The Human Capital “Impact” on E-Business: The Case of Encyclopedia Britannica

[Excerpt] The term “New Economy” has been coined to describe the remarkable economic performance of the 1990s. Stiroh, (1999) an economist at the Federal Reserve Bank of New York observes that its defining characteristic is a “focus on increasing globalization and expanding information technology” (pg. 87). Research suggests that revenues from electronic based business to business trade will double over the next five years from $43 billion in 1998 to$1.3 trillion in 2003. Revenues from business to consumer trade are predicted to rise from $8 billion to$108 billion over the same time period (Forrester Research, 1998). However, there is increasing attention to the challenges facing business in the new economy, and an increasing chorus of analysts suggesting how tenuous many of these business models really are. A recent Barron’s article showed that many dot-com companies have only days of remaining cash (Willoughby, March 20, 1999). Such a key emerging phenomenon has not escaped the attention of writers, though the existing body of writing has some important gaps. We would classify existing e-business literature into two groups. First, there is a growing body of literature that discusses the how the Internet is transforming business models and organizational strategies. A second, much smaller body of work has focused on e-HR, or more specifically, the implications of the Internet on various HR practices

Using Transaction Utility Approach for Retail Format Decision

Transaction Utility theory was propounded by Thaler to explain that the value derived by a customer from an exchange consists of two drivers: Acquisition Utilities and Transaction utilities. Acquisition utility represents the economic gain or loss from the transaction. Where as transaction utility is associated with purchase or (sale) and represents the pleasure (or displeasure) of the financial deal per se and is a function of the difference between the selling price and the reference price. Choice of a format has been studied from several dimensions including the cost and effort as well as the non-monetary values. However, the studies that present the complete picture and combine the aspects of the tangible as well as intangible values derived out of the shopping process are limited. Most of the studies, all of them from the developed economies, have focussed on the selection of a store. They represent a scenario where formats have stabilised. However, in Indian scenario formats have been found to be influencing the choice of store as well as orientation of the shoppers. Also, retailers are experimenting with alternate format with differing success rates. The author has also not found a study that has applied this theory. It is felt that the Transactional Utility Theory may provide a suitable approach for making format decisions.

Differences in retail strategies on the emerging organic market

Abstract: Purpose – The organic product market can be considered as an emerging market. Since the 1990s it has experienced rapid growth, and supermarket chains have become the sales channel with the largest market share and are the main driver for further growth. However, different supermarket retail groups have very different strategies concerning the marketing of organic products. The purpose of this paper is to gain insight into the different strategies of retailers who are active in the organic product market and to explain the drivers which may underlie them. Design/methodology/approach – The strategies of the three most important Belgian retailers that market organic products, and in particular organic beef, are analyzed. Data were collected through interviews with the retailers' staff and through observations in retail outlets. Also, GfK-household panel data which recorded all purchases of 3,000 Belgian households and a postal survey with 529 respondents were used as data sources. Findings – The different strategies used by retailers to market organic foods are associated with the overall characteristics and marketing strategies of the retail groups. Some retail groups have clear “first mover” advantages from engaging in the organic product line, while for others an adaptive strategy is more appropriate. Research limitations/implications – The insights from this paper will help the understanding and facilitate the development of future strategies for organic and other high-value or premium products, which will be of interest to researchers and stakeholders who are active in these markets. Practical implications – The retail sector is not a single homogeneous block, but instead consists of retailers who pursue quite different strategies. This concept may have major implications for the future development of high-value markets. Originality/value – Existing relevant theories were applied to the adoption of the organic product line, a segment in the portfolio of retailers that is becoming more important. The empirical material collected sheds new light on the drivers behind retail strategies

Product innovation and imitation in a duopoly with differentiation by attributes

This paper considers a probabilistic duopoly in which products are described by their specific attributes, this form of differentiation embodying the horizontal and vertical dimensions. Consumers make discrete choices and follow a random decision rule based on these attributes. A three-stage game is studied in which firms develop new attributes for their products (innovation), then may imitate the attributes of the competing product and finally compete in price. At the equilibrium, the firm selling the less appreciated product is generally incited to imitate its rival. Confronted to a threat of imitation, the benchmark firm sometimes decreases strategically its attribute index in order to diminish its unit cost of innovation and the differentiation on the market, deterring the imitation in this way. This strategy is efficient when imitation costs are sufficiently concave. In the opposite case, it is preferable for the benchmark firm to accept the imitation. Thus, according to the shape of imitation costs, equilibria with "deterrence" or with "accommodation" "accommodation" occur, completing the current typology of strategic responses to a threat of imitation.quality choices ; differentiation by attributes ; product innovation, product imitation

Product Service Systems and Sustainability: Opportunities for Sustainable Solutions

