The Future of Corporate Globalization: From the Extended Order to the Global Village

By Jeremiah J. Sullivan | Go to book overview

CHAPTER 11

THE INTERNET AND E-COMMERCE: FROM MARKETS TO MARKETOIDS

In 1996, business done across the Internet worldwide generated $2.9 billion in revenue on 50,000 sites. By 2002 it was expected to be as much as $2 trillion. In 1996, about 14 million domain hosts managed Internet traffic, a number that grew to 72 million four years later. Web pages grew from 1.3 million to 1 billion. Time online monthly at search engines grew from under forty-five minutes per person to over two hours, and search engines grew from a few to over 3,000. In 2000, ten of the Financial Times’ Global 500 firms were “pure play” Internet companies. Only three, America Online, Yahoo!, and CMGI (a holding company owning over sixty companies), had annual revenues over $100 million. Most were intermediaries, offering portal, search, and marketplace services, and most were United States-based. Outside of the United States, only Pacific Century Cyberworks in Hong Kong and Terra Networks in Spain made the Global 500. The Internet could be accessed from computers, wireless devices, and television sets, suitably equipped, in 2000, with Americans ahead in computers and the Europeans and Japanese ahead in wireless connecting. Wireless usage was expected to grow from 10 percent of the total to about 50 percent in 2005, according to some projections. 1

At some point early in the 21st century, most developed-country individuals, groups, and organizations will have inexpensive, fast access to the following Internet menu:

Transaction Activity

Parties to the Transaction

Initiating Technology

Communication Medium

Business to consumer (B2C)

One to one

Computer-based

Voice only

Business to business (B2B)

Many to one

Wireless-based

Video and voice

-197-

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