Affects of the Internet on customer value and competition in business-to-business markets

The Internet is a new and important technology for companies. They have to learn and adapt to the new ways of doing business if they want to stay competitive in the future. Therefore was the purpose of this master thesis to gain knowledge about how the Internet has affected the industry competition within a business-to-business market with regards to buyers’ value, power of buyers, and threat of new entrants. This research explore, describe and starts to explain how the Internet has affected an old industry and how the Internet can strengthen a firms position within the market. This thesis has completed a qualitative case study, mainly based on interviews. The case for this research was the stated research problem. How has the Internet affected the competitiveness and the industry competition within a business-to-business market? The interviews were conducted within a manufacturing firm and with three distributors. Findings from this thesis showed that the Internet has improved the distribution chain, given actors on a market access to more information, expanded the market place, and tied companies within a distribution chain closer to each other.

Author: Hedlund, Mikael

Source: Lulea University of Technology

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