The e-business concept describes the rationale of the business, its goals and vision, and products or offerings from which it will earn revenue. A successful concept is based on a market analysis that identifies customers likely to purchase the product and how much they are willing to pay for it.
GOAL AND CORPORATE STRATEGIES OF E-BUSINESS CONCEPT
The e-business concept should be based, in part, on goals such as;
– “become a major car seller, bank, or other commercial enterprise”, and
– “to become a competitor to some of the wellknown firms in each of these industries.”
Objectives are more specific and measurable, such as;
– “capture 10% of the market” or
– “have $100 million in revenues in five years.”
Whether these goals and objectives are realistic or not, and whether the company is prepared to achieve these goals is addressed in the business plan process for startup firms and in the implementation plan for an existing firm that is considering a significant change. In looking at the business model, it is sufficient to know what the goals and objectives are, and whether they are being pursued.
Also embedded in the e-business concept are strategies that describe how the business concept will be implemented. These are known as corporate strategies because they establish how the business is intended to function. These strategies can be modified to improve the performance of the business. Environmental strategies describe how the company will address external environmental factors, over which it has no control.
THE E-BUSINESS CONCEPT AND MARKET RESEARCH
The selection and refinement of the business concept should be integrally tied into knowledge of the market it serves. In performing market research, care must be taken to account for the global reach of the internet for both customers and competitors. It is also important to remember that markets shift; and can shift rapidly under certain conditions. But the most important thing is to truly understand what the market is, who comprises it, and what do they want.
PRICING IN E-BUSINESS
Pricing is an important part of the e-business concept and should be established on the basis of market research. Price is often set with an eye on the competition and can have a direct effect on market share. In traditional commerce in the Nigeria, the seller sets the price. Online pricing, on the other hand, may include negotiation or auction pricing, where the interaction of sellers and buyers can affect the price. Knowledge of competing prices is also readily available online, and will keep downward pressure on prices.