Mixed predictions that the Internet will "disintermediate" trade, which makes the "average person" companies, but outdated, Marshall Industries, a leading distributor of electronics, use the Internet and digital technology to reinvent itself. Marshall went on to sell electronic components, but the company refused to traditional sales strategy focusing on a customer-focused, service-oriented strategy. In the center of the transformation was complete restructuring of the compensation and incentive system, and heavy investment in information technology. A few years into his first foray into the digital realm, Marshall faced growing pressure: reduction of the field, more demanding customers, restrictive practices of suppliers and competitors quickly introduced me too the Internet and virtual services. Marshall continues to look for ways to use their innovative spirit and digital expertise to differentiate themselves and to create and implement a variety of new services to the virtual supply chain. "Hide
by Jeffrey F. Rayport, Cathy Olofson Source: Harvard Business School 26 pages. Publication Date: May 12, 1999. Prod. #: 899239-PDF-ENG
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