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1. Internet Value chain competencies (năng lực chuỗi giá trị)

The Internet impacts on all activities in the value chain
Firm Infrastructure
 Web-based, distributed financial and ERP systems
 On-line investor relations (e.g. information dissemination, broadcast conference calls)
Human resource management
 Self-service personnel and benefits administration
 Web-based training
 Internet-based sharing and dissemination of company information
Technology development
 Collaborative product design across locations and among multiple value-system participants
 Knowledge directories accessible from all parts of the organization
 Real-time access by R&D to online sales and service information
Procurement
 Internet-enabled demand planning
 Other linkage of purchase, inventory, and forecasting systems with suppliers
 Direct and indirect procurement via marketplaces, auctions and buyer–seller matching
Inbound logistics
 Real-time integrated scheduling, shipping, warehouse management, demand management &
planning, and advance planning & scheduling across the company and its suppliers
 Dissemination through out the company of real-time inbound and in-progress inventory data
Operations: Integrated information exchange, scheduling and decision making in in-house plants and
components supplier
Outbound logistics
 Real-time transaction of orders
 Automated customer-specific agreements and contract terms
 Customer and channel access to product development and delivery status
 Collaborative integration with customer forecasting systems
 Integrated channel management
Marketing and sales
 Online sales channels including web sites and marketplaces
 Real-time inside and outside access to customer information, product catalogues, dynamic
pricing, inventory availability, online submission of quotes, and order entry
 Online product configurators
 Customer-tailored marketing via customer profiling
After-sales service
 Online support of customer service representatives
 Customer self-service via websites and intelligent service request processing
 Real-time field service, access to customer account review, work-order update, etc.
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2. PESTLE
 The political and legal environment relates to issues on different organisational levels. At country
and industry levels, it includes issues such as taxation, monopoly legislation and environmental laws.
 The economic environment refers to broader economic developments within the context of a
country, a region or globally. Important factors in the economic environment are interest and exchange
rates, evolution of stock markets and, more generally, economic growth rates.
 The social environment considers factors such as population demographics, income distribution
between different sectors of society, social mobility of people and differing attitudes to work and leisure.
 The natural environment. In the environmental sphere, governments in many countries, such as
Spain and Britain, have zoning laws that make it difficult, if not impossible, for grocery retailers to set up
new hypermarket stores.
 The technological environment. For e-business ventures, the technological environment is of
significant importance. Technological innovations (such as the Internet or wireless devices) led to the
emergence of new market opportunities and business models.
3. FIVE FORCES

 Industry rivalry
 Large number of competitors. If there are numerous competitors in a given industry or business
sector, then individual firms may want to make a competitive move
 High fixed costs. High fixed costs (such as extensive physical infrastructure) create strong
pressure to fill capacity, even at the expense of having to cut prices.
 High strategic relevance. Rivalry increases when firms have a strategic stake to succeed in a
given industry.
 Little differentiation between products. Rivalry also increases when there is little differentiation
among products, which then become more like commodities.
 Low growth rate of the industry. Intensity of rivalry also depends on the growth rate of a given
industry.
 Excess capacity. When the Internet became an online platform for commercial use, scores of
start-up companies in different industries embraced it, which resulted in highly intense
competition.
 Barriers to entry
 High fixed costs. These deter many potential entrants because they do not have the required
capital and/or the willingness to invest large amounts of money in a risky market entry.
 Trust and brand loyalty. These are essential elements for customer acquisition and retention.
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 A steep learning curve. This allows a firm to reduce its cost structure quickly or to find ways to
create more customer benefits.
 High switching costs and strong network effects. These help an incumbent to keep its customers,
even if a new entrant offers a higher value.
 Strong intellectual property protection. This is essential for firms that sell products with high
development costs but low reproduction costs
 Substitute products
The Internet could have in creating new substitutes for industries. The intensity of pressure from
substitute products depends on the availability of similar products that serve essentially the same or a
similar purpose as the products from within the industry.
 Bargaining powers of buyers and suppliers
 High concentration of buyers, which allows them to leverage their purchasing power through
pooling.
 Strong fragmentation of suppliers, which makes it difficult to establish a joint approach to
pricing.
 A high degree of market transparency, which allows buyers easily to compare the offers of
different suppliers.
 Products are increasingly becoming commodities, resulting in little or no differentiation between
different providers.
 Low switching costs and weak network effect, which make it easy for buyers to change suppliers.
4. e- commerce
Electronic commerce, or e - commerce, is more specific than e - business and can be thought of as a
subset of the latter. Electronic commerce deals with the facilitation of transactions and selling of products
and services online, i.e. via the Internet or any other telecommunications network. This involves the
electronic trading of physical and digital goods – quite often encompassing all the trading steps , such as
online marketing, online ordering, e - payment and , for digital goods, online distribution (i.e. for after-
sales support activities ). e - Commerce applications with external orientation are buy - side e - commerce
activities with suppliers and sell - side activities with customers .
5. M- commerce
Mobile e - commerce, or m - commerce, is a subset of electronic commerce. While it refers to online
activities similar to those mentioned in the electronic commerce category, the under lying technology is
different since mobile commerce is limited to mobile telecommunication networks, which are accessed
through wireless hand - held devices such as mobile phones , smart phones , hand - held computers and
tablets.
6. Value chain
A value chain is a set of activities that a firm operating in a specific industry performs in order to deliver
a valuable product (i.e., good and/or service) for the market. The concept comes through business
management and was first described by Michael Porter in his 1985 best-seller, Competitive Advantage:
Creating and Sustaining Superior Performance.
7. e- Strategy or e-Business Strategy is the business use of the Internet. The “use” results in a “business
benefit” such as higher revenues, reduced costs or reaching an underserved market. “Internet” includes all
technologies and applications enabled by the Internet. e-Strategy is an iterative process to create and/or
modify an organization's business model for eBusiness:
• It is a process not a point in time event
• It is iterative - success comes after multiple - do and learn – cycles
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• The key is the creation/modification of the business model not designing websites to address
business requirements
o The former focuses on the business
o The latter focuses on integrating emerging technology; that is the purview of IT Strategy
(Information Technology Strategy)
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CHƯƠNG 3:
9. e- business companies are impacted by their industry and macro- environment.

