Company Life Cycles In Electronic Retailing

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Global technological advancements have led to the emergence of new products, markets, and trade insights. E-retailing companies emerged out of these developments and formed a large industry. In this rapidly developing industry with a consistently increasing organizational population, e-retailing companies extend their company life cycles through strategic targets and practices. These companies determine their strategic targets based on certain stages, i.e., start-up entry, plateauing growth or consolidation, maturation by fast growth, implementing change, or choosing growth and decline. With these strategies, e-retailing companies can timely react to the changing environment, prevent performance degradation, and increase survival chances. This study investigates the effects of information systems in e-retailing on company life cycles. Accordingly, the secondary internal data of IdeaSoft company from 2007 to 2018 were used. The findings demonstrated that although the studied active companies have high-level information systems, they fail to adequately utilize these information systems. Furthermore, the study shares stages and strategies for the e-retailing life cycle of the studied active and passive companies.