Challenges for Companies

Abstract

The fact that suppliers can serve all the customers with whom they can communicate makes the potential market for each supplier enormous. This means that a producer who has substantial competitive advantages in production can initially grab a larger share of the market than he or she has at present. This, together with the fact that customers on the Internet will be able to compare offerings from different suppliers much more accurately than they can today, could lead to a situation in which many companies that have seemingly secure local markets today could lose a large share of these to Internet-based players. Therefore, companies are advised to enter the Internet as soon as possible, for several reasons.