| ElectroBits is a longtime market leader in the electronic components distribution industry. In recent years, the Internet has transformed its competitive landscape. New intermediaries have emerged, and several key competitors have made significant investments in the Internet.
ElectroBits has been deliberately late in embracing the Internet, since it was skeptical of the revenue potential and concerned about the potential impact its actions might have on industry structure and pricing. Now, the company wants to evaluate the effect of Internet commerce on the industry to understand how best to exploit these altered dynamics.
Bain was asked to advise on the following issues:
- is e-commerce a passing fad, or does it require a real response?
- will the current business model require radical restructuring?
- are there more moderate courses of action that substantially preserve the profit pool?
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