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Decision 2: Market and product development strategies

Deciding on which markets to target through digital channels to generate value is a key stra-

tegic consideration. Managers of digital business strategy have to decide whether to use new 

technologies to change the scope of their business to address new markets and new products. 

As for Decision 1, it is a balance between fear of the do-nothing option and fear of poor 

Figure 5.19

Strategic options for a company in relation to the importance of the 

Internet as a channel

Limite

dR

adical

Change required

High

Low

Medium

% Online revenue contribution

1

‘Bricks and mortar’

Information only

Digital channels

complementary

Digital

channels

replace