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Equipping the Dotcom

Published by: Datamonitor

Published: Aug. 20, 2001 - 107 Pages


Table of Contents


Introduction

Key features of this report

Total dotcom IT spend will fall

Dotcom IT spend for maintenance services will reach $6.7 billion by 2006

Existing business now the majority

By 2006, B2B Commerce and Service Providers will be the largest market segments

75% of dotcoms will fail after five years

Total cumulative number of dotcoms is increasing

Key action points

INTRODUCTION

What is this report about?

Who is the target reader?

How to use this report

MARKET CONTEXT

Introduction

Key findings

Market size

The US market remains dominant

Large and medium dotcoms account for the majority of IT spend, but most new

startups are small

Software and Professional services have represented the bulk of dotcom IT spending.
2001 will be the first year in which existing business spend is greater than new business spend

Number of new dotcom startups now declining

75% of dotcoms will fail after five years

Total cumulative number of dotcoms is still increasing

Market segments

Description of dotcom business models

Drivers and trends

Increasing Internet penetration

The dotcom heyday

The Nasdaq and the high point

The 'me-too' climate

The Nasdaq and the low point

Factors for success and failure

Success factors

Failure factors

Dotcom profiles

Portal: AOL

Content/community: Salon.com

B2C retail: Amazon.com

B2B Commerce: TradeNetOne.com

Brokerage: eBay

Service provider: Interliant

Conclusions

CUSTOMER FOCUS

Introduction

Key findings

Customer identification

Dedicated sales force

Market tracking

Let the VCs do the work

Key features of a potential customer

Customer acquisition

Relationships with VCs

Existing relationships with enterprises

Leverage internal assets

Dedicated programs and services

Defining the dotcom lifecycle

What dotcoms need

Equipping the dotbam

Customer retention

Design, build, maintain

Conclusions

COMPETITOR DYNAMICS

Introduction

Key findings

Competitor analysis

Hardware vendors

Software vendors

Conclusions

THE FUTURE DECODED

Introduction

Key findings

Total dotcom spend will fall

By 2006, B2B Commerce and Service Providers will be the largest market segments

US market remains dominant

Large and medium dotcom spend decreasing at greater rate than small dotcoms

Spend type will decrease evenly

Existing business now the majority

Total number of new startups decreasing

Majority of new startups will be small

Total cumulative number of dotcoms is increasing

Greatest opportunity for vendors in maintenance spend

Conclusions

ACTION POINTS

Introduction

Key findings

Action point 1 - IT vendors must concentrate on establishing long-term

relationships with successful dotcoms, in order to take advantage of the

maintenance market.

Hardware vendors: a shift in focus

Software vendors: set to reap the benefits of long-term dotcom IT spend

Action point 2 - Portals must generate new revenue by maximizing their customer

base

Charge for premium content

Integrate with eCommerce streams

Action point 3 - B2C retail dotcoms must keep capital investments to a minimum

and protect existing investments.

Short-term survival

Integrated solutions the key to long-term survival

Enhanced customer relationships

Action point 4 - B2B Commerce dotcoms must quickly raise the services bar to

deliver long term-value to participants.

New revenue streams necessary

Reduce cash burn

Increase investment

Action point 5 - Brokerage dotcoms must find new ways to generate revenue.

The effect of the dotcom crash

Utilize customer base for new revenue streams

Action point 6 - xSPs must rationalize their cost structures and attract new

customers.

Using value-added services to defend margins and competitiveness

Features of successful xSPs

Conclusions

APPENDIX

Dotcom profiles

StepStone.com

Scoot.com

BOL.com

Eutex.com

Tradematch.com

Ilse.nl

Yellout.de

How to contact experts in your industry

(c) Datamonitor 2000. All Rights Reserved.

Abstract

'Equipping the Dotcom to 2006' examines the dynamics of the volatile dotcom market. The report identifies current and future opportunities for technology vendors, and examines the opportunities for prospering in this market. Segmenting the market into five different models; Portal/Content/Community, B2C Retail, B2B eCommerce, Brokerage and Service Providers, the report identifies where niche opportunities lie.

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