Competition / Competitors The market for Proxicom's services is subject to rapid technological change
and increased competition from large existing players, new entrants and internal
information systems groups. Traditional players competing in this space can be
broken down into four major categories -- large systems integrators (e.g.,
International Business Machines Corporation, Andersen Consulting and Computer
Sciences Corporation), specialty systems integrators (e.g., Cambridge Technology
Partners, Inc. and Sapient Corporation), strategy consulting firms (e.g.,
McKinsey & Company, Inc. and Boston Consulting Group, Inc.), and Internet
professional services providers (e.g., USWeb/CKS, Viant Corporation, Scient
Corporation and iXL Enterprises, Inc.) -- many of which have considerably more
financial resources, marketing depth and name recognition than Proxicom.
Occasionally Proxicom competes with newer entrants including interactive
marketing firms (e.g., Agency.com, Ltd. and Modem Media.Poppe Tyson, Inc.).
Proxicom expects future consolidation in the Internet professional services
market to create larger, more viable competitors. Potential clients' internal
information systems groups also compete with Proxicom.
Proxicom believes the principal competitive factors in the Internet
professional services market include Internet expertise and talent, client
references, integrated strategy, technology and creative design services,
quality, pricing and speed of service delivery and vertical industry knowledge.
Proxicom believes it competes favorably with respect to these factors. Proxicom
believes it is in a good position to attract talent with its growth and an
entrepreneurial culture. Proxicom believes it offers its clients a unique
combination of integrated strategy, technology and creative design services. In
addition, Proxicom believes it has established itself as a leader in
Internet-specific industry and domain expertise. Through its replicable solution
frameworks and its attention to client satisfaction, Proxicom has created a
strong track record of customer successes. Proxicom believes the market will
continue to offer significant opportunity for multiple players. |