The Impact of E-Business on the Competitive Landscape - Case of Automotive Industry in Asia

Abstract

This chapter focuses on the power and challenges of e-business in enhancing the competitive advantage in developing countries’ industries and reports of some survey results in the Asian auto-industry. The study confirms that as many web-based businesses are learning that the real value of e-business comes not in the form of sales, but in removing inefficiencies in traditional business models. The study shows that currently, most auto manufacturers in Asia use e-business only for internal administration; despite all the talk of e-business, the development in Asia is slow. The current infrastructure in the industry is largely internally focused, incongruent with the customer-orientation of e-business. Furthermore, the author concluded that due to the uncertain nature of e-business, few companies understand how to integrate e-business into their corporate strategy in Asian developing countries. Companies need a clearly planned vision, starting with basic solutions. From there, the strategy will evolve to solutions in wider marketplaces.