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
- Existing brand
- Existing customer base
- Existing distribution
SO strategies
Leverage strengths to
maximise opportunities
= Attacking strategy
ST strategies
Leverage strengths to
minimise threats
= Defensive strategy
Weaknesses – W
- Brand perception
- Intermediary use
- Technology/skills
- 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
- Cross-selling
- New markets
- New services
- Alliances/Co-branding
Threats – T
- Customer choice
- New entrants
- New competitive products
- Channel conflicts
Strategic goal setting
Scenario-based
analysis
Models of the future
environment are
developed from
different starting
points.