As such, they have almost no hope of reengaging increasingly sophisticated customers and newly skeptical VCs. Widely dispersed groups of customers with money and specific interests still exist, and they have increasing access to the Internet. Suppliers can still profit by connecting with these customers and fulfilling their needs. The basic reasons for Web-based commerce still apply. Convenience and time savings are still major issues for most families, far outweighing a few dollars in shipping fees.
Information still adds value to even commoditized products.
Bundling, cross-selling and other methods based on superior knowledge of customer behavior are still easier on the Web than they are offline. For the management of B2C businesses and their investors, the keys to survival and prosperity are returning to sound strategic basics, smart customer targeting, a solid value proposition, great execution and wise capital investment. Not surprisingly, the first step on the road to profitability and survival is a rapid, objective evaluation of the fundamentals of cost position, customer needs, competitors, capabilities to execute and management expertise. Driven by experienced e-business strategists and operating executives, this evaluation must uncover worthwhile customers, a clear path to profitability, nonadvantaged competitors and the capability to change in an effort to exploit an opening in the market. Most important, the evaluation must identify potential investors who care enough, or believe enough, to provide funding.