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Profitable growth in Internet-related business: strategy tales and truths (RV of 2000/88/SM)

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In a rush to seek profitable growth in Internet-related business, newcomers and veterans alike are exhibiting in their actions some serious misconceptions about strategy. Part of the explanation lies in a widespread acceptance of some dangerous half-truths and part lies in an inability to fathom serious tensions that lurk beneath seemingly sensible strategy choices. In this paper, the authors flag seven of the more important tales and tensions and present a fuller picture for each one. Their central message is this: The distance between aiming for and actually achieving profitable growth not only remains, but, in these early days of our so-called "new" economy, it has actually widened. While the powerful technology of the Internet opens the way to new opportunities (new markets, new customers, new products, and new ways of doing business), it carries in its wake the threat that the pursuit of opportunity will be driven by what is now technologically feasible, rather than by what is strategically desirable. Accordingly, managers would do well to scrutinize Internet-related business opportunities more carefully, and consult strategy principles more explicitly. To aid practice, they bring to light strategy principles that clarify the seven misconceptions, present decision frameworks that embody those principles, and conclude by outlining specific safeguards to guide managers' judgement and formulation of Internet-related strategy.

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en

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application/pdf

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http://flora.insead.edu/fichiersti_wp/inseadwp2001/2001-11.pdf

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Copyright INSEAD. All rights reserved