E-Commerce and Globalization Over the Essay

Excerpt from Essay :

E-commerce in the case of McDonald's could facilitate the company's cost leadership through the elimination of intermediaries. Further, it can be noted that McDonald's could enhance its competitive advantage through e-commerce by becoming the first retailer in its industry to introduce new innovations in relation to e-commerce. This would allow the organization to gain a distinctive early competitive advantage. Companies that have successfully attained an early competitive advantage through this approach include eBay.com.

Function of E-Commerce: An Emphasis on McDonald's

When it comes to McDonald's, the function of e-commerce can be looked at from two perspectives, that is, business to business perspective and business to consumer perspective. In regard to the business to business perspective, e-commerce enhances and facilitates the exchange and transfer of documentation i.e. invoices and LPOs between McDonald's and its partners in the supply chain or elsewhere. Here, the buying function is fully automated.

When it comes to the business to consumer perspective, McDonald's has been able to exploit new possibilities in regard to techniques of merchandising and e-marketing. This has in turn gone a long way to further widen the market base of the organization in terms of retaining new customers and prospecting for new ones through the innovative use of the e-commerce platform to promote products.

Conclusion

In conclusion, it can be noted that based on its relevance in the increasingly competitive marketplace, e-commerce is poised to continue experiencing exponential growth and innovation going forward. Hence for companies like McDonald's to retain their competitiveness in a dynamic market, they will be required to align their operations and business strategies with emerging e-commerce trends.

References

Enos, L. (2000, March 13th). McDonald's takes a Small Bite of E-Commerce. Retrieved 18th June, 2011, from http://www.ecommercetimes.com/story/2720.html?wlc=1308548841

Macaluso, N. (2001, May 29th). McDonald's To Expand E-Payment System. Retrieved 18th June, 2011, from http://www.ecommercetimes.com/story/10062.html

Sources Used in Document:

References

Enos, L. (2000, March 13th). McDonald's takes a Small Bite of E-Commerce. Retrieved 18th June, 2011, from http://www.ecommercetimes.com/story/2720.html?wlc=1308548841

Macaluso, N. (2001, May 29th). McDonald's To Expand E-Payment System. Retrieved 18th June, 2011, from http://www.ecommercetimes.com/story/10062.html

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