Internet Under The Conditions Of The Boundary Change And Strategic Choice

Internet has greatly changed our lives in many ways.And in the same time under the great influence of internet , the firm boundaries have had some new characteristics.This paper first summarizes the theories related, including the informationization, the transaction cost theory, the new classical economics and the theory of core competence of corporation discussed by the experts at home and abroad which help me analyze the deciding factors of firm boundaries.And then ,with the methematical methods ,this paper has disscused the necessity why firm boundaries have to change and got a conclusion that internet has changed firm boundaries by changing the value chain of the enterprises, the transaction costs ,the management costs and the costs caused by IT.After the analysises above, I have made a model which can explain the changes of firm boundaries in the internet times and can predict the possible direction to change to a certain extent.In the end I have tried to point out four strategies: specialization strategy, merger and acquisition or being merged and being acquired, outside extend manufacturing(OEM),competition-cooperation strategy. The enterprises should choose the suitable strategy after analysing the enviroment inside and outside to face the competition in new economy.In a word, this paper based on the researches before, has pointed out the changes of firm boundaries under the great influence of internet by a model, and then give some advice to firms on choosing their strategies to gain competitive advantage in IT times.