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

Globalization and e-business strategies for SMEs
Table 6.4 Application of SMALL: transformation of SME environments
Online SME Transformation of attributes
Size Market Activities Linkages Locational
diversity
Boots Online Reduced physical
assets, inventory
and warehousing
facilities reduced
need to recruit
more personnel to
manage global
clientele
Hawaiian
Greenhouse
Best of Italy
Sofcom
SCB Co-op
LAA
Reduced need to
recruit more
personnel
Expanded
effective size of
business,
infrastructure and
resources as a
group of
companies
Increase in
effective size
through pooling
resources, and
products of group
of seven SMEs
Expanded market
coverage local to
global, increased
sales from
international
clients
Potential to
develop new
products in
tourist
information and
hotel reservation
Direct retail
instead of
through
wholesalers,
potential for new
products and
diversification
Huge collection
of diverse Italian
products
Worldwide
coverage
Prospects to
develop other
products, e.g.
Happy Gift
Extended access
to market from
local to national
and global;
development of
competitive
global brand
Increased
simplicity,
flexibility and
automation of
sales and
distribution
Automation of
entire sale and
distribution
process, increased
flexibility and
market
responsiveness
and efficiency
Increased
flexibility and
efficiency through
automation and
enhanced
information
management
Effective
coordination of
group of SMEs,
enhanced
efficiency and
cost savings in
marketing/
distribution of
individual
products
Increased linkages
supporting
service providers
(e.g. ISP and
software
companies,
courier services –
DHL)
Relationships
with courier
services and
e-business
solution providers
(Datahouse and
IBM)
High and diverse
links and
e-business
relationships
among many
participant firms,
business services
providers,
e-commerce
solution providers
Also alliance with
major global
companies such
as FedEx and
Western Union
Development of
strong business
relationships
among
participant SMEs,
effective
management of
business
relationships with
some of the major
service providers
(e.g. ParcelForce)
and distribution
channels (e.g.
ASDA)
Hardly changed
Hardly changed,
able to reach a
worldwide
market without
need for regional
branches
Reduction in
locational scope
of participating
SMEs since
operation from a
single outlet
Concentration of
location to one
website as a onestop
for the
participant
groups
129