Cases on Worldwide E-Commerce: Theory in Action Mahesh Raisinghani University of Dallas, USA Idea Group Information Science Publishing Publishing Hershey • London • Melbourne • Singapore • Beijing Acquisitions Editor: Mehdi Khosrowpour Managing Editor: Jan Travers Development Editor: Michele Rossi Copy Editor: Jane Conley Typesetter: LeAnn Whitcomb Cover Design: Tedi Wingard Printed at: Integrated Book Technology Published in the United States of America by Idea Group Publishing 1331 E. Chocolate Avenue Hershey PA 17033-1117 Tel: 717-533-8845 Fax: 717-533-8661 E-mail: [email protected] Web site: http://www.idea-group.com and in the United Kingdom by Idea Group Publishing 3 Henrietta Street Covent Garden London WC2E 8LU Tel: 44 20 7240 0856 Fax: 44 20 7379 3313 Web site: http://www.eurospan.co.uk Copyright © 2002 by Idea Group Publishing. All rights reserved. No part of this book may be reproduced in any form or by any means, electronic or mechanical, including photocopying, without written permission from the publisher. Library of Congress Cataloging-in-Publication Data Cases on worldwide e-comerce : theory in action / [edited by] Mahesh Raisinghani. p. cm. Includes bibliographical references and index. ISBN 1-930708-27-0 (cloth) 1. Electronic commerce--Case studies. I. Raisinghani, Mahesh S., 1967- HF5548.32 .C366 2001 658.8'4--dc21 2001046332 eISBN 1-59140-013-9 British Cataloguing in Publication Data A Cataloguing in Publication record for this book is available from the British Library. NEW from Idea Group Publishing • Data Mining: A Heuristic Approach Hussein Aly Abbass, Ruhul Amin Sarker and Charles S. Newton/1-930708-25-4 • Managing Information Technology in Small Business: Challenges and Solutions Stephen Burgess/1-930708-35-1 • Managing Web Usage in the Workplace: A Social, Ethical and Legal Perspective Murugan Anandarajan and Claire Simmers/1-930708-18-1 • Challenges of Information Technology Education in the 21st Century Eli Cohen, 1-930708-34-3 • Social Responsibility in the Information Age: Issues and Controversies Gurpreet Dhillon/1-930708-11-4 • Database Integrity: Challenges and Solutions Jorge H. Doorn and Laura Rivero/ 1-930708-38-6 • Managing Virtual Web Organizations in the 21st Century: Issues and Challenges Ulrich Franke/1-930708-24-6 • Managing Business with Electronic Commerce: Issues and Trends Aryya Gangopadhyay/ 1-930708-12-2 • Electronic Government: Design, Applications and Management Åke Grönlund/1-930708-19-X • Knowledge Media in Health Care: Opportunities and Challenges Rolf Grutter/ 1-930708-13-0 • Internet Management Issues: A Global Perspective John D. Haynes/1-930708-21-1 • Enterprise Resource Planning: Global Opportunities and Challenges Liaquat Hossain, Jon David Patrick and MA Rashid/1-930708-36-X • The Design and Management of Effective Distance Learning Programs Richard Discenza, Caroline Howard, and Karen Schenk/1-930708-20-3 • Multirate Systems: Design and Applications Gordana Jovanovic-Dolecek/1-930708-30-0 • Managing IT/Community Partnerships in the 21st Century Jonathan Lazar/1-930708-33-5 • Multimedia Networking: Technology, Management and Applications Syed Mahbubur Rahman/ 1-930708-14-9 • Cases on Worldwide E-Commerce: Theory in Action Mahesh Raisinghani/ 1-930708-27-0 • Designing Instruction for Technology-Enhanced Learning Patricia L. Rogers/ 1-930708-28-9 • Heuristic and Optimization for Knowledge Discovery Ruhul Amin Sarker, Hussein Aly Abbass and Charles Newton/1-930708-26-2 • Distributed Multimedia Databases: Techniques and Applications Timothy K. 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Cases on Worldwide E-Commerce: Theory in Action Table of Contents Preface ............................................................................................................ vi Chapter I GlobeRanger Corporation ............................................................................ 1 Hanns-Christian L. Hanebeck, GlobeRanger Corporation, USA Stanley L. Kroder, John H. Nugent and Mahesh S. Raisinghani, University of Dallas, USA Chapter II Implementation Management of an E-Commerce-Enabled Enterprise Information System: A Case Study at Texas Instruments .................... 32 R. P. Sundarraj and Joseph Sarkis, Clark University, USA Chapter III A Three-Tiered Approach to Global E-Commerce: Experiences of Nu Skin International ...................................................... 