive advantage, and the profit performance of three different web sides for later comparison, I found it necessary to analyse three sides that are targeting the same or similar costumer. Each of the three businesses has a different approach to design its eBusiness model and thus offers a variety in how to apply the reverse value chain. Within the following pages, I will evaluate each approach based on my perception of the findings in the three selected web sides:
http://www.wrigley.com/
http://www.stimorol.com/
http://colesonline.com.au/
Table of Contents
Executive Summary
1. Introduction
2. Basis of choice
3. Business model
4. Business performance
5. Reverse value chain
6. “Wrigley’s”
6.1 Business performance
6.2 Competitive advantage
7. “Stimorol”
7.1 Business performance
7.2 Competitive advantage
8. “ColesOnline”
8.1 Business performance
8.2 Competitive Advantage
9. Conclusion
10. References
10.1 Books
10.2 Electronic Sources
11. Appendices
11.1 Appendix 1: Basis of choice
11.2 Appendix 2: Instrument/measurement tool for gathering and sorting important information from the webside
11.3 Appendix 3: Reasons for choosing the evaluation criteria used in Appendix 2
Research Objectives and Themes
This report evaluates the eBusiness design and effectiveness of three distinct company websites ("Wrigley's", "Stimorol", and "ColesOnline") to determine if they successfully leverage the internet to create a consumer-driven "pull" business model, rather than merely acting as static marketing tools for traditional products.
- Analysis of traditional "push" versus modern "pull" business strategies.
- Evaluation of web usability, interactivity, and eBusiness integration.
- Application of the "reverse value chain" concept to existing digital platforms.
- Identification of competitive advantages derived from online consumer interaction.
- Assessment of organizational challenges in transitioning to eBusiness models.
Excerpt from the Book
4. Business performance
Costumers as well as investors and/or suppliers are not only able to gain information from the web side, but at least for the “Wrigley” and “Stimorol” sides, the web is the only possibility to contact the companies directly. The web therefore gives the company the advantage to find out what the costumer wants, what kind of products he or she is interested in, what his or her concerns are, and so forth. “Coles” website even goes further, by not only offering interesting facts or entertainment, but also integrating a new concept, called eCommerce within their side.
“ECommerce is a concept to utilize specific information and communication technologies for the electronic integration and interlocking of value chains and processes between enterprises” (Kotler, P & Bliemel, F, 2001, Marketing management, 10th ed, Schaeffer).
This definition basically acknowledges that “Coles” not only responds to the emerging market pressure by being visible in the net, but also by creating a whole new distribution channel with all the necessary processes needed for the online order and delivery fulfilment. This approach implies not only a greater financial commitment, but it also requires the brick-and-mortar company to integrate new functions in their value chain. The next section will further explore the term value chain and how eBusiness can help to reverse the market-driven “push” approach into a costumer-driven “pull” approach.
Summary of Chapters
Executive Summary: Provides an overview of the finding that the evaluated websites currently lack the depth to fully implement a reverse value chain model.
1. Introduction: Outlines the research scope, defining the evaluation of three specific websites to understand their approach to eBusiness design.
2. Basis of choice: Briefly notes that the rationale for selecting these specific websites is detailed in the appended material.
3. Business model: Establishes a theoretical foundation for business models in the digital age, focusing on the shift from traditional business to BtoC models.
4. Business performance: Examines how these companies utilize web technologies to interact with stakeholders and integrate commerce.
5. Reverse value chain: Introduces the concept of the reverse value chain as a catalyst for consumer empowerment.
6. “Wrigley’s”: Evaluates Wrigley’s conservative brand-extension strategy and their current limited utilization of web capabilities.
6.1 Business performance: Discusses the use of cookies and consumer feedback mechanisms on the Wrigley's site.
6.2 Competitive advantage: Analyzes the potential for Wrigley's to shift toward a more consumer-focused strategy.
7. “Stimorol”: Assesses the Stimorol website, noting its current lack of depth and the potential for a competitive pivot.
7.1 Business performance: Discusses the potential to turn the Stimorol site into a more effective marketing and sales tool.
7.2 Competitive advantage: Explores the requirements for Stimorol to successfully implement online ordering.
8. “ColesOnline”: Focuses on the e-commerce performance of Coles and its integration with brick-and-mortar operations.
8.1 Business performance: Evaluates the transition of Coles into the digital space and the importance of consumer-driven approaches.
8.2 Competitive Advantage: Critiques the current execution of the ColesOnline portal regarding usability and value creation.
9. Conclusion: Summarizes the finding that the companies struggle to move beyond traditional "push" methods despite the potential of eBusiness.
Keywords
eBusiness, reverse value chain, business model, consumer empowerment, competitive advantage, BtoC, digital strategy, online retail, consumer-driven, push approach, pull approach, website evaluation, value chain, eCommerce, internet marketing.
Frequently Asked Questions
What is the fundamental focus of this report?
The report aims to evaluate how traditional brick-and-mortar companies use their websites to evolve their business models and whether they successfully transition to a consumer-driven approach.
What are the primary themes analyzed in the research?
The main themes include value chain optimization, the transformation from product-driven "push" strategies to consumer-driven "pull" strategies, and the overall effectiveness of BtoC web design.
What is the core objective or research question of the work?
The research asks how much can be learned about eBusiness design by evaluating the business models of three chosen companies and whether they have actually utilized the internet to generate a competitive advantage.
Which scientific methodology was applied?
The author uses a comparative case study approach, evaluating the websites based on a specific set of criteria developed by the author and supported by literature regarding usability and e-business strategy.
What topics are covered in the main section?
The main section covers the business performance, potential for competitive advantage, and the implementation of reverse value chains for Wrigley’s, Stimorol, and ColesOnline.
Which keywords best characterize this report?
The work is best defined by terms like eBusiness, reverse value chain, consumer-driven strategy, BtoC model, and digital business performance.
Why did the author conclude that these companies are not yet fully "e-enabled"?
The author observes that the companies mostly use their websites as traditional marketing tools or simple extensions of their existing brick-and-mortar business rather than leveraging technology to allow consumer needs to drive new product development.
How does the author specifically criticize the "ColesOnline" experience?
The author notes significant technical issues, such as frequent disconnections and a lack of innovation in the user experience, concluding that the site fails to enhance the shopping experience or effectively reverse the value chain.
- Quote paper
- Dipl. Betriebswirtin, MBA Sandra Burgemeister (Author), 2002, Website Evaluations for eBusiness Model Design, Munich, GRIN Verlag, https://www.grin.com/document/9215