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.
This is another group presentation we did on Corporate IT Strategy class. The presentation will walk you through a paper called The Strategic Potential of The Internet, Strategy and the Internet by Michael E. Porter published by Harvard Business Review or the HBR. Since all HBR paper is a looooong one, you might find this helpful.
Still though, read the whole paper to get in touch with the very inspirational minds of Mr. Porter. You can find the paper here:
This paper talked how people especially business so eager to jump into the intenet and made a big deal out of it. Not to mention to be the first mover myth. Remember the big dot com falls? But by doing so they had forgotten their strategy and just hoping everything will be settled after they used the internet.
Instead of doing so, Mr. Porter suggest that we use the internet as a complement and that the internet hype (and so called the new economy) is making its way to the end. And that every thing with an “e” must be merged into the business strategy. Eventually the “e” factor will become business as usual. It is not that we shouldn’t be using it. We ought to, but in the right way.
You can put it this way. Imagine internet as phones, televisions, and radio in their first days, but much moooore cooler 😛 I never thought it that way until my lecturer gave the analogy.
I have read it and find it difficult to understand because it doesn’t tell us the structure of the paper. So, this might help you.
Structure of the paper:
- Distorted Market Signals
- A Return to Fundamentals
- The Internet and Industry Structure
- The Myth of The First Mover
- The Future of Internet Competition
- The Internet and Competitive Advantage
The Six Principles of Strategic Positioning
- Operational Effectiveness
- Strategic Positioning
- The Absence of Strategy
- The Internet as Complement
Words for The Unwise: The Internet’s Destructive Lexicon
The Internet and The Value Chain
Strategic Imperatives for Dot-coms and Established Companies
- The End of The New Economy