In the early 1990s commercial development of the Internet was considered by many traditional retailers to be an arcane ‘geekish’ environment used by computer experts and scientists. As commercial use of computer networks began to grow retail companies began to consider how the Internet might Impact on trade in the future and the challenges they might face. However, not all companies were optimistic about the retail potential of the Internet, whilst some perceived it to be an opportunity for market development and expansion, others saw it as an unstable and insecure trading environment. In terms of how traders adopted the Internet they could broadly be divided into two groups:
1. Inactive: companies that for various reasons perceived the Internet to be a potentially dangerous environment, with limited commercial potential: for instance, lack of security, as it gave ‘crackers’ a means of entry to a company’s most valuable knowledge-based assets. For such companies the approach towards Internet adoption was to watch development and do nothing (perhaps with the hope that the Internet, like citizen band radio would fade in obscurity) until such a time that it became clear that there would be tangible business benefits from making the Investment required to develop an online presence.
2. Active: companies saw the Internet as a tremendous opportunity to access new markets and millions of new customers. These companies understood that the Internet era will last forever. Thus, those who were the first to explore cyberspace are now the most successful companies. Those who were the first to understand that the Internet is the most effective advertising tool are e-business gurus now.
Internet is on the rise. Every day thousands of new web sites become part of the global network. Most of these sites have commercial goals. Thus, e-business is developing very fast.
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