E‐business strategy development: an FMCG sector case study

Abstract

PurposeThis paper sets out to discuss the development of an e‐business strategy by a UK soft drinks company. It is based within the Fast Moving Consumer Goods (FMCG) sector (also known as Consumer Packaged Goods), which is characterised by powerful retailers, tier‐1 suppliers of industrial end‐products and ingredient/raw material producers further upstream. The paper aims to examine the tensions created at tier‐1 level relating to the adoption of e‐business solutions for B2B activities.Design/methodology/approachThe paper draws on the literature to describe the technological options for achieving e‐commerce, focusing particularly on Electronic Data Interchange (EDI) and internet‐mediated e‐commerce. It then explores the current uptake of e‐commerce, and the drivers and barriers that relate to its adoption. The theoretical issues identified are explored empirically using data gathered from a case study of Princes Soft Drinks. A detailed survey of organisations within its supply base was conducted in order to inform the development of its future e‐business strategy.FindingsThe results of the survey indicate a lack of enthusiasm among Princes' supply chain members for the adoption of e‐commerce generally and for internet‐mediated e‐commerce solutions in particular.Research limitations/implicationsThe empirical survey is limited to the UK soft drinks sector and allows for the development of descriptive findings. These findings, discussed within the theoretical context of the paper, have potentially wider implications for the FMCG sector as a whole.Practical implicationsThe work has significant implications for the development of Princes' e‐business strategy, and – by extrapolation – for other companies operating in similar commercial environments.Originality/valueThe paper reports original empirical research in the commercially important FMCG sector. Its value stems in part from the examination of the supply chain tensions created at tier‐1– between powerful e‐committed retailers and e‐reluctant industrial suppliers.