Analysis of the Internet -- Software and Services Industry
Analysis of the Internet
Software and Services Industry
BE 530 Course Project
Winter 2012
Tingting Xu
Introduction
The industry I have chosen for this project is the Internet Software & Services. Companies in the Internet Software and Services Industry develop and market internet software and provide internet services including online databases and interactive services, web address registration services, database construction, and internet design services, to name a few Information Technology is currently one of the largest ten sectors in S&P 500 with a sector weight of 17%. (See fig.1)
Fig.1
The Information Technology Sector is split into three industry groups: software and service(39.14%); technological hardware and equipment(44.9%); the semiconductors and semiconductor equipment (12.79%). Fig.2 Info Tec Industry Croup Weights
The IT industry dominating firms include eBay, Google, Yahoo! and VeriSign, etc. While other firms play an import role in the industry, I would like to focus analyzing the above mentioned four companies for the purpose of this paper.
Concentration
Within the IT sector, the Internet Software and Services Industry helps consumers and businesses realize and find services that are suitable for their needs. In order to do so, the companies in this particular industry develop and/or provide on-line databases and interactive services, web address registration services, database construction and internet design services, based on which the related applications are created and promoted.
There are five major firms and some small firms in this industry. Although the history data shows that none of the five firms’ profits equal to zero in the past five years, the profits are business profit. All we need to find is financial profit. The low barrier to enter the Internet Software and Services Industry make it a very open industry. The large number of new applications being offered by small start-up companies
Software and Services Industry
BE 530 Course Project
Winter 2012
Tingting Xu
Introduction
The industry I have chosen for this project is the Internet Software & Services. Companies in the Internet Software and Services Industry develop and market internet software and provide internet services including online databases and interactive services, web address registration services, database construction, and internet design services, to name a few Information Technology is currently one of the largest ten sectors in S&P 500 with a sector weight of 17%. (See fig.1)
Fig.1
The Information Technology Sector is split into three industry groups: software and service(39.14%); technological hardware and equipment(44.9%); the semiconductors and semiconductor equipment (12.79%). Fig.2 Info Tec Industry Croup Weights
The IT industry dominating firms include eBay, Google, Yahoo! and VeriSign, etc. While other firms play an import role in the industry, I would like to focus analyzing the above mentioned four companies for the purpose of this paper.
Concentration
Within the IT sector, the Internet Software and Services Industry helps consumers and businesses realize and find services that are suitable for their needs. In order to do so, the companies in this particular industry develop and/or provide on-line databases and interactive services, web address registration services, database construction and internet design services, based on which the related applications are created and promoted.
There are five major firms and some small firms in this industry. Although the history data shows that none of the five firms’ profits equal to zero in the past five years, the profits are business profit. All we need to find is financial profit. The low barrier to enter the Internet Software and Services Industry make it a very open industry. The large number of new applications being offered by small start-up companies
References: Erik Wrobel MBA (May 1996). “The Internet Software Industry”. http://www.wrobel.dk/erik/research/intsoft.htm#1 John O’Shaughnessy & Maggie McRae (Spring 2010) Marco Iansiti (June 15,2009). “Principles that Matter: Sustaining Software Innovation from the Client to the Web”. Centre for Continuing Professional Development GB010 Applying Strategic Thinking (2007). Case study: Strategic Analysis. “Factors that can influence the strength of each of the five forces”. Acquire Media (July 14, 2011). “Verisign Announces Increase in .com/.net Domain Name Fees”. https://investor.verisign.com/releaseDetail.cfm?ReleaseID=591560 MOUNTAIN VIEW, Calif. (April 15, 2010). “Google Announces First Quarter 2010 Financial Results” http://investor.google.com/earnings/2010/Q1_google_earnings.html