Asia pacific journal of information systems

The Korea Society of Management Information Systems (한국경영정보학회)
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An examination of Porter`s competitive strategy on the virtual market: comparison between on-line and on-offline firms

가상시장에서 Porter의 경쟁우위전략: 온라인 기업과 온-오프라인기업간 비교를 중심으로

  • Published : 2002.12.31
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Abstract

Internet-based on-line firms have focused on the development of new business models with an assumption that this new model would create their competitiveness. At the same time, off-line firms have opened new marketing channels on the internet in order to defend their position against on-line firms. Based on Porter's well-known generic strategy, this study compares between on-line firms and on-offline firms i) whether these two types of firms take different strategies among cost reduction, marketing differentiation, innovation differentiation, and focus and ii) how the performance of these two types of firms is affected by different strategy types. The result shows that on-offline firms prefer the strategy of marketing differentiation and innovative differentiation while the strategy of cost reduction and focus are taken without significant difference between online firms and on-offline firms. Also it is found that even though the strategy of marketing differentiation and innovation differentiation are more preferred by on-offline firms than on-line firms, these two strategy types have a significant influence on the on-line firms' performance while the focus strategy has a significant influence on the on-offline firms' performance. Other managerial implications are discussed.

Keywords

References

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