The Effects of the Internet on Channel Strategy
Ryan Andrew
MM 574
June 11, 2009
Consumers walk into a grocery store on any given day, pick up the food or beverages they need, pay and head home. Few people stop to think or contemplate how the Tombstone pizza they purchased for dinner ended up in the frozen food section of the local grocer. They merely place the pizza in the oven and in 15 minutes dinner is served. The process of delivering the Tombstone pizza to the consumer, through the grocer, from Kraft Foods is the distribution channel strategy.
The Tombstone example could include any number of items or companies. Goods or products have to start someplace and in this case, Kraft Foods is the producer. Customers in the
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The Internet began to mature in the 1970’s and was adopted by the Department of Defense in the early 1980’s.The language and programming at the time was still extremely complex and difficult for non-technical people, but by the 1990’s became much easier to understand and to use. (Howe)
The next step for the Internet was development of a browser which could handle the consistent file sharing as the technology further developed. A key person in the growth and eventual boom of the Internet was Marc Andreessen. In 1993 he developed the graphical browser called Mosaic and later went on to found Netscape. Netscape was the most successful browser available for Internet “surfing” until the launch of Microsoft’s Internet Explorer. (Howe)
This is about the time the Internet became a factor in marketing and channel strategy. The key to the success of the Internet lies in commerce. Before Marc Andreessen and Netscape came along, the Internet was composed mostly of e-mail and file sharing. Business, marketing and e-commerce were really not seen as commercially viable through the Internet. Andreesson and his associates were the visionaries behind the concept of commerce over the Internet and the direction they wanted the new technology to take. (Howe)
Netscape was eventually forced to sell to America-Online (AOL) when Internet Explorer became the preferred browser for anyone using Microsoft Windows. The competition between the two
1. Why are investors excited about Netscape? What is Netscape’s business model? What must Netscape accomplish if it is going to be successful in the long run? What are the risks Netscape faces?
The fourth considers the shift made, From ARPANET to Internet approaching defense and research. The fifth section covers The Internet in the Arena of International Standards. The final section, Popularizing the Internet, shows the beginning of the wide spread of the Internet but before Internet connectivity becomes popular at the personal level. All things considered, the book states the expansions in Internet history between 1959 and 1991, with some proceedings to 1994.
The internet has revolutionized the modern world like no other invention has before, except perhaps, electricity. The internet allows sharing and collaboration to take place between people on opposite sides of the globe. Vinton G. Cerf, often called the “Father of the Internet”, admits that when the original idea of an “intranet” was in its infancy, there was no possible way to imagine all of the ways we would come to use it (NDTV, 2013).
The name was later changed to Netscape Communications Corporation when the University of Illinois (which owned the trademark on the name Mosaic) threatened legal action. Netscape can be considered an advocate for the dot com era. They were not the first internet start-up, but they were the only one that mattered. Netscape produced Netscape Navigator which went on to become its first widely popular internet application. Netscape Navigator became really popular after the launch of the World Wide Web. Netscape Navigator introduced millions to the web. SSL, Java, JavaScript, open APIs and support for online media were innovations that Netscape Navigator made relevant. The next best thing of Netscape was the Netscape IPO. It helped launch the internet era that we are currently living in. It is thought that Netscape was born in Silicon Valley, but actually it was in Champaign Urbana, Illinois at the University of Illinois. It all started with a bunch of young programmers and software developers hanging out in a basement. The group was called the software development group. These programmers and software developers were working for barely above minimum wage at the National Center for Supercomputing Applications (NCSA). Aleks Totic and Jon Mittelhauser were a part of the group. Totic went on to develop Mac versions of both Mosaic and Netscape Navigator and Mittelhauser went on to develop the Windows
The internet has been the rise and fall of many entrepreneurs. For example, the rise and fall of the DOT-com. The DOT-com in a business whose main sail and advertisements are on the internet. DOT-coms are businesses like Yahoo.com and Ebay.com. In the early 1980’s the commercialization of the internet started. This allowed and promoted the DOT-com bubble. The reason so many thought that the DOT-com was a superior way of doing business is because the startup was lower, the rent space was less and you could do business easily with in America and worldwide. There were many other advantages that appealed to startup companies to help finance the DOT-com phenomenon.
