Offer a wide range of products and services across multiple industries. Target the broadest possible audience with no category specialisation.
Examples: Amazon (books, electronics, groceries, cloud services), eBay (consumer goods across all categories), Daraz.lk (Sri Lanka's widest product range platform)
Specialise deeply in a single industry or category, offering greater depth and domain expertise within that niche.
Examples: Airbnb (lodging only), Etsy (handmade/vintage goods only), Zillow (real estate only), Fiverr (freelance services only), Healthguard.lk (healthcare products only)
Platform facilitates the transaction and takes a commission on each sale. Examples: eBay, Amazon Marketplace.
Platform connects buyers and sellers directly without taking a per-transaction commission. Example: Alibaba — connects global businesses directly with Chinese manufacturers.
First basic online marketplaces. eBay (1995) and Amazon (1994) launched, connecting buyers and sellers digitally for the first time.
Proliferation of specialised (vertical) and general (horizontal) platforms. Etsy, Airbnb, and Daraz.lk emerged targeting specific niches.
Smartphones created mobile-first platforms. Uber and PickMe revolutionised ride-hailing via apps; mobile became the primary channel.
B2B eMarketplaces scaled. Alibaba and ThomasNet enabled business procurement globally through digital supply chains.
Marketplaces became full ecosystems. Amazon expanded into AWS, Prime Video, Alexa — far beyond its original retail purpose.
Decentralised eMarketplaces (OpenBazaar, Bitify) emerged, operating without central authority using blockchain and cryptocurrency.
| Platform | Country | Type | Unique Value |
|---|---|---|---|
| Amazon | Global | Horizontal | Largest ecommerce platform; full ecosystem (AWS, streaming, AI devices) |
| Alibaba | Global (B2B) | Direct Connection | Connects global businesses with Chinese manufacturers without per-transaction fees |
| Airbnb | Global | Vertical (Lodging) | Peer-to-peer lodging; monetises unused rooms; disrupted the hospitality industry |
| Fiverr | Global | Vertical (Freelance) | Freelance micro-services from $5 upward; global talent market for digital work |
| Daraz.lk | Sri Lanka | Horizontal | Largest Sri Lankan ecommerce platform; backed by Alibaba; electronics to groceries |
| Ikman.lk | Sri Lanka | Classifieds | Free classified ads for vehicles, property, electronics, jobs — widest local reach |
| Kapruka | Sri Lanka | Gifts & Services | Specialises in gifting, flowers, food delivery; strong overseas Sri Lankan user base |
| Healthguard.lk | Sri Lanka | Vertical (Health) | Exclusively healthcare/wellness products — vitamins, supplements, personal care |
| Dimension | Traditional Model | New eBusiness Model |
|---|---|---|
| Production | Mass production — large quantities of identical standardised goods | Personalised production tailored to individual needs (e.g., Dell build-to-order computers) |
| Distribution | Relies on middlemen — wholesalers, distributors, retailers | Direct-to-customer, eliminating intermediaries (e.g., Dell Direct Model) |
| Communication | Chained and closed — hierarchical, slow information flow | Networked and open — real-time, multi-directional digital communication |
| Finance | Slow transactions, limited hours, difficult cross-border payments | Faster, easier, 24/7 digital banking, mobile payments, instant international transfers |
| Markets | Local or geographically constrained | Global reach with no geographic boundaries (Amazon, Alibaba serve 190+ countries) |
| Assets | Tangible/physical — factories, warehouses, stores | Intangible/virtual — software, data, brand equity, digital IP |
Old: Physical operations, own core competencies, geographical coverage, high switching costs, IT as a support function, barriers: brand + physical location.
New: Online operations, collaborative competencies, global coverage, low switching costs (standardised tech), IT as the core strategy, barriers: brand name + 1:1 digital relationships + quality of service.
