And rather than viewing the Net as simply a foe, they should develop new value propositions with the Net as an ally.
Car dealers are a good example.
Profits from new car sales will soon disappear because of brutal price competition from Web-based vendors. But instead of just watching their businesses go broke, dealers should be looking to exploit the Internet to expand their role in the rapidly evolving auto industry. They could reposition themselves as ongoing transportation advisers, providing new services for which the public will pay. Right now, everything is coming up for grabs because all elements of the automotive industry from the milling of steel to the upcoming wiring of pavement are undergoing tremendous upheaval. Cars are evolving into networked information appliances, providing users with a place for work, learning and entertainment.