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Internet in the Home
Current UK figures show the penetration of Internet usage in the home is slowing but has almost reached 60% of Internet enabled homes, with the majority now being Hi-speed ADSL Broadband connections.
Internet Growth for Tescos
Tescos announced £2.2 bn profits for 2005/06 with 50% growth in their online shopping sector.
Dot.com Death and Hi-Tech Downturn - is the Net dead?
A new report by webmergers.com accounts for 555 closures over the 18 months to June 2001, 10% of those in June alone. Over the same period half of the US dot.com workforce has been laid off. The current closure rate is reportedly 9 times higher than in the first half of 2000.
UK company failures amounted to around 15,000 businesses in each of the last 2 years representing just over 1% of those trading. The proportion of these that were Internet businesses is not known but Business 2.0 magazine, 'the voice of the new economy' and which itself closed down in May 2001 after just a few issues, regarded Internet start-up failures as disproportionately reported on. Perhaps 50-60 UK businesses closed during the dot.com collapse of 2000.
Because these featured big names (Intersaver, Letsbuyit, PSInet etc) or celebrity personalities (e.g., Joanna Lumley and Clickmango) media attention was drawn to them, as was that of those eagerly waiting for the new economy to fail. In America, a whole pink-slip party culture has grown up around those who have suffered during the period of cost cutting including extensive lay offs amongst big names such as Alta Vista, Amazon and AOL. Alta Vista's parent company's share price has fallen by 98% and the expense of being a portal has been realised and so it is returning to its core activity of being a search engine. The BBC has also publicised for the first time the huge cost of its free online news and media services.
The dot.com market is not dead, but perhaps it is a little more realistic. An improved emphasis on customer service should become apparent as recent surveys suggest that Internet businesses have largely failed in keeping the customer either informed or satisfied, leaving more than a third of emails unanswered, delivering less than half of goods on time (48%), and many of these without a receipt.
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