From...

May 26, 1999
Web posted at: 3:58 p.m. EDT (1958 GMT)

by Tom Diederich

(IDG) -- Projections that online sales will explode over the next few years come as good news to small and large companies, but the numbers should sound the alarm for midsize firms, according to a new report from Giga Information Group Inc.

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Large companies will continue to dominate the business-to-business market, and along with small firms, will capture a major share of the business-to-consumer space, the report said. To survive, midsize companies must quickly build an electronic-commerce infrastructure, establish brand recognition and find niche markets, Giga advised.

"In one growth scenario, medium-sized businesses face the risk of feeling competitive pressure from larger companies or being beaten by more nimble small companies," the report said. "Their e-commerce revenue will grow at a 75 percent compound annual growth rate, compared with small companies (117 percent) and large businesses (87 percent)."

However, midsize companies -- those with 100 to 999 employees -- that reposition themselves as key players in niche markets stand to increase online revenue 111 percent vs. 124 percent for small businesses and 113 percent for large firms, Giga said.

The report from Cambridge, Mass.-based Giga expects e-commerce sales to total between $580 billion and $970 billion by 2002.