| Force | When It Is Strongest | eBusiness Strategy | Example |
|---|---|---|---|
| Rivalry Among Competitors | Slow-growing market; homogenous/undifferentiated products; high fixed costs; easy customer switching | Value-Added Product Differentiation + CRM + Product Bundling | Amazon bundles Prime (delivery + video + music + storage) making it extremely hard to match or switch from |
| Threat of New Entrants | Low start-up costs; weak brand loyalty; unprotected processes; easy access to inputs and customers | Strengthen entry barriers: CRM loyalty programs + Strategic Alliances + Cost Leadership | Apple's iOS ecosystem (App Store, iCloud, device lock-in) creates high switching costs that deter new smartphone entrants |
| Bargaining Power of Suppliers | Few suppliers; unique inputs; easy for supplier to bypass you and sell direct to your customers | Backward Integration + Supply Chain Management (SCM) + ePortal for bulk ordering | Walmart's Retail Link portal gives suppliers real-time inventory data while Walmart uses its bulk-buying scale to negotiate lower prices |
| Bargaining Power of Buyers | Buyers are large and purchase much of your output; products undifferentiated; low switching costs | Forward Integration + CRM Loyalty Programs + Value-Added Differentiation | Daraz.lk uses personalised recommendations and DCoins loyalty rewards to reduce buyer switching to Takas or Kapruka |
| Threat of Substitutes | Easy customer switching; low loyalty; product offers no real unique benefit over alternatives | Product Diversification + Market Diversification + Strategic Alliances | Netflix diversified from DVD rental into streaming and then original content production to make itself the substitute rather than the victim |
Key Insight: In the Sri Lankan garment sector, the forces are: Rivalry — Very High; Buyer Power — Very High; Threat of New Entrants — High; Substitutes — High; Supplier Power — Low. Strategies include SCM portals, CRM systems, and direct digital channels to foreign buyers, bypassing traditional intermediaries.
| Old Rule | Disruptive Technology | New Rule |
|---|---|---|
| Information exists in one place at a time | Shared Databases | Information appears simultaneously across multiple locations in real time |
| Only experts can perform complex tasks | Expert Systems (AI/ML) | A generalist can do the work of an expert using intelligent systems |
| Businesses must choose: centralise or decentralise | Telecommunications Networks | Businesses benefit from both centralisation AND decentralisation simultaneously |
| Only managers make decisions | Decision Support Systems (DSS) | Decision-making becomes part of everyone's job at all levels |
| Field staff need an office to access or give information | Wireless/Mobile/Internet | Field staff are connected from wherever they are, at any time |
| Best contact with a buyer is personal (face-to-face) | Internet / World Wide Web | Best contact with a buyer is effective contact — digital, personalised, and timely |
Collects data from various sources and presents it in a form that helps managers make decisions, plan operations, and control business activities.
Processes large volumes of routine transactions — purchases, sales, inventory updates — quickly and accurately with minimal human intervention.
Uses data models and analytical tools to help managers analyse complex business scenarios and make evidence-based decisions.
Designed for senior executives; provides easy access to key strategic information (KPIs, dashboards) needed for high-level decision-making.
Manages inventory levels, tracks stock movement, minimises holding costs, and ensures products are available when needed across the supply chain.
Captures, stores, and disseminates organisational knowledge among employees — preserving expertise and improving collective productivity.
| Relationship | Between | Description | Example |
|---|---|---|---|
| Linkage | Process ↔ Process | Output of one process becomes the input of another in a connected chain | Online order → triggers inventory deduction → triggers supplier restocking |
| Interconnection | Technology ↔ Technology | Digital systems share data in real time through APIs, databases, and networks | Payment gateway connects to warehouse management system connects to delivery tracking |
| Co-operation | People ↔ Technology | Human actors work alongside digital systems, each contributing what they do best | Customer service agent uses CRM dashboard to resolve a buyer dispute using live data |
Key Insight: As more businesses, suppliers, customers, and partners connect digitally, the number of Process–Technology–People relationships grows exponentially. This is why successful eBusiness organisations treat IT as strategy (not just a support function) — the complexity requires deliberate governance, not ad-hoc management.
Mass customisation is a manufacturing process that combines the advantages of mass production (economies of scale, efficiency) with customisation (personalisation to individual needs), producing tailored goods without sacrificing cost-effectiveness. It is enabled by technologies such as CAD, 3D printing, EDI, automation, and web-based configurators.
| Aspect | Mass Customisation | Mass Personalisation |
|---|---|---|
| Definition | Customised product/service + competitive advantage via combinations of technological and management methods | A personalised experience based on co-creation, analysis of user behaviour and organisational changes |
| Key Elements | Data-driven; limited customer impact; harmonisation between diversity, costs and quality; demand-driven supply chain | Data-driven; strong customer interaction and co-creation; demand-driven |
| Aim | Tailored product/service oriented to competitive advantage | Greater access to information; streamlined processes; tailored experience for target audience; smart service |
| Stage | Customisation Option | Enabling Technology |
|---|---|---|
| Patterns | Custom fit or design | Body scanner, digitiser and CAD |
| Design | Component choice: size, style, fabric | CAD and web-based product configurators |
| Production Planning | Data forecasting | EDI and production planning software |
| Assembly | Small-lot repeats | Electronically-controlled robotics and UPS |
| Distribution | Point-of-sale data | EDI and supply chain management software |
Customers are in the early stage of their purchase journey, looking for information about what the business does. Action: educate through content marketing, SEO, and social media.
