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Every year the Internet penetrates deeper into the activities of business enterprises, changing the ways of doing business, its shape, and providing new opportunities and unique technology for its development. Internet has its own laws, its capabilities and features, as well as advantages and disadvantages.

The use of the Internet in the traditional business has strategic importance. This is due to the exponential increase in number of Internet visitors and converting it into the main sales channel for many business sectors.

Internet transforms from an abstract "World Wide Web" to the news channel used in day-to-day.

The influence of the Internet on the economy is growing constantly. Many companies (large and small) open their representation on the Internet - corporate websites. Other companies are shifting their business entirely on the Internet.

More and more people prefer to buy products for sale online, play online casino, read online newspapers and magazines, and chat with friends over the Internet.

The rapidly growing Internet audience is a new market for companies of various profiles. The lack of geographical barriers to advertising and distribution of goods and services have attracted all new businesses to Internet business.

All of the above factors determined the relevance of this research.

Its purpose is to check the process of organizing an online business.

Methods: processing, analysis of scientific literature, analysis of scientific literature, books and manuals, as well as the Internet research problem.

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E-business is the transformation of key business processes through the implementation of Internet technologies for increasing efficiency. E-business is any business activity that uses the capabilities of global information networks to transform the internal and external relations. From a technical point of view, the Internet is a worldwide association of computer networks, which can link computers within the enterprise, which is called an intranet, or association of local networks of various enterprises, which is called an extra-net.

E-business is any transactions made via the network, the completion of which is the transfer of ownership of the goods or services, as the purpose of banking is to transfer funds for any purpose.

The range of application of e-business is determined by financial transactions online. These include transactions with banking product, the operations of insurance product, online investment, speculation in currencies and securities, e-commerce markets. These include trade through visual shops, sale of information products, sale of tourism products, mobile commerce markets. This sale is through vending machines and retail services markets.

Information exchange is the interaction between banks, trading partners, suppliers, where information is a commodity.

Online trading is part of e-business, during which communication and the exchange take place electronically.

Some common types of e-business include e-auctions, e-banks, e-commerce, electronic research and development work, electronic signage, e-learning, e-mail, and e-marketing.

The degree of preparation of the state of e-business is determined by level of inventory, level of communication, the quality of training and readiness of financial institutions to e-business, government attention to the industry.

An important element in planning the future business is to understand who will be the future client of the company. The answer to this question largely determines the organizational structure of the project. In the classification there are several business models: B2B (business-to-business); C2B (consumer-to-business); B2C (business-to-consumer); B2A (business-to-administration); C2C (consumer-to consumer); C2A (consumer-to-administration) (Amor, D. 2001).

The desire to harness the power of Internet-economy encourages companies to seek innovative business models and radically new competitive strategies:

  1. Suppliers of communication equipment in the main producing equipment for Internet-communications adhere to the traditional business model - selling equipment issued at a price that provides enough level of profit and return on invested capital.
  2. Communications service providers are building a business model on selling services at fixed rates. Since the problem is Internet-service providers - to give connectivity to the Internet, they are investing heavily in the development of communication networks and equipment. The desired level of profitability may be achieved immediately, but such an increase boot provides the excess of income above the break-even point. The main task of the company is to enter the link and attract customers faster than the competition. Brand awareness and advertising are important elements of the strategy that provides access to the Internet, contributing to an increase in market share. In order to attract potential customers Covad, a small company in Silicon Valley, offers high-speed access to the Internet along the lines of DSL, in 2000 took out an ad worth $ 40 million in the U.S. to break into the leading provider of access services on the Internet (at the start of the campaign, sales of Covad were only $ 20 million per year). This forced competitors to also launch advertising campaigns within just a few weeks (Schneider, G. 2011).
  3. Manufacturers of computer equipment. As manufacturers of equipment for infrastructure Internet, computer makers and components used for the most part the traditional business model, realizing products at prices that cover costs and give a sufficient profit.
  4. Software developers of e-commerce are creating all kinds of business transactions on the Internet. Their business model is to invest resources (mainly of programmers) to the development and improvement of specialized programs with further promotion and sales to corporate customers (e-merchants, Internet-service providers, content providers, etc.) at a price that covers costs and provides enough level of profit.
  5. There are two major groups of electronic traders: one group sells goods mainly to corporate customers (this group is also called B2B), and the second group - to the last consumers (B2C). These categories of companies use Internet-specific strategies.
  6. Combined strategies as an alternative to purely traditional and electronic. Many traditional retailers fear of the spread of Internet-trading and businesses quick to open their sites. Merrill Lynch and Paine Webber invited their customers to make purchases through the Internet, to prevent the passage of price-sensitive buyers to electronic companies offering goods at low prices (Charles Schwab, E * Trade and Waterhouse).

