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THE MODEL OF E-COMMERCE STRATEGY FOCUSED
ON CUSTOMERS
Zuzana Němcová1, Jiří Dvořák2
1
Brno University of Technology, Czech Republic, nemcova@fbm.vutbr.cz
2
Brno University of Technology, Czech Republic, dvorak.j@fbm.vutbr.cz
Abstract
Contribution covers the strategic management of electronic commerce in the company and focuses
primarily on customers. This area is to explore the issue of electronic commerce and a comparison with the
use of existing e-commerce strategies in companies. Also important will be how to do a survey of the entire
company, and how the company decides to obtain information not only about the market, but also internal
affairs. Among the research results include will properties of corporate strategy and informative description of
properties, which are based on a commercial (business), corporate strategy and corporate quality strategy or
other strategies respectively documents were received and processed by the company (the company's vision,
mission, business, etc.). The company should benefit from current information technology, approved by
senior management of the company, and enforce them to implement it to get all the company staff. The
strategy must be constantly at certain intervals to assess and adapt to current customer needs. On the issue of
customers build models that will be addressed in the paper. Of course, the aim of these models is the market
analysis, identifying needs and requirements. The result of solving this problem is the creation of a model
where the selected dynamic processes are examined. Addressing of the strategic management of e-commerce
in the company, is focused primarily on customers. This paper aims to analyze a model of e-business,
focusing on customer needs. The result of solving this problem is the creation of a model where the selected
dynamic processes are examined. Target contribution will therefore be primarily addressing the development
and use of e-business model strategy and customer focused. Given the contribution of specific targets and
ways of implementing them will be used in the processing of not only the general research methods (analysis
and synthesis, induction and deduction, the method of feedback) but also specific methods (modeling, data
mining for analysis of the collected data.) Should not be taken lightly, that e-commerce is only a tool that
improves existing ways trading a impact on the structure of the company, market and competitive
environment. Includes changes in consumer behavior and suppliers and this alone should justify a revision of
current strategies. Determine whether the company should propose a new strategy for his involvement in
commercial markets or leave unchanged the existing strategy, or simply extend existing strategies offer e-
commerce. This survey includes the advantages and disadvantages of adopting e-commerce strategy and
modeling and for many aspects of business. The study results show how the model responds to feedback in
terms of sensitivity and stability study, which is a prerequisite for the successful resolution of the two
strategies, both firms and customers. Further research must be pursued in this area, particularly if they are
generated by a new study for e-commerce in enterprises.
Keywords: e-commerce, e-business, consumer strategy, strategic planning, crisis, marketing, product,
services, e-trading, model of e-business. Electronic commerce, strategy, technology, marketing, e-
Marketplace, Business to Customer, Business to Business.
JEL Classification: C52, C67, L21, M 15.
Introduction
More and more businesses are using the Internet to carry out business and to market, buy and sell
products and services to a wider audience. E-commerce, e-business and e-trading are terms used to describe
business on the Internet. What is different about this type of trade is that much of the communication
happens between computers and there is usually no face-to-face or verbal contact between customers and the
business. The Internet provides a valuable new form of communication and is a growing source of
information that can help people make decisions (for example, where to find information and advice about
running the business or the latest developments in technology and which product to buy). Business Strategy
and E-Commerce Introduction with the rapidly advancing technologies that are occurring in modern
business, organizations are required to be ready, and able to adapt within their ever-changing environment. It
is true across all diverse industries that in order to stay competitive, organizations must be able to utilize the
various tools that technology has to offer. Technological factors have been of growing importance,
particularly in recent years. A major factor involved in these technology issues is the use of the Internet as a
major issue to modern organizations. The Internet has been rapidly growing since its inception and is now
commonly used in all sectors of societies, in all corners of the globe. The Internet has quickly become one of
the most valuable assets in modern technology, and as such, is developing as an integral part of modern
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commerce. As with past technologies, the Internet will have future technological advances develop from its
own growth. Realize future opportunities and threats, and base a strategy accordingly.
