Admin Admin
Posts : 193 Join date : 2011-01-09
| Subject: Why an existing traditional firm must sell on the web Tue Jan 18, 2011 12:51 pm | |
| Why an existing traditional firm must sell on the web
************************* An existing firm will probably have to complement (possibly not replace) its business using e-commerce forced by new and existing competitors. We mentioned Barnes & Noble. This is a traditional, giant chain of bookstores in the US. Amazon.com started as a web retailer of books and shortly thereafter B&N was forced to establish a web store, too. The traditional stock brokers like Merrill Lynch are, reluctantly, trading shares on the web (at much lower commissions than they charge for their conventional service) forced by low cost web brokers such as E-Trade. The traditional shopping mall is not going to disappear, but is certainly under siege. Are the owners of the malls worried? At least one of them is. The Wall Street Journal reported that the owners of The Saint Louis Galleria, a 170- store mall, prohibited tenants who operate the stores from advertising the sale of their products on the web. . The opportunities for start-ups Imagination is the limit. From an ambitious objective of competing head to head with the giants (as Amazon.com does) to a housewife wanting to sell hand-made dolls, all is possible with e-commerce. Establishing a business like Amazon.com still costs a lot of money, although much less than opening 500 or 1000 traditional stores. But Yahoo, Amazon.com and many others are offering to sell anyone's wares on the web, no matter how small the volume of sales might be. Many companies, including IBM and CNET Store.com, will open an ecommerce store for you at a reasonable, affordable price. | |
|