ELECTRONIC COMMERCE: EMERGING PATTERNS AND STRATEGIC IMPLICATIONS

Ajit Kambil

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E-commerce and Technology Innovations Digital Innovation in Industries Digital Platforms and Economics

Abstract

Advances in information technologies enable firms to expand electronic commerce - the exchange of valuable information, goods and services across electronic media. This paper looks at how businesses are adopting and using technologies like the Internet and World Wide Web for electronic commerce. I propose that electronic commerce will dramatically reduce transactions costs requiring managers to re-develop their firm's strategy to focus on more fundamental sources of competitive advantage. I identify responses required to compete in a low transactions cost environment and provide illustrative examples of firms executing such a strategy.

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References

1979Transaction-Cost Economics: The Governance of Contractual Relations 1985Network externalities, competition, and compatibility 1995Electronic markets and virtual value chains on the information super-highway 1995Do you want to keep your customers forever?

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