Many of the pioneers of Internet business, both dot-coms and established companies, have competed in ways that violate nearly every precept of good strategy. Rather than focus on profits, they have chased customers indiscriminately through discounting, channel incentives, and advertising. Rather than concentrate on delivering value that earns an attractive price from customers, they have pursued indirect revenues such as advertising and click-through fees. Rather than make trade-offs, they have rushed to offer every conceivable product or service. It did not have to be this way--and it does not have to be in the future. When it comes to reinforcing a distinctive strategy, Michael Porter argues, the Internet provides a better technological platform than previous generations of IT. Gaining competitive advantage does not require a radically new approach to business; it requires building on the proven principles of effective strategy. Porter argues that, contrary to recent thought, the Internet is not disruptive to most existing industries and established companies. It rarely nullifies important sources of competitive advantage in an industry; it often makes them even more valuable. And as all companies embrace Internet technology, the Internet itself will be neutralized as a source of advantage. Robust competitive advantages will arise instead from traditional strengths such as unique products, proprietary content, and distinctive physical activities. Internet technology may be able to fortify those advantages, but it is unlikely to supplant them.

Customer Rating:
Summary: As relevant as ever
Comment: This pdf helped me tremendously in determining just how we incorporate the Internet into our strategy and company. To this day, I still refer back to this timeless masterpiece for guidance, advice and motivation on what the Internet ought to do for our company and how we need to embrace it. I highly recommend this pdf.

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Customer Rating:
Summary: Excellent for IT development
Comment: A lot of IT developpers forget what is the main essence of a WEB site. This short paper describes how to be efficient and successful according to Porter's theory of competitive strategy.

BUT... you might have some difficulty to apply it if you haven't read the theory (competitive strategy & competitive advantage). There are a lot of examples so it's quite easy to understand, even for a beginner.

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Customer Rating:
Summary: The impact of the Internet on strategy
Comment: Michael E. Porter is a Professor of Business Administration at Harvard Business School. He is a leading authority in the field of competition and strategic management. This article was published in the March 2001 issue of the Harvard Business Review.

"The key question is not whether to deploy Internet technology but how to deploy it." According to Porter companies should build on the proven principles of effective strategy since the Internet per se will rarely be a competitive advantage. "Many of the companies that succeed will be ones that use the Internet as a complement to traditional ways of competing." In order to prove his point Porter discusses a long list of subjects, such as distorted market signals ("New technologies trigger rampant experimentation ... as a result, market behavior is distorted and must be interpreted with caution."), the impact of the Internet on the five competitive forces and industry structure ("Its greatest impact has been to enable reconfiguration of exisiting industries."), and the myth of the first mover. He then switches over to the future of Internet competition ("The next stage of the Internet's revolution will involve a shift in thinking from e-business to business, from e-strategy to strategy."), discussing the impact of the Internet on competitive advantage. Porter also discusses the Internet as a complement to traditional business. He uses sidebar and figures to translate the impact of the Internet into his famous models and frameworks (five forces, strategic positioning, and value chain). "Only by integrating the Internet into overall strategy will this powerful new technology become an equally powerful force for competitive advantage."

Although this article has come too late for many Internet companies, it is essential reading for managers of organizations that are considering or need to improve their online strategy. It provides great insights into how the Internet links into traditional business and strategies. For readers unfamiliar with Porter's previous work I recommend his 1996-article 'What is Strategy?', or his book 'On Competition' which is great value-for-money. The author uses simple US-English.

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Customer Rating:
Summary: The impact of the Internet on strategy
Comment: Michael E. Porter is a Professor of Business Administration at Harvard Business School. He is a leading authority in the field of competition and strategic management. This article was published in the March 2001 issue of the Harvard Business Review.

"The key question is not whether to deploy Internet technology but how to deploy it." According to Porter companies should build on the proven principles of effective strategy since the Internet per se will rarely be a competitive advantage. "Many of the companies that succeed will be ones that use the Internet as a complement to traditional ways of competing." In order to prove his point Porter discusses a long list of subjects, such as distorted market signals ("New technologies trigger rampant experimentation ... as a result, market behavior is distorted and must be interpreted with caution."), the impact of the Internet on the five competitive forces and industry structure ("Its greatest impact has been to enable reconfiguration of exisiting industries."), and the myth of the first mover. He then switches over to the future of Internet competition ("The next stage of the Internet's revolution will involve a shift in thinking from e-business to business, from e-strategy to strategy."), discussing the impact of the Internet on competitive advantage. Porter also discusses the Internet as a complement to traditional business. He uses sidebar and figures to translate the impact of the Internet into his famous models and frameworks (five forces, strategic positioning, and value chain). "Only by integrating the Internet into overall strategy will this powerful new technology become an equally powerful force for competitive advantage."

Although this article has come too late for many Internet companies, it is essential reading for managers of organizations that are considering or need to improve their online strategy. It provides great insights into how the Internet links into traditional business and strategies. For readers unfamiliar with Porter's previous work I recommend his 1996-article 'What is Strategy?', or his book 'On Competition' which is great value-for-money. The author uses simple US-English.

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Customer Rating:
Summary: The impact of the Internet on competition and strategy
Comment: Michael E. Porter is Harvard Business School professor and a leading authority on competition. He has written several important novels and articles in the field of competition and strategic management.

In this Harvard Business Review article, Michael Porter describes the impact of the Internet on competition and strategy, through discussing distorted market signals, the impact on industry structure (Porter's five forces), the myth of the first mover, the impact on competitive advantage, and the Internet as a complement. The author concludes that the Internet does not render strategy obsolete, but makes it even more important than ever for companies to distinguish themselves through strategy. "... the fundamentals of competition remain unchanged. The next stage of the Internet's evolution will involve a shift in thinking from e-business to business, from e-strategy to strategy."

For various Internet-companies this article has come too late (March 2001), but it is extremely attractive and useful for all people looking to extend their traditional businesses into cyberspace (Internet, World Wide Web, and e-commerce). Michael E. Porter makes extensive use of his previous research into competition and strategy, and combines these with Internet examples and cases. The author uses simple US-English.

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