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Purpose

This paper aims to give the reader an insight into the evolution of a fast‐growing and innovative Internet company by helping to understand the web portal business in Germany and to identify and assess strategies to transform an Internet portal to an Internet communications enterprise.

Design/methodology/approach

The case is based on field research accomplished together with executives of the company.

Findings

The case shows that implementing a professional management structure and a continuous strategic analysis of the competitive environment are crucial for being successful in a dynamic Internet business.

Practical implications

Teachers can use this case study in advanced management courses for applying methodologies of strategic analysis, e.g. M. Porter's five‐forces‐model, value‐chain analysis, concept of key success factors, SWOT‐analysis. Students are expected to know basics about financial analysis, and information technologies. Managers can take the case as a best practice example for successful entrepreneurship in the Internet world.

Originality/value

The paper provides insights into the strategies of an innovative Internet company.

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