E-commerce Assignment
Part A
1. A company may choose to separate their online operations into a new company for a number of reasons including: the expected volume for the e-business is large, a new business model must be designed separate from the limitations of current operations, the company can be created without relying on current operations, and the online company is given the freedom to develop new partnerships, attract new talents, create their own prices, and raise extra funding.
There are several benefits when creating a separate company, which includes a decline of internal conflicts, increased freedom of the company’s management in pricing and advertising, the capability of creating new brands quickly, the opportunity to develop new, proficient information systems that are not encumbered by the old company’s former systems, and lastly, outside funding will occur if the market enjoys the e-business idea and purchases the company’s products.
2. Aligning your strategy and supply chain is the key to superior performance. A business strategy alone provides direction, but it will not achieve results. It may provide objectives and identify the desired corporate goals, but will not accomplish them. If each element of the supply chain is aligned with corporate strategies, then it becomes a powerful guideline for achieving a competitive advantage and desired results. If the manufacturer, warehouse or distribution channels are not in sync with corporate strategy the operation will fall apart quickly because there will always be conflicts between what the business seeks and what the supply chain can deliver; furthermore, customers may become forced to pay higher prices or wait longer to receive their desired products, and will ultimately begin to shop elsewhere.
Walmart is an excellent example of a company that has aligned their supply chain with their corporate strategy. They have developed an ingenious concept that would completely avoid the need of wholesalers through
1. A company may choose to separate their online operations into a new company for a number of reasons including: the expected volume for the e-business is large, a new business model must be designed separate from the limitations of current operations, the company can be created without relying on current operations, and the online company is given the freedom to develop new partnerships, attract new talents, create their own prices, and raise extra funding.
There are several benefits when creating a separate company, which includes a decline of internal conflicts, increased freedom of the company’s management in pricing and advertising, the capability of creating new brands quickly, the opportunity to develop new, proficient information systems that are not encumbered by the old company’s former systems, and lastly, outside funding will occur if the market enjoys the e-business idea and purchases the company’s products.
2. Aligning your strategy and supply chain is the key to superior performance. A business strategy alone provides direction, but it will not achieve results. It may provide objectives and identify the desired corporate goals, but will not accomplish them. If each element of the supply chain is aligned with corporate strategies, then it becomes a powerful guideline for achieving a competitive advantage and desired results. If the manufacturer, warehouse or distribution channels are not in sync with corporate strategy the operation will fall apart quickly because there will always be conflicts between what the business seeks and what the supply chain can deliver; furthermore, customers may become forced to pay higher prices or wait longer to receive their desired products, and will ultimately begin to shop elsewhere.
Walmart is an excellent example of a company that has aligned their supply chain with their corporate strategy. They have developed an ingenious concept that would completely avoid the need of wholesalers through
References: 1. "Advantages and Disadvantages of Various Advertising Mediums." PowerHomeBizcom. N.p., n.d. Web. 13 Nov. 2013. ."How Banner Ads Work." 2. "Industrial Consortia Definition." Industrial Consortia Definition. N.p., n.d. Web. 4 Dec. 2013. . 3. HowStuffWorks. N.p., n.d. Web. 13 Nov. 2013. . 4. "Supply Chain Management: Business Strategy Must Drive Supply Chains." Supply Chain Management: Business Strategy Must Drive Supply Chains. N.p., n.d. Web. 20 Nov. 2013. . 5. "Travelocity’s Michelle Peluso Changed the Business Model and the Company Took Off." KnowledgeWharton Travelocitys Michelle Peluso Changed the Business Model and the Company Took Off Comments. N.p., n.d. Web. 26 Nov. 2013. .