Lecture 11

Question 1

7 se gments in the US retail industry

Answer 1

online retail
General merchandise
Specialty stores
Gasoline and fule
Consumer durables
Food and beverages
MOTO = mail order telephone order

Question 2

E-commerce retail would lead to

Answer 2

Reduced search and transaction costs; customers able to find lowest prices

Lowered market entry costs, lower operating costs and higher efficiency

Traditional physical stores merchants forced out of business
Some industries would be disintermediated

Question 3

Economic viability

Answer 3

Ability of firms to survive as profitable business firms during specified period

Question 4

strategic analysis (To evaluate economic viability)

Answer 4

Barriers to entry/power of suppliers/ power of customers / substitute products / intra-compmetition

Changes in the industry value chaint

Firm value chain / core competencies / synergies / technology / social & legal challenges