Value-Creation Strategies for E-Commerce Businesses

Abstract

Startups dream of becoming unicorns, but only a few make it to the top in the e-commerce space. Where should they look for value creation? This study develops a value creation matrix of e-commerce startups based on the Teece model and Value configurations and validates the same on 96 Indian e-commerce startups. E-commerce startups can locate themselves on this matrix and take appropriate steps to create value. The article validates the prescriptions of the Teece model and Value configuration as applied by Afuah and Tucci (2003) in the e-commerce context. The matrix developed in this study will be a helpful aid for the practitioners. Firms could use it to analyze their current offerings and build a suitable investor pitch. Investors can use the matrix to analyze a firm’s strategies and positioning in the e-commerce space.