INMA_A01.QXD

of the threats presented by other companies. The strengths and weaknesses will vary

according to the company involved, but many of the strengths and weaknesses are

dependent on the capacity of senior management to acknowledge and act on change.

The presentation of the Internet-specific SWOT shown in Figure 4.7 is a powerful

technique since it not only indicates the SWOT, but can be used to generate appropriate

strategies. Often, the most rewarding strategies combine Strengths and Opportunities or

counter Threats through Strengths.

Any marketing strategy should be based on clearly defined corporate objectives, but there

has been a tendency for Internet marketing to be conducted separately from other busi-

ness and marketing objectives. Porter (2001) has criticised the lack of goal setting when

many organisations have developed Internet strategies. He notes that many companies,

responding to distorted market signals, have used ‘rampant experimentation’ that is not

economically sustainable. This has resulted in the failure of many ‘dot-com’ companies

and also poor investments by many established companies. He suggests that economic

value or sustained profitability for a company is the final arbiter of business success.

It is best, of course, if the Internet marketing strategy is consistent with and supports

business and marketing objectives. For example, business objectives such as increasing

market share in an overseas market or introducing a new product to market can and

should be supported by the Internet communications channel.

Goal setting for the Internet will be based on managers’ view of the future relevance

of the Internet to their industry. Scenario-based analysisis a useful approach to dis-

cussing alternative visions of the future prior to objective setting. Lynch (2000) explains

that scenario-based analysis is concerned with possible models of the future of an organ-

isation’s environment. He says:

CHAPTER 4· INTERNET MARKETING STRATEGY

Figure 4.7A generic SWOT analysis showing typical opportunities and threats

presented by the Internet

Stengths – S

1. Existing brand


2. Existing customer base


3. Existing distribution

SO strategies

Leverage strengths to

maximise opportunities

= Attacking strategy

ST strategies

Leverage strengths to

minimise threats

= Defensive strategy

Weaknesses – W

1. Brand perception


2. Intermediary use


3. Technology/skills


4. X-channel support

WO strategies

Counter weaknesses through

exploiting opportunities

= Build strengths for

attacking strategy

WT strategies

Counter weaknesses and

threats

= Build strengths for

defensive strategy

The organisation

Opportunities – O

1. Cross-selling


2. New markets


3. New services


4. Alliances/Co-branding

Threats – T

1. Customer choice


2. New entrants


3. New competitive products


4. Channel conflicts

Strategic goal setting

Scenario-based
analysis
Models of the future
environment are
developed from
different starting
points.