"Doing Nothing is NOT a Strategy!"
Historically, incumbents have had a natural competitive advantage. On the Internet, it's the newcomers who have the edge. The Internet explodes traditional trade offs, resolution in whole new kinds of economic value are created and entirely new sets of previously unprofitable customers can be served. Because of "The Network Effect" the majority of the economic value in an industry will accrue to the single player who reaches critical mass first. To win, incumbents must change the dynamics of the race to critical mass and utilize existing assets in unique ways.