E-Business Strategy essays

E-Business Strategy essays EBusiness Strategy and Value Chain Analysis What value does eBusiness have in the strategic planning of a company? Will it really help, and if so, how? In this essay we will briefly explore why the careful examination of a corporations activities and the possibility of incorporating eBusiness strategies can be very beneficial to a firms success. Value chain analysis is a systematic way of examining all the activities a firm performs and how they interact (Porter, 1985). A firm gains competitive advantage by performing these strategically important activities more cheaply or better than its competitors. Every company is a collection of activities that are performed to design, produce and market, deliver, and support its product. All of these activities can be represented using a value chain. The value chain as described by Porter (1985) incorporates five primary activities: inbound logistics, operations, outbound logistics, marketing and sales, and service. These activities contribute to the physical creation of the product or service, its sale and transfer to the buyer and its service after the sale (Porter, 1985). The first category in the value chain is inbound logistics. The primary activity of inbound logistics is associated with receiving, storing, and distributing inputs to the product (Porter, 1985). Some examples of these activities might include material warehousing, inventory control, vehicle scheduling, and returns to suppliers. Many of these activities can be handled with the aid of internet technologies. Just-in-time (JIT) inventory systems are one example of internet systems designed to achieve efficient inbound logistics (manufacturing.net). Toyota is one company that has incorporated these technologies into their eBusiness strategy. Toyota has systems which enable parts to be delivered at the assembly plants only hours before they are needed. The implementation of this strategy helps Toyot...