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The cases in this section offer
material for serious discussion and analysis related
to the relevance, utility, strengths, and weaknesses
of some of the conceptual arguments highlighted in
the articles. The MP3 case can be described as “pure
Internet play,” since there is no history of
operating in the physical world, and the company was
created specifically to explore business
opportunities resulting from the Internet.
The
story of epost is an excellent example of Internet
business strategy based on a network of
organizations and people. The case identifies some
of the issues, challenges, and strategic choices
made by the company’s senior management in order
to create a viable business. This case also serves
as a backdrop for discussing issues raised in the
readings with respect to value chain analysis, value
in a networked economy, strategic alliances in
online environments, the complementary nature of
Internet business and traditional business, and the
concept of what constitutes the firm in the digital
and networked economy.
The
stories unfolding in each case provide an
interesting context for discussing how larger
companies have adapted to the Internet, as well as
the challenges faced by small “pure plays.”
The
readings in this section probe the nature of the
Internet and its strategic implications for
businesses. The readings and the cases address
issues such as how the Internet as an enabling
technology can be used wisely or unwisely, in almost
any industry and as part of any strategy. Other
issues considered are how the Internet has affected
the structure of industries and competition, the
notion of first-mover advantage, profitability, and
the future of competition. The readings debunk some
of the myths about the Internet and profitability,
and outline several key principles of strategic
positioning.
Various
online business strategies are presented, along with
the preconditions for their effectiveness. The
importance of clear vision, commitment, and
allocation of appropriate resources and authority
for the success of online businesses is emphasized.
Reading 1: Porter
(2001) - Reprinted
by permission of Harvard Business Review from
"Strategy and the Internet" by M. Porter,
Harvard Business Review, March 2001. Copyright ©
2001 by the Harvard Business School Publishing
Company, all rights reserved.
Reading 2: Sawhney
& Kaplan (1999) |