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Essay / Research Paper Abstract
This 7 page paper considers the advantages and disadvantages of entering the e-commerce environment. This paper considers the impact of a major Canadian insurance company and looks at potential savings, fewer barriers, branding as well as problems such as lack of personal contact and set up costs. The bibliography cites 4 sources.
Page Count:
7 pages (~225 words per page)
File: TS14_TEenterec.rtf
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Unformatted sample text from the term paper:
also some real risks involved when the model of business they use is considered. The internet has been seen as completely separate
way of doing business, one where many barriers are reduced, such as geographical barriers, meaning that large and small companies alike can compete. This is true; indeed, companies such as
Amazon trade on this, undertaking to compare process for the same product at a range of supplier. When this level of competition is seen and the consumer is becoming more
aware, then there is also a strong argument that a company which can differentiate itself from the competition has more to gain in an environment where there is little differentiation.
Indeed, if other companies enter this market there may be a disadvantage by not entering the market, if competitors choose this course of action. An industry does not usually
reach this level of competitiveness until it is in maturity, the insurance industry is a mature industry (Thompson, 2000), However, the internet medium is still in a growth stage (Hobley,
2001). By looking at the potential of this medium we can argue that there is a potentially large audience that can be reached, especially into the US.
In 2000 there were 300 million people in the world accessing the internet, and there was a total of 407.1 million that had access to
it (Hobley, 2001). Importantly Citigroup Inc., 41% of these were in the North America area and 27.8% were in Europe (Hobley, 2001). The growth figure is very high when the
access figures are compared to 1999, this was 201.5 million people and as such this is a growth area (Hobley, 2001). In 1998
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