World Export Development Forum (WEDF)

 


Regional Executive Forum 2002
 Session 7 - Competitive Advantage and “e” - What are the Implications?

 

The Issue: Advances in information and communications technology have resulted in fundamental changes in how international business can be conducted. The “e” dimension has revolutionized communication and raised the prospect of significantly reduced transaction costs. It facilitates market research, the assessment of market opportunities and the identification of prospective commercial partners. It also provides the developing country entrepreneur a means by which to gain wider international exposure (through, for example, a web site).

 

The “e” dimension also brings new challenges to the enterprise manager and to the national strategy-maker. Buyers now expect more in terms of their suppliers’ “response capacity”. In addition to responding competitively in terms of quality and cost, developing country suppliers must compete on the basis of “time” (reaction time, turnaround time and delivery time).

 

The advent of “e” represents consequently a double-edged sword. One edge enabling the African firm to become more competitive; the other increasing the pressure on the African firm to become more competitive.

 

Export strategy must address both within the context of a comprehensive “e” facilitated trade development strategy.

 

The Proposition: The 2000 Executive Forum on “Export and the Digital Economy” generated the following “best practice” conclusions:

 

1.   To be competitive developing country enterprises must: 

  • improve their internal systems through application of e-business techniques;

  • acquire e-commerce capability; and

  • register with, and have the capability to conduct basis through, specialized e-market places (as this is where the action will be).

2.    To support local exporters, the national trade support network, and more specifically, national trade promotion organizations, must:

  • introduce "e" into the delivery of their services;
  • provide "e" competency training to the enterprise sector through "competency partnerships" with local, private sector ICT firms.

3.   A national e-portal is not the sole answer. Prospective buyers with serious sourcing intentions do not visit such portals. Experience confirms national portals generate very little business. Rather, trade support organizations should focus their efforts on assisting local exporters register with specialized e-market places. 

Focus of the debate: Over the past two years, the e-trade bubble has deflated. Are the above conclusions still relevant? Should “e” continue to be a priority concern of the export strategy-maker, at the national-level and at the enterprise-level? And what now should be considered “best practice” in supporting the export sector become e-competent? 

 

 

>>>  Related material from earlier Executive Forums and publications