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The Impact of E-Commerce Strategies on Firm Value: Lessons from and its Early Competitors


  • Darren Filson

    (Claremont Graduate University)


Which strategies generate value in e-commerce environments? In a step towards answering this question, this paper estimates the impacts of several competitive strategies on the values of the well-known Internet retailer and three of its early competitors,, CDNOW, and N2K, from their IPO dates until exit or the end of 2001. The strategies analyzed include alliance formation, offline expansion, pricing, product line expansion, and service improvement. The results provide insight into the usefulness of various ways of competing online and could be applied in other settings where firms enter new environments about which they have little information.

Suggested Citation

  • Darren Filson, 2002. "The Impact of E-Commerce Strategies on Firm Value: Lessons from and its Early Competitors," Claremont Colleges Working Papers 2003-06, Claremont Colleges.
  • Handle: RePEc:clm:clmeco:2003-06

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    References listed on IDEAS

    1. Sundaram, Anant K. & John, Teresa A. & John, Kose, 1996. "An empirical analysis of strategic competition and firm values The case of R&D competition," Journal of Financial Economics, Elsevier, vol. 40(3), pages 459-486, March.
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    More about this item


    competitive advantage; competitive strategy; event studies; internet; valuation;

    JEL classification:

    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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