Impacts of Online Shopping
Technology
There is an increase in broadcasting, information and telecommunications technologies for internet access
Increased frequency of use and sources (e.g. mobile devices, TV etc) for internet access by online shoppers
Economic
High interest rates slow UK consumer spending.
The credit squeeze and the housing slump has reduced consumer spending in the USA. However, consumer spending is rising in China and India due to high economic growth in both countries.
Internet retailing will see tremendous growth between 2006 and 2011 with sales rising over
100%. This growth is fuelled by the number of on- line households in the US, which has increased by
85% since 2000.
More potential Customers for online shopping
Markets
Tap Global Markets
Political
Government policies promote competition through telecom liberalization, e-commerce promotion and legislation (Held et al., 199
More affordable internet access and increase in internet users
High government investment in national ICT infrastructures
Faster, better and more reliable internet access for national users
Legal
No uniform regulations governing e-commerce covering all the countries e.g Data Protection Act in UK and Federal Trade Commission in USA
Be aware of both the domestic and international laws
Environmental
Global Warming/ Pollution Awareness
Less car journeys, more shopping online.
Social
Increase in online social networking
Marketing needs to take advantage of this new channel
Product category risk and financial risk decrease online shopping
Need to consider overcoming risks to increase users
Growth of internet from 2002 to 2007 is 244.7%.
18.9% of world population use the internet opportunity to increase market share.
PORTERS FIVE FORCES MODEL
Threat of new entrants
Low – For online established retailers a strong brand image generates consumer trust Low - Economies of scale – Retailers that have refined technology and processes
There is an increase in broadcasting, information and telecommunications technologies for internet access
Increased frequency of use and sources (e.g. mobile devices, TV etc) for internet access by online shoppers
Economic
High interest rates slow UK consumer spending.
The credit squeeze and the housing slump has reduced consumer spending in the USA. However, consumer spending is rising in China and India due to high economic growth in both countries.
Internet retailing will see tremendous growth between 2006 and 2011 with sales rising over
100%. This growth is fuelled by the number of on- line households in the US, which has increased by
85% since 2000.
More potential Customers for online shopping
Markets
Tap Global Markets
Political
Government policies promote competition through telecom liberalization, e-commerce promotion and legislation (Held et al., 199
More affordable internet access and increase in internet users
High government investment in national ICT infrastructures
Faster, better and more reliable internet access for national users
Legal
No uniform regulations governing e-commerce covering all the countries e.g Data Protection Act in UK and Federal Trade Commission in USA
Be aware of both the domestic and international laws
Environmental
Global Warming/ Pollution Awareness
Less car journeys, more shopping online.
Social
Increase in online social networking
Marketing needs to take advantage of this new channel
Product category risk and financial risk decrease online shopping
Need to consider overcoming risks to increase users
Growth of internet from 2002 to 2007 is 244.7%.
18.9% of world population use the internet opportunity to increase market share.
PORTERS FIVE FORCES MODEL
Threat of new entrants
Low – For online established retailers a strong brand image generates consumer trust Low - Economies of scale – Retailers that have refined technology and processes