Confounding predictions that the Internet “disintermediate” would commerce, which means “middle man” company all but obsolete, used Marshall Industries, a leading electronics distributor, the Internet and digital technology to reinvent itself. Marshall continues electronics components for sale, but the company left the traditional sales-driven strategy for customer-oriented, service-oriented strategy. In the heart of the transformation was a complete restructuring of the remuneration and … Read more »

Confounding predictions that the Internet “disintermediate” would commerce, which means “middle man” company all but obsolete, used Marshall Industries, a leading electronics distributor, the Internet and digital technology to reinvent itself. Marshall continues electronics components for sale, but the company left the traditional sales-driven strategy for customer-oriented, service-oriented strategy. In the heart of the transformation was a complete restructuring of the compensation and incentive system and major investments in information technologies. Several years into his first foray into the digital world, Marshall faced growing pressure: lower margins, increasingly demanding customers, restrictive practices by suppliers and competitors quickly launch me-too Internet and virtual services. Marshall continue to look for ways to use their innovative spirit and digital expertise to differentiate themselves and to create and deliver a whole new set of virtual supply chain services.
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from
Jeffrey F. Rayport,
Cathy Olofson
Source: Harvard Business School
26 pages.
Release Date: 12 May, 1999. Prod #: 899 239 PDF-ENG
Marshall Industries HBR case solution