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Pastimes : ISOMAN AND HIS CAVE OF SOLITUDE -- Ignore unavailable to you. Want to Upgrade?

To: cardcounter who wrote (189)	4/30/1999 6:26:00 AM
From: ISOMAN	Respond to of 539

Nope. Wrong ISO. But very interesting info.

To: cardcounter who wrote (189)	4/30/1999 6:31:00 AM
From: cardcounter	Read Replies (1) \| Respond to of 539

god gave you eyes, plagiarize. The ultimate goal of bundling these services is to have users select the portal web site as their default home page (the web site where users start their internet exploration). The portal companies want to attract enough traffic to command premium rates from companies advertising on the internet. Portals are also likely to realize some revenue from increased electronic commerce. If a consumer buys a product through an advertisement seen on a portal, then that portal company, depending on the specific ad contract, may realize some revenues from the sale. High flying stock prices are due in part to the well-publicized investments in this area by giant traditional-media companies. The industry has evolved from an information distribution medium to an alternative source of original content. The internet has a big advantage over traditional media: interactivity. In addition, a magazine/publication on the internet is not limited to a pre-determined number of pages or by a weekly publication schedule. Internet's proliferation has raised the appeal of conducting business over the web. Internet use is doubling every 100 days (April 1998). One of the fastest growing areas of e-commerce is business to business. Taxation of both internet access and purchases is a potential threat to e-commerce. The first commercially successful browser was Netscape's Navigator browser, which commanded about 54% of the market as of summer 1998. Microsoft's Internet Explorer browser accounts for the rest of the market. The most recent addition to the many internet dependent businesses is the portal industry. Portals are sites in which consumers begin their on-line sessions. Netscape is leveraging its large installed base of web browsers to draw traffic to its Netcenter site, and Microsoft will contend with the release of its own portal. By any measure, the Internet is one of the fastest-growing commercial phenomena ever witnessed by society. A key factor in the recent growth of the internet is the popularity of the sub-$1000 PC. Telecommunication technology is racing to keep up with the demands of the internet. Bandwidth bottlenecks frustrate consumers… new technologies are forthcoming. Browser wars Netscape Communications pioneered the commercial web browser market in 1994 with its groundbreaking Navigator product. Microsoft went one step further in 1996 when its Windows 95 operating system, which is used in virtually every PC sold in the world. Advertising networks have begun to spring up allowing media buyers to purchase virtual ads on a multitude of web sites. The cost of specific ads can be determined by hits, or number of page impressions, that a web site receives from users. Key industry ratios and statistics PC unit sales – Personal computer industry growth represents a key element in determining the overall growth of the internet. Internet subscriber penetration – This measures the percentage of a country's populations that is online. Hits, click-through, and page views- Hits are the number of times a program or item of data has been accessed. A click-through is the act of linking to a third party. Click-through rates are used to measure the effectiveness a site has in persuading a sure to go to another site. Growth of internet use and hours spent using the world wide web. Growth figures describe the number of online subscribers, while data on hours spent gives greater detail about traffic patterns and behavior. How to analyze an internet company Traditional methods of determining the financial condition and underlying value of a company are simply not applicable. Greater weight should be given to qualitative judgements regarding the competitive landscape, management experience and expertise, marketing ability, and ownership of subscribers and infrastructure. Competitive analysis With its low barriers to entry and emphasis on human capital, the Internet is an extreme version of a competitive industry. Market shares shift rapidly and new products and business models are created almost every week in all segments of the industry. Switching costs between access providers and among content providers is extremely low, which leads to customer churn. Market position The sheer size of a company has a significant bearing on its ability to succeed as an internet player. Economies of scale provide the network equipment manufacturers with a competitive edge in pricing when filling large orders. Companies with top market share positions can capture significant internet advertising spending. Bring new products to market rapidly. Companies in the internet space must translate new ideas into tangible products quickly in order to capture market share. Given the entrepreneurial nature of most internet companies, competition is cutthroat and companies that can achieve fast time to market usually win. Of course, a company that wins share initially does not necessarily thrive in the future. Internet companies place huge bets on their vision of the future of the internet. As the internet evolves there is significant risk that the company's initial vision will no longer match consumer tastes of the reality of the market. For example, if the advertising-based business model currently espoused by internet portal companies failed to be sustainable, the entire competitive landscape for this internet niche would be turned upside down.