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

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e-Business Strategies <strong>for</strong> Virtual Organizations<br />

Success factors<br />

250<br />

brand marketing. Such an alliance may be implemented as<br />

common web space featuring common facilities <strong>for</strong> the participating<br />

group of firms or just provide visibility <strong>for</strong> the alliance<br />

and its objective with smart links on the company’s website<br />

which would be reciprocated on the sites of participating SMEs.<br />

Given the fact that LRW is already a major supplier of wine<br />

production related services to many of the other Swan Valley<br />

wineries, it is easy to see the company’s adaptation as a way to<br />

add on new product lines especially in the <strong>business</strong>-to-<strong>business</strong><br />

category targeting the other wineries<br />

There is an ongoing commitment to improve online systems as<br />

a way to improve the company’s marketing strategy. Since 1995<br />

the company has undertaken two major upgrades of its<br />

e-<strong>business</strong> infrastructure. A review of the company’s initial<br />

website, developed in 1995, shows that LRW has an active<br />

strategy <strong>for</strong> enhancing its online infrastructure.<br />

Comparison of the three versions of sites shows radical<br />

improvements to the design. One key difference is that the older<br />

site attached significant importance to clients visiting the<br />

physical location of the winery. At that time physical awareness<br />

(as associated with traditional marketing <strong>strategies</strong>) was considered<br />

key to image building and brand loyalty by the<br />

company. This emphasis has become reduced in the current<br />

version of the site. The online ordering facility has remained<br />

simple in layout but the new hyperlinks emphasize stronger<br />

alliances along the value chain and a broader commitment to the<br />

global marketplace. This has resulted in a considerable increase<br />

in national and international sales. The LRW site encourages<br />

visitors to join the company’s electronic mailing list on wine and<br />

health to learn about developments in the industry and the<br />

company’s products as well as communicate directly with the<br />

company. This is aimed at building brand loyalty.<br />

A group discussion on LRW e-<strong>business</strong> led by the company’s<br />

CEO revealed a number of insights about some of the factors<br />

which influence its success. These are reviewed below.<br />

Technical knowledge about e-<strong>business</strong><br />

environment<br />

This was described as an important factor <strong>for</strong> LRW e-<strong>business</strong><br />

success, and supports a common finding of the review of a host

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