Is the Internet just another marketing channel like direct mail or home shopping? Or will it revolutionize global marketing? Will large multinationals lose the advantages of size, while small start-ups leverage the technology and become big players internationally? The authors discuss the different opportunities and challenges that the Internet offers to large and small companies worldwide. They examine the impact on global markets and new product development, the advantages of an intranet for large corporations, and the need for foreign government support and cooperation.
1. G.F. Colony, H.W. Deutsch, and T.B. Rhinelander, “Network Strategy Service: CIO Meets the Internet,” The Forrester Report, volume 12 (Cambridge, Massachusetts: Forrester Consulting, May 1995).
2. As of July 1995, according to an Internet domain survey by Network Wizards, obtained from
3. B. Bournellis, “Internet’s Phenomenal Growth Is Mirrored in Startling Statistics,” Internet World, volume 6, November 1995.
5. B. Giussani, “Why Europe Lags on the Web,” Inc., 15 November 1995, p. 23.
6. S. Gupta and J. Pitkow, “Consumer Survey of WWW Users: Preliminary Results from 4th Survey,” December 1995, obtained from
7. These figures, for the World Wide Web alone, were calculated from “Trends in the WorldWide Marketplace,” Activmedia, at
8. Results reported from a Rochester Institute of Technology survey of 378 Internet shoppers conducted between February and May of 1995, obtained from
9. S. Butterbaugh, “More Than a Pretty Face: FedEx Gears up for a Brand-Intensive 1996,” Interactive Monitor, Media Central, obtained from
10. S. Lohr, “When Pointing and Clicking Fails to Click: More and More Questions, and Employees, at Computer Help Services, New York Times, 1 January 1996, p. 45.
11. T. Seiderman, “Making Net Export Profits,” International Business, August 1995, pp. 47–50.
12. Giussani (1995).
13. A. Cortese, “Here Comes the Intranet,” Business Week, 26 February 1996, p. 76.
14. C. Anderson, “The Accidental Superhighway,” The Economist, 1 July 1995, pp. S1-S26.
15. Currently, there are some intricacies that may complicate this. Due to the international use of both domain (.edu, .com, .gov, .net) and country codes, it is sometimes difficult to identify the visitor’s country if he or she is using a domain code. However, more comprehensive databases of hosts, more sophisticated server matching schemes, and user registration procedures can overcome this.
16. Quoted from personal interview with MacPherson via e-mail, January 1996.
17. See M.B. Sarkar, B. Butler, and C. Steinfeld, “Intermediaries and Cybermediaries: A Continuing Role for Mediating Players in the Electronic Marketplace,” in R.R. Dholakia and D.R. Fortin, eds.,Proceedings from Conference on Telecommunications and Information Markets, October 1995, pp. 82–92.
18. See A. Warbelow, J. Kokuryo, and B. Konsynski, “AUCNET” (Boston: Harvard Business School, Case # 9-190-001, July 1989).
19. For examples of the range of Intranet applications in use, see:
Cortese (1996), pp. 76–84.
20. P.D. Callahan, D. Goodtree, A.E. Trenkle, and D.F. Cho, “Network Strategy Service: The Intranet,” The Forrester Report, volume 10 (Cambridge, Massachusetts: Forrester Consulting, December 1995).
21. For a review and application of these models to the new media, see:
D. Hoffman and T. Novak, “Marketing in Hypermedia Computer-Mediated Environments: Conceptual Foundations” (Nashville, Tennessee: Vanderbilt University, Owen Graduate School of Management, Working Paper No. 1, July 1995).
22. J.E. Frook, “‘Intranets’ Grab Mind Share,” Communications Week, 20 November 1995, p. 1.
23. J. Carl, “Digital’s Intranet Comes Together,” Web Week, volume 2, January 1996, p. 25.
24. K. Murphy, “Web Proves Useful as Training Platform,” Web Week, volume 2, January 1996.
25. N. Gross, “Here Comes the Intranet,” Business Week, 26 February 1996, p. 82.
26. E. Booker, “AT&T Using Internal Web to Test Digital Payments,” Web Week, volume 1, December 1995.
28. M.W. Rennie, “Global Competitiveness: Born Global,” McKinsey Quarterly, 22 September 1993, pp. 45–52.
29. The policies of domain registration have created a frenzy to register brand names and trademarks since current trademark laws do not cover the registration of domain names. The company responsible for the allocation of the domain names, InterNIC, allocates names on a first-come, first-served basis with the agreement by domain holders that InterNIC will not be held liable for trademark infringements. For further information, see:
“InterNIC Security,” Wired, 4.01, January 1996, p. 74.
30. Butterbaugh (1995).
32. J. Bernoff and A. Ott, “People and Technology: What Web Sites Cost,” The Forrester Report, volume 2 (Cambridge, Massachusetts: Forrester Consulting, December 1995).
33. Butterbaugh (1995).
34. L. Marshall, “The Berlusconi of the Net,” Wired, 4.01, January 1996, pp. 78–85.
35. D. Rocks, N. Ingelbrecht, R. Castillo, and D. Peachey, “Developing World Seeks Highway On-Ramp,” Communications Week, 2 October 1995, p. 39.
36. J. Zander, “Russia Makes Net Progress,” TechWeb, obtained from
38. Rocks et al. (1995).
40. Guissani (1995).
41. J. Kahn, K. Chen, and M.W. Brauchli, “Chinese Firewall,” Wall Street Journal, 31 January 1996, p. A1.
42. C. Grycz, “The International Aspects of Internetting” (Boston: Fall Internet World 1995 on CD-ROM, 1995).
43. C. Mendler, “Stop! Or I’ll Yell Stop Again!,” Communications Week, 2 October 1995, p. 28.
44. Rocks et al. (1995).