Strategic use of the internet and e-business: the 'Celta' case at GM Brazil

Abstract

The internet provides a global network infrastructure that is shifting business models, strategies and processes. Many authors reflect on the importance of incorporating e-business into the firm's global strategy. This paper deals with these issues in discussing the introduction of e-business activities by General Motors (GM) Brazil, specifically in connection with the launch of the Celta, an entry-level car designed to be sold on the internet. A historical examination of e-business strategy shows that many organisations have formulated excellent conceptual strategies for e-business but failed to deliver sound execution. A key to successful internet strategies is the leadership shown by senior management. Technological demands may also conflict with the successful implementation of e-business initiatives, requiring greater interaction between the CEO and the CIO. The importance of integration between employees on the business side and in Information Technology (IT) is highlighted in the context of GM Brazil's strategic objective of growing the market for lower-price cars.