Internet Portals

Internet portals can be defined as, 'a web site or service that offers a broad array of resources and services, such as e-mail, forums, search engines, and on-line shopping malls.' (www.webopedia.com). 'The web portal industry is young enough to be the fastest growing advertising medium.' (The Economist, 2005). Due to its infancy the market is dynamic and continuously changing, because of new entrants, increased use of the internet and most importantly rapid developments in technology. In this varying and unpredictable environment, it is our job to implement a strategy that will enable the company to thrive in these conditions, 'In short this rational planning approach is often what is regarded as good practice.' (Faulkner, D and Johnson, G 1992). This essay will examine the internal and external issues facing the web portal industry. Taking into consideration our role within this hurriedly changing industry we must decide on an appropriate strategic process so our company can obtain a dominate position in this market.

The environment we are operating in has many changing influences that affect this industry. PESTEL analysis groups environmental influences into six types that can be used to analysis the external environment of our industry. However some are more relevant than others.

Politically, the impact on the internet is quite weak. For example, how stable a government is or taxation policy's will have no affect on the use of the internet.

Economically, the computer world is changing very fast. It is becoming much cheaper to use the internet, as