[8] 2002 e-business-strategies-for-virtual-organizations

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Globalization and e-business strategies for SMEs specialized in traditionally brewed Scottish beers in Lugton, Scotland. The distinctive feature of SCB Co-op is that all its beers are traditionally brewed using Scottish malt with no artificial additives. The Co-op was formed to pool the limited resources of individual SMEs to create a winning business image and a competitive product brand. Products of members are promoted under the Scotland Craft Brewer Co-operative brand name to large UK supermarkets. The Co-op’s strategic objectives in going online are to access global markets, expand regional market share, create jobs and increase revenues. Through the website the Co-op has achieved significant performance growth that would have been difficult to achieve through conventional marketing strategies. Products of the Co-op have been submitted to the Canadian Liquor Board for sampling. As a result of online strategy, SCB Co-op is forecasted to create 75 new jobs within a year and then build a brand name to rival better known traditional brewers on a world scale. In order to overcome the lack of technical skills and financial resources for developing an online infrastructure, the Co-op chose the IBM HomePage Creator service, which enabled it to establish the working website at a very low cost within a few days. The simplicity and low cost has made it possible for SCB Co-op to concentrate on its core operations of coordination and the participant SMEs, and developing a competitive global brand. The site features product information, nutritional information and recipes and links to some of its major partners. One of the major business partners is ASDA, which is one of Britain’s largest supermarket chains. The Co-op’s site integrates seamlessly with that of ASDA. Clients in Britain, or those planning a visit, may also purchase the Co-op brand from any of the 31 ASDA stores across the UK. The ASDA website features an innovative search engine, Store Finder, for locating any ASDA store by entering the name of your location. Search results provide lists of nearby ASDA stores with details about address (including telephone and fax), distance from central location, and a map. All these extend the infrastructure commanded by SCB Co-op in developing its global marketing strategy – ww.lugton.co.uk 6.8.5 Leading Agents of Australia (LAA) Leading Agents of Australia (LAA) is an example of a virtual alliance where participating firms maintain their independent 125
e-Business Strategies for Virtual Organizations 126 websites. There is no common site representing their common interests as in the case of SCB Co-op, UK. LAA is a network of nine autonomous real estate SMEs operating across different states in Australia. Two key participating companies are Acton Consolidate Ltd, Perth, and Patrick Dixon Real Estate, Brisbane. Acton has a total of seven branches across the Perth Metropolitan Area and is one of the leading firms in the Western Australian real estate market. The other partner firms also enjoy significant market shares in their respective state markets. The members of the network share a common business philosophy, namely: ‘commitment to the highest ethical standards and excellence in client service’. While each partner firm maintains autonomous business strategies for developing their competitive strategy, they join effort when it comes to making a deal in other states. For example, partners sharing market information and competencies. It is clear that the nature of the industry plays a part in choosing the collaborative strategy. In the real estate industry local information and knowledge about products are crucial in making a good deal. As stated on one of the affiliate’s websites these firms ‘are leaders in their respective markets and the interchange of property listings brings numerous qualified inter-state prospects’ to their various operations. In relation to the management of their online business, the various partners maintain business links within the real estate industry and also with IT and e-commerce development companies. For example, Acton Consolidated reports a strategic alliance with The Globe.com.au and Spin Technologies in the development of their website ActonNet. 6.8.6 Sofcom Sofcom is a Melbourne company acting as an electronic intermediary, which provides, in addition to other online content publishing, a virtual shopping mall for about 60 virtual storefronts. Sofcom may be described as an example of a virtual community. Members of the community engage in extensive linkages with each other and with a host of e-business service providers through Sofcom. The mall advertises over 4835 products in about 60 stores. There are ten categories of stores including: Apparel; automobile; business services; computers and electronics; gifts and collectable; home design; perfumery and jewellery; entertainment. Other electronic market services and facilities provided by Sofcom to its virtual community are: business information; Internet directories publishing; websites/ shop hosting; links to the Australian stock exchange; business newsletter; and advisory services.
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e-Business Strategies for Virtual O
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e-Business Strategies for Virtual O
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Contents Computer Weekly Profession
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Contents 6 Globalization and e-busi
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Contents 11.6 The increasing power
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Computer Weekly Professional Series
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Authors’ Preface There are dozens
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Authors’ Preface model will there
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Authors’ Preface alliances, bette
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1 e-business and the virtual organi
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e-business and the virtual organiza
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Figure 1.2 e-business and the virtu
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1.5 e-business e-business and the v
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Figure 1.3 e-business and the virtu
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Figure 1.4 Virtual objects, Scholz
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Characteristics of the virtual orga
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Figure 2.1 Formation of business al
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� empowerment of staff; Character
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e-business models for virtual organ
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3.4 Models of efficient response e-
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Figure 3.4 Star alliance model e-bu
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Figure 3.6 Market alliance model Fi
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Figure 3.10 Virtual alliance framew
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Figure 3.11 Virtual organizational
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References e-business models for vi
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IS planning strategies for emerging
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Figure 4.1 The evolution of IS/IT p
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Figure 4.3 A framework for SISP (Wa
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Figure 4.4 Planning adopts a busine
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Figure 4.5 Interconnected ecologies
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Figure 4.6 The interrelationships b
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Customer view Whatisour image? Eval
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Evaluating strategies for e-busines
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Table 8.6 Matrix for preparing to m
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9 Outsourcing, partnering and the v
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Outsourcing, partnering and the vir
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Figure 9.2 Outsourcing, partnering
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9.9 Summary Outsourcing, partnering
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References Outsourcing, partnering
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e-business strategies in the virtua
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10.10 Summary e-business strategies
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11 Creating virtual cultures for gl
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Creating virtual cultures for globa
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Four stages of market evolution Mar
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Figure 11.4 The four paths of evolu
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References Creating virtual culture
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Advanced knowledge, see Knowledge A
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[8] 2002 e-business-strategies-for-virtual-organizations

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