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Is There a Dot Com Threat?

Is There a Dot Com Threat? ... So I'm reading the latest Fortune (September 6, 1999) and I notice an article, "Internet Defense Strategy: Cannibalize Yourself." And I'm glad that I'm not running a real estate service provider. Because if I were, I'd be thinking, "Uh-oh. Is there a dot com company out there that's a threat to my business model? How can I quickly embed the net in my core service? Or should I launch a totally separate e-version of my company?"

According to Fortune, "Old-line companies, when faced with 'disruptive' tecnologies that make existing ones obsolete, are pretty much doomed to lose the market to new entrants." And, "Companies that learn to cannibalize themselves today will rule tomorrow's business jungle." ... Want evidence? Schwab forces Merril Lynch to offer $29 Internet trades (later this year). And Bank One launches WingspanBank.com, a pure Internet bank (no bricks and mortar!) to prevent attack by another e-bank, although possibly cannibalizing its existing business.

I'd be thinking: Is there an e-CushWake or an e-TrammellCrow in the real estate future? And what would a real estate dot com feature? ... Will it bundle Internet information and real estate services together so that a corporate client can access brokerage and data through a single web interface? Will an Internet listing service create a marketplace accessible to brokers and principals alike? Will one of my competitors and an Internet information provider merge? Conversely, will a virtual company emerge with low overhead (but with great digital connectivity to information and people) offering discounted services? ... Yep, these thoughts would keep me awake at night -- if I were running Pike Real Estate Services. (Hey, I'm glad I'm not.)

Question... Where do you see the threats and opportunities? Send e-mail to me at and I'll report more in future a Dispatch.

--Peter