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Strategic Management (MGT-603) Announcement of Graded discussion 


Opening Date and Time: Oct 24, 2012 At 12:00 AM (Mid-Night)

Closing Date and Time: Oct 25, 2012 At 11:59 PM (Mid-Night)

Topic/Area for Discussion:


Covering from lecture # 01 to lecture # 04

Guidelines for Preparation:

· For acquiring the relevant knowledge, do not rely only on handouts but watch the course video lectures, which are available at, and also use other reference books.

Important Instructions:

· Your discussion must be based on logical facts.

· The GDB will open and close at above specified date and time. Please note that no grace day or extra time will be given for posting comments on GDB.

· Use the font style “Times New Roman” and font size “12”.

· Your answer should be relevant to the topic i.e. clear and concise.

· Do not copy or exchange your answer with other students. Two identical / copied comments will be marked Zero (0) and may damage your grade in the course.

· Books, websites and other reading material may be consulted before posting your comments; but copying or reproducing the text from books, websites and other reading materials is strictly prohibited. Such comments will be marked as Zero (0).

· You should post your answer on the Graded Discussion Board (GDB), not on the Moderated Discussion Board (MDB). Both will run parallel to each other during the time specified above. Therefore, due care will be needed.

· Obnoxious or ignoble answer should be strictly avoided.

· You cannot participate in the discussion after the due date via email.

· Questions / queries related to the content of the GDB, which may be posted by the students on MDB or via e-mail, will not be replied till the due date of GDB is over.

· For planning your semester activities in an organized manner, you are advised to view schedule of upcoming Assignments, Quizzes and GDBs in the overview tab of the course website on VU-LMS.

Note related to load shedding: Please be proactive

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Replies to This Discussion




Leaning Objective:


  • To understand the concept and benefits of e-commerce.
  • To understand the importance of e-commerce and how it helps organization to become competitive.


Learning Outcomes:

After completing this activity, the students will be able to;


  • Identify various strategies adopted by the organization.
  • Identify the possible actions that organization may take while becoming competitive.


Topic Background:


Electronic Commerce (e-commerce) refers to using the Internet to market and sell goods and services. It involves the buying and selling of products and services by the businesses to customers through an electronic medium. Electric commerce has become a vital strategic-management tool, as a successful ecommerce business strategy can make online purchasing an enjoyable and profitable. The Internet has changed the very nature and core of buying and selling in nearly all industries. It has fundamentally changed the economics of business in every single industry worldwide.



Discussion Question:


In strategic management point of view, how e-commerce acts as an instrument for Pakistani organizations to become successful in competitive world? Discuss with logical points.

E-commerce also can give a lot of benefits to business organizations especially in term of cost reduction and reaching global market. In strategic management point of view, e-commerce acts as an instrument for Pakistani organizations to become successful in competitive world in the following ways:



  1. Reduces Costs for Inventory Management

    With e-commerce, the suppliers can reduce costs to manage their inventory of goods because they can automate the inventory management using web-based management systems. This method indirectly can save their operational costs.

    “Specifically, e-commerce replaces the manual business processes with their automated electronic equivalents to accelerate ordering, delivery and payment procedures. This electronic paradigm has saved businesses billions in operational and inventory costs.”

  2. Reaching Global Market

    E-commerce allows the suppliers to reach global market segment. In other words, it allows the suppliers to increase their sales meanwhile decrease the investment costs.

    “Organizations can reach global areas that would have been otherwise difficult.

    “It expands the marketplace from local and regional markets to national and international markets with minimal capital outlay, equipment, space, or staff.”

  3. Monitoring the Consumers’ Buying Habit and Interest

    The suppliers can monitor the consumers’ buying habits and interests so that they can tailors their offer suit to consumers’ needs and keep the ongoing relationship with them.

    “Internet technologies also permit sellers to track the interests and preferences of their customers with the customer’s permission and then use this information to build an ongoing relationship with the customer by customizing products and services to meet the customer’s needs.”

  4. Reduces Costs To Establish Store Front

    The overhead costs to build the physical store front may be prevented to the suppliers who use e-commerce as their business operation.

    “A traditional business may have large overhead costs associated with maintaining a storefront. But a web-based business does not necessarily have that type of overhead, which may mean that continued growth becomes easier.”

  5. Reduce Labor Costs

    The labor costs can be reduced with e-commerce because the sellers can automate their online store fronts.

    “Automated order tracking and billing systems cut additional labor costs, and if the product or service can be downloaded then e-commerce firms have no distribution costs involved.”

  6. Reduce Advertising Costs

    E-commerce can reduce advertising costs because it is easier to update the advertisement using software technology.

    “Print advertising can get expensive as there may be a need to update regularly, which requires new work be planned and generated. It is much quicker and more cost effective to update and maintain e-commerce marketing campaigns, especially as technology continues to improve.” eCommerce Optimization



plz ap copy paste na kijiye ga.. i have just point out the IDEA... so go through the lesson and make it in your own words and add more with ur knowledge too..

and remeber me in ur prayers.


Rj Maryam

Maybe you don't read the question, Question is in strategic management point of view. you all are just telling the benefits of E commerce. Question is what is strategic managment and how you will be apply it in the business of E commerce


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