Competitiveness In E-Business

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1.1. Influencing competitiveness in e-businesses

Competitiveness has many definitions in academic field and is influenced by a number of factors which are interrelated, it can be defined from microeconomic or macroeconomic view and is closely related to competitive advantage (Siggel 2007). Due to increased globalization of the economy, the term competitiveness has become universal and often confused by the commonly used terms innovation and productivity (Atkinson 2013). The main factors of competitiveness include: shareholder values, customer values and ability to act within a competitive environment (Feurer, Chaharbaghi 1994). Fast changing online environment has become another way to gain competitiveness as fast developing information and
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The nine success criteria are: connecting physical store with e-business, take advantage of existing brand, maximise resources of existing management team and structure, perfect the value network for fast delivery, creating a value network with suppliers and partners, re-engineer of existing business, keep realistic view of business development, consider operating in a marketable niche and lastly any other benefits that combining with other business models can…show more content…
Although Internet allows customers to gain more information, seller is still as impersonal communication through electronic network. Absence of physical contact might cause many difficulties as customers are unable to feel and touch the product. Also as customers are unable to visit a physical store and have face to face interaction, can cause mistrust and lack of reliability in transactions and payments. For some customers physical shopping is connected with the social aspects, and e-business incorporates a fear of difficulties in returning unwanted or defective items. All of these consumer fears must be relieved by the online business, by assisting the customer in every step towards the purchase. (Zott et al 2000)
In 2006 Beheshti et al conducted a survey amongst large companies to find out if developing e-business has given them a competitive advantage. Companies, who were questioned, in America and Sweden reported that e-business has decreased costs (for example automatic billing) and increased satisfaction. Furthermore survey found that large companies thought that e-business is a competitive advantage and a powerful management tool for their complex supply chains. More than 90% of respondents said that e-business has added value and created competitive advantage for their business. (Beheshti

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