Customer Value and Competition in Business-to-Busi

MASTER’STHESIS2004:102CIVMASTEROFSCIENCEPROGRAMMEDepartmentofBusinessAdministrationandSocialScienceDivisionofIndustrialMarketingande-Commerce2004:102CIV•ISSN:1402-1617•ISRN:LTU-EX--04/102--SEAffectsoftheInternetonCustomerValueandCompetitioninBusiness-to-BusinessMarketsMIKAELHEDLUNDAbstractDivisionofIndustrialMarketingande-CommerceAbstractTheInternetisanewandimportanttechnologyforcompanies.Theyhavetolearnandadapttothenewwaysofdoingbusinessiftheywanttostaycompetitiveinthefuture.ThereforewasthepurposeofthismasterthesistogainknowledgeabouthowtheInternethasaffectedtheindustrycompetitionwithinabusiness-to-businessmarketwithregardstobuyers’value,powerofbuyers,andthreatofnewentrants.Thisresearchexplore,describeandstartstoexplainhowtheInternethasaffectedanoldindustryandhowtheInternetcanstrengthenafirmspositionwithinthemarket.Thisthesishascompletedaqualitativecasestudy,mainlybasedoninterviews.Thecaseforthisresearchwasthestatedresearchproblem.HowhastheInternetaffectedthecompetitivenessandtheindustrycompetitionwithinabusiness-to-businessmarket?Theinterviewswereconductedwithinamanufacturingfirmandwiththreedistributors.FindingsfromthisthesisshowedthattheInternethasimprovedthedistributionchain,givenactorsonamarketaccesstomoreinformation,expandedthemarketplace,andtiedcompanieswithinadistributionchainclosertoeachother.TableofContentDivisionofIndustrialMarketingande-Commerce1INTRODUCTION.................................................................................................................................................11.1BACKGROUND..................................................................................................................................................21.1.1Competitiveness.......................................................................................................................................21.1.1.1CompetitiveAdvantage...................................................................................................................31.1.1.2CustomerValue...............................................................................................................................31.1.1.3CompetitivenessConnectiontoCompetitiveAdvantageandCustomerValue.............................41.1.2InternetandCompetitiveness..................................................................................................................51.1.2.1DifferentBusinessModelsfortheInternet.....................................................................................51.1.2.2InternetImpactonFirms.................................................................................................................61.2PILOTSTUDY....................................................................................................................................................71.3RESEARCHPROBLEM........................................................................................................................................71.4DISPOSITIONOFTHETHESIS.............................................................................................................................92LITERATUREREVIEW...................................................................................................................................102.1THEINTERNET................................................................................................................................................102.1.1ComputerNetworkingandInternetHistory.........................................................................................102.1.2TheWorldWideWeb.............................................................................................................................112.2INDUSTRYCOMPETITION................................................................................................................................122.2.1ThreatofNewEntrants..........................................................................................................................132.2.2PressurefromSubstituteProducts........................................................................................................142.2.3IntensityofRivalryamongExistingCompetitors.................................................................................152.2.4BargainingPowerofBuyers.................................................................................................................152.2.5BargainingPowerofSuppliers.............................................................................................................162.2.6IndustryCompetitionandtheInternet..................................................................................................182.3CUSTOMERVALUE.........................................................................................................................................192.3.1CustomervalueandtheInternet...................................................................................................