How Is E-Business Helping Companies to Comepete?

How is e-Business helping companies to compete? The internet is an extremely important new tool in business; it has received great interest from companies in all industries (Dien 2003), it is up to individual firms to decide how the internet should be used alongside traditional methods of operation to maximise strategic advantage (Porter 2001; Chaffey 2009). E-business is the use of the internet to empower the business process, changing relationships with customers, suppliers and other stakeholders (Barney 2010; Sadowski 2002). E-business tools can be used to increase revenue, decrease costs and improve customer service, thus allowing companies to be more competitive. This essay will discuss how e-Business can be used to combat threats and weaknesses in both large and small to medium sized enterprises. I will do this by identifying generic weaknesses and threats and discussing them in relation to four case studies. The European Commission defines a medium sized business as one with less than 250 employees and turnover of less than €50 million, or balance sheet total of less than €43 million. A small business has less than 50 employees and €10 million turnover, a micro business with fewer than ten employees and €2 million turnover. (European Commission 2003) This suggests that a large enterprise consists of more than 250 employees and has a turnover of more than €50 million. Weaknesses and threats are both part of a SWOT analysis, the aim of which is to improve corporate strategy by building on strengths, exploiting opportunities, eliminating weaknesses and addressing threats (Hill and Westbrook 1997). Weaknesses are internal factors which prevent a business from achieving its full potential; these can range from having a narrow product range to large debts or a high employee turnover, weaknesses are controllable and they must be minimised or eliminated. Threats however are external to the business, they are aspects of the environment that jeopardize the

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