The Link Between Information Strategy and Electronic Commerce

The rapid growth of wide area networks in recent years has opened up a new avenue for companies to market products and services and disseminate information about them to potential customers. Two hundred and twelve companies that conduct business in such a way on an electronic shopping mall responded to an e-mail survey about the anticipated benefits that prompted them to do so. The survey also asked about three potential strategies that they may have been following for achieving business objectives: cost leadership, focus, and differentiation. Six benefits factors emerged from this study: information, cost savings, competitiveness, productivity, planning and control, and new applications. Competitiveness was the most important benefit, and it predicted a differentiation and focus strategy. Productivity and new applications also predicted a differentiation strategy. Cost savings predicted a cost leadership strategy. However, organizations followed differentiation and focus strategies significantly more than cost leadership. This assessment thus sheds light on the link between information strategy and electronic commerce.