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    The document discusses how the internet is impacting industry competition and strategy. It notes that customer loyalty is declining as switching costs decrease online. While some technologies like online advertising and streaming videos have increased profits, the internet overall has increased customer power and put pressure on industry profitability. In the long run, the internet facilitates direct links between buyers and suppliers, benefits both parties, and allows fragmented industries to prosper through online marketplaces that can supersede traditional models. The internet also influences competitive advantage by enabling operational effectiveness through real-time information and value chain enhancements, though improved operations alone do not guarantee long-term advantage.

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    The document discusses how the internet is impacting industry competition and strategy. It notes that customer loyalty is declining as switching costs decrease online. While some technologies like online advertising and streaming videos have increased profits, the internet overall has increased customer power and put pressure on industry profitability. In the long run, the internet facilitates direct links between buyers and suppliers, benefits both parties, and allows fragmented industries to prosper through online marketplaces that can supersede traditional models. The internet also influences competitive advantage by enabling operational effectiveness through real-time information and value chain enhancements, though improved operations alone do not guarantee long-term advantage.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    29 views7 pages

    Strategy and The Internet

    Uploaded by

    pakhral
    The document discusses how the internet is impacting industry competition and strategy. It notes that customer loyalty is declining as switching costs decrease online. While some technologies like online advertising and streaming videos have increased profits, the internet overall has increased customer power and put pressure on industry profitability. In the long run, the internet facilitates direct links between buyers and suppliers, benefits both parties, and allows fragmented industries to prosper through online marketplaces that can supersede traditional models. The internet also influences competitive advantage by enabling operational effectiveness through real-time information and value chain enhancements, though improved operations alone do not guarantee long-term advantage.

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    Download as PPTX, PDF, TXT or read online from Scribd
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    of 7

    STRATEGY AND THE INTERNET

    RAJA UMAR
    FUTURE OF INTERNET COMPETETION
    • Industries growing in unique ways.
    • Deployment of internet technology put
    pressures on the profitability of many
    industries.
    • Power of customers increased.
    • As customers are becoming more familiar with
    the internet their loyalty with the initial supplier
    is declining as of low or minimal switching cost.
    • Shifts in Web-based Advertisings
    Some technological advancements enhanced
    profitability‘.
    Low cost bandwidth
    streaming videos
    Automatic billing by banks
    Longer term consequences

    • Linking buyer and supplier


    • Buyer’s benefit
    • Supplier’s benefit
    • Prospering Fragmented Industries
    • Market Place Superceded
    THE INTERNET AND COMPETETIVE
    ADVANTAGE
    • Operational Effectiveness
    • Strategic Planning

    • Operational Effectiveness
    • Superior Inputs,Better trained people,better
    technologies,effective management structure.
    • Enhanced by real time information.
    • Enhancing value chain
    BUT
    • Improved operational effectiveness is not
    necessary to give competetive advantage.

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