This paper aims to create a model of e-business, focusing on customer needs. The result of solving this
problem is the creation of a model wher the selected dynamic processes are examined. Addressing of the
strategic management of e-commerce in the company is focused primarily on customers. It is very important
to make a survey of the entire company, to learn its business decisions and obtaining information not only
about the market, but also in internal affairs. Among the results belong the characteristics of company
strategy and information characterization, which are based on a commercial (business) corporate strategy and
corporate strategy quality, or other strategies. The strategy is continually evaluated at certain intervals and
adapted to current requirements. Using MATLAB software an economic model of electronic commerce is
designed. For the actual model Simulink as a special toolbox for modeling cybernetic systems is used.
Headings
Electronic commerce is an important form of marketing and communications, which offers a very
wide range. His major actions with positive characteristics include great flexibility, low installation costs.
This area has great potential, especially if it is part of the traditional e-commerce business.
Implement the strategic direction of the engine to activate the enterprise, and deals, in particular productivity.
(Keřkovský, Vykypěl, 1998) In the application management model should be paid attention to customer
satisfaction, information quality, process capability to adapt to rapid change, education and manual skills of
employees. The development of electronic commerce not only reduces shopping time, but also brings new
possibilities of information technology in-house. Increasing customer requirements for product demand, it
gives rise to new products, which significantly contribute to rapid return on investment. Recently,
significantly increased the activity of companies engaged in the creation of software, amusing, or to help
focus on solving customer problems and issues. (Donát, 2000). Develop e-commerce customer-oriented, be
able to gain customers and quality and flexibility to meet their obligations to them and retain customers, is
the most difficult of business activities both in the virtual environment of the Internet and in the real world.
The retail and online store that is especially true, it is necessary to react flexibly to any changes occurring in
the market place. It is necessary to constantly monitor prices and be able to offer competitive and flexible to
such changes and react very quickly. The biggest incentive is the possibility to implement a strategy for
future development and need to grow your business. When creating e-commerce is necessary to constantly
bear in mind the principle that, despite its simplicity, the process more pleasant shopping. ( Roberts, E.B.
2004).
Figure 1. -Business Strategy & Planning
Among the first patterns of how the strategy is included in the most widely used model of B2C. For
the purpose of understanding the meaning, the term B2C imagine a software application on the web site
where customers can select products, view and also order and buy and then by trading opportunities and pay.
It is a similar shop in the traditional form of trade. If the trader sells goods or services, this form of
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commerce suitable supplement. At a fundamental level, one of two options. Either entity sells through retail
chains (an indirect sale) so you can establish a single and direct sales through electronic commerce. In the
latter case, the company owns its store and will put you in addition to expansion and electronic commerce.
(Fredericks E. 2005). Another option is a B2B model, which also intersects the strategy. This is a classic
trade between firms. Currently, however, becoming one of the most progressively growing segments of
electronic commerce. That's because it is closely connected with the use of the Internet as a tool for
facilitating communication in the marketing chain. The core is essentially a B2B database, to which can be
accessed via the Internet and a simple interface - a commercial application (Dvořák. 2004), a business
partner who accesses this virtual space has its conditions under which trade can take place. Business
applications are then able to respond to any changes in business relationships, such as the size of a closed
shop. Of course there is an automatic order processing and inclusion in scent-company information system. It
is connected to each other cooperating modules (such as inventory management, procurement module of
movement, etc.). The system can automatically track the status of goods in stock and automatically order
subcontracted items are low and it is choosing the best terms and prices. Some B2B solutions to enable the
entire process through a built-ordinate logic tied to the manufacturer so that the requirements of the
distributor may directly influence the product being manufactured. The result is certainly eye-catching cut
costs. The smaller part of them involved the reduction of administrative burdens, but much more favorable to
them reflect inventory optimization and low cost of capital. Estimates of operating cost savings range from
fifteen to fifty percent. Also significant is the contribution consists in finding new business partners, which
meets the comfort of new trade routes, and not forgetting the opportunity to create a loyal customer
community. (Ash, C.G., & Burn, J.M. 2003).
