Essays on Strategic Management - Porters Ideas on Strategy and the Internet Article

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The paper “ Strategic Management - Porter’ s Ideas on   Strategy and the Internet” is an inspiring variant of the article on management. Michael E. Porter is known as an author and a management consultant, besides being a professor at Harvard Business School's Institute for Strategy and Competitiveness. Porter is a leading authority on the economic and competitive development of regions, states, and nations. In this journal paper, Strategy and the Internet, published in Harvard Business Review in 2001, Porter touches the very important topic of whether or not the Internet has rendered strategy obsolete.

Contrary to what many would say, he believes just on the opposite. Porter argues that industry profitability is weakened by the Internet and while doing so it does not provide any advantage to the industry that could be termed as proprietary. Porter argues for companies to sustain it is important for them to stay a cut above the rest through their strategy, and not rest solely on the bandwagon of the Internet to sell products. The strategy enables industries to stick to the time-tested traditional ways of competing, and undermining the same and passing the whole onus to sell to the Internet will only be colossal.

An important point that he raises is that the Internet should be considered as merely a medium to sell and not taken as a substitute for strategy. It is a complementing tool for traditional ways of competing. Porter, apparently wants to stress the importance of strategic management theory (Andrews, 1999; Collis, 1995; Mintzberg and Lampel, 1999). Porter's worry on how the Internet has manipulated the importance of strategy is explicit from his observation that even the best pioneers of Internet business, which include established companies and dot-coms, have since the proliferation of the Internet into businesses indulged in such Internet-marketing pursuits that have, in reality, violated the revered precept of good strategy (Rumely, 2011). Internet, according to Porter, has a sort of sidelined strategy and given companies indiscriminate powers to sell their products whichever unethical way they want.

There is a mad rush to chase customers no more through strategy but through indirect revenues such as click-through fees and advertising.

References

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Sekulić, V. (2002). The Importance of Corporate Strategic Process in Managing Efficiency of Enterprise, The Scientific Journal "Facta Universitatis", Series "Economics and Organization", Vol 1, No 10, pp. 67-74.

Pwc.com.au. (nd). The new digital tipping point Using digital to drive future retail banking profitability. Available: http://www.pwc.com.au/industry/banking-capital-markets/assets/Digital-Tipping-Point-Jun12.pdf. Last accessed April 20, 2014.

Rumely, R. P. (2011). Good Strategy Bad Strategy. Available: http://goodbadstrategy.com/wp-content/downloads/GoodStrategyBadStrategy_Preview.pdf. Last accessed April 20, 2014.

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