Mehta Appliances Ltd., a Bengaluru-based home electronics company, plans to expand operations through an e-commerce platform. As a strategy consultant, explain the three broad questions the company should address under t

Answer 2(b) According to the e-commerce strategy framework, Mehta Appliances Ltd. must address three interlinked questions to design an effective digital strategy: i. Where do we (as a company) want to compete? The company must analyze the macro-environment (political, economic, social, technological trends), industry structure using Porter's Five Forces, and market segmentation to decide which online markets or customer segments to target. Analyzing the macro-environment helps us to gain an understanding of trends within the political, economic, social or technological spheres. ii. What type of value do we (as a company) want to create? The company should address two relevant topics to respond to this query. These are value creation in e-business and strategy options for value creation. The first topic will examine the economic value that a corporation generates in order to determine its potential to gain a competitive edge. The second one aims to choose the appropriate strategy which will create value for customers either through cost leadership (competitive pricing, efficiency) or differentiation (unique features, superior service). This involves understanding what drives customer benefits and costs. iii. How should we (as a company) set up and organize to deliver the desired value? The company must decide on its horizontal boundaries (scale and growth scope), vertical boundaries (which activities to outsource or keep in-house), and internal organization (structure, distribution, and digital interaction with customers and partners). An integrated approach to these three questions ensures that e-commerce strategy aligns with both market opportunities and internal capabilities.