Strategic Decision-Making In the Emerging Field Of E-commerce

Abstract

Electronic commerce is changing the traditional way of doing business and furthermore the growth of the Internet is creating new opportunities for business. This paper discusses how the nature of electronic commerce affects strategic decision-making. First, some features of electronic commerce are identified that distinguish it from traditional business - new markets and knowledge-based competition. This is followed by a review of literature on the theoretical background of e-commerce an academic consideration on what are e-commerce strategies. This paper then introduces some of the most common strategic tools used in decision –making, concepts for creating competitive advantage and value chains. Porter’s Value Chain Theory, Five Forces Model is examined in the emerging world of e-commerce, as well as generic competitive strategies.

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