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External Analysis: The Impact of the Internet on the Macro-environment and on the Industry Structure of e-Business Companies

  • Tawfik JelassiEmail author
  • Francisco J. Martínez-López
Chapter
  • 86 Downloads
Part of the Classroom Companion: Business book series (CCB)

Abstract

This chapter firstly provides a framework for analyzing the macro-environment. Secondly, it discusses Porter’s five forces framework for analyzing the attractiveness of an industry. It also analyses the impact of the Internet on each force of Porter’s framework, i.e., industry rivalry, barriers to entry, threat of substitute products, and the bargaining power of buyers and suppliers. Thirdly, this chapter presents the co-opetition framework, which offers an alternative perspective for industry analysis. Finally, it addresses the question of how to define industries within which to compete and how to segment specific customer groups that a business should target through its e-business offering.

Keywords

Macro-environment Five forces industry framework Co-opetition 

References

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Further Reading

  1. Brandenburger, & Nalebuff B. introduce the concept of co-opetition in their book Co-opetition, Currency Doubleday, 1998.Google Scholar
  2. For a detailed analysis of the macroeconomic and competitive implications of e-business, see Prieger, J., & Heil D. (2013). Economic implications of e-business for organizations. In F.J. Martínez-López (Ed.), e-Business strategic management. Springer.Google Scholar
  3. For a more detailed coverage of electronic markets’ segmentation, see Aljukhadar, M., & Senecal, S. (2011). Segmenting the online consumer market. Marketing Intelligence & Planning, 29(4), 421–435.Google Scholar
  4. For a more in-depth analysis of the five forces, see M. Porter, Competitive strategy. Free Press, 1998b.Google Scholar
  5. For an extensive discussion of market segmentation and market targeting, see P. Kotler. Marketing management. Prentice Hall, 2005, pp. 251–296.Google Scholar
  6. For readers interested in app business, see Roma, P., & Ragaglia, D. (2016). Revenue models, in-app purchase, and the app performance: Evidence from Apple’s App Store and Google Play. Electronic Commerce Research and Applications, 17, 173–190.Google Scholar
  7. In order to provide practitioners and students a practical yet comprehensive set of templates for applying five forces framework for industry analysis, see: Dobbs, M. E. (2014). Guidelines for applying Porter’s five forces framework: A set of industry analysis templates. Competitiveness Review, 24(1), 32–45.Google Scholar
  8. Johnson, G., Scholes, K., & Whittington R. discuss the macro-environment of firms in Exploring corporate strategy. 7th edition, Prentice Hall, 2005.Google Scholar
  9. Specific examples of segmentation variables in electronic markets are presented in Sen, S., et al. (1998). The identification and satisfaction of consumer analysis-driven information needs of maketers on the WWW. European Journal of Marketing. 32(7/8), 688–702.Google Scholar

Weblinks

  1. https://blog.davechaffey.com contains updates about digital marketing and strategy.
  2. https://techcrunch.com/ offers updated and rich information on technology news and experts’ analyses.
  3. https://www.ecommercetimes.com provides a sound archive of e-business-related articles and publications.
  4. https://www.emarketer.com/articles/topics/retail-ecommerce provides all kinds of survey reports related to e-commerce.
  5. https://www.icompli.co.uk is a website concentrating on e-commerce laws.

Copyright information

© Springer Nature Switzerland AG 2020

Authors and Affiliations

  • Tawfik Jelassi
    • 1
    Email author
  • Francisco J. Martínez-López
    • 2
  1. 1.IMDLausanneSwitzerland
  2. 2.Department of Business Administration 1University of GranadaGranadaSpain

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