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Essay / Research Paper Abstract
A 3 page paper. When should major companies establish a separate division for Online business transactions? This paper discusses this issue, reports how some major retailers are nearly failing with e-business, and describes three alternative operational designs for e-commerce for brick-and-mortar stores. Bibliography lists 4 sources.
Page Count:
3 pages (~225 words per page)
File: ME12_PG694251.rtf
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Unformatted sample text from the term paper:
necessarily translate to success with Online sales. For instance, in the United States, Wal-Mart is the largest retailer by far but it is only fifth in Online sales (Dutzler et
al., 2011). In France, Carrefour has the same problem but in the UK, Tesco has the largest Online market share with 10 percent of all sales compared to the next
largest, Amazon, with 6 percent (Dutzler et al., 2011). The major obstacle is that these large retailers are trying to replicate their operational procedures Online. They need to change
their mindset. E-commerce is very different than traditional commerce. Future Online success begins with planning and decision making. The first decision any company must make is whether the Online
operations will be managed separately from the offline operations (Daft, 2007; Ray, 2003). The initial thought may be to manage them separately because it would be easier than integrating the
two units. Besides, management is already familiar with procedures and processes. But, if they are managed separately, the two units may be competing for the same customers (Ray, 2003). It
is also possible that if managed separately, the Online channel will lose sight of corporate goals and missions (Ray, 2003). There are at least three e-business organizational designs. These include:
establishing an in-house division that is integrated with traditional operations; spin-off company that is autonomous and a stand-alone company; and entering into a strategic partnership with an established e-company (Daft,
2007). There are many successful examples of each of these alternatives. Tesco set up a division that was closely integrated with traditional operations. Barnes & Noble established a spin-off company,
barnesandnoble.com. This is a stand-alone company that competes with Amazon and other companies. Whirlpool created a spin-off they call Brandwise.com (Daft, 2007). There are hundreds of strategic partnerships. We see
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