Customers evaluate the product's unique value proposition against competitors. Action: help prospects move down the funnel with demos, comparisons, and reviews.
The final stage of the sales cycle — the prospect becomes a paying customer. Action: smooth checkout experience, targeted promotions, clear call-to-action.
Gaining customers should never be the sole goal. Check in, seek feedback, and ensure customers remain satisfied. Action: post-purchase emails, customer service excellence, loyalty programs.
Loyal customers become brand ambassadors. Action: referral programs, social sharing incentives, testimonials to bring in new customers organically.
Manufacturer → Wholesaler → Distributor → Retailer → Consumer
Multiple intermediaries increase cost, reduce margins, slow delivery, and prevent direct customer data collection.
Manufacturer → Advertising/Website → Consumer
Fewer intermediaries = higher margins, richer first-party customer data, faster feedback loops, and ability to personalise at scale. Example: Dell, Nike iD, Tesla (sells only through its own website/stores).
A virtual organisation is a network of individuals or groups who work together to achieve common goals while being geographically dispersed, communicating primarily through technology (email, IM, video conferencing, online collaboration tools). They operate without a physical office, moving businesses from place to space — replacing cash, cheques, and storefronts with digital/electronic/virtual interconnections.
In a virtual organisation model, Business A, B, and C each hold their own information and processes. A shared Virtual Organisation hub combines their capabilities to serve the same customer — creating value none could create alone, without co-locating staff or sharing physical infrastructure.
| Force | Level for SpiceRoute | Justification |
|---|---|---|
| Rivalry Among Competitors | VERY HIGH | Large supermarket chains with capital, brand recognition, and logistics infrastructure are launching direct competing apps — most immediate and damaging force |
| Threat of New Entrants | HIGH | Global B2B platforms (Alibaba, Amazon Business) have the technology and capital to enter the Sri Lankan spice export market rapidly with standardised platforms |
| Bargaining Power of Buyers | MEDIUM-HIGH | International buyers can compare spice suppliers across multiple platforms with low switching costs — they hold significant price leverage |
| Bargaining Power of Suppliers | LOW-MEDIUM | Local farmers are fragmented and small-scale — individually weak. However, SpiceRoute IS their primary export channel, creating mutual dependency |
| Threat of Substitutes | MEDIUM | Buyers could source spices from India, Vietnam, or Indonesia through other platforms — geographic alternatives exist but Sri Lankan spices have quality differentiation |
Value-Added Differentiation: SpiceRoute should emphasise provenance and quality transparency that supermarket apps cannot offer — visible farmer profiles, certified organic labelling, direct farm-to-export traceability using QR codes, and guaranteed harvest dates. International buyers in premium markets (UK, EU, USA) will pay significantly more for authenticated, traceable origin.
CRM Strategy: Build a buyer relationship management system that tracks purchase patterns of international buyers, sends automatic re-order alerts when their previous order quantity was typically reordered, and provides personalised seasonal harvest calendars — creating a "sticky" service relationship that supermarket apps cannot replicate.
Strategic Alliances: Partner with the Sri Lanka Spice Council, Export Development Board (EDB), and Sri Lanka Customs to become the officially endorsed digital export channel. This creates institutional legitimacy and regulatory relationships that a new international entrant would take years to replicate.
Product Bundling: Bundle spice exports with complementary services: export documentation assistance, phytosanitary certification, freight-forward partnerships, and customs clearance — making SpiceRoute a full-service export hub rather than just a listing platform. Global B2B players entering without these local service integrations cannot immediately compete on the same value.
The Final Goal of eBusiness (from the lecture): "The ability to connect with, access information, conduct business or deliver services to anyone — from anywhere — anytime — using almost any device — securely — easily — cost effectively — and with a single click." SpiceRoute's ambition should be measured against this standard.