Electronic commerce: a strategic application?
The rapid growth of wide area networks in recent years has opened up a new avenue for companies to market products and services and disseminate information about them to potential customers. Two hundred and twelve companies that conduct business in such a way responded to an e-mail survey about the anticipated benefits that prompted them to do so. The survey also asked about three potential strategies for achieving business objectives cost leadership, focus, and differentiation that they may have been following. Six benefits factors competitiveness, control, cost savings, information, new applications, and productivity emerged from this study. Competitiveness was the most important benefit and predicted a dit%erentiation strategy. Productivity and new applications also predicted a dit%rentiation strategy. Cost savings predicted a cost leadership strategy. No benefits factor predicted a focus Ss_ategy.This assessmentthus sheds light on why organizations conduct electronic commerce.