In the book, Digital Siege, I write about the assault on traditional corporations by young, Internet based businesses that have created new business models. It is easy to see the sales that Amazon has taken from Borders, CompUSA, Tower Records, and others. It is less obvious to see the impact that new entrants are having on small, local businesses.
There are multitudes of small businesses that are struggling to deal with the changes impacting their business due to the Internet. I would classify these businesses into three groups: