Strategy and Internet
Strategy And Internet
Michael E. Porter: Strategy and Internet
After being developed in 1996, Internet continuously transforms world’s social interaction and activity. Nowadays, the importance of Internet in society is high that it is necessary for countries to have Internet access in order to be able to develop. One of the reasons is that Internet has a big impact in business industry since it’s discovery, for instance, in 2008, a study has shown that 77% of the US fastest growing companies use social media (Kirkpatrick, M. 2008).
In its relation to business industry, Internet has not always given good impacts. After reaching its peak in 1997, in early 2000 technology stocks lost about 60% of their value. This event is known as the Dot Com Boom and Bust. Studying this occurrence, some factors were found on why did the Internet ‘failed’. Michael E. Porter (2001) stated that;
“Many of the company that succeed will be ones that use Internet as a complement to traditional ways of competing, not those that set their Internet initiatives apart from the established operation.”
According to the above statement, Internet cannot be implemented separately from the main strategy, but to be used as an enhancing tool.
Strategic marketing is a process of analysing and predicting the external and internal factors of a business and putting it into an action plan and implementing it in order to reach their goal. It is arguable that the use of Internet generates more opportunity for a business to develop in many factors, such as cost management and target market extension. In Sydney, many small cafes such as Devon Café, Three Williams, and Bread and Circus use Internet as their advertising and marketing tool with the social media trend that is booming resulting in a good number of customers in short period of time since they open (Personal Communication, 2014). In its implementation, to strategically positioned the use of Internet is as important as determining
Michael E. Porter: Strategy and Internet
After being developed in 1996, Internet continuously transforms world’s social interaction and activity. Nowadays, the importance of Internet in society is high that it is necessary for countries to have Internet access in order to be able to develop. One of the reasons is that Internet has a big impact in business industry since it’s discovery, for instance, in 2008, a study has shown that 77% of the US fastest growing companies use social media (Kirkpatrick, M. 2008).
In its relation to business industry, Internet has not always given good impacts. After reaching its peak in 1997, in early 2000 technology stocks lost about 60% of their value. This event is known as the Dot Com Boom and Bust. Studying this occurrence, some factors were found on why did the Internet ‘failed’. Michael E. Porter (2001) stated that;
“Many of the company that succeed will be ones that use Internet as a complement to traditional ways of competing, not those that set their Internet initiatives apart from the established operation.”
According to the above statement, Internet cannot be implemented separately from the main strategy, but to be used as an enhancing tool.
Strategic marketing is a process of analysing and predicting the external and internal factors of a business and putting it into an action plan and implementing it in order to reach their goal. It is arguable that the use of Internet generates more opportunity for a business to develop in many factors, such as cost management and target market extension. In Sydney, many small cafes such as Devon Café, Three Williams, and Bread and Circus use Internet as their advertising and marketing tool with the social media trend that is booming resulting in a good number of customers in short period of time since they open (Personal Communication, 2014). In its implementation, to strategically positioned the use of Internet is as important as determining