Strategic Use of the Internet and Organizational Structure for E-Business: "Celta" Case at GM Brazil

Abstract

The Internet provides a global network infrastructure that is shifting business models, strategies, and processes. Many authors reflect on the importance of incorporating e-business into the firm’s global strategy. This chapter deals with these issues in discussing the introduction of e-business activities by General Motors Brazil, specifically in connection with the launch of the Celta car, an entry-level car designed to be sold on the Internet. A historical examination of e-business strategy shows that many organizations have formulated excellent conceptual strategies for e-business but failed to deliver sound execution. A key to successful Internet strategies is the leadership shown by senior management. Technological demands may also conflict with the successful implementation of e-business initiatives, requiring greater interaction between the CEO and CIO. The organizational structure implemented for the launching and sales of Celta car warranted the integration between employees on the business side and in IT in the context of GM Brazil’s strategic objective of growing the market share for lower-priced cars.