Question

How can I appy Eisenhardt and Sull ‘simple rule’ strategy to an ebusiness with an example?

Answer 1

Application of Eisenhardt and Sull ‘simple rule’ strategy to an ebusiness.

The simple rules heuristics approach has been introduced by Eisenhardt and co-authors Sull, 2001. In today's continuous and unpredictable changing technology and business changes its necessary to be quick responsive to the market, here simple rules strategy helps us to handle it in more dynamic ways, here we need to understand strategic decision making process to avail heterogeneous and fast-moving opportunities.

simple rules usually learned through experience and it helps the business evolve through market feedback by exploiting opportunities. it advises to undertake 2 activities simultaneously that is sustain a competitive and exploiting new opportunities.

Inorder to apply simple rules strategy to an ebusiness we need to follow 6 rules of  heuristics as follows,

1. Selection - here we need to make a list of opportunities available and among that we should select that which we want to pursue for our ebusiness. We need to be focused on creation of customers value in case of e-commerce.
2. Procedural - formulation and execution of activities, for all alternative opportunities.
3. Priority - among the alternatives selected we need to priorities them based on predicted successive rate.
4. Temporal - Fix an time frame with in which we need to undertake all activities to exploit opportunities.
5. Exit - decide when to pull out of actions.
6. Synergy - create synergy between opportunities and available resources.

We do have three approachesto create strategies top-down, bottom-up and inside-out. So in case of e-commerce business we should go for inside -out as it's an explorative approach emphasising on innovation and creativity, process usually starts from selection of opportunities and then follows creative process. In order to apply simple rules initially it's necessary to formulate a website with aggregate content inorder to attract the customers and inorder to bring traffic to site you can go for affiliation and conduct survey through affiliation to know your customers in better way,as they will be having direct contact with network users. Simple rule says we need to choose fleeting opportunities to succeed.