Given that the concept of PSS is beginning to 'catch on' and gain attention, it is time for UNEP to contribute to, and influence the progress of PSS, to ensure that in concept and application it incorporates the idea of sustainability. In this context its potential is not generally understood by the public and private sectors or civil society. This booklet is intended to contribute to the dissemination and the discussion of the PSS concept as a promising approach to sustainability. The ultimate goal must be to achieve Sustainable Product-Service Systems. This UNEP publication is targeted at industry and government, academia and civil society to explain PSS – their potential benefits and limitations – in the sustainability context – using real company examples. To prepare this booklet, UNEP has drawn on the knowledge and experience of PSS experts to flesh out the concept of a sustainable PSS, to collect case studies of PSS in practice, to begin to document both its benefits and the hurdles which need to be overcome in its application, and to suggest ways forward in its development

E-logistics of agribusiness organisations

Logistics is one of the most important agribusiness functions due to the idiosyncrasy of food products and the structure of food supply chain. Companies in the food sector typically operate with poor production forecasting, inefficient inventory management, lack of coordination with supply partners. Further, markets are characterised by stern competition, increasing consumer demands and stringent regulation for food quality and safety. Large agribusiness corporations have already turned to e-logistics solutions as a means to sustain competitive advantage and meet consumer demands. There are four types of e-logistics applications: (a) Vertical alliances where supply partners forge long-term strategic alliances based on electronic sharing of critical logistics information such as sales forecasts and inventory volume. Vertical alliances often apply supply chain management (SCM) which is concerned with the relationship between a company and its suppliers and customers. The prime characteristic of SCM is interorganizational coordination: agribusiness companies working jointly with their customers and suppliers to integrate activities along the supply chain to effectively supply food products to customers. E-logistics solutions engender the systematic integration among supply partners by allowing more efficient and automatic information flow. (b) e-tailing, in which retailers give consumers the ability to order food such as groceries from home electronically i.e. using the Internet and the subsequent delivery of those ordered goods at home. (c) Efficient Foodservice Response (EFR), which is a strategy designed to enable foodservice industry to achieve profitable growth by looking at ways to save money for each level of the supply chain by eliminating inefficient practices. EFR provides solutions to common logistics problems, such as transactional inefficiency, inefficient plant scheduling, out-of-stocks, and expedited transportation. (d) Contracting, a means of coordinating procurement of food, beverages and their associated supplies. Many markets and supply chains in agriculture are buyer-driven where the buyers in the market tend to set prices and terms of trade. Those terms can include the use of electronic means of communication to support automatic replenishment of goods, management of supply and inventory. The results of the current applications of e-logistics in food sector are encouraging for Greek agribusiness. Companies need to become aware of and evaluate the value-added by those applications which are a sustainable competitive advantage, optimisation of supply chain flows, and meeting consumer demands and food safety regulations. E-business diffusion has shown that typically first-movers gain a significant competitive advantage and the rest companies either eventually adopt the new systems or see a significant decline in their trading partners and perish. E-logistics solutions typically require huge investments in hardware and software and skilled personnel, which is an overt barrier for most Greek companies. Large companies typically are first-movers but small and medium enterprises (SMEs) need institutional support in order to become aware that e-logistics systems can be fruitful for them as well

Marketing images and consumers' experiences in selling environments

In a well-functioning market, consumers exert choices not just in purchases of products but also in selections of locations to enjoy shopping. Scholarly research has demonstrated that retail atmospheres impact on shoppers’ pleasurable shopping experiences. Demonstrating the marketing concept in action, shoppers consistently respond to this empowerment by for example, spending more time shopping and spending more money in retail facilities that are perceived to offer a pleasanter atmosphere and experience. This research pivots round an in-depth qualitative study that evaluated the impact of a plasma screens and specific informational content on shopping centre user behaviour. A phenomenological study of the effects of the medium, and the way in which these systems influence behaviour, permitted a far deeper investigation of our sample group vis-àvis increased browsing time and the propensity to spend. A series of eight focus discussions were conducted with local user groups of varying age and gender. Key themes drawn from the group discussions using axial coding indicated that the influence created by the images varied with subjects and settings. The general consensus was that such ‘screens’ created a certain ambience that influenced the way our subjects felt about the selling environment under study. Moreover, for our sample groups, there was clearly a link between the screened images and modern expectations of a selling environment. The plasma screens provided added enjoyment to shoppers’ experiences, providing them with more information enabling more informed shopping choices. The research concludes with implications for strategic marketing, theory and practice

The economics and business models of prescription in the Internet

L'économie de l'Internet a contribué à une ouverture du jeu concurrentiel en dissociant les fonctions physique et informationnelle des activités de distribution. Plus précisément, elle a ouvert la voie à de nouvelles structures de marché en mettant en avant une fonction de prescription clairement distincte des fonctions d'offre d'une part, des fonctions logistiques et de mise à disposition des biens d'autre part. Nous nous attachons ici à montrer que l'analyse des fonctions et modalités de prescription permet de mieux comprendre les modèles d'affaires et les structures concurrentielles à l'œuvre dans l'économie de l'Internet organisées autour de l'articulationde trois marchés : biens primaires, référencement, prescription. Cette modélisation de marchés à prescription contribue à enrichir la compréhension des chaînes de valeur et des relations d'affaires repérables dans l'Internet.prescription;internet