It is important to know the history of the internet. The internet is a worldwide network of computer systems that are connected to each other by cables (Howe, 2012). The internet first started out as a military experiment. In 1957, the Advanced Research Projects Agency (ARPA) was created by the United States department of Defense (Computer History Museum, 2004). The project was started after the Russians launched a satellite into space for communication reasons. The satellite was called SPUTNIK (Computer History Museum, 2004). It was rumored that President Eisenhower got worried and decided to get the United States to launch its own satellite. They recruited Dr. Joseph C. Licklider of MIT, was made head of the Information Processing Techniques Office (IPTO)(Computer History Museum, 2004). Their purpose of the project was to focus on improving the military use of computer information.
The time is now 1995; the internet is slowly evolving, and just as the company survived the arrival of television and other technology so it must with the internet. Convinced the internet will have
This paper is intended to shine a light onto distribution channels, both direct and indirect, as well as, provide a better understanding of channel levels. It will also deal with the different channel organizations, including conventional, horizontal, vertical and multichannel marketing systems.
The Internet influenced the United States more than anything else in the 20th century. The Internet first technically started in 1969, when the U.S. Defense Department’s Advanced Research Projects Agency or ARPA connected networks at the University of California and the Stanford Research Institute (SRI). From there, just three years later the creation of the Email was born by Ray Tomlinson of BBN. With many other novelties of the Internet coming soon after, such as the Domain Name System (DNS) establishing .edu and .com, and the first web browser, World Wide Web by CERN. As the Internet flourished in the late 1990s it became more usable to the public and soon became routine to use, making great changes in society. The Internet was integrated
First, Microsoft ‘encouraged’ Compaq, Apple, and other computer manufacturers to promote only Internet Explorer, and to make that the default browser on their PC. This encouragement came in the way of threats to eliminate or delay licensing of operating systems, providing the browser for free to internet access providers, and bundling the software with the operating system under the guise of interactive ease for the consumer. This manipulation led to an increase in the browser’s sales by 45 to 50%, which paralleled the decline Netscape experienced in their market sales in 1998.6
At the beginning , in “Browser Wars”, a brave bunch felt that they were going to be the only one’s to bring computer users the only browser, as Netscape. Microsoft showed then that they weren’t going to be left out of this genre matter what. Even though most of
In Where Wizards Stay up Late, the Origins of the Internet, Katie Hafner and Matthew Lyon explore the beginnings of the Internet. The authors show us how it was a computer-engineering firm that produced the original prototypes for "Arpanet," and how several very intelligent men made the Internet possible. The book is excellent in that it brings to the limelight many important people that played an important role in devising the Internet. In other words, therefore, this book is a history as well as a work of drama. It tells a very intriguing story of how the computer technology for the Internet was devised. In many respects, it is very much a "behind-the-scenes" kind of documentary.
In the text, the author tries to explain how the internet was not a profit making an idea for a business, instead it was to reduce the gap of communication. It was an idea to link people with information which is easily accessible. In the beginning, the internet was used by the
Leiner, Vinton G. Cerf, David D. Clark, Robert E. Kahn, Leonard Kleinrock, Daniel C. Lynch, Jon Postel, Larry G. Roberts, Stephen Wolff. Brief History of the Internet. n.d. Internet Society. 2017. .
The internet matured in the 1970's as a result of the Transmission Control Protocol/Internet Protocol (TCP/IP), which is sill used today. It was adopted by the U.S. Department of Defense in 1980, and universally adopted in 1983. The usage of TCP/IP is what unites all elements of the net. Both public domain and commercial implementations of the roughly one hundred protocols of the TCP/IP protocol suite became available in the 1980's. During the early 1990's, Open Systems Interconnection (OSI) protocol implementations also became available by the end of 1991, the Internet has grown to include some 5,000 networks in over three dozen countries, serving over 700,000 host computers used be over 4,000,000 people. By December 1996, about 627,000 Internet domain names had been registered and now there are more than 30 million registered.