When the Internet was enhanced with graphic user interfaces in the early 1990s, the creators did not call their accomplishment a World Wide Web without a reason. Naturally, the first companies to experience the full impact of the Web potential in the globalization of operations have been those firms that have a crucial role in the nations’ infrastructure–telecommunications (the substitute threat of Internet telephony) and logistics (the Web’s impact on transportation and retail). In transferable marketing, similar marketing ideas have been used in different countries, irrespective of the component of the marketing mix (brand, price, promotion, delivery).
The Internet is a powerful enabling force that enables the use of similar and identical ideas in different corners of the world. It also moves transferable marketing into real time and forces marketers into an interactive mode. Indeed, one might make the case that, since the early 1990s, the Clinton administration’s technology policy, the emergence of the Internet, and the rapid globalization of macroeconomic environments have served to “tighten” the dynamics of America’s competitive advantage in global competition. Individually and as a system, these determinants have accounted for the pressures on firms to invest and innovate. As a system, this “diamond” has become expansive, thick, and selfreinforcing. 4
In effect, each determinant of the “diamond” framework supports and reinforces the other. America’s factor conditions, (i.e., skilled labor and infrastructure) dominate both Internet traffic and transactions worldwide. The U.S. demand conditions (i.e., the nature of domestic demand for the Internet products and services) are most extensive and sophisticated worldwide. Due to the expanding marketplace, the nation also leads in related and supporting industries that dominate infrastructure, hardware, and software, as well as content/ agglomeration worldwide. Patterned according to the Silicon Valley model, America’s domestic rivalry–firm strategy, structure, and rivalry–in the technology sector was more intense than anywhere else in the world. 5 By the late 1990s, even a superficial glance at the top 20 major Internet and Internet-related industries demonstrated quickly the overwhelming dominance of the U.S.-based rivals and the relative absence of Asian and European players.
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