Read Case study 5.2: Setting the Internet revenue contribution at Sandvik Steel
Carmen Coronado

devry university – online sbe430
September 23, 2012

As described in the article Sandvik use internet to keep connect with customers and suppliers and bring considerable cost savings. It regarded the relationship with the customer as the most important structure of its e-business strategy. It moved from serving the company to benefiting customers by IT. It saw the soft things such as attitudes, insights and getting people to understand and accept the company’s products and thoughts as its major challenges. Its e-business activities are mainly directed enhancing links with customers. The company’s approach was to work with the traditional sales channels. Sandvik Steel applies the value of web fully and extranet to strengthen and expand relationships with customers. It enhances its online service to customer to offer new products, materials and advice on production improvement. Sandvik Steel also expanded the customer proportion of using extranet by adjusting the structure. The Sandvik group intends to get through deeply into the minds and ambitions of its customers by putting the internet at the heart of its business.
First, according to the different levels and the stages of development of e-business in different countries, the different proportion can ensure a smooth progress of e-business. It is also benefit to avoid channel conflict and effective to save any cost. Second, most businesses goes through distributors and it’s conducted by EDI, which is the pre-internet means of e-commerce. Finally, the products purchasing of different proportion of customers in different areas are different. Sandvik Steel’s approach was to work with the traditional sales channels.

Reference
E-Business and E-Commerce Management: Strategy, Implementation and Practice, 4th Edition. Pearson Learning Solutions p. 292.