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Finding your place in the new value chains

There is no simple answer to this question : new links appear every day, some prove to be worthwhile and become important, others are useless and disappear as quickly as they appeared. You should observe, analyse and test, without prejudice.

However, we can identify different dominant value chains on Internet at present.

Short chains

In the case of certain oligopolistic markets dominated by a few very powerful companies (as is the case in the personal computer market), the value chain is short for the main elements : Dell is a textbook case. The company makes a daily turnover of over four million on line and even plans to use Internet as its only distribution channel. Many customers connect directly to its sites or to buy or upgrade their computer on line. The chain is thus relatively short. But with the reorientation towards online buying (Compaq and Apple), the competition will intensify, necessitating the development of Dell's online commercial presence by means of agreements with virtual communities, agents or portals, to prevent them signing with competing companies. The chain is still short, but has lengthened a little.

But Dell sees other advantages than the reduction in the number of intermediaries. Internet also allows it to get closer to its customers by fluidifying the exchange of data : for example, for Shell it has installed the programme 'Dell First Pages', an extranet reserved for its major accounts, allowing it to manage its purchases and their lease-purchase plans on a page personalised with the company's colours. In contrast, Dell also uses Internet to get to know its suppliers, and to take advantage of the variations in availability with Intel, for example, of which it is a major client.




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If you enjoyed this site, we obviously share values: we have written it in 1999 !

We haven't updated it online as the vision still is more and more relevant: the more the internet matures, the closer it gets to our vision.

We still believe in innovation, creativity, rigour and results control.

Contact us if you need webmarketing services:

Raphael Richard, founder

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