• First, the ability to reach new customers and create more intimate relationships with all customers.

Every business has a global presence immediately on the Internet. Even small and medium-sized businesses can now more easily reach customers around the entire world. The new technologies of computers and telecommunications enables a business to learn more about its customers, share information with them, and then apply that information towards improving better customer relationships and creating more sales.

• Secondly, There's a dramatic cost reduction for distribution and customer service.

The Internet dramatically lowers the distribution costs for information and dramatically improves the ability to keep information current. Today customers are demanding more information about the products and services they purchase, and the ability to deliver that information becomes an important part of making the sale. Furthermore, on the Internet, information may be the product. Over time the Internet may well change the structure of the competitive landscape as we know it today. Instant communications has already started to transform the relationship between businesses and their customers, and the conversion from physical to digital will change the sources of business value. Will the Internet lead to great consolidation of suppliers or to the growth of thousands of small businesses, each capable of global distribution? Both scenarios generate powerful arguments, even over the last few years we've seen successful examples of each. Businesses will face competition from companies that started in completely different industries, thus requiring reassessment of their value propositions for the customer. These considerations are the natural transformation from the technical and economic nature of the Internet as a whole.

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