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ITM 301 Computers Internet Application and Management In this case assignment I will answer the following question What advantages do the brick and mortar establishments in Europe have over the emerging dot com companies in America One would think that since America went first into the void that Europe would have the advantage of seeing their mistakes and avoiding them Not so E-commerce turns out to be a lot more difficult than the major bricks and mortar retail establishments thoughtPringle2000 Though today it is thought that it is an advantage that America is the leading Internet power actually this head start means that other nations can learn from Americas mistakes and thus establish a stronger Internet system as can be seen in the case of Europe Two years after retailers went online in America European retailers entered the race But unlike their counterparts they knew the pitfalls One advantage of being an online retailer in Europe is the lack of competition this reason will soon become invalid When Karstadt-Quelle AG a department store started an online shopping mall in October 1996 Germanys retail industry thought that it was a sure loss At the time Germany had only about 750000 Internet users and out of those most it is believed were teenagers Yet by the end of 1997 five million Germans were online according to Jupiter Communications a New York-based research group Thus the market had reached out for the potential and won The company tried to intervene in all the areas where they had seen US retailers fall and so they managed to avoid many of the problems Another advantage of this unexplored market was that the audience was not as sophisticated The retailers could start slow and study the market reaction and change accordingly The Americans retailers had no such luck There audience was large and developed and wanted convenience and technological advancement so that the retailers had to
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