Bibliographic Details
| Title: |
The Competitive Dynamics of Network-Based Businesses. |
| Authors: |
Coyne, Kevin P.1, Dye, Renée2 |
| Source: |
Harvard Business Review. Jan/Feb1998, Vol. 76 Issue 1, p99-109. 11p. 5 Diagrams, 1 Graph. |
| Subject Terms: |
*Communication in management, *Business networks, *Information networks, *Consumer behavior, *Consumer research, *Computer networks, *Strategic planning, *Decision making, *Distributors (Commerce), *Customer relationship management |
| Abstract: |
Telecommunications carriers, transportation companies, and banks are among the many network-based businesses--companies that move people, goods, or information from various points to various other points. Managers have long assumed that customers valued all links in these networks equally. It was thought that banking customers, for example, sought access to all of the branches throughout the network or that shipping customers wanted to be able to send packages everywhere. Intuitively, managers thought that many of their customers' needs were, in reality, narrower, but they had no way of knowing which links were most important. New computing power and robust mapping software now make it possible to understand network customers better. In applying this technology, the authors, both consultants from McKinsey & Company, have uncovered three distinct usage patterns: one in which all links are, indeed, valued equally; another in which customers concentrate their use in particular zones; and a third in which customers value only individual links. Each of these patterns requires a different strategy to direct executives in making the decisions fundamental to managing any network-based business: whether to open or close outlets, whether to connect their network to others, and how to organize business units so that they reflect the network's structure. Those who don't spot the patterns or understand their strategic implications will find themselves on the losing end of the network battle. INSETS: THE SPECTRUM OF NETWORK-BASED BUSINESSES;THE S-CURVE FOR A BANKING MARKET;ZONES FOR A RETAIL BANK;THREE KINDS OF NETWORK USAGE PATTERNS [ABSTRACT FROM PUBLISHER] |
|
Copyright © Harvard Business Publishing. All Rights Reserved. This content is intended for individual research use only, subject to the following: Unless permission is expressly granted in a separate license, this content may NOT be used for classroom or teaching use, which includes teaching materials, electronic reserves, course packs or persistent linking from syllabi. Please consult your institution's librarian about the nature of relevant licenses held by your institution and the restrictions that may or may not apply.Unless permission is expressly granted in a separate license, this content may NOT be used in corporate training and/or as corporate learning materials. For corporate users, please consult the specific terms of your company's license(s) for complete information and restrictions. For more information and teaching resources from Harvard Business Publishing including Harvard Business School Cases, eLearning products, and business simulations please visit hbsp.harvard.edu. (Copyright applies to all Abstracts.) |
| Database: |
Business Source Complete |
|
Full text is not displayed to guests. |
Login for full access.
|
