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Consumers are looking for brands they know well. Internet-marketing offers much more depth and width.

Besides this there is something unique to the World Wide Web of the Internet in a sequence, which are also the fundamental are called the "hub-and-spoke strategy. This also facilitates the right with a friend: a strategy hub-and-spoke arrangement, where an increasingly large retailer has links to other sites, promising them a percentage of allSales (usually 5-15 percent), due to road traffic for retailers of these "partners." This is not to have a great affiliate program rarely more than 10,000 registered participants, all transport related to the central site. What is more interesting to the extent that this type of business model is proliferating: Reference is a trusted Web site lists the affiliate programs for prospective members. As we go to press, nearly 500 different levels.

TheThe Internet is already in place as a central tool in the workplace. Every aspect of trade is changing in light of the new features available. The coming changes are so powerful that is both scary and exciting. The first phase of activity on the Internet, focused mainly on creating new types of companies: The next step will be the impact of these developments on bricks and mortar companies and the economy as a whole included.

New featuresThe Internet offers for business-to-business and business-to-consumer sales for many industries will be transformed from top to bottom. Successful companies understand that success in the new era requires new rules for action and the domain now organizing different types of skills.

Questions of what is happening in the future look like, "My business is helped or hurt?" "How do I survive?" Until recently, the pace of change was so great,attempt to respond to these questions are often unsatisfactory.

The elements that have a central role, as the Internet economy develops. These elements have the potential for very damaging to our economy and for us the power of prosperity for the twenty-first century. The best way is to discuss these ideas with two opposing visions of the future:

The disadvantages growth potential of the Internet more than any other aspect of Internet shopping "bot" software that scansEntire Internet for products and services on predefined criteria (based on the most popular), have the ability to offer great benefits to consumers and potentially bring great harm to society.

Today, major Internet portals, including Goggle, Yahoo and MSN have all initiatives to purchase with participating retailers, which, at least in part, powered by bots (also known as "smart cart software agents"). A visit will show that http://www.botspot.comalready very easy to use-bots that are for businesses and consumers. Each robot typically has a specific function of financial bots, storage tasks related to intelligence, bot bots auction-related.

Businesses and consumers rely on price as the sole criterion for purchase, feel more pressure on prices every manufacturer and retailer. Bots that are trying the best price the potential to lead to a ruinous price war. In someItem price wars can destroy industries or reset their development for several years for lack of funds for investment in new and better services. For me this is the downside of a frightening world, where customers can buy from anywhere in the name of their bottom price.

Internet is easily proved more and more of this type of conduct and behavior. We are currently witnessing significant discounts from the major Internet retailer to attract customers. For the currentCompanies, this type of discount unlikely sustainable. The pace of change in recent years has been so incredible that a growing population of retired executives feel are over-passing familiarity with the Internet. But this alleged new "knowledge is misleading" websites and portals and e-mail technologies, the fact that the Internet is still so new that there are no rules to play. " Internet services, including a comparison service, software agentsas bots and new digital intermediaries, enabling easier access to information and, therefore, fundamentally change the competitive battlefield situation.

Stores that face one another in general rose to the occasion and also a comparison shopper workers', which cruised the aisles of competitors, reporting on the pricing, allowing shop owners competitive price. And signs that advertise "We beat any price "includes any business to maintain the business, no matter wantedwas.

The Internet is changing radically and continues to this dynamic. Not only can consumers easily from one place to another Web control products and services to all, but many Internet services are specifically designed to facilitate comparisons between products or services within a category, and another growing age companies-digital intermediaries in the award-actively create situations from multiple vendors, resulting in lower prices for consumers andCompanies. This new class of Web sites raise the stakes in a sector. The competition takes place in two forms: acquired to purchase from manufacturers or service providers for products or services to and between the "memory" as a place.

Companies today operate in a world in comparison shop-ping is almost effortless, the geographic boundaries are eliminated, and the pace of activity is much faster.

What happens in the market

In the online environment that offers alla particular product competing with all other offers of product or something similar. On any given day, a customer may be able to find more – or for the sale of hundreds of online stores, what he or she wants, and the customer can then decide Which manufacturer to purchase the item. A recent study using a comparison service Froogle as it was discovered that a specific HP All-in-one printer from 57 different shops available from $ 57 to $ 170

Botcomparison services and the new digital age, all intermediaries to work in a variety of ways. Some comparison services operated by local merchants that contributions to general information on how to compare the specific products sold through the shop price and quality competition. Other services are stand-alone Web-based company provides a comparison of a variety of manufacturers.

Bot (Intelligent Software Agents Shopping)

Our products today, along with hundreds of other "bot"The services that are now on the Web, is still in its infancy. However, it was the creation of websites, suggested price comparisons feature facts, and I guarantee that these bots will have a role in changing the future of the game Commerce.

Web sites with offers and compare prices

On the Web, the competition is fierce for customers. Then, the Web Bot at the request of a customer, companies were forced to their web pages with price comparison shopping in Mind Design. The network has facilitatedexplosive growth of settlement services for the full range of products and services. It 'impossible to even estimate how many there are today, and new services to unserved or groups with the best properties in categories that already appear on these services, the time

New intermediaries in the digital age only intensify competition.

