Generic Strategies for Business-to-Consumer E-Commerce

Business-to-consumer e-commerce transactions continue to increase rapidly while many sites are shutting down. This situation prompts both researchers and managers to wonder what e-commerce strategies retailers are applying to compete successfully. The current study used an email and Web-based survey of 458 retailers from two major portals to identify the benefits of their e-commerce sites. A cluster analysis identified three types of e-commerce retailer strategies: Cost Leadership, Differentiation, and Differentiation with Integration. Further analysis showed that Cost Leadership retailers outperformed Differentiation retailers in both ecommerce and overall firm performance. Differentiation retailers outperformed Differentiation with Integration retailers. Researchers can use the strategies identified here as variables in their future work. Managers might reconsider their own strategies in light of these findings.