E-commerce Retail: The vision Reduced search and transaction costs customers able to find lowest prices lowered market entry costs lower operating costs higher efficiency Traditional physical store merchants forced out of business Some industries would be disintermediated Few of these assumptions were correct -structure of retail marketplace has not been revolutionized a Internet has created new venues for multi-channel firms and supported a few pure-play merchants Copyright C 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide g-8E-commerce Retail: The Vision ❖ Reduced search and transaction costs; customers able to find lowest prices ❖ Lowered market entry costs, lower operating costs, higher efficiency ❖ Traditional physical store merchants forced out of business ❖ Some industries would be disintermediated ◼ Few of these assumptions were correct—structure of retail marketplace has not been revolutionized ◼ Internet has created new venues for multi-channel firms and supported a few pure-play merchants Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 9-8