Strategy formulation and the Internet : what are the issues? : a critical literature review

Kongoro, Engelhardt Zevarua (2002-12)

Thesis (MBA)--Stellenbosch University, 2002.

Thesis

ENGLISH ABSTRACT: This study has reviewed the current literature and debates on the relevance of conventional strategy formulation given the turbulence in the business environment. Conventional strategy formulation is under attack as a result of the advancement of disruptive technologies such as the Internet. Many have gone further, and referred to this digitization of the business environment as a "new" economy. This study has reviewed a range of literature from academicians as well as practitioners on the relevance of strategy in an Internet environment. Many of the authors, while admitting that real-time fine-tuning of some of the analytical tools currently in use was warranted, still feel that most of the conventional concepts still apply. Businessesare still affected by the same competitive forces of rivalry, substitutes, new entrants and the bargaining powers of suppliers and buyers. Organisations must still look for distinctiveness for them to have a sustainable competitive edge over their rivals. This study has reviewed the impact of the Internet on industry structure, the value chain, and the implications for competitive advantage. The conclusion that can be gleaned from these reviews is that doing business on the Internet will not save businessesfrom failure if they are not applying the correct strategies. The convergence of views appears to be that there is nothing new about the "new" economy, but the technological platform created by the Internet presents major opportunities that can be used in a hybrid form of online practices such as online order processing with established models of brick and mortar such as warehousing. While the study did not intend to produce new or validate existing empirical insights, it is has recommended that the Internet must be used as an enabler and integrated within existing businessprocesses.

AFRIKAANSE OPSOMMING: Hierdie studie hersien die huidige literatuur en bespreek die toepaslikheid van die konvensionele strategieformulasie gegewe die onvoorspelbaarheid in die besigheidsomgewing. Konvensionelestrategieformulering is onder aanval as gevolg van die vordering van omverwerpende tegnologie soos die Internet. Verskeie menings gaan verder, met verwysing na die rekenarisering van die besigheidsomgewing as 'n "nuwe" ekonomie. Hierdie studie hersien 'n reeks van literatuur van akademeci, asook praktisyns oor die toepaslikheid van strategie in die Internet omgewing. Baie van die outeure, terwyl hulle erken dat intydse verfyning van sekere van die analitiese modelle("tools") tans in gebruik geldig is, is hulle terselfdertyd van mening dat die konvensionele konsepte steeds toepaslik is. Besighede word steeds beinvloed deur dieselfde kompeterende drywers van kompetisie, subtitusie, nuwe mark toetreders en die onderhandelingsmag van verskaffers en aankopers. Organisasies moet steeds op die uitkyk bly vir iets wat volhoubare kompeterende voordele inhou oor mededingers. Die gevolgtrekking van hierdie oorsigte is dat besighede nie suksesvol bedryf kan word op die Internet sonder die toepaslike strategie nie. Die herleiding van sieninge wil voorgee dat daar geen verandering is in die "nuwe" ekonomie, maar dat die tegnologiese platform geskep deur die Internet materiële geleenthede bied wat gebruik kan word as deel van intydse praktyke en bestelprosesse met bestaande basiese"briek and mortar" modelle, soos pakhuise. Terwyl die studie nie bedoel om nuwe empiriese insigte te genereer of te staaf nie, word dit aanbeveel dat die Internet gebruik moet word as deel van bemagting van huidige besigheidsmodelle.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/53066
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