Dotcom Business Strategy

INTRODUCTION

Over the past few years, there has been an explosion in the online world - an explosion that is also a harbinger of how business will operate in the future. Supply chains are being rethought, products and services reconfigured, and business models revamped. As such, the Internet is having a profound impact on the way business is being conducted in ways that are often disruptive to traditional methods. This is creating new challenges and opportunities. The Internet provides the opportunity for companies to reach a wider audience and create compelling value propositions never before possible (e.g. Amazon.com's range of 4.5 million book titles), while providing new tools for promotion, interaction and relationship building. It is

The disruption of the global Dotcom industry, the loss of investors’ confidence, the assailance from hackers and code-breakers, the bankruptcy of many start-up giants (including Boo.com and Goodsonline.com) made many pessimistic souls believe at the doomsday of the industry in a not-too-distant future. But according to experts, Dotcom industry is still a fledging and promising one. According to Hoffman, the online purchase will occupy up to 35% of the total figure in the next 30 years. By the way, the competition between the start-ups will be more fiercely than ever. In the era of digital technology, companies compete not only in price and quality, but also in brand name. Therefore, building a successful brand name on Internet is a vital task, especially to cyber

Coca-Cola, Kodak, Levi's).

1.1.3 PRODUCT AND SERVICE BRANDS

Product brands are the original brand carriers. They are the historical core of branding because they are the most prevalent, and because they most readily come to mind when consumers are asked to recall brands. For instance: Ford, Motorola, Coke, Honda, etc.

Service Brands (intangible) are much less numerous than their product counter parts. Intangible services are also more challenging to “package” and sell to consumers who often have difficulty conceptualising, preferring things they can see and touch. Certain service brands, such as in retailing, actually sell products, but the brand itself is the store, not the products it sells - The Gap stores, Southwest Airlines and Amazon.com are examples. In fact, this is the case with all Internet companies, as they essentially perform the function of a “virtual” intermediary or “infomediary” and are