The business value of Internet commerce to an organization.

By: Sheng, Li-HueiContributor(s): University of MinnesotaMaterial type: TextTextDescription: 178 pISBN: 0493088660Subject(s): Business Administration, Management | Business Administration, Marketing | Mass Communications | 0454 | 0338 | 0708Dissertation note: Thesis (Ph.D.)--University of Minnesota, 2001. Summary: Why does a firm engage in Internet commerce and how can Internet commerce bring business value to a firm? The purpose of this study was to demonstrate the business value an organization can derive from using Internet commerce.Summary: Case study was chosen as the research methodology. Data came from interviews, site visits (Web and tour), and document review. Three companies in Minnesota were selected—Fingerhut, XYZ Company, and Simple Simon, representatives of catalog, publishing, and online grocery industries. The catalog industry is a starting point because it has demonstrated many advantages to evolving into e-commerce. The publishing industry is also an early adopter of e-commerce. Fingerhut sells physical products, while XYZ Company sells information products. Fingerhut and XYZ Company are large, established companies, while Simple Simon is a small Internet start-up. Differences are compared under two dimensions—company size (large, established company and small Internet startup) and product category (physical and information products). Similarities are also examined.Summary: When a large, established company considers moving to cyberspace, it must deal with channel conflicts, either internal sales channels or third-party distributors. The small Internet startup does not have the same challenge, but it encounters many large competitors. The large, established company has advantages in terms of organizational learning and resource complementarity, while the small Internet startup saves the costs of running huge organizational operations and enables it to react to competitive environments very quickly.Summary: Physical products are still using traditional ways to promote products, while information products can be promoted by means of bundling and versioning. While information products take advantage of savings through distributing and delivering costs, they need more enhanced personal customer services than physical products.Summary: Ease of access and ease of use are similar issues for the three companies. The significance of branding is recognized by all three cases. The distinction is also made between product brand and e-commerce brand. Reliable infrastructures, intimate customer relationships, and value creation are substantially connected to sustainable competitive advantage.Summary: Recommendations for improvement in their e-commerce are offered to each of the three companies, based on the information derived in this study.
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Source: Dissertation Abstracts International, Volume: 62-01, Section: A, page: 0242.

Adviser: Gary N. McLean.

Thesis (Ph.D.)--University of Minnesota, 2001.

Why does a firm engage in Internet commerce and how can Internet commerce bring business value to a firm? The purpose of this study was to demonstrate the business value an organization can derive from using Internet commerce.

Case study was chosen as the research methodology. Data came from interviews, site visits (Web and tour), and document review. Three companies in Minnesota were selected—Fingerhut, XYZ Company, and Simple Simon, representatives of catalog, publishing, and online grocery industries. The catalog industry is a starting point because it has demonstrated many advantages to evolving into e-commerce. The publishing industry is also an early adopter of e-commerce. Fingerhut sells physical products, while XYZ Company sells information products. Fingerhut and XYZ Company are large, established companies, while Simple Simon is a small Internet start-up. Differences are compared under two dimensions—company size (large, established company and small Internet startup) and product category (physical and information products). Similarities are also examined.

When a large, established company considers moving to cyberspace, it must deal with channel conflicts, either internal sales channels or third-party distributors. The small Internet startup does not have the same challenge, but it encounters many large competitors. The large, established company has advantages in terms of organizational learning and resource complementarity, while the small Internet startup saves the costs of running huge organizational operations and enables it to react to competitive environments very quickly.

Physical products are still using traditional ways to promote products, while information products can be promoted by means of bundling and versioning. While information products take advantage of savings through distributing and delivering costs, they need more enhanced personal customer services than physical products.

Ease of access and ease of use are similar issues for the three companies. The significance of branding is recognized by all three cases. The distinction is also made between product brand and e-commerce brand. Reliable infrastructures, intimate customer relationships, and value creation are substantially connected to sustainable competitive advantage.

Recommendations for improvement in their e-commerce are offered to each of the three companies, based on the information derived in this study.

School code: 0130.

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