This paper develops a structured approach of translating the impact of the Internet as an enabling technology on business strategies, business model development and business infrastructure, and indicates a preferred approach of strategic progression. The strategic positioning matrix is developed to provide a framework whereby service-industry-related, small-to-medium-sized enterprises (SSME's) in major metropolitan areas within Australia may reinvent themselves. It also allows individual players in the industry to distinguish themselves through strategy. The paper also addresses foundation concepts of Internet-enabled competitive strategy, supply chain management, business models, customers, web services architecture-based IT strategy, and convergent business architecture. These Internet based concepts link both physical and virtual customer interactions.