Internet Based Service Strategies

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.