Abstract
This chapter first defines the concept of core competence and discusses it in the context of e-business. It then presents the value chain concept as a way to analyze the individual steps in the value creation process. Thirdly, it introduces the virtual value chain concept and suggests ways for companies to leverage it for value creation. The chapter then describes the four virtual spaces of the ICDT (Information, Communication, Distribution, and Transaction) framework and indicates ways of using it when selecting activities suited for e-business. Finally, the move for businesses from managing an internal value chain to operating along a value network with external partners is highlighted.
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Notes
- 1.
For the concept of strategic fit, see also Venkatraman and Camillus (1984).
- 2.
See also 7 Sect. 5.3.2 for examples of companies that base their business models on one or more of these dimensions.
- 3.
- 4.
Michael Dell describes the PC manufacturer’s approach to supply chain management in an interview with J. Magretta (Magretta 1998).
- 5.
For more on this discussion, see also Porter (1991).
- 6.
The ICDT model is described in Angehrn (1997).
- 7.
Is the Last Mile Solved, 7 Veriteer.com [weblog]. Available at: 7 https://www.veriteer.com/blogs/is-the-last-mile-solved.
- 8.
Metapack, 2018 State of eCommerce Delivery Report – Global Insights. Metapack Consumer Research Report. Available at 7 http://www.metapack.com/report/2018-state-of-ecommerce-delivery-report/.
- 9.
The Service-Dominant logic was originally proposed and developed by the US scholars S.L. Vargo and R.F. Lusch. Detailed information about it is available at this website: 7 http://www.sdlogic.net/.
References
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Jelassi, T., Enders, A., & Martínez-López, F. J. (2014). Strategies for e-business: Creating value through electronic and mobile commerce: Concepts and cases (p. 82). Harlow: Pearson Education.
Magretta, J. (1998, March–April). The power of virtual integration: An interview with Dell Computer’s Michael Dell. Harvard Business Review, pp. 72–84.
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Porter, M. (1991). Towards a dynamic theory of strategy. Strategic Management Journal, 12, 102–105.
Porter, M. (1998). Competitive advantage (pp. 33–61). Boston: Free Press.
Porter, M., & Millar, V. (1985, July–August). How information gives you competitive advantage. Harvard Business Review, pp. 149–160.
Rayport, J., & Sviokla, J. (1995, November–December). Present the concept of the virtual value chain in “Exploiting the virtual value chain”. Harvard Business Review, pp. 75–85.
Trevor, J. (2018, January 12). Is anyone in your company paying attention to strategic alignment? Harvard Business Review.
Venkatraman, N., & Camillus, J. (1984). Exploring the concept of fit in strategic management. Academy of Management Review, 9, 513–525.
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Further Reading
Besanko, D., Dranove, D., Shanley, M., & Schaefer, S. (2003). Provide a detailed discussion of value creation and value capturing. In Economics of strategy (pp. 358–402). New York: Wiley.
Porter’s, M. book, Competitive advantage, Boston: Free Press, 1998, is a seminal work on value creation and the value chain. M. Porter expands on his thinking about competitive advantage in “What is strategy?” Harvard Business Review, 1996, November–December, pp. 70–73.
Amit, R., & Zott, C. (2001) specifically discuss this chapter’s topic in “Value creation in e-business”. Strategic Management Journal, 22(6), 493–520.
An up-to-date discussion on collaborative value creation within the e-business framework can be found in: Nelson, M. L., Shaw, M. J., & Strader, T. J., Special Issue on “Collaborative value creation in e-business management”. Information Systems and e-Business Management, 2012, 10(1).
Within the field of strategic management, there is a broad literature on the resource-based view. While there was already previous research on the resource-based view of the firm, most notably in 1984 with the article by Wernerfelt, B. (1984). A resource-based view of the firm. Strategic Management Journal, 5(2), 171–180, this approach became popular in the mainstream management literature through the work of Prahalad, C. K., & Hamel, G. (1990, May–June). The core competence of the corporation. Harvard Business Review, pp. 79–91, and Stalk, G., Evans, P., & Shulman, L. (1992, March–April). Competing on capabilities. Harvard Business Review, pp. 57–69. M. Peteraf provides a more recent academic perspective on the resource-based view in “The cornerstones of competitive advantage: A resource-based view”, Strategic Management Journal, 1993, 14(3), 179–191.
In the article “Towards a dynamic theory of strategy”, Strategic Management Journal, 1995, 12(8), 102–105, M. Porter attempts to reconcile the market-based and the resource-based views of strategy.
Wiengarten, F., Humphreys, P., & Fynes, B. (2013). Article “Creating business value through e-business in the supply chain” offers a timely and detailed theoretical discussion on the use of e-business applications to create value within organisations and their supply chains. In F. J. Martínez-López (Ed.), e-Business strategic management. Springer.
For readers who are interested in the concept of core competencies in an organisational setting, see: Hunt, B. (2018, March 14). Getting the most out of your organization’s core competencies, Qualitydigest. Available at: https://www.qualitydigest.com/inside/management-article/getting-most-out-your-organization-s-core-competencies-031418.html.
For readers who are interested in applying core competencies in real business, see: Rigby, D. K. (2017). Management tools 2017: An executive’s guide. Bain & Company.
Weblinks
www.ecommercetimes.com provides an archive of e-business-related articles and publications.
http://www.bain.com/publications/industry-insights/technology.aspx provides research reports on how companies implement e-business improvement projects.
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Jelassi, T., Martínez-López, F.J. (2020). Internal Analysis: e-Business Competencies as Sources of Strengths and Weaknesses. In: Strategies for e-Business. Classroom Companion: Business. Springer, Cham. https://doi.org/10.1007/978-3-030-48950-2_4
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