INMA_A01.QXD

CHAPTER 11· BUSINESS-TO-BUSINESS INTERNET MARKETING

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 develop-

ment 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.

Figure 11.5Model of strategic value creation

Source: Nicholls and Watson, 2005

Business characteristics

• Size


• Location


• Sector


• Brand image


• Competitive environment

Resources and

competencies

• IT infrastructure


• Databases


• Store/warehouse capacities


• Management skills


• Organisational learning ability

Strategic objectives

• Sales growth


• Widen geographic spread


• Cost cutting


• Differentiation


• New target customer

E-value chain elements

• Firm structure


• Marketing and sales


• Logistics and fulfilment Separation

Performance

outcomes

Integration

Performance

outcomes

E-business

adoption

strategy

Situational

antecedents

Value creation

process

Case Study 11 Growth, volume and dispersion of electronic markets

Ellis-Chadwick et al. (2002) found size to be an important

indicator of whether a company would a) have a web site

and b) have developed a fully transactional web site. They

posited, the larger the retail organisation in terms of

number of outlets the more likely they are to have both a)

and b) in place. They suggested this may be because

those retailers with the largest network of outlets might

have most to lose should they be left as observers, rather

than active participants, in a vibrant Internet marketplace.

Alternatively, it could be that those retailers with the