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Generic E-Business Sell-Side Strategies

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Generic e-business sell-side strategies

For each of the six generic sell-side strategies, identify a good example of a company that has successfully adopted that strategy and identify examples of each strategy that have failed.

Generic e-business sell-side strategies Chaffey (2009) Chapter 5, Activity 5.3 lists six generic strategies, originally coined by IDC Research.

1) Attack e-tailing.
As Chaffey describes this is an aggressive competitive approach that involves frequent comparison with competitors’ prices and then matching or bettering them. The more people use price comparison sites such as ShopSmart (www.shopsmart.com) the more is it important that companies ensure their price positioning is favourable. Good examples include shopping sites such as Buy.com (www.buy.com) and Evenbetter.com (www.evenbetter.com). In those stores people can now find the prices of all comparable items in a category but also guarantee that they will beat the lowest price of any competing product. These sites have implemented real- time adjustments in prices with small increments based on price policy algorithms that are simply not possible in traditional retailing. An other example might be Lowestfare.com which is a leading provider of discount travel products and services for the leisure travel market or Sunelec.com has the lowest prices in the industry Solar & Wind Energy Distributors, Dealers, & Wholesalers.
2) Defend e-tailing This is a strategic approach that traditional companies can use in response to ‘attack e-tailing’. It involves differentiation based on other aspects than price, for example differentiation in quality or using brand name etc.
Also reasons why the lowest price may not always result in the sale are: • Ease of use of site and placing orders (e.g. Amazon One-Click makes placing an order with Amazon much easier than using a...

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