The E-commerce as a way to sustain a strategy

• Author: Bacanu B.
• Pages: 119-124

Bulletin of the Transilvania University of Braşov

Series V: Economic Sciences • Vol. 8 (57) No. 1 - 2015

The e-commerce as a way to sustain a strategy

Bogdan BĂCANU1

Abstract: The study explores the impact of the new e-commerce techniques on the business

strategy, guided by the idea that it could entrench a possible outcome in diminishing costs.

This potential effect is discussed using the present concepts on strategy coined and

established by academics. The discussion is based mainly on accustomed opinions about the

new form of commerce, stating that the cost figures have a minor relevance in defining

strategy. The findings pinpoint that cost leadership could be a strategic option, but the

differentiation remains to be discussed as alternative while new forms of retail may

perpetrate to redefine strategic approach under challenging times.

Key-words: e-commerce, strategy, cost leadership, differentiation.

1. A link between e-commerce and strategy?

Understanding and studying the ways of expression and the economic aspects of the

e-commerce becomes easier if it is connected to addressing the strategies of

nowadays companies. Assuming that the theory behind these strategies is coherent, a

large number of statements can be made in relation to the business’s evolution

associated to the e-commerce. Basic strategic concepts which this study refers to are

inspired by the current literature and are to be seen as valid.

The e-commerce becomes visible mainly through sales volume expansion of

existing products in a mature market, which would correspond to the so-called

penetration of the market, according to Ansoff (1965). To a lesser extent we also

find elements of the strategy of market (or product) development – based on the

typology by the same author - which leads to the idea that e-commerce occurs as a

consequence of technological maturity of an economy or a market.

In terms of competitive advantage, as introduced by Porter (1985), the use of

the new technologies seems to be guided by the idea of lowering the costs (mainly

through staff costs reduction). This impression is induced by the fact that

e-commerce tends to exclude direct involvement of personnel in some segments of

the business processes.

1 Transilvania University of Braşov, b.bacanu@unitbv.ro