The Internet has created new markets, customers, products and ways of doing business. But it also gave the currency some dangerous half-truths. Subramanian Rangan and Ron Adner, professor of management and strategy at INSEAD business school in France, to explain why seven popular strategies is not the path to profitable growth. First-mover advantage, for example, is getting too much credit for the success of e-business. Companies believe that they can fix the client and call the winner-take-all dynamic, but there is no guarantee that these benefits will go to the pioneers. Charm achieve - increasing the number of customer segment - leads many companies ignore the fit, consistency with which their activities are complementary. Another attractive growth strategy is to provide the client with solutions that offer products or services that complement the main proposals of the company. But offering solutions, you can dilute the focus of the company. Orientation to the right part of the Internet is one way to maintain focus. When companies view the Internet as an undifferentiated landscape, they are less able to distinguish between drivers customer value and efficiency - or metrics to measure them. Some companies find the best-in-class partners to use as the secret of profitable growth. But in spite of the Internet makes it easier and cheaper to align the activities of the company's boundaries, it does not do anything to align interests - the requirements for the establishment of joint significance. Another misconception is that e-business will automatically be successful abroad. The last is perhaps the most dangerous misconception is the leaders that technology can replace strategy. Companies that understand their technology better than they understand their customers and competition can not be in any economy, old or new. "Hide
to Subramanian Rangan, Ron Adner Source: MIT Sloan Management Review 12 pages. Publication Date: July 1, 2001. Prod. #: SMR069-PDF-ENG
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