Business strategies for small firms in the new economy

Abstract

The development of the new economy through the advent of the Internet and the World Wide Web has created many threats and opportunities for firms in general and small businesses in particular. There appears to be an inextricable linkage among the new economy, new enterprise, and the new technology, which may have a potential effect on the way small businesses formulate their business strategies. This paper provides a theoretical approach that looks at the advantages of the digitisation of the economy and strategy formulation of small businesses taking three specific themes into account – virtualisation, molecularisation, and disintermediation. The strengths and weaknesses of various e‐commerce strategies in the context of these dimensions are discussed. Some strategies that are suitable for small companies are recommended and four principles are stated in order to assist these firms to formulate strategy in the new economy.

Rural small firms’ use of the internet: From global to local

“…Since then, many commentators have agreed with this contention that with access to increasing markets throughout the world, businesses (including rural businesses) have a unique opportunity to expand either business-to-business, or business-to-consumer operations from the traditional and local, to the global (Reynolds, 2000;Amit and Zott, 2001;Lawson et al, 2003). More detail in terms of the various ways in which the internet can expand a firm's reach is provided throughout the literature also, and these include increased profile (Tse and Soufani, 2003), brand building (Jacobs and Dowsland, 2000), and advertising and marketing (Turban et al, 2004).…”

“…This definition is in line with authors such as Turban et al (2004) and , the latter of whom describe a portal as "an information gateway using internet technologies [that] can be used by the customer to view products and services and to place orders.and as a point of collaboration between businesses" (p1).…”

Sustaining competitive advantage in social entrepreneurship - a case study

“…With enhanced value for money being provided these factors, organisations adopt IT to fulfil the needs of these business drivers. These factors coupled with the need to reduce overhead cost and be able to service customers faster also impact decisions to adopt IT (Tse and Soufani, 2003). As we move towards knowledge economy, relationship between several factors related to environment become influencing factors for investment in IT (Bharati and Chaudhury, 2003).…”

Revisión Crítica de la Importancia de la Innovación en el Cambiante Ambiente Empresarial

“…Las empresas tienen la capacidad de alcanzar proveedores en todo el mundo y la posibilidad de vender su producto en todos los continentes. (Tse & Soufani, 2003) Las empresas saben que el mundo globalizando ha generado más que nunca antes una competencia voraz; por eso buscan su estrategia de crecimiento partiendo de las necesidades del cliente y finalizando con los recursos de las empresas (activos). (Slywotzky & Morrison, 1997) Analizando la matriz FODA, tenemos que las empresas presentan las siguientes características: (2011), (Hernandez, 2012) Finalmente, según, (Cerveron & Yibarra, 2016) el éxito de la innovación no radica solamente en tener acceso a nueva tecnología, ya que la verdadera ventaja que pueden tener las empresas es cuando tienen la capacidad de analizar su entorno para identificar amenazas y oportunidades lo que les permitirá establecer una correcta estrategia logrando éxito y adecuado manejo de sus recursos.…”