Investors were initially bullish on Internet and dot-com companies. However, even the world’s leading E-tailer, Amazon.com, has failed to earn investors a nickel on $2.8 billion in sales annually (Mandel and Hof 117). So, too, networking and computer gear firms are also floundering. The Internet promised to revolutionize the corporate world and transform American society. However, while the Internet may have an impact on some industry like financial services, entertainment, health care, education, and government, it has only an incremental impact on industries like retailing, manufacturing, travel, and power.
Experts point to the fact that without advanced technologies, from wireless communications to broadband connections, the Internet will continue to be stalled in fulfilling its original promises. According to one expert “Strip away the hype, and at its essence the Net is a tool for faster, better communications” (Mandel and Hof 121). Many feel that the unrealized potential of the Internet is due to the fact that most view it as an alternative means of traditional forms of competition as opposed to a complimentary tool to enhance competition. While the Web has attracted millions of users, caused an explosion in technological investment, and resulted in a surge of productivity growth, E-tailing is still a minor portion of Internet revenues, technology orders have gone flat, and Internet stocks continue to rapidly decline. For this reason, the authors feel the Internet will have the most revolutionary impact on communications-intensive industries.
The impact of the slow progress made by the Internet to live up to its revolutionary promises will have a major impact on businesses, consumers, and the economy. Investors will now be wary of investing in dot-com companies and Internet technologies with many companies failing and million
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