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Introduction

The Internet has become increasingly popular. The number of Internet users is estimated to reach approximately 300 million by the end of 2002. (http:// www.sohu.com) With widespread acceptance and low-cost entrance, it is changing the world's economy. Developing business opportunities in the Internet has grown considerably. "The impact of the Internet on business is akin to previous innovations that transformed not only one business sector but every business sector."(Jaworski and Rayport, 2001) These significant changes in the environment require new approaches to think about business strategies.

The Internet greatly impacts on the media industry in recent years. In the wake of Internet environment, traditional media are going through a shakedown. The Internet can combine all the functions of traditional media such as newspaper, magazine, radio and television, as well as offer new functions of e-commerce, distribution and interactivity. "There are strong grounds for believing that contemporary media are undergoing particularly dramatic technologically driven change, ......

This will be an era characterized by media interactivity, accessibility and diversity, with new freedoms for the customer."(Briggs and Cobley, 1998) The rules of competition have changed in the new economy. Therefore, it is necessary to explore the business strategies of media companies on the Internet. In this essay, iVillage.com and Oxygen.com are chosen to analyze their e-strategies from a customer's point of view.

Backgrounds of iVillage and Oxygen

iVillage Inc., established in 1995, is recognized as a leading women media company and the number one source for women's information online. iVillage.com is organized into branded communities across multiple topics of high importance to women and offers interactive services, peer support, content and online access to experts and tailored shopping opportunities. Content areas include Astrology, Babies, Beauty, Diet & Fitness, Entertainment, Food, Health, Home & Garden, Lamaze, Money, Parenting, Pets, Pregnancy, Relationships, Shopping, and...