Arrow Electronics is a major electronics distributor. It was considering a new "Express Parts Internet Distribution Service" that would allow customers to purchase parts directly online. This could both gain Arrow new customers but also cause existing customers to bypass Arrow. Key questions were around how many current customers might switch to using Express and what impact it could have on Arrow's sales and profits. Arrow's business model relied both on selling standardized parts at low prices as well as providing value-added services to build relationships with customers. Express posed both threats and opportunities to Arrow's business.

1. Arrow Electronics Presentation by Wesley Shu, Ph.D.