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Essay / Research Paper Abstract
This 6 page paper considers the retailing of groceries in the UK through e-commerce. The paper looks at the current market with companies such as Tesco and Sainsbury and considers how easy it should be for a new entrant to enter the market and how they should compete. The bibliography cites 7 sources.
Page Count:
6 pages (~225 words per page)
File: TS14_TEsupecom.rtf
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Unformatted sample text from the term paper:
This has been seized upon by many supermarkets, but many have also found that realising profits is more difficult that it look the cost of e-commerce operations is higher than
a single warehouse. If an individual is considering starting a new business to compete with the supermarkets there are many lessons that can be learnt by looking at the existing
market and learning from the mistakes of others. Bu examining this we can consider the potential for a new entrant which may be on a local or national basis.
If we look at the position in the UK supermarkets there have been two strategies adopted, companies such as Asda and Waitrose, who initially invested in e-commerce operations have withdrawn
these projects but later withdrew1. The other approach, which is seen with both Sainsbury and Tesco has been to pursue this with a charge for the delivery believing that online
shopping will make a profit, it is merely that the profit may take time to realise. Arguably this is a much longer term strategy. If we look to companies such
as Amazon, this took many years to become profitable, but this was eventually achieved as the size of the customer base grew to support the operational overheads. Tesco and Sainsbury
are taking this longer term approach and are also seeking to gain more sales from the same customers with the sale of additional items, such as household goods, Tesco
recently set up a department in Jersey to sell DVDs and DVD VAT free to compete with companies such as Play.com The demand for this type of shopping serive is
there, but the time taken to create this as an additional market is slower due to a slower take up. For example, in 2003 Tesco had only just overtaken Sainsbury
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