8/19/2019 Speaker Notes for strategy and internet by M porter

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1.  Basically in this paper Michael porter tells that that Internet is a new technology and

it provides better opportunities for companies to institute distinctive strategic positioning than

earlier generations of IT. The key question is how to deploy Internet technology.

2. There have been two contradicting views…what porter has argues that winners will be

3. easoning which porter uses …cost advantage

!. "perational effectiveness… real time information has brought improvements in value chain

throughout the company…sustaining that advantage is also crucial….

#. $orter also e%plains that whenever a new technology is introduced the market signals are very

unreliable due to reasons like..subsidi&ing…

'. There had been certain myths about first movers on internet…one of them was that the first movers

will have the advantage of establishing strong brands…however porter says that it is hard to create strong

brands with lack of physical presence…second myth was that more you partner the more industry

economics will improve…only strategic partnering is beneficial as it reduces indivisuality of bsiness.

(. according to porter the lack of strategy while deploying internet will not help business..for e%ample wat

dot coms are doing…. )hasing revenues not profits … they have been trying to chase customers

aimlessly through discounting and advertisement etc. …following indirect revenue generation strategy

such as advertisements and click through fees. ..going for partnerships and outsourcing rather than

building assets

1*. to sum it up strategies which will link internet to traditional competitive advantages will win…

+emand will inc due to online services howver physical presence will still be valued

,upply will also inc..

+ot coms should pursue distinctive strategies like differention and market segmentation rather than

emulating each opther 

11. critically analy&ing the paper many points are relevant though there has been many controversies

regarding views that….porter is bound by his views of industry structure and value chains to analyse

industry..the e%amples also used in the paper are of traditional business like -almart and he missed out a

new dimension to business like facebook etc..