E-Business Strategy: The Case Of The Panda Company
Strategy Definition The process of strategy definition would involve the generation, evaluation and eventual selection of options. When evaluating the different available options, different aspects such as prioritizing e-business channels, the form of required restructuring, the business and revenue model, marketplace restructuring, market and product development strategy as well as positioning and differentiation strategy, among other parameters should be decided on.
E-business priorities
Much like the case of the Panda Company, organizations that also make use of their websites as repositories of their brochures, can shift into one or more of the following options: 1) transactional e-commerce facility; 2) online catalogue; 3) e-CRM system …show more content…
In some way, this may be an ideal scenario if ever the store personnel of Pandati would have to be diverted into customer after-sales service or client management jobs should the online venture prove to be more effective in generating revenue for Panda. While the online channel may prove t o have lower costs of sale, there are lower conversion rates as well as the possibility of clients being able to compare the offerings with …show more content…
In terms of market development, the presence of a site for online transactions would allow for both new customer sectors as well as geographic markets to be serviced. On the other hand, market penetration can help enhance market share, aside from improving the loyalty of and profitability from customers. Ultimately, the lower transaction costs that would also reflect on the price being paid for by customers can result to sales increasing for Panda.
Positioning and differentiation strategy Of the different positioning and differentiation strategies available, Panda may choose to implement either attack e-tailing or defend e-tailing. While the former would be concerned with constantly monitoring and then matching the prices of competitors which is consistent with the low prices format of Panda, the latter would be dependent on whether the Panda brand has already become well-established enough to maintain prices. Based on its logistical capabilities and network reach however, it seems highly unlikely that competitors can consistently offer cheaper prices for products.
Business and revenue
E-business priorities
Much like the case of the Panda Company, organizations that also make use of their websites as repositories of their brochures, can shift into one or more of the following options: 1) transactional e-commerce facility; 2) online catalogue; 3) e-CRM system …show more content…
In some way, this may be an ideal scenario if ever the store personnel of Pandati would have to be diverted into customer after-sales service or client management jobs should the online venture prove to be more effective in generating revenue for Panda. While the online channel may prove t o have lower costs of sale, there are lower conversion rates as well as the possibility of clients being able to compare the offerings with …show more content…
In terms of market development, the presence of a site for online transactions would allow for both new customer sectors as well as geographic markets to be serviced. On the other hand, market penetration can help enhance market share, aside from improving the loyalty of and profitability from customers. Ultimately, the lower transaction costs that would also reflect on the price being paid for by customers can result to sales increasing for Panda.
Positioning and differentiation strategy Of the different positioning and differentiation strategies available, Panda may choose to implement either attack e-tailing or defend e-tailing. While the former would be concerned with constantly monitoring and then matching the prices of competitors which is consistent with the low prices format of Panda, the latter would be dependent on whether the Panda brand has already become well-established enough to maintain prices. Based on its logistical capabilities and network reach however, it seems highly unlikely that competitors can consistently offer cheaper prices for products.
Business and revenue