integrate business partners using EDI and subsequently benefits from large cost reductions, the 
manufacturing and finance industries have not been as successful. The low penetration of 
business partner integration in the manufacturing industry (only 0.4% reporting  a great deal ) 
and in the banking/insurance industry (only 8.5%) is difficult to interpret. In the manufacturing 
sector, the automotive and mechanical engineering industries are known for their deep 
integration of first and second tier partners into the supply chain. In the banking sector, 
electronic data interchange with large customers, as well as electronic inter bank clearing, is an 
established and common solution. These data imply that the integration in these two sectors is 
being done through non Internet based EDI, rather than through Internet solutions. 
In contrast to other countries, German firms do not use and understand the Internet and related e 
commerce applications as a substitute for traditional markets or distribution channels. In contrast 
German establishments use the Internet as a complementary instrument to complete and support 
the already sophisticated market penetration (Table 18). Due to this, the necessity to address only 
new markets is not that important because national and international markets are still objects of 
market penetration (only 7.5% use the Internet to address new markets only). A high 75.8% of 
German firms reported using Internet capabilities to address existing distribution channels, while 
none reported using the Internet to reduce or replace traditional distribution channels.
Consequently, following a multi channel strategy, the Internet does not compete directly with 
other distribution channels (only 16.7% affirm this) as in other countries and is not able or useful 
to replace existing channels (0.0%).  
TABLE 18  How Establishments Use the Internet to Sell Products and Services 
Banking/ 
Manufacturing
a
Wholesale/Retail 
Distribution
a
Insurance
a
Total
a
 GER 
Global
b
GER 
Global
b
GER 
Global
b
GER 
Global
b
Addresses new markets only 
0.0 
23.2 
9.0 
12.2 
0.1 
12.6 
7.5 
15.3 
Addresses traditional 
90.9 38.8  73.3  47.8 84.5  33.4 75.8 44.1 
distribution channels only 
Competes directly with 
traditional distribution 
9.1 25.7  17.8  26.2 15.1  42.3 16.7 27.4 
channels 
Replaces traditional 
0.0 12.2 
0.0  13.8  0.3  11.8  0.0 13.2 
distribution channels 
Notes:
a
Responses were weighted based on the total number of establishments by employee size within the sector for each 
country.  
 b 
Consists of weighted survey responses in 10 countries combined: United States, Mexico, Brazil, Germany, France, 
Denmark, Singapore, Taiwan, China and Japan.   
Source:  CRITO Global E Commerce Survey, 2002 
In the last few years, German industry has developed into an intensive ICT using e economy 
(Table 19). The percentage of firms using online sales in the B2B area in Germany is nearly 
thrice as high (34.0%) as the global sample (12.9%). Both the manufacturing (19.3%) as well as 
the retail/wholesale (40.5%) industries are intensive adopters and users of B2B commerce. On 
the other hand, the importance of B2C commerce in Germany (11.5%) is not much higher than 
the average of the global sample (7.1%). Consequently, even in the retail/wholesale industry only 
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