Summarize Article Strategy and the Internet by michael e$.$ porter I $"^$ INTERNET is an extremely important new

J technology, and it is no surprise that it has

received so much attention from entrepreneurs,

executives, investors, and business observers.

Caught up in the general fervor, many have as$-$

sumed that the Internet changes everything, ren$-$

dering all the old rules about companies and com$-$

petition obsolete. That may be a natural reaction,

but it is a dangerous one. It has led many compa$-$

nies, dot$-$coms and incumbents alike, to make bad

decisions $-$ decisions that have eroded the attrac$-$

tiveness of their industries and undermined their

own competitive advantages. Some companies, for

example, have used Internet technology to shift

the basis of competition away from quality, fea$-$

tures, and service and toward price, making it

harder for anyone in their industries to turn a

profit. Others have forfeited important proprietary

advantages by rushing into misguided partnerships

MARCH $200163$