Golf Business, Lunch Business & Phone Business: Is New Zealand ready for e-Business?

Dr Kenneth R Deans, Senior Lecturer, Department of Marketing, University of Otago, Dunedin, 9001, NEW ZEALAND. Email: kdeans@business.otago.ac.nz

Mr Derek Nind, Director of Executive Education, School of Business, University of Otago, Dunedin, 9001, NEW ZEALAND, Email: dnind@business.otago.ac.nz

Claire Murray, Marketing Department, L'Oreal, Auckland, NEW ZEALAND.

Keywords

e-Business, Internet strategy, Case Studies, New Zealand Business.

Abstract

The Internet offers firms a new medium to conduct business either for communication programmes, sales & logistics functions and / or to manage and enhance customer relationships (Deans, 2000). In most cases use of the Internet is complimentary in nature rather than in place of traditional strategies. Although Internet growth has slowed, it still has significant potential to impact on management, strategy and business design (Perrott, 2001). The Internet, through its connectivity, enables traditional businesses to deliver and operate faster, and link organisations and groups in a unique manner.

The research reported here investigated whether Electronic Retailing (e-tailing) businesses in New Zealand have developed the necessary resources and capabilities to compete in this new electronic environment. As the strategic management process is integral to the development of an e-business strategy Johnson and Scholes' (1997) strategic framework was used as a base for e-business strategic development and implementation.

In-depth interviews were carried out with four New Zealand businesses that have integrated e-business into their existing business strategy. The interviews explored the motivation and rationale behind e-business strategy as well as the 'how' of the transformation process. The findings indicate that, given the speed of the technological advancements coupled with a limited understanding of e-business and a lack of resources and capabilities, limited success was achieved.

The research findings suggest that inadequate strategic analysis was undertaken, and the lack of definitive expectations and purpose lead to frequent changes in strategic choices and hampered their ability to implement effectively.