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The divides that are developing in this Web economy are related to two types of commercial activities. On one level, there is the business-to-business transactions (B2B Internet ) which is dependent on even higher levels of access security for it to operate smoothly. This level has been expanding rapidly as the supply of equipment and parts is serviced by the Web and the Internet from one company to another. The second level, business to consumer (B2C ) transactions, is the one that has exploded from 1999 to the point that over 200 million online consumer transactions occurred in Europe that year. Both forms of commerce are leading to major transformations in the way that business operates. The size of the Web economy may be less important than the perception of the Web’s significance as a channel for business activity. This perception is fuelling a rapid proliferation of Web presences by small businesses. A survey report by Prodigy Communications indicates that 37 per cent of American small businesses (1-90 employees) now have a Web site and of those surveyed 90 per cent believe that the Internet would benefit their businesses in one of three ways: to promote their products or services, to actually sell online and/or to improve their customer service. In a similar vein, NUA estimated that 56 per cent of American companies would sell their products online in.
There is no question that electronic commerce makes us think of the Web as an entity that goes well beyond a media form. The Web produces an economy that intersects with all industries; television in contrast tends to intersect with many parts of the industrial culture through advertising and its direct sales through home shopping channels provide a stunted relationship to retailing. Yet to comprehend the operation of the Web’s economy demands a general understanding of how commercial media make their income because at least 20 per cent of the Web economy is similarly constructed.
Besides big business private entrepreneurs also undertake different online business projects. Thus, Internet marketing has become a major support for online business and its key to success.
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