Restructuring - Bricks-and-mortar To Clicks-and-mortar, Restructuring Among Dot.com Startups And Technology-based Firms

Many traditional brick-and-mortar enterprises have found it necessary to adopt some sort of e-business strategy as the Internet becomes an increasingly powerful venue for exchanging information, as well as for buying and selling products and services. According to market research firm International Data Corp. (IDC), Internet commerce is expected to reach $5 trillion by 2005, with over one billion Internet users across the globe. These figures, coupled with increased competition, have forced many firms to integrate e-business initiatives into traditional business models. Most of the time, this transformation involves some level of restructuring as business methods are changed to adapt to new technologies.

At the start of the new millennium, many dot.com startups and technology-based companies were undergoing major restructuring efforts as well. Low stock prices, difficulty securing investment capital, increased competition, and a weakening U.S. economy were forcing Internet-based firms who experienced great success in the mid-to-late 1990s to restructure operations to remain competitive.