Motives, strategies and experiences of electronic commerce
for small and medium sized traditional businesses

University essay from Luleå/Industriell ekonomi och samhällsvetenskap

Abstract: It was called the “new economy” as well as other strong words, attempting
to describe the changes in the way companies were doing business. It was all
focused around electronic commerce and the general public believe that this
was when electronic commerce started. But it has been around since the
1960’s, and it will continue to thrive although the media has pronounced it
dead and gone.

Previously in the so called “electronic boom” it is the new formed Internet
based companies, and the larger international firms that has gotten all the
attention. Small firms operating in the traditional world selling physical
products, has not been a target of great interest when discussing
electronic commerce. For this thesis they are.

The thesis tries to, with five case studies, give answers to some motives
that small companies have to venture into electronic commerce. Further, to
show what strategies they form for this venture. And as a follow up and
check back, what experiences they have had so far in the electronic world.

Most companies claim that they have thought of electronic commerce and what
this can do for their company. But with the few motives that most companies
have provided, it seems that they are not that well informed and aware of
the full potential of electronic commerce. And thus the strategies that
they have formed may not be the best business decision for the company.

Most companies in the study has passive motives for electronic commerce
such as keeping up with the competition and be ready for the future. And the
need for having an online presence has mostly been recognized from within
the companies. The majority of the companies in the study has taken to the
strategy of information only for their electronic commerce venture, and
feel that their business is not suited for making transactions through
electronic means, but rather in the traditional manner.

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