The Relationship Between Internet Entrepreneurs, Idea Generation, and Porter's Generic Strategies

Abstract

The chapter discusses the use of business strategies for pure Internet firms. It separates the strategic choices and directions used for idea generation, during start-up, and beyond business or brand establishment. Corroborating much of the literature, it argues that traditional notions of strategy might be inappropriate for some dotcom firms due to the high level of complexity, speed of change and competitiveness characteristic of the Internet environment. As has been observed by research, idea generation on the Internet can involve prospecting and reacting quickly to markets to a greater extent than amongst traditional businesses. Likewise, start-up strategies often appear to involve flexibility and an openness to strategic change in response to the fast dynamic nature of the online market. The chapter suggests alternative strategy models that might be useful in our understanding of Internet business creation and development.