The difficult part relies in determining how to take advantage of the opportunities this channel is creating and to what extent our investments in this area will benefit us. There is a great deal of pressure from the outside environment to keep up with the technological advances, but both risks and opportunities are present. Today, with almost four years of Internet existence, allowing people direct link to anyone anywhere, companies can create interactive relationships with customers and suppliers and new products and services can be delivered at very low cost. Executives from emerging and already existing companies find it difficult to decide what is the best way to use the channel. However, regardless of their decision to participate in technology or not, managers need to understand the opportunities available and how vulnerable they are if rivals seize those opportunities first.
Technology allows companies to bypass others in the value chain.
Companies can develop and deliver new products and services for new customers. Companies can become the dominant player in the electronic channel of a specified industry or segment, therefore controlling access to customers and setting new business rules.