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Infrastructures that Influence Strategy in an E-Commerce Company

Discuss the strategy involved in running an e-commerce company and the four infrastructures that influence that strategy. Explain why an e-commerce manager must give careful consideration to those infrastructures. What other challenges might an e-commerce manager face?

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This is a really interesting question. In order to engage a more interesting conversation, I am assuming here that the word "infrastructure" refers to strategic, rather than software and hardware. With that being said, I mean I am assuming that all the physical connections are solid, all routers are functional, all software applications are sound etc.

The strategy that it the most important to e-commerce is to create a network effort. A network effect is created when the incremental benefits gained by existing member from newly joining members is exponential to the number of new joining members. To put it in a down-to-earth term, the entire benefits for everyone using the e-commerce is greater when there are more people join the network. In order to achieve this goal, there are four strategic infrastructures that company will want to use.

(1) Create Lock-In: This means to make your site "sticky" so people will come back from time to time, rather than go to other ...

Solution Summary

This solution of 647 words lists the four main infrastructure required in running an e-commerce company and justifies the selection. It also details the considerations required in the infrastructure and challenges an e-commerce manager can experience.