Identification of Financial Strategy in E-commerce
Identification of Financial Strategy in E-commerce

Author(s): Veronika Svatošová, Sylva Chalupová, Petra Dvorakova
Subject(s): Business Economy / Management, ICT Information and Communications Technologies
Published by: Masarykova univerzita nakladatelství
Keywords: e-commerce; financial strategy; situational and financial analysis; Vensim program; financial strategy model;
Summary/Abstract: The researches and practice declare the strategic key factor of long-term business success is considered to be strategic approach to financial management along with proposing and implementing financial strategy. However, this area explored is often among businesses deeply underestimated. The current researches focus on the modern aspects of e-commerce, nevertheless, no impact is given to financial strategy in e-commerce. Therefore, this paper deals with determining the financial strategy in e-commerce. The main objective of paper is to identify the financial strategy of selected enterprises primarily focused on e-commerce. The research sample of enterprises involved to the survey is selected based on the following restrictive criteria: headquarter of enterprise in the Czech Republic, legal form of business joint stock company, existence of enterprise in e-commerce minimum 5 years, main business area B2C market, enterprises trading mostly electronically selling goods. The main research methods are following: analysis of financial statements of selected enterprises, selected methods of situational analysis and financial analysis and selected methods of descriptive statistics and financial strategy model simulating in Vensim program. Input data is used for the year 2016 compared to the year 2011, i.e. observing the development in 5 years. Findings identified the selected enterprises apply in most cases a conservative financial strategy (i.e. strategy of maximum liquidity). The conclusion of paper is based also on proposing the series of recommendations for effective creating and implementing financial strategy in e-commerce with a help of dynamic financial strategy model that could support the long-term competitive development of business in e-commerce. This model simulates changes of conservative financial strategy into aggressive financial strategy focusing on maximizing profitability during next 5 years, especially during the period of rapid economic growth and massive e-commerce development.

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