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Strategy and Internet

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Strategy and Internet
Strategy and the Internet by Michael E. Porter

Reprint r0103d

March 2001

HBR Case Study
Mommy-Track Backlash

r0103a

Alden M. Hayashi

First Person
The Job No CEO Should Delegate

r0103b

Larry Bossidy

HBR at Large
The Nut Island Effect:
When Good Teams Go Wrong

r0103c

Paul F Levy
.

Strategy and the Internet

r0103d

Michael E. Porter

Building the Emotional Intelligence of Groups

r0103e

Vanessa Urch Druskat and Steven B. Wolff

Not All M&As Are Alike – and That Matters

r0103f

Joseph L. Bower

Introducing T-Shaped Managers:
Knowledge Management’s Next Generation

r0103g

Morten T. Hansen and Bolko von Oetinger

HBR Interview
Tom Siebel of Siebel Systems:
High Tech the Old-Fashioned Way

r0103h

Bronwyn Fryer

Best Practice
Unleash Innovation in Foreign Subsidiaries

r0103j

Julian Birkinshaw and Neil Hood

Tool Kit
Making the Most of On-Line Recruiting

r0103k

Peter Cappelli

Books in Review
Playing Around with Brainstorming
Michael Schrage

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62

Copyright © 2001 by Harvard Business School Publishing Corporation. All rights reserved.

Many have argued that the Internet renders strategy obsolete.
In reality, the opposite is true. Because the Internet tends to weaken industry profitability without providing proprietary operational advantages, it is more important than ever for companies to distinguish themselves through strategy. The winners will be those that view the Internet as a complement to, not a cannibal of, traditional ways of competing.

Strategy and the

Internet

ILLUSTRATION BY MICHAEL GIBBS

by Michael E. Porter

march 2001

T

he Internet is an extremely important new technology, and it is no surprise that it has received so much attention from entrepreneurs, executives, investors, and business observers.
Caught up in the general fervor, many have assumed that the Internet changes everything, rendering all the old
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