 The economic enviroment: are inter-est and exchange rates, evolution of stock markets and,
more generally, economic growth rates.
 The social enviroment: environment considers factors such as population demographics, income
distri-bution between different sectors of society, social mobility of people and differing attitudes to work
and leisure. Social developments were the main driver behind the development of numerous e-commerce
applications.
Other important dimensions of the social environment that impact on the development and use of the
Internet are online usage patterns. These are measured by the percentage of the population using email or
the web for information or transaction purposes.
 Natural enviroment:
 The technological enviroment: For e-business ventures, the technological environment is of
significant importance. Technological innovations (such as the Internet or wireless devices) led to the
emer- gence of new market opportunities and business models.
 The political and legal environment: relates to issues on different organisational levels. At
country and industry levels, it includes issues such as taxation, monopoly legislation and environmental
laws.
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CHƯƠNG 4:
10. Sources of value and core competencies in e-business
Value is the total value created in e-business transactions regardless of whether it is the firm, the
customer or any other participant in the transaction who appropriates that value. The Internet and e-
technologies are considered as strong enablers of value creation by improving the con- nections among
the participants involved in the value creation process. The following four dimensions are regarded as e-
business value drivers: Efficiency. Complementarities, Lock-in, Novelty.
 Efficiency. It refers to efficiency enhancements, such as cost savings, in transactions supported
by e-business technologies, compared with the cost of these transactions in an offline environment.
 Complementarities. e-Business technologies foster complementarity by, for example, improving
supply chain coordination, functional synergies and linkages between offline and online channels.
 Lock-in. This dimension is related to customers’ (or partners’) motivation to engage in a business
relationship with firms that provide benefits supported by e-business technologies.
 Novelty. A source of value creation is the use of e-business for product/service, process and/or
business model innovations.
11. Competencies and core competencies
Most importantly, a competence is a combination of different resources and capabilities
However, not all competencies that a firm has are necessarily core competencies. In order for a
competence to be considered as core, it needs to be: Valuable, Unique, Hard to imitate, Valuable across
different products or markets.
12. Analysing the Internet-impacted value chain
The value chain framework helps to address the question of how value is created within
acompany. It does so by disaggregating a company into strategically relevant and interrelated
activities. In essence, the internal value chain of a company revolves around value creation,
where value is created through individual activities of the value chain. An activity should:
Display different economics, Provide high differentiation potential, Present sizeable costs.
- Support activities
• Firm infrastructure
• Human resource management
• Technology development
• Procurement
- Primary activities
• Inbound logistics
• Operations
• Outbound logistics
• Marketing and sales
• After-sales services
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CHƯƠNG 5: Select the approriate e-business strategy

11. cost leadership strategies
Company wants to attain a cost leadership position in its industry needs to strive to fulfil the
following two requirements:
Lowest cost position. A firm that aims for a cost leadership position has to be able to pro- duce its
product or service at substantially lower costs than its competitors. Lower costs enable the firm to earn
profits even in an intensely competitive environment.
Benefit proximity. Having the lowest costs, however, is not sufficient. In addition, a firm also needs
to achieve benefit proximity relative to its competitors, which means that it needs to fulfil at least all
threshold criteria. If it is unable to do so, then it will eventually have to offer even lower prices, an action
that reduces or eliminates the benefits gained through the low-cost position.
12. DIFFERENTIATION strategies
 Tangible sources of consumer benefit include the following
Product/service quality. This characteristic refers to the objective traits of a product, such as its
functionality, durability (or reliability) and ease of installation.
Degree of product or service customisation. The more a product or service can be adapted to
specific customer needs, the more benefit it creates for the individual user.
Convenience. The mental energy, effort and time that buyers have to spend during the
purchasing process need to be taken into account when comparing different providers.
Speed of delivery. The ability to deliver products and services quickly is an important source of
consumer benefit. Speed depends on the availability of products, location of the seller and quality of the
logistical process.
Product range. A broad and deep selection provides an important source of differentiation since
it allows convenient and quick one-stop shopping.
 Intangible sources of consumer benefit include the following
Brand. A strong brand tends to result from products that meet high quality standards, yet this
may not nesessarily. It might also come as a result of intensive and innovative marketing activities.
Brands need to be built and nurtured in order to use them as a differentiating characteristic in the
marketplace.
Reputation. The perceived past performance of a company is a major factor influencing
reputation. Customers value reputation because it decreases their purchasing risk. When it comes to
making online payments, a company’s reputation is especially critical.
13. Outpacing strategies (and the risk of getting ‘stuck in the middle’)
Cost and differentiation strategies require trade-offs: a high level of quality usually entails
high costs, while a cost leadership strategy usually impairs the ability to provide above-average levels of
consumer benefit. As a result, firms that try to be both a quality and a cost leader at the same time tend to
end up getting ‘stuck in the middle’ – a position that is characterised as neither low-cost nor
differentiated.
Companies can also combine both types of advantage, a cost and a differentiation advantage,
by following an ‘outpacing’ or ‘hybrid’ strategy
From a theoretical perspective, the following factors can actually undermine this trade- off: (1)
the development of new technologies, (2) wastefulness and (3) economies of scale and learning effects.