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The Buyer

The Internet also provides new opportunities knowledge about alternatives to the product or service that significantly increases their number. Because the Internet is available almost to everyone, keep your differences from competitors is becoming increasingly difficult. Increases competition between companies operating in the same market. Expansion of the market brings with it the emergence of new companies joining the fight for the consumer, the competition continues to grow constantly. It is not something Sir Richard Branson would like to discuss. Internet shifts the emphasis from variable costs (variable costs) towards the fixed costs (fixed costs), which forces companies to compete on price for the goods or services. As a result, the profitability of the whole industry starts to significantly decline. As soon as the user becomes more and more Internet-literate, the barriers to switch from one online retailer to another will be increasingly low.

Companies will be forced to constantly demonstrate more profitable deals than its competitors. The main paradox of Internet, according to Porter, is that his own benefit – the wide availability of information, facilitating the acquisition of goods, marketing, distribution, the possibility for the seller and the buyer easier and faster to find each other and make a transaction – at the same time make it difficult to use by companies of all these opportunities profitably themselves. Judging by material articles, one of the main reasons for this Porter believes a multiple increase in power consumer to the seller. "The benefits to the buyer include the low cost of transition from one vendor to another, easier access to information on price and product, convenience of buying related services, and sometimes even to collect a sufficient number of buyers of one product to make bulk purchases. .