Described and most widely used trade models e-business are tested and evaluated as described in
strategy linkages economic methods.
Figure 2. Reference model for e-business Planning
http://www.softwaremag.com/archive/2001feb/images/E-businessPlanning.jpeg
Referring
The mentioned system is composed of the subsystems, which are not exhaustive in description of the
behavior. This is not an accurate description of the behavior of particular subjects. The identification itself is
in the middle of Economics a difficult task. The MATLAB software contains several toolboxes that make
work easier by modeling of particular subsystems. Neural networks, fuzzy sets, etc. can be used.
The simplest way to address these needs, is to map the dynamic properties of a strategy and to
determine the transient response. In cases in which it is impossible to get re-course characteristics, the
frequency response can be used. The acquirement of it is more difficult. To obtain the transient response of
regulated system an abrupt change in the so-called action variables and fall is used. The response of the
regulated system - the course of the controlled variable - is measured. From this step response can be
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obtained the possibility to determine the quantities characterizing the dynamic properties ¬ degrading
strategies such as - for example - time and speed of adaptation response to new conditions.
In the case of the frequency response a harmonic signal is applied to the input of investigated member.
The model examines in which extent the steady state of response by selection of goods Unit jump can be
seen for example as a reaction to the news in the market. An entry into the model depends on the needs and
requirements of the customer due to his understanding, A strategy of purchase follows. Transmission
properties of individual subsystems, in particular customers demands, should be expressed as a result of the
statistical examination of the two segments (ie, production and customer needs). This approach characterises
a new point of view on the possibilities how to model the needs of the strategic management of e-commerce
in the company. Analysis of the data is one of the most difficult activities consisting of several stages and
using various, especially method. Pro initial statistical analysis and data processing were used Microsoft
Excel. Findings of the statistical date processing is an important factor in the decision-making model.
According to the proof or rejection will be admitted either as an input into the model or not. Scale, which I
will present them in a model derived from the strength of their dependence on the model.
Firm to succeed in the strategic management of e-commerce should follow the recommended strategies and
realize that a significant part of company information, which is one of the key sources of its long-term
prosperity. Therefore, they should be considered employees of the company the most valuable part of the
decision-making strategy. It is necessary to lay the question of how all workers are familiar with the
principles of the art information technology and marketing practices of these technologies. The decision does
not lose the importance of the treatment strategy of the principles. The management company must focus on
obtaining broad support for the implementation of all prepared for ordinary employees-fir us.
It is necessary to comply with the consistent implementation of company strategy as it was scheduled to be
put to work and serve us effectively. Among other prerequisites of successful strategy is reasonable when the
company invests heavily in developing an information system that not only spend money on hardware and
software, but also to educate and train staff in information that will be required to implement the
functionality of the entire strategy and comply with international Standards for the information system.
The proposed model describes the behavior of consumer and company by transfer function of the first
order. Transfer functions of consumer´s subsystems and subsystems of the company have only a
demonstration transmissions. It is not a case where the behavior of these subsystems are precisely identified.
Figure 3. Simplified model depicting the involvement of a time lag
(Source: Own processing )
General description of the blocks used
• Step (pulse input)
The element that generates a step signal of the change from zero to one or to a demanded value. In
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the economic model, this element generates a signal of the customer who has already chosen the
company (business) and runs the whole model.
• Transfer Function (Customer / Company)
A part of the model, which defines the behavior of a firm and a customer, using transfer functions.
When creating a model, the behavior description of several options, such as neural network and
fuzzy logic, can be used.
• Summation
The element that ensures the implementation of the feedback.
• Time Delay
The element that creates a time delay. In this model it realizes the waiting time of the company
before a modificatio of offer according to customer needs starts.
• Scope
Element, which graphically shows the changes of the parts of the whole model that depend on time.
Priority is given to the customer, restrictive terms of production values in this business segment for the
products in the menu to meet customer requirements are described. This model has the transfer functions in a
simplified form to be able to examine how consumers can influence the dynamics in terms of production,
how rapidly production can be adapted to customer requirements.
