3 Size does seem to matter While first mover advantages have not been as great

3 size does seem to matter while first mover

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3. Size does seem to matter. While first-mover advantages have not been as great as originally thought, achieving a critical mass for create dominant market position such as eBay has, does still produce a competitive advantage. 4. Disintermediation has not occurred to the extent projected. There is evidence that the Dell Computer business model is still the exception rather than the rule. 5. Place does still matter, but there is evidence that the Internet does make geographic distance less relevant, especially for certain industries. In addition, because websites are available 24 hours a day, time becomes less important. 6. Increased customization is definitely possible. Cost effective one-to-one marketing is still an unfulfilled dream in most cases, but the creation of customer value through increased customization is real. In addition, it is clear that the Internet is serving to reduce customer search costs. 7. The potential for economies and synergies to be realized through the network effect is real although it is difficult to assess the true impact at this time. 8. There is no consistent evidence or consensus regarding the impact of the Internet on strategy or viable business models. To date the effective use of the Internet has been primarily to supplement the existing value chain rather than to transform or replace it.
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  • Spring '13
  • Dr.Tech
  • Management, Dot-com bubble

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