Not sure about the chicken and egg nor the idea that the traditional players took it over.The internet became important because the traditional players took it over and integrated it into their existing playbooks.
The 25 Largest Internet Companies In The World
|1||Amazon||E-commerce||$107||268,908||Seattle, WA, USA|
|2||Search||$74.98||61,814||Mountain View, California, USA|
|3||Social||$17.93||12,691||Menlo Park, CA, USA|
|4||Tencent||Social||$15.84||25,517||Shenzhen, Guangdong, China|
|5||Alibaba||E-commerce||$12.29||26,000||Hangzhou, Zhejiang, China|
|7||Priceline Group||Travel||$9.22||9,000||Norwalk, CT, USA|
|8||eBay||E-commerce||$8.59||34,600||San Jose, CA, USA|
|9||Netflix||Entertainment||$6.77||3,500||Los Gatos, CA, USA|
|10||Expedia,Inc.||Travel||$6.67||18,000||Bellevue, Washington, USA|
|12||Salesforce.com||Cloud computing||$5.37||16,227||San Francisco, CA, USA|
|13||Yahoo||Search Engine||$4.97||12,500||Sunnyvale, CA, USA|
|15||NetEase||Online Services||$3.63||12,919||Guangzhou, Guangdong, China|
|17||Groupon||E-commerce||$3.1||10,000||Chicago, Illinois, USA|
|18||Social||$2.99||8,735||Mountain View, CA, USA|
|19||Social||$2.22||3,638||San Francisco, CA, USA|
|20||Naver Corporation||Search engine||$2.2||2,501||Seoul, South Korea|
|21||Cimpress||Mass Customization||$1.78||8,000||Venlo, Netherlands|
|23||flipkart||E-Commerce||$1.5||35,000||Bangalore, Karnataka, India|
Some of the above are dot com survivor (amazon, yahoo, netflix, priceline, ebay), many are even more recent, some are now way bigger than the traditional player not only on the Internet but overall.
Considering how big Google/Amazon/Facebook/Netflix are on the Internet, is it really fair to say that the Internet was took over by the traditional player (I imagine we are thinking the Microsoft/IBM/Disney/Cisco/Hp-Dell of the world), they are big but took over ?