Graphs show the behavior of a cybernetic model of electronic commerce in various stages. Stocks represent a
part of a system variables, depending on the time. The amount of the customers must be assessed on the basis
of system throughput. For the company's strategy it is complicated to satisfy customers needs by electronic
commerce in real time. Modelling based on analysis of test problem is the first specification to an economic
model. The model allows the formulation of words pop theoretical assumptions and findings. After
examining the model is mathematically speci-fied and transformed into a deterministic mathematical model
of Economics. Addictions entering the model is mathematically formulated by economic variables, which
allow the next phase of the model to quantify the measured data. Quantification is based on the model
parameter estimation, which determines the intensity and direction of the interaction of variables involved.
After estimating the following verification that the estimated parameters are consistent with the underlying
theoretical assumptions. The result is an application variables in the model. Evaluation is a practical use of
model for analyzing the question under consideration. Based on the results of testing the model is modified
and improved. (Spirko, Krupka, 2008)
Conclusion
The system created by using MATLAB software and toolbox SIMULINK creats an economic system
model of e-commerce focused on the customer´s feedback. The aim of the company is, by using feedback, to
adjust its current offer to customer requirements. The system does not address the customer´s choice of the
company. It only enables the company offer specification and reduces the difference between customer
demand and company offer. The problem of economic systems is the large number of measurable and
unmeasurable inputs and sensitivity to the changes in initial conditions. It is important to quantify the system
to the sufficient extent. The created model allowed the description of subsystems of the company and of the
customer by transfer functions of the first and second order. On this level of the description complexity, the
system has settled down in real time and the company has found a common plane with the customer to
optimize the offer/ supply. On the higher level of the description complexity of the behavior, the system has
began to show instability. The economic systems should be quantified enough for mathematical modelling.
The system works only with model descriptions of company and customer behavior. Further precising of
valuation of this model can be achieved by application of neural networks and fuzzy logic to identify the
behavior of firms and customers.
The model shows the combination strategies can be stable, but only for low complexity of the system
then becomes unstable. The model was created by a time delay, which was introduced by a member of the
transport delay, which represents the exponential expression e-ts. This time delay is a member of the
particular characteristics of the controlled system. Characteristics of the controlled system are described in a
relationship which includes an exponential function. The customer leaves the so-called footprint, of which
the company then evaluates the appropriate strategy. A customer leaves feedback for the adaptation strategy
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based on the needs of existing customers. It is necessary to quantify the economic system that has the
stability of the model. Also, there must be to filter data from an economic point of view, that the safety
system. Should not be taken lightly, that e-commerce is only a tool that enhances the existing ways of doing
businessand impacts on the structure of the company, market and competitive environment. Includes changes
in consumer behavior and the contractor and this alone should justify a revision of current strategies.
Determine whether the company should propose a new strategy for his involvement in commercial markets
or leave unchanged the existing strategy, or simply extend existing strategies offer e-commerce. This survey
includes the advantages and disadvantages of adopting e-commerce stretegy and modeling and for many
aspects of business. Since e-commerce has the potential to change the competitive environment, all
participants in the business market, which could be affected by e-commerce. A framework for analyzing the
impact of marketing information and applies to most companies that need e-commerce strategy, including
the business case for their participation in commercial markets.
The study results show how the model responds to feedback in terms of sensitivity and stability study,
which is a prerequisite for the successful resolution of the two strategies, both firms and customers. Firm
behavior and the customer is required to quantify a certain level in order to stabilize.
With the passing of time, the model becomes unstable. Testing this model have been identified other general
questions that would be useful to specialists for further research. Further research must be pursued in this
area, particularly if they are generated by a new study for e-commerce businesses.
References
1. Ash, C.G., & Burn, J.M. (2003). A model of e-business transformation. Inf Technol Organ Trends issues
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view perspective and practical limitations. Ind Mark Manage, 34, 555–65.
3. Ghandour, F.A., & Swartz, P., & Grenek, HM., & Roberts, E.B. (2004). E-business transformation via alliance
clusters. Technol Anal Strateg Manag, 16,435–55.
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ISBN 80-214-1111-2
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