Preview

Strategy and Internet

Powerful Essays
Open Document
Open Document
13171 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Strategy and Internet
Strategy and the Internet by Michael E. Porter

Reprint r0103d

March 2001

HBR Case Study
Mommy-Track Backlash

r0103a

Alden M. Hayashi

First Person
The Job No CEO Should Delegate

r0103b

Larry Bossidy

HBR at Large
The Nut Island Effect:
When Good Teams Go Wrong

r0103c

Paul F Levy
.

Strategy and the Internet

r0103d

Michael E. Porter

Building the Emotional Intelligence of Groups

r0103e

Vanessa Urch Druskat and Steven B. Wolff

Not All M&As Are Alike – and That Matters

r0103f

Joseph L. Bower

Introducing T-Shaped Managers:
Knowledge Management’s Next Generation

r0103g

Morten T. Hansen and Bolko von Oetinger

HBR Interview
Tom Siebel of Siebel Systems:
High Tech the Old-Fashioned Way

r0103h

Bronwyn Fryer

Best Practice
Unleash Innovation in Foreign Subsidiaries

r0103j

Julian Birkinshaw and Neil Hood

Tool Kit
Making the Most of On-Line Recruiting

r0103k

Peter Cappelli

Books in Review
Playing Around with Brainstorming
Michael Schrage

r0103l

62

Copyright © 2001 by Harvard Business School Publishing Corporation. All rights reserved.

Many have argued that the Internet renders strategy obsolete.
In reality, the opposite is true. Because the Internet tends to weaken industry profitability without providing proprietary operational advantages, it is more important than ever for companies to distinguish themselves through strategy. The winners will be those that view the Internet as a complement to, not a cannibal of, traditional ways of competing.

Strategy and the

Internet

ILLUSTRATION BY MICHAEL GIBBS

by Michael E. Porter

march 2001

T

he Internet is an extremely important new technology, and it is no surprise that it has received so much attention from entrepreneurs, executives, investors, and business observers.
Caught up in the general fervor, many have assumed that the Internet changes everything, rendering all the old

You May Also Find These Documents Helpful

  • Good Essays

    Exerting personal anecdotes on the way the internet has changed him; Carr begins his book in a subtle manner. He begins describing one of his first dilemma’s, “I had become trapped, not unhappily, in the “upgrade cycle” I retired the aging Plus in 1994, replacing it with…what seemed at the time a miraculously fast 33-megahertz processor.” A very compelling feeling to undergo, the “upgrade cycle” tempts customers to buy that next hot item on the list, always seeming to procure the most sophisticated technology. He goes on to promote more feelings, “The more I used it, the more it altered the way I worked”, to introduce one of the ways Carr has been transformed. (13) This early statement draws readers to begin questioning whether their actions have changed in response to the internet. The connection that occurs here is one that starts shifting the reader to a negative or pessimistic view on the internet. Carr then states, “I missed my old brain” which connotes there is something wrong with his ‘new brain’ and allows the readers to once again reflect. (16) Not only do these anecdotes serve the purpose of building a personal relationship, they make the readers susceptible to believing Carr’s statements because he is ‘just like you’.…

    • 1291 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    Fundamentals of Strategy

    • 4323 Words
    • 18 Pages

    In the beginning, state that all sections are in reference to Corporations Act 2001 unless stated otherwise.…

    • 4323 Words
    • 18 Pages
    Powerful Essays
  • Good Essays

    Strategy

    • 1219 Words
    • 5 Pages

    1. Explain how organizations in the not-for-profit sector differ from organizations in the public sector or for-profit business sector. Provide an example of an entity in each sector.…

    • 1219 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Huge is a global full-service digital agency that provides digital strategy and implementation for some of the largest companies and brands in the world. It has been founded with a strong focus on user experience (UX) and in 2009, it was recognized as the fastest growing digital agency in the US in terms of client base and revenue. In order to choose the best growth option for Huge that will enable it to reach revenue levels in the hundreds of millions without compromising its reputation for excellence, first the attractiveness of the digital marketing industry will be assessed using Porter’s five-forces model. Today, the digital marketing industry has developed into a complex constellation of design, strategy, and technological consultancies. As per Porter’s five-forces model: • Bargaining power of suppliers is very low because there are no real suppliers in the industry. Huge may decide to partner with a traditional marketing agency or a traditional business firm depending on the situation but so many players are available that bargaining power is very low. • Bargaining power of customers is very high due to the high number of players in the industry, plus the fact that the customer itself poses a threat of integrating the industry backward. • Threat of new entrants is high because barriers to entry in the digital space are considered low. In addition, constantly evolving technologies makes the industry more attractive to qualified new entrants that can easily grab shares in the market. • Threat of substitutes is very high due to the constantly evolving technologies and new available products. Several specialties are available such as creative design, user experience design and digital Customer Relations…

    • 680 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    It Strategy

    • 2195 Words
    • 9 Pages

    This course uses the IVK Case Series to examine important issues in IT management through the eyes of Jim Barton, a talented business (i.e., non-technical) manager who is thrust into the Chief Information Officer (CIO) role at a troubled financial services firm. The course follows Barton through challenges, mistakes, travails, and triumphs. We take this journey with him, commenting on and debating his choices and decisions. During his first year as CIO, Barton confronts issues related to skill and talent management; IT costs, budgets, value, and chargeback systems; priority setting and financial justification of IT investments; project management; runaway projects and underperforming vendors; security risks and crises; Web 2.0 policies; communications with other senior executives; vendor management; infrastructure standardization; support for innovation; and risk management. As Barton encounters these issues, we address them too, through associated readings. As we examine and critique both research and conventional management wisdom on these topics, we’ll derive a framework for managing IT as a business leader.…

