Essay: Analysis for Starting New Business
In the online medium the buying power of the customers is also significant as they drive the demand in the market and their preferences for book retailers tend to make them successful as in the case of Amazion.com. “Online trust is one of the key obstacles to vendors succeeding on the internet medium; a lack of trust is likely to discourage online consumers from participating in e-commerce.” (Yu-Hui & Barnes, 2007) The bargaining power of the suppliers however can be limited by the company by establishing a relationship with the publishing houses and suppliers and leveraging this relationship to restrict their power.
It has been recommended that Steve employ the option of launching a new business of an online book retailer which but in order to be a successful entrepreneur in the online medium, Steve would need to launch innovative products and services which can rival the ones being offered by established retailers in the field like Amazon.com.
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