The emergence of new technologies for
electronic commerce on the Internet
makes possible different ways of inter- acting for all the players in a market.
This transformation of the traditional
market interaction can be understood in
terms of an intermediation, disinterme- diation and reintermediation (IDR) cycle.
By looking at a series of mini–
cases of the IDR cycle in various
industries, we are able to identify four
major competitive strategies firms use
in the IDR cycle: partnering for access,
technology licensing, partnering for
content, and partnering for application
development. We then analyze the con- ditions under which these strategies
help a firm to achieve sustainable
competitive advantage in its market- place. Our analysis reveals that each
strategy requires a different combination
of firm capabilities and environ- mental conditions. As a result, these
middlemen should not rely on technological
innovation alone if they want to
be successful in the marketplace.