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Chapter 3. Internet Business Strategy > New Competitive Threats

New Competitive Threats

Each of the four Internet business strategies can be used alone or in combination by competitors, and each forms a different kind of threat to a business.

  1. Channel master

    Can competitors create superior channels to your customers? Your customers could be attracted, by better prices, better service, and more convenience, to a competitor who takes a holistic view of the channel.

  2. Customer magnet

    Can competitors attract your customers and sell them your products? You could lose your customer base to someone offering a broader range of services, and be forced to survive as a commodity wholesale supplier to your competitor.

  3. Value chain pirate

    Can competitors hijack your position in the value chain? Your supplier could leapfrog your position in the value chain and sell directly to your customers. Your distributor could obtain parts directly from your suppliers.

  4. Digital distributor

    Can competitors disaggregate your value proposition? If your value proposition is based on an aggregation of goods and services, it is possible for a niche competitor to excel at some part of the overall offering.


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