Internal Strategy

The explosive growth of Internet initiative has resulted in a variety of Web strategies which may impact the business and marketing strategies of existing firms, and lead to the formation of new business designs.

Major Force for Change

The Internet era provides a new way of developing relationships between and user customers, value-chain members, and alliance partners.

Strategy and the Internet

While some authorities argue that the Internet will make conventional strategies obsolete, a more compelling logic is that the Internet is a powerful complement to traditional business and marketing strategies.

While there are various strategy initiatives regarding the Internet, they correspond to one of the following:

· Formation of a separate business model as an independent venture or an initiative by an existing company.

· Amazon.com Inc. is an example of the former whereas Sabre’s Travelocity. Com venture was initiated by an existing company.

· Creation of a separate value-chain channel direct from the producer to the end user. Dell Inc. uses this Internet strategy.

· Using the Internet as an information resource.

This initiative is used by various organizations such as Business Week.

· Using the Web for advertising and sales promotion activities.

· These activities may be provided for one or more sponsors by a Web-based enterprise that offers users information at no charge. Ad revenues support the enterprise.