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The Effects of the Internet on Channel Strategy

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The Effects of the Internet on Channel Strategy

Ryan Andrew

MM 574

June 11, 2009

Consumers walk into a grocery store on any given day, pick up the food or beverages they need, pay and head home. Few people stop to think or contemplate how the Tombstone pizza they purchased for dinner ended up in the frozen food section of the local grocer. They merely place the pizza in the oven and in 15 minutes dinner is served. The process of delivering the Tombstone pizza to the consumer, through the grocer, from Kraft Foods is the distribution channel strategy.
The Tombstone example could include any number of items or companies. Goods or products have to start someplace and in this case, Kraft Foods is the producer. Customers in the …show more content…

The Internet began to mature in the 1970’s and was adopted by the Department of Defense in the early 1980’s.The language and programming at the time was still extremely complex and difficult for non-technical people, but by the 1990’s became much easier to understand and to use. (Howe)
The next step for the Internet was development of a browser which could handle the consistent file sharing as the technology further developed. A key person in the growth and eventual boom of the Internet was Marc Andreessen. In 1993 he developed the graphical browser called Mosaic and later went on to found Netscape. Netscape was the most successful browser available for Internet “surfing” until the launch of Microsoft’s Internet Explorer. (Howe)
This is about the time the Internet became a factor in marketing and channel strategy. The key to the success of the Internet lies in commerce. Before Marc Andreessen and Netscape came along, the Internet was composed mostly of e-mail and file sharing. Business, marketing and e-commerce were really not seen as commercially viable through the Internet. Andreesson and his associates were the visionaries behind the concept of commerce over the Internet and the direction they wanted the new technology to take. (Howe)
Netscape was eventually forced to sell to America-Online (AOL) when Internet Explorer became the preferred browser for anyone using Microsoft Windows. The competition between the two

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