Strategy Formulation & Implementation Planning in E-Commerce

Formulating and implementing a successful strategy in the dynamic and competitive field of
e-commerce requires careful planning and execution. Here are key steps to consider for
strategy formulation and implementation planning in e-commerce:

Strategy Formulation

• Market Analysis

Identify your target market and understand customer needs and preferences.
Analyze the competitive landscape to identify strengths, weaknesses, opportunities, and
threats (SWOT analysis).

• Value Proposition

Clearly define your unique value proposition that sets your e-commerce business apart from
competitors.
Focus on providing value to customers through products, services, or customer experience.
Strategy Formulation & Implementation Planning in E-Commerce

• Business Model

Choose an appropriate business model (e.g., B2B, B2C, C2C) based on your target audience
and products/services.
Consider subscription models, marketplace models, or direct-to-consumer approaches.

• Technology Infrastructure

Invest in a robust e-commerce platform that supports your business model.

Ensure a seamless and user-friendly online shopping experience.

• Marketing Strategy

Develop a comprehensive digital marketing plan, including SEO, social media, content
marketing, and email campaigns.
Leverage data analytics for targeted marketing and personalized customer experiences.
Strategy Formulation & Implementation Planning in E-Commerce

• Logistics and Fulfillment

Establish efficient and reliable logistics and fulfillment processes.

Consider partnerships with third-party logistics providers to optimize delivery and reduce
costs.
Strategy Formulation & Implementation Planning in E-Commerce

Implementation Planning

1.Technology Implementation:
1. Implement a secure and scalable e-commerce platform.
2. Integrate payment gateways, inventory management systems, and other necessary
tools.
2.User Experience (UX) Design:
1. Prioritize a user-friendly interface and seamless navigation.
2. Optimize the website for mobile devices to cater to the growing mobile user base.
3.Marketing Execution:
1. Roll out digital marketing campaigns based on your strategy.
2. Monitor and analyze campaign performance, adjusting strategies as needed.
4.Customer Service:
1. Develop a robust customer service strategy to address inquiries, issues, and
feedback promptly.
2. Implement chatbots and other AI-driven solutions to enhance customer support.
Strategy Formulation & Implementation Planning in E-Commerce

1.Data Security and Privacy:

1. Ensure compliance with data protection regulations.
2. Implement secure payment gateways and protect customer information.
2.Scaling and Flexibility:
1. Plan for scalability to accommodate growth.
2. Remain flexible and adaptable to market changes and emerging trends.
3.Performance Monitoring:
1. Utilize analytics tools to monitor key performance indicators (KPIs).
2. Regularly evaluate the success of your strategies and adjust as necessary.
4.Continuous Improvement:
1. Encourage a culture of continuous improvement within the organization.
2. Stay updated on industry trends and technology advancements.
 E-Commerce Evaluation

This is where it starts to get more tricky. Your e-Commerce

opportunity idea will have different audiences. It has to be flexible
enough to work in different situations.

You’ll have external audiences (e.g.

customers) and internal audiences (e.g. the leadership team,
finance and supply chain). They all need to “get” what you’re
trying to do. You’re going to need different versions of your idea
with increasing levels of detail :-

•high-level concept.
•plan on a page.
•detailed plan.
Plan on a page

The high-level concept is simple and easy to remember. That’s good, obviously.
However, for internal sign-off and budget approval, you’ll need something more
substantial.
Before you get into a detailed plan, it’s worth writing something along the lines of the
plan on a page you use in the innovation process. You adapt this to fit it being a
new channel rather than a new product. The same principles apply as it’s about taking
your initial idea and fleshing it out.
Plan on a page
Key topics to cover include :-

• Business fit – how it aligns with your business goal, vision and values.
• Insight – the insight that’s driving this e-Commerce opportunity. Especially the lead
benefit for customers.
• Competitors – the main competitors and your high-level competitive strategy against
them
• Key product / service requirements – the new experiences you need to create to
deliver this e-Commerce opportunity. e.g. a new online store website, order
processing including payment and delivery, customer service support.
• Key enablers – the new capabilities including resources, skills and systems you need
to deliver the e-Commerce opportunity. e.g. new IT skills, new software, new
warehousing and delivery systems.
• Obstacles or barriers – any obvious barriers to e-Commerce in your business. e.g.
issues with online retailers, competing IT priorities and conflicting supply chain
objectives.
• Estimated launch timing – a realistic view of how long it will take to launch the offer.
Plan on a page
Detailed Plan

You use all this expertise to build a compelling, detailed business

plan. This outlines what needs to be done, who’s going to do it,
by when, and how you’ll track progress and the outcomes.

