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

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Creating <strong>virtual</strong> cultures <strong>for</strong> global online communities<br />

(1), Victoria (1), Sydney (6 + 5 NSW restaurants), Darwin Agent<br />

(1). The site also features a page with links to 32 or so wine sites<br />

worldwide. There are also links to key local industry players in<br />

Western Australia, e.g. Wine Industry Association of Western<br />

Australia Inc., and Australian Wine Online.<br />

LRW has joined the London Wine Clearing House – a facility<br />

allowing international wine producers to stock their produce in<br />

the UK without incurring import tax and sales tax until such<br />

time as actual sales of wines are made. Integrating the<br />

company’s online ordering facilities with the clearing house had<br />

enabled LRW to realize huge cost savings and effective<br />

management in inventory, export, staffing and product delivery.<br />

Now the CEO can manage all sales in the UK over the Net from<br />

the home base in Western Australia. Without the online facility,<br />

the company would need to have at least a sales representative<br />

in the UK to take care of orders and arrange delivery from stocks<br />

in the warehouse. According to the CEO, James, the UK market<br />

is a premium market representing very competitive pricing and<br />

very small profit margins, which makes such the cost savings<br />

crucial.<br />

The integrated online ordering clearing house system also<br />

enable the company to monitor stock levels in order to plan<br />

future productions. Easy and real-time stock levels means the<br />

company can engage in selective strategy to push sales through<br />

its gift services – a new product line aimed at customers who<br />

would like to place orders <strong>for</strong> choice wines <strong>for</strong> delivery to<br />

friends or loved ones.<br />

Virtual organizing e-<strong>business</strong> strategy<br />

The core feature of managing a <strong>business</strong> on the Internet is to<br />

consistently review the entire <strong>business</strong> value chain to identify<br />

opportunities <strong>for</strong> adapting and redefining core operations while<br />

looking to exploit emerging capabilities of the Internet <strong>for</strong><br />

creating enhanced <strong>business</strong> value. This is essentially a <strong>virtual</strong><br />

organizing strategy. The strategy continually reviews the strategic<br />

agenda and the appropriateness of the <strong>business</strong> model and<br />

how these align with the relevant product markets, demands of<br />

the stakeholder community and existing and/or available<br />

infrastructure capabilities.<br />

At LRW, there are indications that they are moving the<br />

e-<strong>business</strong> to a <strong>virtual</strong> alliance model where other wineries in the<br />

Swan Valley region would participate in some <strong>for</strong>m of common<br />

249

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