e-Business Strategy - week 3

For a company with which you are familiar with, review the six strategy
definition choices

Bandung Book Center (http://www.bbc.web.id/) is the online bookstore in Bandung. BBC serve the customer quickly and accurately without having to visit the physical store. Here, the BBC provides a wide range of books for reference and customer. I'm gonna review the 6-e business strategy decision which is implementing on BBC

Decision 1: E-business channel priorities

BBC use Click & Brick strategy, the online channel has the shape and physical stores. But in this case, the BBC further prioritize the online store to market its products.

Decision 2: Organizational restructuring and capabilities

BBC to use the strategy Strategic Partnership, where the BBC has good relations with the suppliers, in this case are the publishers who wanted to sell their books through the BBC with cheap price.

Decision 3: Business, service, and revenue models

Marketplace position: BBC as a reseller, because the products sold are books published by other publishers, not the BBC own imprint.

Revenue model: Benefits that are based on Commission-based sales, which take a percentage of sales of its products.

Commercial model: the model used is fixed-price sale, because the price offered tends to remain from year to year (unless there are special promo)

Decision 4: Marketplace restructuring

Sell-side: BBC to be a mediator of publisher-famous publisher and customer. Most of the transactions conducted online, although there is also offline

Buy-side: products offered by the BBC come from publishers, large publishers that have a reputation in Indonesia.

Decision 5: Market and product development strategies

BBC using the strategy market penetration strategies for increasing the purchase of its customers with a fixed discount on every product. With this aproach, customers will prefer to purchase books in the BBC than in other stores. Profit can also be enhanced with online sales because it reduces the operational cost.

Decision 6: Positioning and differentiation strategies

Price performance excellence: Price offered below market price. This is a distinctive charm, because the BBC can provide a significant discount compared to similar stores.

Transactional excellence: Easy transaction also one of the key success factors BBC. With online transactions, the sale can be done practically and reduce operational costs.