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Setting the Internet Revenue Contribution at Sandvik Steel

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Setting the Internet revenue contribution at Sandvik Steel
Case 2

1. Summarize Sandvik Steel’s e-business strategy as described in the article.
E-business has changed the way the company deals with both customers and suppliers, but the effort has been targeted at customers. Sandvik Steel’s e-business strategy consists on using the Internet as a tool to get feedback from their customers while at the same time they keep a bond with both customers and suppliers. The company has transitioned from serving the company to benefiting customers by IT due to the attention to details like attitudes, insights and getting people to understand and accept the company’s products and thoughts as its major challenges. Sandivik Steel strengths and expands its relationship with each customer by applying values of the web fully and extranet, it also expands the market share with using extranet by adjusting the structure. The intention of the Sandvik group is to deeply penetrate into the ambitions and the minds of the customers applying the Internet at the heart of its business. To sum up, the company utilized an internet strategy to keep connected with customers and suppliers, and to allow considerable cost savings. Sandvik Steel regarded their relationship with each of their customers as the most vital, significant part of the company's e-business strategy.

2. Explain in detail why the proportion of online purchases varies in the different countries in which Sandvik trades.
• Culture of using online trading – Due to differences in the levels and stages of business development and penetration of Internet technology in different countries it can ensure the continuity of successful e-business.
• EDI - Most business passes through distributors and is conducted by equivalent technologies such as EDI
• Service options offered in different countries- The product that has been

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