Everybody that studies Commerce or Business knows who is Michael Porter and uses the 5 forces model among other tools and theories along their degree. In general, students and the world believe that he is the father of the new competition model and company strategy.
However, can a Guru like Porter be wrong in some aspects? Can he be criticized with fundaments? Lets have a look at his statements about the Internet and its impact to businesses and strategies.
Our Guru points out that the Net is not a break from the past, it is just complementary to companies’ core strategies. Therefore, he understands that the winning companies will be those that focus on their robust advantages based on traditional strength. He says that the starting point of strategy is vertical integration.
This argument has been deeply discussed by Don Tapscott. He argues that the Interned is totally new since it is ubiquitous and it is able to provide more information to customers and deliver more real value. Moreover, he says that Porter constructs its theories taking for granted that resources are only generated internally while the Net is a key resource that does not belong to them. In short, he believes that the Internet is a business model innovation.
Who is right and who is wrong? It is obvious that it is difficult for Porter to fit the revolution of Internet into his traditional theories famous around the world. He needs to back them up until the end. On the other hand, Tapscott is convinced of the new economic paradigm based on the Net. We have to opposite points of views and one single reality. From my modest point of view, I consider that companies need to concentrate in their core strengths at the same time that they include the Net in their strategy. I am sure that the traditional advantages and the Interned can generate relevant synergies and lead the world to a new economy based on the knowledge of the past and the inputs of the future.
http://www.strategy-business.com/article/19911?gko=e37c4e
06/02/2012
Aurora Simon Zorrilla