What are the implications of the ?New Economy' for corporate strategy?

Résumé du document

The aim of this essay is to highligh the implications of the New Economy for the corporate strategy, to understand how companies use the Internet in their strategy to enhance their business. To answer this question, I will first explain what the New Economy is and the shifts from the Old Economy to the New Economy. Secondly, I will show the usage of the Internet in corporate strategy of companies.

Extraits

[...] Exploiting the integration of the value chain which allows the Internet. Example: at CISCO, the customer is directly connected to production lines and supply, where three quarters of the orders are completely automated. Getting ready for real-time action. Example: when an order arrives at Dell, it is immediately echoed on the manufacture of components. Using the company as a cradle of the initiatives in the e-commerce. Example: the implication of Carrefour in ooshop.com that consists of making on-line purchases and that leans on the logistic experiment of Carrefour. [...]

[...] During the last 60 years there was an evolution in the economy related to business. Certainly at the beginning, companies were in internal growth situations: they invested in the production as it was a time of mass production. Then companies started to diversify their production: appearance of the strategic fields of activity; enterprises were in external growth situations and innovative in marketing. Later companies focused on their values, mission and vision; there was a segmentation of the offer. Today, trend strategy focuses on globalization: production globalization, marketing globalization, etc. [...]

[...] The main interest of these alliances is to build a network of mutual support which consists of: Spreading the current skills domain. Accelerating the introduction to the market and its impact Having access to the innovation Developing a capacity of responding quickly and efficiently Sharing the risks Improving the flexibility of the supply chain. Corporate strategy does not limit the enterprise and its activity. Corporate strategy spreads the network which various actors and partners to collaborate. Corporate strategy is a strategy of network: network that provides an environment where the electronic trade can be developed. [...]

[...] Within the last ten years we have entered into this model of motion with the Internet, and companies having to change their corporate strategies. Companies integrate new headways for information technologies into their policies of distribution, communication, purchase, human resources etc. Information technologies indeed have a deep impact in most of the sectors and in all the compartments of the management. In an economy that is based more than ever on the intangible and the activities of service - mostly concerned with data processing and personnel management, the information technologies and networks are an important factor in changing the policies and the practices of companies. [...]

[...] These include computers, software and telecommunications equipment and are broadly based on the ‘general purpose technology' of the microchip.” Referencing the ‘strategy in the New Economy' courses; New Economy is an economic model founded on the set of interrelated policies observed to achieve maximum sustainable long-term growth, in which networked information technologies dramatically increase the amount and value of information available to individuals, firms, markets and governments, allowing them to make more effective choices, and leading to superior performance. These definitions clearly show the importance of the Internet in the New Economy. [...]