The Rise of the "new" Economy

Companies engaging in e-commerce must(prenominal) follow the same basic laws as so-called handed-down companies. That is, they must assume a certain structure corporation, partnership, proprietary pay taxes, keep books and follow discrimination laws in their hiring practices, among different requirements. There are, however, certain unique aspects of e- line of reasoning that result in supererogatory good responsibilities being placed on companies that operate in this market.

For example, e-commerce companies may well transact business on a global level. Once, this was reserved only for the largest organizations that could build an infrastructure that back up international trade. The internet makes it possible to reach customers around the world. This heart that companies must be aware of local laws and regulations regarding what can and cannot be sold to consumers in particular countries. In addition, privacy issues are not only ethical but also legal issues, and companies must confront these, as well. Marketing to minors is cover by both domestic and international laws, as is the market of pornography (Michael, 2004).

Legal issues also arise from the way that companies plow

In the mid- and late 1990s, business began to see the potential of the Internet. Using the Internet, companies could possibly reduce their animal(prenominal) presence and save money on human resources as well as the costs that are associated with so-called brick-and-mortar facilities. The Internet offered 24/7 access to goods and services, and a global market.

So long as companies could build systems that would accommodate payment schemes and operated indoors the law, there seemed no limit to the financial success that parvenue Economy companies could achieve.

Webvan did not suffer from a lack of financial planning: the comp either raised more money than any online retailer at the time 1999 except for Amazon.com. It attracted well-known risk capital groups such as Sequoia Capital, Softbank and Benchmark Capital. The telephoner put together an ambitious plan for expansion that include 26 cities and that continued to reinforce the partnership's strategy of targeting high-income, busy professionals who could stool online and then have their groceries delivered at a convenient time. The company maintained this business plan and strategy, supporting its efforts with appropriate advertize and marketing, as well ("Private Equity," 2003).

Sullivan, B. (2003, April 22). eBay, Amazon privacy policies on a lower floor fire. Computerworld. Retrieved 8 March 2005 from <>.

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