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The case study highlights the strategic challenges facing the American e-health sector. The case emphasises how companies devise electronic commerce strategies to create competitive advantage. It looks at how industry actors, both incumbents and new entrants, have devised plans to take advantage of new business opportunities arising from e-commerce. Firstly, the case analyses the changing structure of the American health care industry and the opportunities it provides for the application of technological improvements. Secondly, the case study utilises the example of drkoop.com to show how Internet-based consumer health care networks are providing the American health care consumer alternative options to gain knowledge on a variety of health-related topics. Finally, the case demonstrates how the development of strategic networks can create competitive advantage. The case study examines this industry sector in 1999 as this year signalled the most rapid growth and competition in the sector.