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Strategy and the net income
by Michael E. Porter

include with this full-text Harvard Business Review article: 1 Article epitome The Idea in Brief-the core idea The Idea in Practice-putting the idea to work
2 Strategy and the Internet 20 merely Reading

A list of related materials, with annotations to guide further exploration of the articles ideas and applications

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Strategy and the Internet

Does the Internet rejoin established rules about schema obsolete? To the contrary, it makes them more merry than ever. Why? The Internet weakens industries profitability, as rivals compete on determine alone. And it no longer provides proprietary advantages, as virtu ally all companies now use the

THE INTERNETS INFLUENCE

The Internet powerfully infiuences industry
structure and sustainable competitive advan-

them. For example, the Walgreens drugstore chain provides on-line prescription or-

dering. Because 90% of customers who
order over the Web prefer to pick up their

tage.



Industry structure derives from the basic forces of competition: competitor competitor;
entry barriers for new competitors; the threat

prescriptions at a store, Walgreens brickand-mortar business benefits.

Web. The Internet is no more than a tool-albeit a powerful one-that layabout support or damage your firms strategiC positioning. The key to victimization it most effectively? Integrate Internet initiatives into your companys overall strategy and operations so thatthey 1) complement, rather than cannibalize, your established competitive approaches and 2) create
systemic advantages that your competitors

By integrating virtual and physical activities
to compensate for the Internets perfor-

of diversify offerings; and the bargaining power of suppliers, channels, and buyers.
How does the Internet affect these forces? Its an...If you want to ca-ca a full essay, order it on our website: Orderessay



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