1st Edition

Digital Business Strategy Content, Context and Cases

By Anders Pehrsson Copyright 2024
    168 Pages 14 B/W Illustrations
    by Routledge

    Digital Business Strategy responds to the need for clarification of the increasing, but fragmented, knowledge of digital business strategy. It systematically presents topical knowledge by reviewing previous research and developing frameworks for the content of digital business strategy and its relationships with relevant factors. In addition, the book analyses issues encountered by individual companies when implementing digital business strategies.

    The volume identifies key categories of digital business strategy, in particular, strategy scope and direction, competitive advantage, and resource and capability reliance. It then explores relationships with antecedents such as digital experience, relationships with obstacles and enablers of strategy implementation, and relationships with operational and financial outcomes. The author demonstrates that strategy content and relationships differ among manufacturing companies, retailers, digital content providers, and digital platforms and also presents ways to cope with issues of implementation.

    In summary, the book provides readers who wish to know more about the growing field of digital business strategy with up-to-date and systematic knowledge. It will be of great value to students at an advanced level, researchers, and reflective practitioners in the fields of technology management and strategic management in particular.

    List of Figures

    List of Tables


    1 Content of This Volume

    Why This Volume?

    Specification of Digital Business Strategy

    Previous Knowledge of Digital Business Strategy

    Core Messages and Contributions

    Message 1: Key Categories of Content of Digital Business Strategy

    Message 2: Company Context Matters to Digital Business Strategy

    Message 3: Company Cases Display Generic and Contextual Issues


    PART I Content and Context of Digital Business Strategy


    2 The General Model for Digital Business Strategy

    The Systematic Review of Studies on Digital Business Strategy

    Conceptual Framework for the Review

    Applied Methods

    The Resulting General Model for Digital Business Strategy

    Content of Digital Business Strategy

    Strategy Scope or Direction

    Competitive Advantage

    Embedded Resources or Capabilities

    Key Relationships

    Antecedents of Digital Business Strategy

    Implementation of Digital Business strategy

    The Outcome of Digital Business Strategy


    3 The Company Context and Digital Business Strategy

    Chapter Abstract

    The Meta-Analysis Reveals That Context Makes a Difference

    Digital Business Strategies of Companies Not Specializing in Digitalization

    Dominant Antecedents of Digital Business Strategy

    Knowledge of Digital Transformation

    Knowledge of Functional Digitalization

    Competitive Dynamics

    Digital Knowledge and Embedded Resources and Capabilities

    Italian Manufacturing Companies and Other Companies

    A South American Pensions and Savings Company

    Competitive Dynamics and Embedded Resources and Capabilities

    American Manufacturing Companies

    A Singaporean Bank

    Digital Business Strategies of Companies Specializing in Digitalization

    The Outcome of Implementation of Competitive Advantage

    Operational Outcome of the Implementation

    Financial Outcome of the Implementation

    Competitive Advantage and Operational Outcome

    Low-Cost Digital Movie Production and Market Entry

    Re-design of Mobile Apps and Customers’ Product Adoption

    Trust Affects Customers' Adoption of Digital Innovations

    A South Korean Digital Platform Builds Customer Relationships

    Competitive Advantage and Financial Outcome

    Analysis of Big Data and Effects on Revenues for Digital Music

    Unlicensed Usage of Digital Content and Revenue Loss


    PART II Company Cases on Generic Issues


    4 Scope of Services and Customers of Digital Start-Ups

    Specification of Scope of Digital Start-Ups

    Relatedness and Synergy Between Service Units

    A Narrow and a Broad Customer Scope

    Case: Scope of a New Mobile Payment Platform

    Characteristics and Challenges of Mobile Payment Platforms

    Ways to Expand the Customer Base

    Competition Among Mobile Payment Platforms

    Questions to Discuss


    5 Developing a Digital Competitive Advantage

    Chapter Abstract

    The Model for a Competitive International Strategy

    The Scope of a Competitive International Strategy

    Strategy Directions and Competitive Advantages

    Focused and Global Standardization

    Focused and Global Responsiveness

    The Omnichannel Concept

    Case: H&M Seeks a Digital Competitive Advantage in Retailing

    The Traditional Business Strategy Relying on a Scale Advantage

    The Adjusted Business Strategy Relying on Customer Experiences

    Questions to Discuss


    6 Acquisition of Dynamic Innovation Capabilities

    What Makes Dynamic Capabilities Effective?

    Application of the Dynamic Capability View

    Market Knowledge Received From the Core Business

    Market Knowledge Acquired Locally

    The Dynamic Capabilities of Innovativeness and Responsiveness

    Experience and Integration of Acquired Capabilities

    The Importance of Experience to Acquisitions

    Experience and the Initial Acquisition in a Host Country

    Experience and Post-Initial Acquisitions in the Host Country

    Integration of Acquired Capabilities

    Case: Ericsson Acquires Dynamic Innovation Capabilities

    Phase 1 (19982006): Integrating Fixed and Mobile Networks with the Internet

    Phase 2 (20072016): Expanding the Scope of Digital Business

    Phase 3 (20172021): Focusing the Digital Business Strategy

    Questions to Discuss


    PART III Company Cases on Contextually Based Issues


    7 Digital Business Strategy Issues of Manufacturing Companies

    The Internet of Things, Big Data, and Digital Business Strategy

    Case: the Digital Business Strategy of Volvo Cars

    Competitive Dynamics and Customer Preferences

    Digitalization of Volvo’s Manufacturing and Supply Chains

    Digital Resources and Capabilities in Volvo’s Offering

    Questions to Discuss


    8 Business Strategy Issues of Digital Platforms

    Profiles of Digital Platforms

    Competitive Advantages of Digital Platforms

    The Ecosystem of Google’s Android Automotive OS

    Case: Digital Booking in the Hotel Market

    Marketing Innovativeness of Booking.com

    Coopetition Among Digital Platforms and Hotels

    Questions to Discuss

    Case: Open Audio Platforms for Music and Blogs

    Profiles of Open Audio Platforms

    Questions to Discuss


    PART IV Practical Strategy Development and Further Research


    9 How to Develop a Digital Business Strategy

    Steps When Developing a Digital Business Strategy

    Diagnosing Strategy Antecedents

    Specifying the Content of the Strategy

    What Strategy Scope, Direction, and Competitive Advantage?

    What Embedded Resources and Capabilities?

    Implementing the Strategy

    Evaluating the Outcome of the Strategy Implementation


    10 Suggestions for Further Research



    Anders Pehrsson is a Professor of Business Administration at the School of Business and Economics, Linnaeus University, Sweden. He received his PhD in industrial marketing from Linköping University in 1986. Dr. Pehrsson has written several books on company strategies. Routledge has previously published International Strategies in Telecommunications (1996), Strategy in Emerging Markets (2001), and Competitive International Strategy (2021). His articles have been published in journals such as Global Strategy Journal, International Marketing Review, Journal of Business Research, and Strategic Management Journal.