Digital Age Brokers

Another factor in the spread of hyper Wars is the emergence of a new type of business, the digital ageThese intermediaries wide range of organizations may share one or more of the following characteristics:

First, create a "perfect market" for buyers and sellers through the improvement of information available on both sides regarding the demand and supply of products.

Secondly, they are generally places like electronic monitoring, where potential buyers meet sellers for certain sectors or certain types of products are used. In this sense, the broker's most successful digital era generally aligned vertically andA very specific target market, as are the buyers of certain financial products or certain types of engineers and electronics companies. Sometimes this leads to the sale of such products at different prices.

Third, intermediaries in the digital age defying traditional boundaries. for the location, size of operation, the time required for competing offers from many potential suppliers, and the time in finding potential new suppliers involved are all factors that traditionally have created "the most competitiveBenefits "for certain companies in certain situations, such services are working to eliminate these limitations. Fourth, all provide a mechanism to call some kind. Often the digital age intermediaries potential sellers pit against each other, and usually the one with the lowest price the company earns.

For shoppers, the effect of the digital intermediate goods and services is to lower prices.

DIRECT SALES expand and transform the Market Square

Experienceso far strongly suggests that the Internet is the transition to direct sales by manufacturers to accelerate, resulting in a significant change in the way businesses and consumers shop. and services at lower prices.

For buyers, of course, pressure on prices is a welcome advantage of the web. For sellers, however, are intermediaries digital age is a key factor for the emergence of Hyper Wars. By creating a "perfect market" not with all the information spatiallysuppliers boundaries and reach more potential, the level of price competition, a new level of intensity, making it difficult generate profitable sales. Then multiply these online intermediaries, each transaction to the seller even more as a battle in a war that has led to the sense, hyperspace.

DIRECT SALES expand and transform the Market Square

Experience suggests that the Internet is the transition to direct selling by producers and accelerateCreating a fundamental shift in how businesses and consumers shop. Over time until the share of products sold directly by producers or users of services has increased, and the cost of a middleman is eliminated. This phenomenon has accelerated, although the development of new technologies or new ways of media to overcome what is generally perceived as the four main barriers to direct sales to find:

First Consumers need to watch the itemacquired

According to size and complexity

Third access to product information

Fourth, consumers need to evaluate their legitimacy. If this person and trustworthy companies are sold or Snake Oil?

For most, the Internet is rapidly eliminated with all these obstacles and offers an additional benefit:

If a medium can completely explain or show how a product works, then most of the sales of products generally moves from direct sales by producers or agentsSuppliers.

The Internet has combined a unique ability (interaction with a low-cost avenue for communication), to complex financial products as to make himself understood. Because of the ability to filter the internet, consumer information directly relevant to their situation and have therefore avoid wading through a stack of folders and brochures. A well-designed site that can explain all the product features and benefits of life insurancePolicy and pensions. As a result, these products can be sold directly from their suppliers via the Internet, as agents are not required to explain the product.

Time and self-generated make further recommendations, shopping complex clear and understandable, and the customer time anywhere. In essence, this is a system that uses interactive tools to explain both the product and what should advise consumers buy.

Convenience The convenience offeredThe Internet is also a factor that continues the transition to direct sales. Anyone with Internet access can now purchase products and services is comfortable at any time without research or preparation. The result is "preparing obstacle" directly from shopping.

chains with the misuse or those saddled with high fixed costs related to the maintenance of a brick and mortar business, the price pressure that could jeopardize well, given their currentOperations.

CHANGE OF CHAIN FOR SALE: channel conflict

Historically, consumer goods companies have operated with a well defined chain of sales: the transition from selling through a broker direct conflict (channels) is a disturbing problem, many companies are only now grappling with. On the one hand, retailers, of course, become "unhappy" with the producers, in their eyes, so go out and directly to consumers at a lower price. On the other hand,Manufacturer direct suppliers can cost beneficial to observe due to lower prices due to distribution costs, win business and market share. In addition, a company can have all their sales through the retail channel dedicated force.

At this time, the channel conflict is probably the most difficult, unpleasant environment faced by firms in this hyper

the problem of channel conflict is a central motif for the PC business is an industry standard, aHigh Wire. If any move by retailers in a sector is defined as a rule quite competitive. However, it is absolutely predictable that if you direct way, then someone will enter the market. It can also be a cheeky upstarts without roots in retailing. For the PC industry is that upstart Dell.

At some point PC owners compared notes on his computer which he bought and paid for what they "ordered direct from Dell"was often heard a report and it was not long before Compaq and IBM realized that it had a problem. What Dell do just that other producers had lost?

The growing popularity of the Internet, connected perfectly with Dell's direct sales model of selling computers to customers. On the Web, customers may visit the Dell site, decide what they wanted to see the images (which was not possible by phone) and place a direct order. Since Dell did not have a jump in stockchannel retailing, the company had an estimated cost advantage of 10-15 percent compared to its competitors, which sold at retail.

In addition, Dell may respond immediately to changes in consumer purchasing behavior.

