The Internet is the delivery medium as well as the marketing medium. A critical mass of buyers or customers is key to success. The nature of the business doesn't have immediately apparent competition in the physical marketplace because of the novelty factor. Real competition is determined in electronic markets. At the heart of an intermediary's strategy is the concept of digital value creation.
Every company believes in a set of value propositions that attracts customers to it.
But Internet markets no longer regard these values as worthwhile. There are three common characteristics to this digital value creation. Finally, organizations must recognize that it can be owned by themselves or easily hijacked by others. For example, Marshall Industries has been traditionally in the electronics parts distribution business. In the old world, its value lay in publishing a comprehensive paper catalog that contained all of its suppliers' products and making sure parts were shipped to customers efficiently.