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Strategy Analytics Predicts Mergers In 1999

Research company Strategy Analytics predicts that most of the leading Internet players will have merged with other vendors by the end of this year.

Far from becoming an open market for all participants, with equal access to technologies, buyers and suppliers, the industry will be composed of huge, vertically integrated companies, says the firm.

The report, "Mergers within the Internet Industry Value Chain: Strategies for Success," comes from the Internet Business Strategies advisory service of Strategy Analytics. The service monitors changes within the industry, highlighting new opportunities for major players.

"The next 12 months will be a time when certain vendors are either locked into, or out of, growth opportunities on the Internet," says the report. "Vertical integration will be one the greatest structural forces in determining the winners and losers."

"Perception that Internet industry structure is becoming highly vertically integrated should become self-fulfilling as chief executives race to exploit opportunities before they are foreclosed by competitors."

Formerly BIS Strategic Decisions, Strategy Analytics works on a global basis and maintains offices in Newton, Mass., and Luton, UK.