Unit 29:e-Commerce Strategy

Unit 29:e-Commerce Strategy

Unit code:T/601/1994

QCF Level 5:BTEC Higher National

Credit value:15


To enable learners to understand how businesses and organisations develop e-Commerce strategies to remain competitive in the global market.

Unit abstract

This unit starts by considering customers’ expectations of e-Commerce, because these will dictate implementation priorities.

When planning an e-Commerce strategy, it is necessary to assess the current status of the business information and logistics systems because these will provide the foundation for e-Commerce. Preparations will also be necessary to meet the standards of support that e-customers expect. Marketing, promotion and supply chain management must all be considered, alongside the website, when developing an implementation strategy.

In managing an e-Commerce strategy, considerations include protecting the intellectual property of the business and maintaining the integrity of its website. This will require considerations of risk and the implementation of appropriate security precautions.

Finally in this unit learners will critically evaluate current developments in e-Commerce.

Learning outcomes

On successful completion of this unit a learner will:

1    Understand the impact of e-Commerce on business

2    Be able to plan an e-Commerce strategy

3    Be able to manage an e-Commerce strategy.

Unit content

1     Understand the impact of e-Commerce on business

Customer expectations: raised expectations for a quick and efficient service eg timely responses to customer communications, quick delivery of the product or service, accurate information

Common applications: types eg payment systems, online shopping, shopping cart software, newsgroups, email

2     Be able to plan an e-Commerce strategy

Strategy: general eg marketing, supply chain, electronic payment

Internet strategy: hosting eg internal, sub-contracted; designing the website; maintaining 24/7 access

Marketing strategy: methods eg targeting market segments and interest groups, developing electronic ‘web-communities’, promotion strategies to target specific market segments, search engine optimisation, e-marketing software

Supply chain strategy: methods eg satisfying customer demand, responsive supply chain, managed in house or sub-contracted, developing ‘partnership’ relationships with suppliers

Electronic payment: methods eg online transaction processing, Commercial Off the Shelf Software (COTS), security; other payment systems eg PayPal, WorldPay

3     Be able to manage an e-Commerce strategy

Intellectual property: ownership eg domain name, company name, trade marks

Assessment of security risks: risks eg risk of linking business systems to the Internet

Security measures: propose security measures to minimise risks eg firewalls and use of intranets or extranets

Current developments: areas eg marketing, supply chain management, electronic payment

Learning outcomes and assessment criteria

Learning outcomes

On successful completion of this unit a learner will:

Assessment criteria for pass

The learner can:


Understand the impact of e-Commerce on business

1.1 critically discuss the expectations of internet customers

1.2 critically assess the potential impact of common applications on an e-Commerce business


Be able to plan an e-Commerce strategy

2.1 plan an e-Commerce implementation strategy for an e-Commerce business


Be able to manage an e-Commerce strategy

3.1 critically assess the risks of linking business systems to the internet

3.2 explain the importance of protecting the intellectual property of an organisation

3.3 critically discuss security measures to protect an e-Commerce solution.

3.4 critically evaluate current e-Commerce developments and assess their incorporation into an e-Commerce strategy.


Links to National Occupational Standards, other BTEC units, other BTEC qualifications and other relevant units and qualifications

The learning outcomes associated with this unit are closely linked with:

Level 3

Level 4

Level 5

Unit 3: Information Systems

Unit 1: Business Skills for e-Commerce

Unit 30: Information Systems in Organisations

Unit 8: e-Commerce

Unit 16: e-Commerce Technologies

Unit 33: Exploring Business Activity

Unit 34: Business Resources

This unit has links to the Level 4 and Level 5 National Occupational Standards for IT and Telecoms Professionals, particularly the areas of competence of:

•     Systems Analysis •   Systems Design
•     Systems Development

•     Change and Release Management •    Supplier Management.



Chaffey, D E-Business and E-Commerce Management (Prentice Hall, 2006) ISBN 9780273707523

Cumming, T Little e, Big Commerce (Virgin Publishing, 2010) ISBN 9780753522899

Lauden, K C, Traver, C G E-Commerce: Business, Technology, Society (Addison Wesley, 2002) ISBN: 032112202X

Schneider, G P Electronic Commerce (Course Technology, 2006) ISBN 9781418837037

Turban, E et al Electronic Commerce (Pearson Education, 2009) ISBN: 9780137034659





Employer engagement and vocational contexts

To further enrich the content of this unit and to provide more of a vocational context it would be beneficial to bring in guest speakers from a range of organisations. Speakers can discuss their
e-Commerce system(s) in terms of the infrastructure, technologies and security aspects.