ELECTRONIC COMMERCE: EMERGING PATTERNS AND STRATEGIC IMPLICATIONS

Abstract

Advances in information technologies enable firms to expand electronic commerce - the exchange of valuable information, goods and services across electronic media. This paper looks at how businesses are adopting and using technologies like the Internet and World Wide Web for electronic commerce. I propose that electronic commerce will dramatically reduce transactions costs requiring managers to re-develop their firm's strategy to focus on more fundamental sources of competitive advantage. I identify responses required to compete in a low transactions cost environment and provide illustrative examples of firms executing such a strategy.