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Strategic objectives

• Widen geographic spread

• Differentiation

• New target customer

Performance outcomes

Business characteristics

• Competitive environment

E-value chain elements

• Firm structure

• Marketing and sales

• Logistics and fulfilment

Integration

Separation

Resources and competencies

• IT infrastructure

• Store/warehouse capacities

• Management skills

• Organisational learning ability

Performance outcomes

Figure 11.5 Model of strategic value creation

Source: Nicholls and Watson, 2005

• usually involved in long-term relationships, making it more worthwhile to set up links between business partners;

• more likely to be involved in a greater volume of transactions, thereby justifying the initial outlay required to develop the Internet-based systems.

Currently, it could be suggested that many organisation operating in the B2B sector are in a transitional state when planning Internet strategies. Whilst research suggests that lack of strategic foresight and strategic vision is hampering the growth and development of online business it is also likely that organisations are going through a period of learning that is equipping them with the knowledge required to develop successful Internet strategies in the future.

Case Study 11

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