The paper “ Strategy and the Internet by Porter” is an exciting variant of the article on management. Porter's article explains the role the internet plays in raising a firm’ s competitive advantage and ensuring growth and organizational sustainability. The internet and technology is a good tool for firms to achieve competitive advantage though it has its own drawbacks that can harm a business. Out of the surprise, some companies have made wrong decisions that have destroyed the companies’ reputation and have caused harm to the companies’ competitive advantage. Some companies have used internet technology to make more profit compromising the quality in order to win the competition in the market (Guo 2011, p183).
Porter (2001) advises firms that the time has come for them to consider the internet as a vital tool for doing modern business in the right way and remain competitive in the market without causing harm to the firm’ s reputation. This paper will look at what roles the internet plays and the arguments that porter raises in his findings. According to Porter (2001, p. 63), the time has come for businesses to consider the internet as a tool that can be used wisely or unwisely as a strategy to create a competitive advantage.
This can be achieved by addressing important issues, who gain the economic benefits of the internet, whether the benefits go to the customer or the business. Secondly, it is important to know what impacts the internet has on the industry structure, whether it expands it or shrinks it, and lastly, businesses need to know the impact that the intern has on the strategy, whether it erodes or boosts the chances of the business gain competitive advantage. Porter’ s views on the role of the internet can be supported by the utility theory which explains what factors influences customer’ s decisions.
This theory was to the effect that decisions by the consumer are based on what the outcome of such a decision is going to be. In this regard, consumers should be seen as acting rationally. Consumers are therefore able to determine with near certainty what the outcome of their decision is going to be.
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