ONLINE RETAIL

Changing Sentiment towards online retail – e-commerce – firms have raised more than $2 bn.
Some questions –
  • Are the valuations rising too fast?
  • Is the gushing money going to convert into improving the fundamentals of e-commerce or will the bubble fail to deliver as per rosy projections?
    Will the e-tailers make profits and to what extent?
  • Whats the effect of the growing competition all over Asia – led by India’s Flipkart & America’s international Co.- Amazon, China’s Alibaba and Japan’s Rakuten
    read more – http://www.livemint.com/Companies/rWvNCP4WFr5b7yDQMMLJvI/Are-ecommerce-valuations-rising-too-fast.html

 ONLINE RETAIL

COMPETITION

 

THE World Wide Web MARKET

The growing e-commerce platform have impacted the way competition works and the type of competition concerns that may arise.

Most brands are making their presence online.

 

Thus, today’s trading platforms and market place involves 3 important situations:

1) products that are available only on the Internet -e.g. some software, games or magazines can be bought only on-line, (pure on-line sales);

2) products that are available in the same format from physical and on-line distributors (mixed sales/same format); and

3) products that are available in different formats in the two distribution systems – e.g. home video and streaming, (mixed sales/different formats).

So, brick and mortar shops & traditional distribution networks now exist parallel with direct e-tailing networks, as defined in Kirsch and Weesner (2005).

What are the conflicts that may arise between these two competing distribution networks?

We will answer this…

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