ANALYSIS OF STRATEGIC ISSUES AT BEWARI.COM: A B2B CASE STUDY IN THE MIDDLE EAST

Journal of the International Academy for Case Studies, 2009 by Rao, Ananth, Awan, Mahmood A

CASE DESCRIPTION

The main subject of this case is B2B e-commerce in the Middle East. Secondary issues examined are: strategic factors facing the company examined in the case study; the B2B business model; privacy and security issues of e-commerce; and new business strategies for B2B.

This case has a difficulty level of four and is best utilized in a senior level Strategic Management / E-Marketing course. Depending upon the depth of analysis, the case can be taught in three to six hours and requires a preparation time of three to six hours.

CASE SYNOPSIS

The introduction of Internet use and the resulting growth in e-commerce has changed the service industry in the 21st century. These factors have led to changes in online transactions and have introduced new, Internet-only services companies, forcing traditional service institutions to quickly develop and implement an e-commerce strategy.

The current case analyzes strategic issues surrounding e-business atBewari, a B2B company established in June 2000 that allows companies in the Arabian Gulf region to buy and sell goods and services online. Bewari is a hypothetical company. At the request of the real company's management, its name is kept confidential since Bewari did not want to disclose its operations to its competitors. This case study is chosen since the Arabian Gulf region is unique in terms of culture, tradition, business practices, human and organizational values compared to those in developed economies. Most of the economies in the region are oil-rich. Business development practices in one economy in a particular sector are rapidly imitated by businesses in the neighboring economies in the region. The economies in the region form a major trade bloc of major importance to neighboring European and Asian economies.

Bewari has chosen to create and maintain the highest standard B2B customer service and trading facilities in the Middle East. The case shows that Bewari:

* is an ideal partner for helping companies reach new markets in real time

* is agile enough to respond to fast changing market opportunities

* provides innovative online B2B services, enabling B2B firms to extend their reach and enhance their competitive standing, and integrates supply chain.

Nevertheless, growing pains have ensued. From its inception, Bewari has given access to the resources and culture thought necessary to allow it to succeed. While Bewari was given the right resources and freedom to succeed, it was asked to do so within an organization incapable of producing the desired product. Bewari faces pressure from its stakeholders to improve performance and maximize synergies from recent alliances. In addition, decisions and options regarding Bewari must be taken into consideration as part of Bewari' s overall strategy.

CASE OBJECTIVES

The purpose of the case is to engage the students to analyze the:

1 . Customer profile of e-commerce customers

2. Strategic factors facing the company

3. B2B business model

4. Privacy issues in e-commerce

5. Security issues in e-commerce

6. New business strategies for B2B

SUGGESTED CLASSROOM APPROACHES TO THE CASE

1. We suggest the placement of this case in the first half of your Strategic Management/Internet Marketing/E-Marketing/International Marketing Strategy course or anywhere you do a segment on the Internet.

* This case makes a nice package to discuss the B2B e-commerce business model.

* We suggest that you have the students review the case

2. This is a very high interest case for the students.

3. If you want a team presentation we suggest the team be limited to three or four students. It worked well as a team presentation.

4. A typical team presentation of their strategic audit using PowerPoint may last about 45 minutes.

5. This case can be developed into an interesting lecture/case discussion package on the Internet.

In addition to the substantive learning objectives discussed above, the case would have students learn to develop formal oral presentations covering the following specific questions:

DISCUSSION QUESTIONS

1. What are the strengths and weaknesses of Bewari?

2. What are the opportunities and threats facing Bewari?

3. What are the strategic factors facing Bewari?

4. How do each of Porter's five forces impact on Bewari?

5. What will be the impact of cannibalizing of Bewari's customers by Bewari's associates and competitors?

6. What are the security and privacy issues in online e-commerce?

7. What are the supply chain management issues involved in B2B e-commerce?

8. How can the following issues facing Bewari's Management be effectively handled:

* Maintain its systems and operations to share info and learning across Bewari's online expertise,

* Convince buyers to change

* Create trust in the minds of buyers and suppliers of B2B

* Facilitate the acceptance of online transactions as legal by the courts

* Increase internet penetration by buyers and suppliers

Further to the above set of questions,

9. Ask your students whether they transact via the Internet: This allows you to discuss with your students the advantages and disadvantages of online e-commerce.