The Str a tegic Challenges of mer ce
I n t r o d u c t i o n
1 1 th Ce n tu r y Eu ro p e s a w th e e m e rg e n c e o f c re d it - b a s e d b a n k in g
s y s t e m s a n d fin a n c ia l in s t ru m e n t s s u c h a s b ills o f e x c h a n g e . Th e s e c o n ce p t s r e m a in w it h u s , in th e ir m o d ifie d fo rm , to th is d a y ( Ch o w n , 1 9 9 4 ) . Th e y u n d e rp in a ll m o d e rn fo rm s o f c o m m e r c e . Th e a r r iv a l o f in fo rm a t io n t e c h n o lo g y ( c o m p u t e r s a n d t e le c o m m u n ic a t io n s ) h a s
r a is e d th e p ro s p e c t o f r a d ic a l c h a n g e to th is t r a d it io n a l m o d e l.
Th e r is e o f th e In t e rn e t ( e le c t ro n ic c o m m e r c e ) , s in c e th e a d v e n t o f th e W o r ld W id e W e b , h a s p ro v id e d a n e a s y t o u s e c o m m u n ic a t io n c h a n n e l fo r b u s in e s s e s to c o n t a c t c u r re n t a n d p o t e n t ia l c u s to m e r s . Th e
e m e rg e n c e o f th e In t e rn e t a s a g e n e r a l c o m m u n ic a t io n c h a n n e l h a s a ls o g iv e n r is e t o th e p o s s ib ilit y o f w id e s p re a d e le c t ro n ic c o m m e rc e .
Ev e n th o u g h th e r e is s t ill m u c h d e b a t e r e la t in g to e le c t ro n ic p a y m e n t fo r c o m m e r c ia l a c t iv it ie s , th is is c le a r ly a n a r e a o f g ro w th .
It is d iffic u lt to s a y h o w la rg e th e In t e rn e t is . Ho ffm a n & No v a k ( 1 9 9 6 ) q u o t e a n u m b e r o f s u rv e y s ( O' Re illy , FIND/S VP, Tim e s Mirro r a n d Co m m e r c e Ne t ) w h ic h s u g g e s t th a t t h e r e a r e a t le a s t 1 0 m illio n
In t e rn e t u s e r s in th e Un it e d S t a t e s a lo n e . Th e n u m b e r o f c o m p u t e r s ( h o s t s ) c o n n e c t e d t o th e In t e rn e t to p p e d 9 . 4 7 m illio n ( Ne t w o rk
W iz a rd s , 1 9 9 6 ) a s of J a n u a r y 1 9 9 6 . No te th a t a s in g le h o s t s u p p o r t s a n y w h e
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