Strategy and the Internet

Does the Internet render established rules about strategy obsolete? To the contrary, itmakes them more vital than ever. Why? The Internet weakens industries’ profitability, as rivals compete on price alone. And it no longer provides proprietary advantages, asvirtually all companies now use the Web. The Internet is no more than a tool—albeit apowerful one—that can support or damage your firm’s strategic positioning. The key tousing it most effectively? Integrate Internet initiatives into your company’s overall strategy and operations so that they 1) complement, rather than cannibalize, your established competitive approaches and 2) create systemic advantages that your competitors can’t copy. Integrating Internet initiatives enhances your company’s ability to develop unique products, proprietary content, distinctive processes, and strong personal service — all the things that create true value, and that have always defined competitive advantage.