E-commerce in the case of McDonald's could facilitate the company's cost leadership through the elimination of intermediaries. Further, it can be noted that McDonald's could enhance its competitive advantage through e-commerce by becoming the first retailer in its industry to introduce new innovations in relation to e-commerce. This would allow the organization to gain a distinctive early competitive advantage. Companies that have successfully attained an early competitive advantage through this approach include eBay.com.
Function of E-Commerce: An Emphasis on McDonald's
When it comes to McDonald's, the function of e-commerce can be looked at from two perspectives, that is, business to business perspective and business to consumer perspective. In regard to the business to business perspective, e-commerce enhances and facilitates the exchange and transfer of documentation i.e. invoices and LPOs between McDonald's and its partners in the supply chain or elsewhere. Here, the buying function is fully automated.
When it comes to the business to consumer perspective, McDonald's...
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