| 2.3.1 Internet Value Chain Model
Cronin (1995) developed value chains that followed Porter’s value chain thinking and was based on virtual principles. The internet value chain is divided into three separate components; “inputs from suppliers”, “internal operations” and “customer relations”.
2.3.1.1 Inputs from suppliers
Figure 2.1 illustrates the impact of the internet on inputs from suppliers and vendor. According to Vanharanta and Breite (2003) “the internet has reduced the meaning of time and location”. This is to say, the internet provides organisations with the opportunity to add value in its acquisitions activities; the internet provides fast, reliable connections among businesses. Hence, organisations irrespective of their location can reliably and quickly communicate with different suppliers and vendors for different reasons without incurring additional cost as compared to other means of communications (Cronin, 1995)
Pricing Delivery/order Product
and tracking Support
Ordering Online inventory
Figure 2.1 Internet Value Chain: Input from suppliers
internet
capability
Easy efficient access
Information constantly updated
Not looked into proprietary system
Direct access to expertise
Interactive
Faster problem resolution
Faster turnaround
Improves planning
Fewer inventories
Benefit to company
Lower cost Faster more improved
of obtaining flexible reliability and
materials delivery performance
opportunity for
advantage
Source: Internet Value Chain: Inputs from Suppliers (Cronin 1995, p. 58)
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