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STRATEGY AND THE INTERNET

STRATEGY AND THE INTERNET. Group 2 Nisa Nguyen Huy Tran April 8, 2014. Distorted market signals. Sales figures have been unreliable Revenue is an elusive concept – cost is equally fuzzy Stock market’s signals have been more unreliable Unreliability of the financial metrics.

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STRATEGY AND THE INTERNET

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  1. STRATEGY AND THE INTERNET Group 2 Nisa Nguyen Huy Tran April 8, 2014

  2. Distorted market signals • Sales figures have been unreliable • Revenue is an elusive concept – cost is equally fuzzy • Stock market’s signals have been more unreliable • Unreliability of the financial metrics

  3. The internet and industry structure

  4. The future of internet competition • The intensity of competition • The power of customers will tend to rise • A similar shift will affect advertising based strategies

  5. THE INTERNET AND COMPETITIVE ADVANTAGE Under the pressure of average profitability in many industries • individual companies set themselves apart from the pack to be more profitable than average performer • Achieving a sustainable competitive advantage Operating at a lower cost Commanding a premium price

  6. THE INTERNET AND COMPETITIVE ADVANTAGE • Operational Effectiveness Doing the same things competitors do but doing them better • Better technologies • Better trained people • More effective management structure

  7. THE INTERNET AND COMPETITIVE ADVANTAGE • Strategic Positioning Doing things differently from competitors in a way that delivers a unique type of value to customers • Different set of features • Different array of services • Different logistical arrangements

  8. Strategic Positioning “Without a distinctive strategic direction, speed and flexibility lead nowhere.”

  9. The Six Principles of Strategic Positioning

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