48 David Paper, Utah State University, USA Kenneth B. Tingey, Opennet Corporation, USA Chapter IV E-Learning Business Models: Framework and Best Practice Examples ....................................................................................... 70 Sabine Seufert, University of St. Gallen, Switzerland Chapter V Growth and Consolidation in the Spanish-Speaking E-Commerce Market.................................................................................. 95 Roberto Vinaja, University of Texas-Pan American, USA Chapter VI Inca Foods: Reaching New Customers Worldwide .............................113 J. Martín Santana, Jaime Serida and Antonio Díaz, Escuela de Administración de Negocios para Graduados, Perú Chapter VII Reality vs Plan: How Organizational E-Commerce Strategies Evolve ......................................................................................135 David Gordon and James E. Skibo, University of Dallas, USA Chapter VIII Student Advantage Captures the College Market Through an Integration of Their On and Offline Businesses .......................................................151 Margaret T. O’Hara, East Carolina University, USA Hugh J. Watson, University of Georgia, USA Chapter IX Turning E-Commerce Theory into Action in Ireland: Taming the Celtic Tiger ...........................................................................171 Ira Yermish and Dale A. Bondanza, St. Joseph’s University, USA Chapter X ENI Company .............................................................................................186 Ook Lee, Hansung University, Korea Chapter XI SAFECO®: Leveraging the Web in a Knowledge-Based Service Industry .........................................................................................201 Debabroto Chatterjee and Leonard M. Jessup, Washington State University, USA Chapter XII E*Trade Securities, Inc., Pioneer Online Trader, Struggles to Stay on Top ..........................................................................221 Adam T. Elegant and Ramiro Montealegre, University of Colorado-Boulder, USA About the Authors .....................................................................................250 Index .........................................................................................................258 vi Preface Wisdom grows in those who help others achieve greatness. —— Colle Davis Despite the fact that a quarter of the world’s Internet population will reside in the United States by 2005, the U.S. share of the global market is predicted by Jupiter Research to drop from 36 to 25 percent by 2005 (www.jup.com, 2001). By 2003, according to research from IDC, an estimated 67 percent of Internet users will log on outside the United States; and the foreign share of e-commerce will reach 56 percent. Although e-business leaders at most companies recognize the need to develop a global strategy, unfortunately many have not yet put one in place. The focus of this book is to conduct and present research that is useful for both theory and practice. In theory, the Web can reach the world. In practice, U.S. e-commerce sites have largely limited themselves to North America. Although that is about to change as the use of the Internet matures in markets throughout Europe, Asia and Latin America, gaining a global foothold involves more than just translating content. Companies must decide which countries to enter first, how they will update and manage content globally, and what is the appropriate mix of central control and local flexibility. They must also decide whether to build a global Web presence alone or develop tight partnerships with companies based in their targeted foreign markets. The case studies illustrated in this book will provide rich insights into these critical management issues. The global perspective of e-business is highlighted throughout the book because the Internet is a worldwide network of networked computers and any business that moves its operations to the Web becomes an international business. Companies will increasingly need to look toward the global marketplace. Chapter I is a decision-focused case study. GlobeRanger developed from the concept of using wireless technology to locate and track assets over a metropolitan,