hat their e-business will contribute more than 20 percent of their total revenue. This increase is substantial given that more than 75 percent of the CEOs report that only five percent (or less) of their current business is coming from the Internet.
Trade distribution and logistics industries deal with two flows: a flow of goods and a 'counter-flow' of information about the goods and about their movement. The efficiency of these industries is being dramatically improved by Internet-based methods of moving information allowing them to reduce transport, insurance and border administrative costs. These supply-chain efficiencies have made global direct retailing of consumer products such as clothing and health products possible.
The Internet is likely to become a major marketing tool for at least some commodities and enable producers, buyers and marketing authorities to develop closer relationships with final overseas customers and to improve information flows in price sensitive markets.
Small and rural businesses may be among the biggest beneficiaries of the Internet. By reducing transaction costs, the Internet provides unprecedented opportunities for these organizations to trade across borders. Lower transaction costs also provide opportunities for many rural and regional communities to revitalize their economic bases. Skillful use of the Internet can create opportunities by giving farmers, small business people and communities the capacity to present a regional image to the world, create focal points for inquiries about local businesses and their offerings, create global businesses and develop new products and services.
Nearly all companies which have a significant presence on the Internet do so because it is an efficient and effective way to serve their customers. The threat can be even greater to traditional businesses who must undertake an often significant investment in new resources in order to become competitive ...