Digital Business Strategy

1
Digital Business Strategy

• SOM 497
• Session 14

2
Strategys Hierarchy
Corporative Level Strategy
International Level Strategy
Digital Strategy
Business Level Strategy
Operations / Tactics
3
Digital Business Strategy

• What is a Digital Business Strategy?
• The use of Digital Technology to Analyze,
  Formulate Implement the Organizations Strategy
• or
• The Analysis, Decision and Action that an
  Organization Undertakes USING DIGITAL TECHNOLOGY
  in order to Create and Sustain Competitive
  Advantage

4
An Snap Shot to Digital Technology the 5-Forces

• Threat of New Entrants
• Web-based business
• Power of Buyers
• Internet tools Information availability Search
  engines
• Power of Suppliers
• Internet tools Information availability
• Web-based business
• Threat of Substitutes
• New retail channel No Wholesaler retailers
• Rivalry
• Internet tools Information availability Search
  engines

5
The Internet Digital Technologies as Added Value

• Search Activities
• Gather information identifying options
• Evaluation Activities
• Compare alternatives
• Problem Solving Activities
• Identify problems generate ideas to address
  them
• Transaction Activities
• The complete exchange process (e.g. sale)
• Other Sources of Competitive Advantage
• Costumer Feedback, Expertise Entertainment
  Programming
• Business Models
• Commission-based, Advertising-based,
  Markup-based, Production-based, Referral-based,
  Subscription-based Fee-for-service-based

6
Generic Strategies

• So what about mixing the generic strategies
  the digital strategies?
• Cost Leadership
• Reduce costs efforts
• Copycats
• Differentiation
• Mass customization, value chain
• Copycats, becoming main stream
• Focus
• Open venues
• Multiple niches overlapping

7
Team Class Activity

• Using
• The External Environment Internal Environment
  tools
• All the homework Class exercises
• The TerraCycle webpage info your research about
  the company
• Start preparing the Strategic Analysis Planning
• 1st do a general Strategic Analysis
• 2nd discuss the current
• Corporative, Business, International Digital
  level Strategies
• Write down
• Your team notes and approaches to this task