Summary: Web Rules

Review and Analysis of Murphy's Book

BusinessNews Publishing

• Publisher: Must Read Summaries
• Year: 2016
• eBook ISBN: 9782511020449
• Topic: Ciencia de la computación
• Subtopic: Ciencias computacionales general

The must-read summary of Tom Murphy's book: `Web Rules: How the Internet Is Changing the Way Consumers Make Choices`.

This complete summary of the ideas from Tom Murphy's book `Web Rules` shows that the internet is changing the dynamics of the marketplace by placing the consumer firmly back in the driving seat. In recent times, big businesses and well-funded corporations have called the shots and made decisions on behalf of the consumers. But with the availability of the internet, consumers are seizing back the initiative to make their own decisions and take control of their own futures. In his book, the author provides a guide to navigating this evolution and how you can take advantage of the internet to influence the choices of your customers.

Added-value of this summary:
• Save time
• Understand key concepts
• Expand your knowledge

To learn more, read `Web Rules` and find out how you can benefit from the changing marketplace and the possibilities presented by the internet.

Summary of How the Internet Is Changing the Way Consumers Make Choices (Tom Murphy)

Section 1 9 Key Concepts – The Impact of the Internet on Future Consumer Choices

1. The Internet returns power back to the consumer – where it belongs.

There was a time when consumers had real and meaningful marketplace power. For example, in the 1950s:

• Family doctors made house calls, and became personally acquainted with the medical history of each member of the family.
• Bread trucks delivered freshly baked goods right to the door each day, in the same way fresh dairy goods were also delivered.
• Customers expected to be treated well in stores offering top-quality merchandise at the best possible prices.

In the intervening years, however, things changed. Corporate mergers meant that larger corporations arose, and profitability became the new imperative rather than service. Chain retailers emerged to exploit the efficiencies of bulk purchasing and standardized store formats. Price- and cost-efficiency outweighed customer satisfaction as the key metric by which business was evaluated.

In effect, the Internet unravels those mergers and consolidations. Suddenly, it has now become cost effective for specialist businesses to be established to serve specific and tightly focused niche markets. And interestingly, because of the low operating costs, these speciality businesses can even be in a position where they can charge less for their goods and services that many of the world’s largest corporations. Power has shifted away from the large corporations and back to the consumer.

Of course, these corporations can also compete on the Internet just like everyone else. However, in the online world, they become just one more competitor, and all their capital and all their physical assets can be neutralized by even the smallest merchant offering personalized service.

In summary, then, great changes and transitions are occurring in the marketplace as the Internet becomes more widely established. The consumer’s power is increasing because:

• Consumers using the Internet have access to all the information they need to make better decisions.
• Consumers using the Internet can readily find the best possible value offered anywhere in the world, and can even use software which will carry out this search for them.
• Consumers have more choices because they’re not just limited to the merchants in close physical proximity.
• Consumers can influence the decisions about to be made by other consumers in similar circumstances through the use of the Internet.
• Consumers can try new brands and new vendors easily and conveniently, increasing their selection.
• Consumers will have the tools at their disposal to analyze in meaningful ways the advice given to them by specialists in their fields. They will also be able to solicit second opinions easily and conveniently.

In short, the Internet powers the consumer’s golden era.

“We’re witnessing the greatest transition of power in history, one that will take power away from the mightiest corporations and social institutions and give it to consumers. Individual consumers are gaining the power to shake corporate giants, to force politicians to respond to our concerns, to demand a better bargain in the marketplace and to shape what’s in the media.”

– Tom Murphy

“If you’re not looking at changing your business to an Internet model, you’re in trouble.”

– Steve Demirjian, Westfield Capital

“The Internet levels the playing field between companies in a global way we haven’t seen before.”

– John Chambers, chairman, Cisco Systems

“It no longer matters if a company has 100-percent of the market share. It doesn’t matter if the company’s motivation is altruistic or commercial. It doesn’t even matter whether it’s technology is more advanced than a competitors. What matters is that the company’s leaders recognize the power of consumers and serve them to the fullest extent possible. If they do that, the company will prosper. Any merchant that doesn’t, won’t be a merchant very long.”

– Tom Murphy

“We’re letting the consumer touch us, tell us what to do, drive these sites. We know we can’t just get someone to build it on spec and hope we build the right thing. We are no longer packaging a product and seducing consumers into the product. We are saying, ‘OK, on the other side of this site is dog food, dog leashes, veterinarian, whatever. You start telling us what you want. Oh, you don’t want this? It’s off the site. Y...

Table of contents

• Title page
• Book Presentation
• Summary of Web Rules (Tom Murphy)
• About the Summary Publisher
• Copyright