Lone River Winery Company: A Case of Virtual Organization and Electronic Business Strategies in Small and Medium-Sized Firms

Abstract

This chapter discusses a case example of Internet infrastructure and e-business strategy management in small and medium-sized firms (SMFs). The case focuses on the key features of electronic business strategy using a virtual organizing framework. Based in the Swan Valley region of Perth, W. Australia, Lone River Winery Co. Ltd., has over the past five years employed the Internet to extend its business scope beyond the Australian wine market. The company produces and markets some of the choicest brands of Australian wines in the UK and Japan using an integrated online ordering and inventory control system. This has saved the company a lot of money and generated sales increases without having to invest in more staff and warehousing facilities. For Lone River Winery (LRW) Co. success on the Net has depended on some critical factors such as in-house technical expertise, continuous search for tools and techniques for managing the firm’s core operations, and the continuous reorientation of the online business model in response to changes in the local and international markets.