Methodology For Web Presence Strategy Formulation: A Case Study

The objective of this research was to identify how a specific methodology of strategy formulation for the Internet addresses the Business Model concept. We see the Business Model concept as a basis for understanding and exploiting the value creation potential generated by the Internet technological platform (ITP). The main possibilities that the ITP offers organizations are related to the reduction of transaction and coordination costs, which facilitates the forming of strategic networks. In order to take advantage of the ITP , one should seek complementarity between the traditional activities of the organization and those based on the new platform, together with an in-depth revision of processes, searching for steps that may be optimized through the ITP. To understand and exploit the value creation potential, it is convenient to adopt the Business Model concept, analyzed from the point of view of each of the organization’s stakeholders. The Business Model as a unit of analysis integrates the different perspectives on value creation that can be found in the theory. The model suggests that the IPT value creation potential depends on four interdependent dimensions: novelty, lock-in, complementarities and efficiency. The case study of the Web Presence Strategy Formulation methodology, by AgenciaClick, an Internet development company in Brazil, describes how this methodology addresses the strategic concepts and analytical methods identified. The business model approach could cover some of the methodology’s gaps.