Building a business behind the screen; America Online's E-commerce goals

Article Abstract:

America Online's acquisition of Netscape has strengthened the cybersapce giant's bid to enter the lucrative corporate online stores market. A goal consists of providing online merchants with one-stop software, consulting and services that extend beyond Netscape's electronic commerce software, according to America Online Pres Robert Pittman. Electronic commerce software and services will soar in value from $325 million and $5.3 billion respectively in 1998 to more than $35 billion combined in 2002, according to Forrester Research projections. IBM presently leads the electronic commerce services market, analysts say. Andersen Consulting and Electronic Data Systems are among the other established and fledgling competitors. America Online believes combining its approximately 15 million customers with Netscape's software and Sun Microsystems' hardware will raise its presence in a fragmented market. Some analysts, however, question America Online's ability to meet heavy corporate demands.

Asset sales & divestitures, Acquisitions & mergers, Facilities & equipment, Planning, Computer software industry, Software industry, Mergers, acquisitions and divestments, Company acquisition/merger, Company business planning

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Money starts to show in Internet shopping

Article Abstract:

Internet sales may produce their first significant result during the 1997 holiday season. Numerous Internet merchants are noticing sharp volume increases, even though on-line sales account for a fraction of the overall economy. More consumers are increasing their on-line skills and are feeling more comfortable about security issues. The American Express Co. said Internet credit card purchases will jump more than 400% to between $4 billion and $6 billion in 1997. Forrester Research, which recently reported that 25% of about 40 million Internet users had made an on-line purchase, estimates the 1997 purchase total at $2.4 billion. America Online (AOL) said 78% of its member shop on line, but only 12% have purchased items. Dozens of merchants have combined for one million sales a month through their links with AOL. Sales are quickly expanding beyond computer products to other popular offerings such as airline tickets, books, music and gift items.

Internet, Internet/Web technology application, Technology application, Online transaction processing

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Not every maker wants its products sold on the Net, at least not by others. (On-line shopping: Good, bad and growing)

Article Abstract:

Various manufacturers still balk at participating in the surging Internet shopping market. Some companies, such as Calvin Klein, believe that online sales might compromise their brand image. Maytag and others have pledged their loyalty to a handful of local stores to maintain credibility and pricing. Another reason is that manufacturers may prefer to wait until they can offer their own lines over the Web. By contrast Philips Electronics, Donna Karan and Mattel already have embraced the online shopping market. Internet shopping for goods and services will total only $4.7 billion, compared to $87 billion for direct mail's and telemarketing and $2.6 trillion for overall US retail sales, according to The Direct Marketing Association. The market continues to grow, with 1998 Christmas sales to be two and a half times larger than in 1997.

Marketing procedures, New Electronic Marketing, Geographic, Business to Business, Internet/Web overview

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