At the turn of the century, the transformation of the market economy: instead of producing standardized products, service receives orders are becoming more widespread. This is determined by the variety of its forms observed today and marketing tools, such as the Internet. The transition from one person to mass demand requires transition from mass marketing to an individual that was manifested in particular in the event conception CRM. Today, the supplier must take into account the interests and needs of different groups of consumers - from strategic customers such as large companies and organizations, to very small businesses and people.


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Association of suppliers and customers via the Internet enables finding and buying the right product at an affordable price, and creates the conditions for mass production of goods to order.

Guided by the above considerations, Hewlett-Packard has developed a sales strategy with the use of the three main channels: direct sales, traditional resellers and the Internet channel.

Infrastructure of such a channel includes each portal for large customers, portals for small and medium-sized enterprises, organized by the principle of business centers, virtual showrooms and storefronts.

HP has been a model company in terms of management for sixty years. The slow growth in recent years has led the Board of Directors to a decision to appoint an energetic CEO who would pull the company out of the state of near-death, similar to the one where there was IBM 10 years ago, and Xerox in the present moment.

Today, HP is the second largest computer company in the world. This is certainly a very strong position, but, more importantly, it clearly shows the company who its main competitors are, and what strategy it needs to take. "Updating the brand" - it is just an exercise to remind everyone that HP is the second in among a wide variety. It should not include the idea of ??invention in a small garage. These modest beginnings did not have anything to do with computers. Lord Hewlett and Pekerd invented their measuring and test equipment. The new HP software had to be directed against its natural enemy.

As we know, the number two must attack number one and offer a better alternative. In order to win a larger share of the corporate systems (where Fiorina is counting on a big increase), HP must face IBM. To achieve this goal - the delivery of e-commerce corporations - need "the anti IBM strategy," not a strategy, "we are too." IBM has a strong service department and a great advertisement of e-commerce. What is in this sense, the Hewlett-Packard? How can it present itself as an alternative? Will HP surpass IBM's part inventions? It is unlikely that many small garages would not be attacked.

When attacking larger rivals it is necessary to find their strengths and try to avoid collisions. IBM Power is in commercial systems running on mainframe computers installed in many large companies. In fact, sales of large systems are the engine that assures IBM's rapid growth in business systems integration and consulting. In general, the world is changing in the direction of open systems based on the internet, so the mainframe will be gradually replaced. Why is IBM christened their big cars "enterprise server"? It plays the interest of customers to the client-server systems.

This allows exploiting the weakness of IBM in this growing class, "the world leader in open systems for enterprises."

The challenge is to explain how the Hewlett-Packard took the second place in the market. IBM has made it through their systems on large computers. HP has made it through its open client-server systems. HP has every right to hold this place. Last known figures of the company indicated the following: HP the world's largest provider of open systems; HP the world's largest provider of UNIX (open source operating system); HP has led to the use of open systems in more companies than did any other company.

It provides an opportunity to strengthen their position and build service business that competes with IBM, Accenture and EDS. HP could rename a business service to the organization of computer systems Hewlett-Packard. The task of this organization shall be to help businesses in the transition to the use of open systems (Amor, D. 2001).

Therefore, Hewlett-Packard has a great opportunity to win the position of IBM, whose leadership is ready to make any computers indiscriminately. HP can accentuate the negative competitor.

Hewlett-Packard can say that the main advantage of their systems for companies is to cut the risks. A thorough understanding of the "open" technology, as well as extensive experience of Hewlett-Packard, allows it to use the Law of Sincerity: admit your weaknesses and the potential client will reward you with his trust.

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The truth is that many companies providing maintenance services promise more than they can actually do. Also, many service companies underestimate the time and cost of the transition from mainframe to open systems. This led to the fact that many CEOs are dissatisfied. It was found that about half of all completed technology projects failed to meet the expectations of managers. HP is offering an excellent opportunity to: talk about the dark side of the transition from mainframe to the client-server system; talk about something that is impossible to achieve, the transition to open systems; talk about the new Internet-based services, while avoiding myths and promises of "security"; talk about why the "lower risk" indicates that Hewlett-Packard is the best provider of complex software products.

In general, one needs to talk about all that, what IBM is silent about. This is also consistent with the conservative reputation of HP, and most importantly - this strategy does not need carrying out any of its new inventions.

There is one rule for competition, which should be taken into account: the need to avoid the strengths of competitors and use their weaknesses.

If your competitor is known for something, one should be aware of something else. It often happens that the weakness inherent in the competitor, it is just something else that one can use. If McDonald's strength lies in the fact that this is a place for children, Burger King can declare itself as a place for kids who grew up. IBM is known for its enterprise systems to mainframe computers. Hewlett-Packard may use it by offering an open distributed computer systems.

Information technology market is constantly and rapidly changing, and very often the changes affect its very foundation. Companies have to develop very quickly, not to mention how difficult it is to be a leader.

For sure, e-business with proper investment into its development can bring high profits to companies who decide to use it. E-business opens up many new opportunities for the company, and one of the main advantages is the speed of most of the operations associated with it.

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