Separate Business
To give the Internet operation autonomy and flexibility, some organizations choose to create a separate company, using either a spin-off or a joint venture. A separate business is a free-standing Internet business that competes with other Internet companies. Advantages of a separate business include faster decision making, increased flexibility and responsiveness to changing market conditions, an entrepreneurial culture, and management that is totally focused on the success of the online operation. Potential disadvantages are the loss of brand recognition and marketing opportunities, higher startup costs, and loss of leverage with suppliers. For example, retailer Kmart originally created a spin off division called Bluelight.com, and the drugstore CVS originally launched CVS.com as a separate business. In both cases, operating e-business as a separate unit proved to be inefficient for the retailers in the long run