Internet Based Service Strategies
Jul 2011 · GRIN Verlag
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Seminar paper from the year 2010 in the subject Business economics - Business Management, Corporate Governance, grade: 1,0, University of Applied Sciences Stuttgart (-), language: English, abstract: The Importance of the Internet - One of the most important trends over the last years was undisputedly the swift development from an industrial to the so called information society1, with the World Wide Web leading the way. According to a study of the EITO2 in 2008, 1.23 billion people worldwide used the internet in this year, 2010 it will likely be about 1.5 billion people (fig.1), not including the numerous cell phone users going online by mobile telephony connection.3 Approximately 60% of the German population work with the internet habitually, tending upwards 2% to 3% yearly. Furthermore, computers and laptops with an internet termination are available in 75% of German households, The social reorganisation launches changes that not only individuals but above all companies should take into consideration, being responsive to it. This requires an adoption of every corporate division to the increasing virtualization. Strategic Changes The economic system is strongly shaped by prearranged framework conditions, especially by the markets. Companies have to adapt in the extent external factors e.g. the internet are modifying markets, to remain competitive. Characteristics of the internet changing markets are: • Velocity of information transfer; • Synchronicity or interactivity; • Small operating costs. To be or remain successful in such an internet economy it is not sufficient to react to superficial changes, but trends have to be identified early and incorporated actively in the company’s strategy as well as in the resulting division strategy. litical, and cultural activity.
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