Advantages for business

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Why are firms interested? There has to be something in it for them.

 

bulletHuge saving on overheads: no warehouse, rent, heating, employees and facilities
bulletVirtual shop can stock 16,000 CDs, shop only between 5-10,000
bulletJust in Time delivery from suppliers. Not left with stock it cant sell
bulletMarket research tool, customers have to register.  Can build up profile, ideas of likes/dislikes.
bulletReach a wider market, not dependant on geographical site
bulletLess susceptible to ‘local factors’ e.g. strikes, weather
bulletChanges in working practise and organisational structures.

 

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