2. SERVICE DIFFERENTIATION EFFECTIVLY DIFFERENTIATE AN ONLINE BUSINESS DISTRIBUTION OF PRODUCTS ONLINE SEVERAL OFFLINE PROCESSES HAVE BECOME INCREASINGLY POPULAR ONLINE (I.E. BANKING, SECURITIES TRADING) MAY REPLACE THE TRADITIONAL OFFLINE SERVICES
3. CHANNEL DIFFERENTIATIONAL THE INTERNET DOUBLES AS A LOCATION-FREE AND TIME-FREE DISTRIBUTION AND COMMUNICATION CHANNEL THE INTERNET EXPANDS THE COMPANIES’S REACH FROM LOCAL TO GLOBAL, 24 HOURS A DAY, AND WITH LIMITLESS ASSORTMENT OF PRODUCTS.
4. PERSONNEL DIFFERENTIATION USE TO BE ONE ON ONE RELATIONSHIPS BETWEEN MERCHANTS AND CONSUMERS REQUIRED COSTLY SKILLED PERSONELL THE INTERNET NOW ALLOWS COMPANIES TO DELIVER THEIR PRODUCT AND SERVICES THROUGH LOW COST CHANNELS. LEADS TO A LOWER TRANSACTION COST, ENABLING A COST LEADERSHIP ADVANTAGE OVER OFFLINE COMPANIES
5. IMAGE DIFFERENTIATION A COMPANY CAN DIFFERENTIATE ITSELF BY CREATING A UNIQUE CUSTOMER EXPERANCE. THE INTERNET INTERACTIVITY ALLOWS COMPANIES TO MORE QUICKLY TO CUSTOMERS REQUESTS. ALSO ALLOWS COMPANIES TO COMMUNICATE WITH CURRENT AND POTENTIAL CUSTOMERS WHICH IS ESSENTIAL TO RETAINING CURRENT CUSTOMERS AND ATTRACTING NEW ONES.
