ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

E-commerce: Electronically Changing Management

Updated on May 3, 2013

Multiple authors have examined the issue of how e-commerce affects business management 1,2,3,4,5,6,7,8. All these authors focus on the quick information gathering and dissemination aspect of e-commerce.

Several researchers have examined the phenomenon of quick information gathering and dissemination in more detail4,6,7. It is widely held that information is one of the keys to running a successful business8,9,10,12. Porter11 states that information is critical in making offensive moves such as new product development and defensive moves such as reacting to new competitors entering a market. Grant9 further states that information is vital to analyzing rivals and their competitive advantage. So it should be no surprise that, when a technological innovation arrives that is capable of providing massive amounts of information quickly, competition begins to increase in the industry13.

Quick information gathering and dissemination through e-commerce may be beneficial to a firm along several dimensions. One such benefit to collecting and analyzing data may be targeting e-commerce advertising toward specific customers. E-commerce allows a firm to collect data on the individuals using it, synthesize that data, and structuring advertising based on the analysis. In effect, management can utilize e-commerce to show specific advertisements to people who are more likely to be interested in what is being advertised. In turn, this allows management to maximize the utility of the advertising.

Another useful dimension resulting from quick information gathering and dissemination is a potential increase in sales. A firm noticing a sales shift from one type of product to another might be witnessing a change in its life cycle phase. Firms that quickly recognize shifts in product phases can realize profitability through differentiation by providing replacement demand9,13. Having sufficient information for management decision-making can create the corresponding increase in sales.

E-commerce has opened up a whole new world of advertising possibilities14,15. Firms that advertise have the potential of using screen ads, banner ads, and pop-up ads to reach potential customers. With the electronic recording of data, these electronic ads cannot only be placed directly in front of customers but also be directed to customers that have the greatest potential to buy. This is especially important in the newspaper industry where the majority of income earned by a newspaper firm is from advertising. Newspaper firms can utilize e-commerce to collect data on individuals and target advertising using a variety of electronic means.

Footnotes

1Afuah, A. & Tucci, C. L. (2001). Internet business models and strategies. Boston, MA: McGraw-Hill Irwin.

2Boudreau, M. C., Loch, K. D., Robey, D., & Straud, D. (1998). Going global: Using information technology to advance the competitiveness of the virtual transnational organization. Academy of Management Executive, 12(4), 120-128.

3Globerman, S., Roehl, T. W., & Standifird, S. (2001). Globalization and electronic commerce: Inferences from retail brokering. Journal of International Business Studies, 32(4), 749-768.

4Johnston, R. B., & Mak, H. C. (2000). An emerging vision of Internet-enabled supply-chain electronic commerce. International Journal of Electronic Commerce, 4(4), 43-59.

5Kambil, A., Nunes, P. F., & Wilson, D. (1999). Transforming the marketspace with all-in-one markets. International Journal of Electronic Commerce, 3(4), 11-28.

6Kickul, J., & Gundry, L. K. (2001). Breaking through boundaries for organizational innovation: New managerial roles and practices in e-commerce firms. Journal of Management, 27(3), 347-362.

7Krishnamurthy, S. (2003). E-commerce management: Text and cases. Mason, OH: South-Western.

8Mahadevan, B. (2000). Business models for internet-based e-commerce: An anatomy. California Management Review, 42(4), 55-69.

9Grant, R. M. (2002). Contemporary strategy analysis (4th ed.). Malden, MA: Blackwell Publishers Ltd.

10Madnick, S., & Siegel, M. (2001). Seizing the opportunity: Exploiting web aggregation (Paper 144). Cambridge, MA: MIT Sloan Management Review.

11Porter, M. E. (1980). Competitive Strategy. New York, NY: The Free Press.

12Sherer, S. A. (1999). Information systems in manufacturing networks. International Journal of Electronic Commerce, 4(1), 23-43.

13Porter, M. E. (2001). Strategy and the Internet. Harvard Business Review, 79(3), 63-78.

14Hoque, F. (2000). e-Enterprise: Business models, architecture, and components. New York, NY: Cambridge University Press.

15Plant, R. (2000). eCommerce: Formulation of strategy. Upper Saddle River, NJ: Prentice Hall.

Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)