Choice Of Market Strategy By The Enterprises In Adopting E-business

E-business has in fact existed for over 20 years. In recent years, with the rapid development and wide use of Information technology ,and Internet technology in particular, the E-business has had an explosive development , created an emerging market with a great potential growth, and has exerted momentous and far-reaching influence on the development of the world economy and the market competitive patterns.As a new method for high productivity under the variable and uncertain circumstances, E-business has created an tremendous opportunity for businesses to gain competitive advantages and values. Through reduction of transaction costs and reduction of the time between production and sale, highlighting the image of the brands, enriching of the information resource and accelerating of the information circulation, reduction of the costs in changing trade partners and enhancing of the innovative capacity, E-business helps improve the business's competitive edge, enhance the clients' loyalty and reliability, build closer relations between the clients and the enterprises, and thus the businesses' competitive advantages are created and sustained.After the E-business is used, the customers gradually adopt an advantageous position, industries with scale economy appears from time to time, risks and uncertainties are increased and foreseeability lowered. In order to create competitive advantages, the enterprise is compelled to readjust the previous strategies and make out new strategies to enable itself to survive in the long-lasting competition.When the firm adopts E-business, it has to work out and implement the strategy depending on the internal and external conditions. Otherwise, the E-business might not benefit corporation, even turn out the results contrary to the expectations. The business must take the culture of the enterprise itself and the cost of strategy implementation into consideration before deciding the position of the E-business in the business: either as the information infrastructure, or as the support to the commercial activity, or as the basis of the commerce.Three kinds of market strategies exist in the E-business: seller- controlling strategy, buyer-controlling strategy and intermediary-controlling strategy. The following factors have to be considered when the enterprise chooses the strategy. First, whether E-business can be used to reduce cost. If trades can be handled efficiently and the cost reduced consequently through E-business, the adoption of e-business is a wise choice. Second, whether E-business market of the enterprise's products is growing rapidly. If the adoption of E-business can bring large potential profits and the E-business market for its key products is developing very fast, the enterprise and its competitive opponents will be driven to establish the E-business market as soon as possible. And last, whether the enterprise has possessed large market share and has market superiority. Those which are superior and their products are popular on the markets should build up the web-site of their own to sell the products; and those whose market power and popularity of the products are inadequate, more E-business markets should be tackled to expand sales.