    • 2195 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    Strategy

    • 2211 Words
    • 9 Pages

    This document reflects on a group work in respect of the current and estimated future strategy of Edinburgh Zoo. The group looked at the organisation using the contextual framework of an animal-related day-out fun-opportunity for families and tourists in Scotland, in particular for the inhabitants of Glasgow and Edinburgh. Due to collaboration limitations whilst group work, this author can only refer to group member within this account. Firstly, Edinburgh Zoo as an organisation will be briefly introduced. Secondly, the “SWOT analysis” and “Porter´s five forces” will be explained and applied in order to diagnose the situation and potential strategic options for Edinburgh Zoo. Thirdly, a strategy proposal for Edinburgh Zoo will be developed, followed by a critical discussion on the advantages and limitations of the two tools.…

    • 2211 Words
    • 9 Pages
    Good Essays
  • Powerful Essays

    Michael Eugene Porter is a Professor at The Institute for Strategy and Competitiveness, based at the Harvard Business School. He is generally recognized as the father of the modern strategy field. One of his great writing is “What is strategy?” published in 1996.…

    • 1757 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    Ten Ways the Internet Has Changed the World It is hard to believe how young the Internet still is. It has only been around for merely twenty-five to thirty years and started out as an insignificant tool in its infancy. Few people had access to the Internet, yet it now plays such an...…

    • 926 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    Prior to 1995, AOL was so successful in the commercial online industry relative to its competitors CompuServe and Prodigy primarily because of its pricing rate structure which was the easiest for customers to understand and plan for ahead of time. CompuServe and Prodigy offered the same pricing as AOL for its standard service, but, charged additional fees for premium services and downloading which made it more difficult for customers to anticipate their monthly spending.…

    • 1299 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    Economics of Strategy

    • 2316 Words
    • 10 Pages

    This chapter is the first of two chapters on strategy. It concentrates on the basic ways firms can create and capture value. Chapter 9 uses game theory to study strategic interactions among a small number of identifiable rival firms. Chapter 8 presents a framework for discussing how firms create value. It also discusses the conditions under which a firm can capture value (either by having market power or, in certain cases, having superior factors of production). The economics of diversification are examined, and a framework for strategy formulation is presented. A mini-case (Wal-Mart.com) highlights some of the issues in the chapter and the answers for the associated discussion questions are included below. Most managerial economics books focus on a very limited set of decisions (for example, pricing, input selection and output), taking the market product, and its characteristics, as given; they also assume that a firm produces only one product. This chapter uses basic economic principles to analyze a broader set of corporate policies.…

    • 2316 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    Create an environmental scan for the company indicating the most significant environmental threats and discuss how the company should respond to each threat to ensure that the impact to the business is minimal.…

    • 1253 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    strategy

    • 3208 Words
    • 15 Pages

    Regional Express Pty Ltd (REX) is an Australia based independent regional airline. REX is an excellent example as it is the Australia’s largest regional airline outside the Qantas group of companies and operates routes in New South Wales, South Australia, Victoria, North Queensland and Tasmania. This study aims to examine REX current sustainable core competencies and its key strategic initiatives based on the SWOT and stakeholder analysis. Then, key stakeholder implications of REX’s strategies will be reviewed and a Corporate Balanced Scorecard that aligns with the business level strategy will be prepared.…

    • 3208 Words
    • 15 Pages
    Powerful Essays
  • Good Essays

    Google Strategy

    • 738 Words
    • 3 Pages

    Google’s search expertise began back in 1969 when two graduate students from Stanford University collaborated to invent a new search engine. Larry Page and Sergey Brin named their new search engine BackRub because its purpose was designed to determine the amount of back links leading to the websites. David Filo, a prior user of BackRub convinced Page and Brin to leave Stanford in 1998 and focus on making their search engine the best internet company of all time. BackRub was then renamed Google which was inspired from the number 1 followed by 100 zeros. In 1998 a Stanford professor arranged a meeting for Brin and Page to meet with an investor, who was the founder of Sun Microsystems. The investor was impressed with Brin and Page’s Google search capabilities and although the investor was pressed for time, he left them with a check for $100, 000. After setting up a corporation name for Google Inc. and a corporate bank account, the pair went on to raise 1 million dollars by the end of September 1998. Google Inc., progressed at a rapid pace and by the year 2004, the company’s growth consisted of wireless search technology, 10 language search capabilities, Google toolbar, Google News, Google Product Search, Google Scholar, and Google Local. Google’s expansion continued over the years from 2005 through 2010 (Gamble, Peteraf, Strickland III, & Thompson, 2012).…

    • 738 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Strategy and the Internet

    • 785 Words
    • 4 Pages

    Companies must distinguish themselves through the strategy to survive, especially those involved in e-commerce. Many will argue that the internet technology has rendered strategy obsolete, but Porter argues that it is just the approach that has changed. He says "the time has come to step back and take a clearer view of the internet," he calls that marketers return to the basics of business. Porter claims that the internet has not brought any thing new; it just changes the approach that must be taken to remain competitive.…

    • 785 Words
    • 4 Pages
    Good Essays
  • Good Essays

    strategy

    • 841 Words
    • 4 Pages

    With an inverse demand of , marginal revenue is given by (same intercept, twice as steeply sloped  recall this comes from the demand being linear and TR = P*Q =and .…

    • 841 Words
    • 4 Pages
    Good Essays