STRATEGIC GOAL SETTING
Activity 4.3 Assessing the significance of digital channels
Purpose
To illustrate the issues involved with assessing the suitability of the Internet for e-commerce.
Activity
For each of the products and services in Table 4.3, assess the suitability of the Internet for
delivery of the product or service and position it on the grid in Figure 4.8 with justification. Make
estimates in Table 4.3 for the direct and indirect online revenue contribution in 5 and 10 years’
time for different products in your country. Choose specific products within each category.
Table 4.3Vision of online revenue contribution for different types of company
Products/services Now 2 years’ time 5 years’ time 10 years’ time
Example: Cars, US
Direct online sales 5% 10% 25% 50%
Indirect online sales 50% 70% 90% 95%
Financial services
Direct online sales
Indirect online sales
Clothing
Direct online sales
Indirect online sales
Business office supplies
Direct online sales
Indirect online sales
Figure 4.8Grid of product suitability against market adoption for transactional
e-commerce (online purchases)
Market adoption/propensity for online purchase
Information services
Chemical manufacturer
Professional services
(consultancy)
Engineering company
(high cost, low volume)
Traditional books / CDs
Digibooks
Air tickets
Grocery retailer
Magazine publisher
Engineering company
(low cost, high volume)
Drug retailer
Low
Low
High
High
Product suitability = opportunity = risk