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| | | Geographic Expansion | | | ID: Rev_1 | | | Description | | | The opportunity to reach a geographically wider market through the Internet is one of the strategic chances most frequently mentioned (see e. g. [Venk00], [JCB01]). | | Derived strategies:
| | | National Expansion
| | Strategic Options: | | | | International Expansion
| | Strategic Options: | | Multi lingual communication: Rev_1.5 |
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| | Outsourcing of deliveries | | | ID: Rev_1.1 | | | Description | | | Outsourcing of physical deliveries formerly performed by in-house logistic functions can be advantageous, if a)additional customers or delivery destinations require expertise in logistics, which currently is not available in the company and is risky to establish; b) the forecast of future increase in revenues is uncertain and, therefore, investing in additional logistical capacities implies considerable risks; c)seasonal or cyclic fluctuation of markets and sales are expected. | | | Necessary Investments | | | The analysis of current and forecast of future sales related to the estimated geographical expansion is necessary in order to define optimum skeleton contracts with new distributors. Outbound logistic processes might have to be adapted as well. | | | Opportunities | | | Cost transparency usually increases when the delivery function is being outsourced: prior fixed costs are changed to variable costs and in the short run money income increases through disintegrating former logistical functional units. Furthermore, better concentration on the core business is enabled. | | | Risks | | | Outsourcing of the delivery function to an external logistics provider implies the risk of less transparent delivery processes from the customer's view point. The options for differentiation through physical distribution are diminished and the distribution process itself is harder to control (e.g. in terms of reliability or timeliness). | | | Success factors | | | Integration
: | | Appropriate interfaces to the information systems of the distributors should be added to the company's business application systems, in order to allow the customers better access to delivery status information. |
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| | Online Presence | | | ID: Rev_1.2 | | | Description | | | An online presence is usually developed in order to take advantage of the unlimited availability of the Internet for an effective and low-cost representation of the company. In many cases the design, implementation and maintenance of the Web pages is outsourced, because there are only very few interfaces with business specific functions. | | | Necessary Investments | | | There are only relatively few investments necessary for technical infrastructure, such as Web Servers and Software for developing and administrating the Web sites. Additionally, the general business contact information should be augmented by the Web site's URL and E-mail address. | | | Opportunities | | | Basically, the mere online presence represents just another 'shop window' of the company. This can lead to a better reputation for two reasons: first, because of having an online presence and therefore showing that your company is using the Internet, second, because of specific content on the Web site that promotes existing differentiation characteristics (e.g. particular reference projects and customers). A Web site also allows acquiring customers in a wider geographic area. | | | Risks | | | Reputation can be tarnished significantly if the critical success factors are not considered. | | | Success factors | | | Timeliness
: | | A vital factor for the success of an online presence is the correctness and timeliness of the presented information. This can better be achieved by initially designing and implementing an administration process. |
| Media adequate design
: | | The Internet should not be used as just another channel to promote and publish existing brochures. But it should be used taking advantage of the medium specific characteristics, which are, for example, hyper links, and intuitive user oriented navigation. It is also important to place relevant keywords on your Web site and register your site at prominent search engines. |
| Communication channel
: | | E-mails are a fundamental new way for asynchronous communication, that has been opened through the wide spread of the Internet. In order to allow your potential customers a seamless way of communication, a specific E-mail address should be placed on your Web site. Furthermore, a process for examining messages coming in over this channel has to be established. |
| | | Necessary Competences | | | Crucial competences for implementing this strategic option are Web site design and administration as well as Web-Server administration (if operated internally and not outsourced). | | Affected processes:
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