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Scale, Service and Speed:
To survive consolidation, dotcom retailers will need
to anchor themselves by building sustainable assets that will attain scale, service,
and speed. Leaders will need to focus on hard assets that support high sales
volumes and lower costs per transaction; large, loyal customer base; in-house
fulfillment capabilities; and a rock-solid international organization.
Technology is King
:
Those creating new, attractive and cost-effective technologies
in the dotcom business with an eye on consumer service will emerge as king
dotcom companies with venture capitalists running after them.
Web-enabled
: ‘
Bricks and Mortar’ companies will try to be more and more web-
enabled, and this model will emerge as the real winner. This will be true
for B2B as well as B2C segments.
VC Money to Flow In
:
in spite of doomsday prophets, venture capital will
continue to flow in for the right companies, although with more reality checks.
IPOs:
Because of reality checks, there may be some delays, but the winner will
ultimately go in for IPOs and thus will be successful.
Government to Chip In
:
The Net revolution can be a non-starter if the Department
of Telecommunications does not provide the required bandwidth. Simple
solutions allow private entrepreneurs to take over and build a national Internet
backbone of 100 Gbps in the next nine months in India.
India to Ride High
:
The strong growth rates and proven revenue models of the
software industry will have a positive rub-off effect on Indian dotcom services.
Dotcoms will Boom and Not Bust
:
At the end, it will be good news for the real
dotcom start-ups which started with strong fundamentals, USPs and proven
revenue models.
Those who were dot-coming or were not looking for eye-balls but quick bucks
with no revenue stream will be pushed out of business.
In summary, the dotcom business is here to stay—but with reality checks and
restructuring.
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