Identify opportunities for electronic commerce

Business and strategy - You can use Internet technologies to improve many business processes so that it can be difficult for managers to identify where and how to use them.

 Identify opportunities for electronic commerce: business and strategyOne way to focus on business processes as candidates for electronic commerce business is to break down in a series of value-added activities that combine to generate profits and achieve the other goals for the company. These things Being carried by businesses of all sizes.
Small companies can focus on one product and distribution channel, or the type of customer.  Large companies often sell many different products and services through a variety of distribution channels for several types of customers.

In these larger companies, managers and organization of work on the activities and strategic business units.  And multiple business units owned by a common set of shareholders representing the company, or company, and multinationals that sell similar products to similar customers are

Strategic Business Unit Value Chains
In his book, feature 1985, and the Book of competitiveness, Michael Porter's idea of ​​value chains.  Value chain is a way to organize all the activities that Strategic business unit undertakes the design, production, promotion and marketing and provide and support the products or services they sell.

In addition to these core activities, Porter also includes support activities, such as human resources Management and purchase, in the form of the value chain.

Figure shows the value chain for strategic business unit engaged in manufacturing a product, including all core activities and support.

In the picture attached, form a ten important points in the stages of marketing and production

Flow from left to right in the figure does not mean a strict chronology of these Operations.  For example, the business unit to engage in marketing activities by the purchase of materials and supplies.  Each business unit and the main activities are as follows :

  •  Identify customers: activities that help the firm find new customers and new ways to serve existing customers, including market research and customer satisfaction surveys
  •  Design: activities that take a product from concept to manufacturing, including concept research, engineering, and test marketing
  •  Purchase materials and supplies: procurement activities, including vendor selection, vendor qualification, negotiating long-term supply contracts, and monitoring quality and timeliness of delivery
  •  Manufacture product or create service: activities that transform materials and labor into finished products, including fabricating, assembling, finishing, testing, and packaging
  •  Market and sell: activities that give buyers a way to purchase and that provide inducements for them to do so, including advertising, promoting, managing salespeople, pricing, and identifying and monitoring sales and distribution channels
  •  Deliver: activities that store, distribute, and ship the final product, including warehousing, handling materials, consolidating freight, selecting shippers, and monitoring timeliness of delivery
  •  Provide after-sale service and support: activities that promote a continuing relationship with the customer, including installing, testing, maintaining, repairing, fulfilling warranties, and replacing parts the importance of each primary activity depends on the product or service the business unit provides and to which customers it sells. If a strategic business unit provides a service, its value chain would include a Provide service activity instead of the Manufacture activity shown in Figure. The other activities in its value chain would be similar to those for a product manufacturing business unit. Each business unit must also undertake support activities that provide the infrastructure for the unit’s primary activities. These support activities appear in Figure  and are as follows:
  •  Finance and administration: activities that provide the firm’s basic infrastructure, including accounting, paying bills, borrowing funds, reporting to government regulators, and ensuring compliance with relevant laws
  •  Human resources: activities that coordinate the management of employees, including recruiting, hiring, training, compensation, and providing benefits
  •  Technology development: activities that help improve the product or service that the firm is selling and that help improve the business processes in every primary activity, including basic research, applied research and development, process improvement studies, and field tests of maintenance procedures


  1. This is a great blog post! My business got a lot of help when investing in kitting and assembly services while trying to sell our products.

  2. Thank you for the compliment, I hope to offer what can benefit from it

  3. We need to keep ourself updated to sustain in the market as Ecommerce is the growing marketing platform.


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