The challenge is finding the right level of detail. Not enough, and
you potentially miss something important. Too much, and the
plan becomes harder to understand and therefore to execute.

It helps to have a high-level summary you can refer to when

people start to get lost in the details. The screening questions
used in the innovation process can help with this.
Add more detail as required
Case Study 1: Amazon - Leveraging E-Commerce for Global Dominance

Introduction to E-Commerce: Amazon, founded by Jeff Bezos in 1994, has grown into a
global giant in electronic commerce. The company started as an online bookstore but
quickly expanded its product offerings to include a wide range of goods and services.
Today, Amazon is one of the largest e-commerce platforms in the world.

Business Strategy in an Electronic Age: Amazon's success can be attributed to its

strategic use of technology and a robust e-commerce platform. The company has
effectively integrated its supply chain, implementing advanced logistics and distribution
systems. Amazon's strategy aligns with Porter's Value Chain Model, emphasizing efficiency
in operations, from sourcing products to delivering them to customers.

Competitive Advantage using E-Commerce: Amazon has achieved a sustainable

competitive advantage through its first-mover advantage in the e-commerce space. The
company invested heavily in technology infrastructure, enabling a seamless online
shopping experience for customers. Additionally, Amazon's Prime membership program
and one-click purchasing have further solidified its position as a leader in the industry.
Case Study 1: Amazon - Leveraging E-Commerce for Global Dominance

E-Commerce Implementation: Amazon's implementation of e-commerce involves

leveraging cutting-edge technology. The company utilizes advanced algorithms for
personalized recommendations, machine learning for inventory management, and
cloud computing through Amazon Web Services (AWS). These technologies enhance
the overall efficiency of the e-commerce platform.

E-Commerce Evaluation: Amazon continually evaluates its e-commerce performance

through data analytics. The company tracks customer behavior, sales trends, and
operational metrics to optimize its platform continuously. This data-driven approach
allows Amazon to refine its strategies, improve customer satisfaction, and stay ahead
of the competition.
Case Study 2: Shopify - Empowering E-Commerce Entrepreneurs

Introduction to E-Commerce:
Shopify, founded in 2006 by Tobias Lütke, Daniel Weinand, and Scott Lake, is a leading e-
commerce platform that empowers businesses to create and manage their online stores.
The platform provides a range of tools and services, making it accessible for entrepreneurs
and small businesses to establish an online presence.

Business Strategy in an Electronic Age:

Shopify's business strategy revolves around providing an easy-to-use and scalable e-
commerce solution. The platform focuses on enabling businesses to manage their entire
value chain online, from product listing to order fulfillment. Shopify's approach aligns with
the Inter Organizational Value Chains concept, connecting various stakeholders in the e-
commerce ecosystem.
Case Study 2: Shopify - Empowering E-Commerce Entrepreneurs

Competitive Advantage using E-Commerce:

Shopify's competitive advantage lies in its user-friendly interface, customizable templates,
and a range of integrated apps. The platform allows businesses to quickly set up and
customize their online stores without requiring extensive technical expertise. Shopify's
commitment to simplicity and flexibility has attracted a vast user base.

E-Commerce Implementation:
Shopify implements e-commerce by providing a comprehensive suite of tools, including
online store management, payment processing, and marketing features. The platform
leverages cloud computing to ensure scalability and reliability. Shopify's ecosystem also
supports third-party developers, encouraging the creation of apps that enhance the
functionality of online stores.

E-Commerce Evaluation:
Shopify continually evaluates its e-commerce platform by monitoring user feedback,
analyzing market trends, and iterating on its features. The company adapts to the evolving
needs of online businesses by introducing new tools and updates. Shopify's success is
evident in its growing user base and the number of successful online stores powered by its
platform.
Case Study 3: Amazon's Domination through Supply Chain Optimization

Company: Amazon (E-commerce giant)

Focus: This case study examines how Amazon leverages its sophisticated supply chain to
achieve and maintain a competitive advantage in the e-commerce market.

Points of Analysis:

•Porter's Value Chain Model: Analyze how Amazon optimizes each stage of their value chain
(inbound logistics, operations, outbound logistics, marketing & sales, and service) through
technology and automation.
•Inter-Organizational Value Chains: Explore how Amazon collaborates with
vendors, suppliers, and logistics partners to create a seamless and efficient supply network.
•First Mover Advantage: Discuss how Amazon's early adoption of e-commerce and strategic
investments in infrastructure helped them secure a lead in the market.
•Sustainable Competitive Advantage: Analyze how Amazon continues to innovate and
differentiate its supply chain to maintain its advantage.
•Business Strategy: Explain how Amazon's data-driven approach, focus on customer
experience, and continuous improvement contribute to its success.