Setting Up Your Own Web Research Proposal

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In this instance, they are likely to generate competition at both levels. In terms of national territory, their threats will materialize in that they will offer lower prices in comparison to traditional retailers. This would be explained by the fact that online retailers register lower costs with the personnel, the training of the sales staff, or the rent of a facility. The competition is likely to be more intense at national level between small retailers as at this stage, they only afford to offer free shipping to the nearby locations. They would request their customers to pay the value of shipping to further locations, increasing therefore the retail price and losing their competitive edge.

Finally, the characteristic of being a price taker should also be looked at. In the case of small online retailer, they are price takes as they have a reduced capability to influence the market.

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Their customers on the other hand are not price takes, at least not relative to the small online vendors. These individuals have the right to refuse the purchase of a certain type of product or service due to its high price. The retailer will therefore be forced to change his policies and price strategies in order to satisfy the clients.

All in all, the stories of triumph lived by several companies and individuals who succeeded online inspire the small entrepreneur to create his own website. The endeavour would however pose certain risks and therefore requires further analysis of the market, in order to allow the individual or organizational representative to make the best informed decision......

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