Of cheaper Internet-based methods produced chaos in the chaos the entire PC industry that continues today. With its brands and retailers now active in all competitions, including their suppliers. While Compaq and IBM has developed innovativeTechniques that will reduce costs and provide customized PCs through retail is allowed, Dell continues to gain market share and grow profitability.

The importance of this issue can not be overstated.

Note that, if existing firms do not understand the opportunities for others. "It can take years to be processed by an industry on its head through direct sales, but producers of products need to plan for this event. For example, one could argue that record companies would never sellonline, a move that actually go to online music stores would, to say nothing of brick and mortar music stores. Never assume that cost is not going to happen because of the conflict direct distribution channel.

TWO guaranteed benefits that a change in the company: Instant Communications Company and lower costs

By seamlessly connecting people and organizations around the world, the Internet can accelerate the speed of development and introduction of new products, reducingCosts for operations throughout the company. The Web offers a new way of starting a business. If a company were never for sale to a single "widget" online, it would be worthwhile to install a web strategy.

The Internet allows companies to cut costs through seamless, automated communication both within the company (intranet) and suppliers of the company (extranet). Moreover, these communication systems to dramatically reduce the time required to produce certain productsbecause different departments and external vendors can communicate automatically.

Two strategies "Speed is everything," and 3 "to cut costs and increase efficiency with the Web," many details about the possibilities of businesses through the use of the Web will be benefited. Given that companies are eager to compete for the emerging environment, but also against competitors who have created these new technologies to work for a far quicker and less expensive way to INCREASE the speed of their product and gripperProvide more efficient and a sales force worldwide to reduce operating costs.

Four reasons why upset the applecart INTERNET

Before the Internet is creating fundamental changes in the prevailing business environment. Comparison Shopping, the breakdown of geographical boundaries, the increase in direct sales, cut costs and need constant speed line because of the Internet have resulted in changes. But there are more possibilities, the Internet isImpact on companies of all types. At this point we can discuss your interest in an area or all of the changes, very few firms is not affected and if you're in this small minority, ready anyway. The tsunami is coming. Internet facilitates the sale of personalized products.

According to consumer demand for customized products has been documented in previous years. Who does not want something made just for them? Similarly, companies have always neededcustom configurations that presented in the paper controls. In recent years, the ability to mass production of customized products, developed at reasonable cost. Internet provides the missing piece: the perfect distribution channel.

Third The essence of the Web makes it an ideal device for user-based orders. Sellers and consumers, industry – to see photos or illustrations of the components on the Internet, and the specific order can often be linkedcan be directly to an automated system that controls the accuracy Yes, say the site, in fact, "added a feature to B," the possibility of error on paper is reduced.

The fourth product offering on databases (of any type, if the customer provides specifications and the vendor tries to go to meet these needs) to be highly competitive products to be sold online.

Consider planning your summer vacation. If you scan the newspaperRent for a summer in the general vicinity of your city, you can have lists for different geographical areas of reading and then scan through the ads of the group through a mediator. Contrast, for a summer home Online: Access a listing of pages (go to many but not all, were set by the newspapers), and then specify the features you are looking for: Desired community, time, cost, number of bedrooms, and walk to the beach, "for example.are presented in seconds, a series of choices.

These offers are certainly faster and better than the traditional newspaper job ads. You can also possibly cause some victims to be cheaper, since you have all the documents in front of you will, and you can compare accurately. As newspapers struggle to maintain its revenue from Web-based competitors of all kinds for everything from buying homes and apartment rentals for cars, jobs, new types ofanti-competitive behavior, inevitably.

SPEED 'and the law for two

Often, groups of companies introduced as "a leader of many shoots," but that all categories gradually, a "step deal"-two, where the competition is mainly between the top two contenders, like Pepsi and Coca-Cola, Hertz and Avis, McDonald's and Wendy's. Not that there are other competitors, but the lion's share of the market by the end of the division between the two main competitors.

InternetHowever, the game speeds up the law for two. There is nothing progressive about what is happening here. Because of its focus on comparative shopping, instant communication and easy distribution of information about Internet speed, the speed of the competition. As expected, the law appears as a pair even faster.

In "The dawn of the Internet age, there were more working browser. Now there are mainly two entities, Internet Explorer. And Foxfire. You can add anySmall number of fringe or niche products – such as Opera and Apple Safari. All other major categories of Internet Business (so far, music, books, car buying, online stock trading and travel) have rapidly consolidated, leaving only a few large players.

At first glance it may seem that the idea of rapid industry consolidation and the law of the fugitive couple is contrary to a central theme of this book is that the market success. In fact, they arecomplementary. The law proposes that the two, that a consolidation in an industry as we define it today. However, what the Internet is to define possible new entrants to a clear end, and ends when the redefinition takes place, makes the whole cycle begins again: Usually, there are several Participants market, this new idea of the industry and a then pursued rapid consolidation occurs.

Although there are a lot of consolidation among the companies online, the potentialfor current and remains more than a radical change and alteration: Completely new business concepts are likely to develop the process and the strong competition all over again. His "Deja vu all over again.

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