1. BUSS4 – E-Commerce How to research the bullet points

2. 1.Impact of E-Commerce on Competitive Environment Examiner favourite Questions likely to centre on the potential disruptive impact of factors on the competitive structure of markets As the theme focuses on Technological change, you need to comment on how the rapid pace of change & widespread use of e-commerce is impacting competitive rivalry

3. Key Terms & Concepts Disruptive Technology – Technological change which is applied to challenge the existing business model of competitors in a market Market Share New Entrants – may find it easier to enter & build a strong position in a market if can overcome barriers to entry through disruptive technology such as E-Commerce Barriers to Entry – brand loyalty, economies of scale Substitutes

4. Key Terms & Concepts Porter’s five forces- theoretical model which helps to analyse the strength of forces which shape competitive rivalry in an industry. It helps explain how technological change can influence the nature & structure of competition in a market Pure-plays- Ecommerce businesses that operate solely using digital channels, no physical distribution (e.g. Amazon, ASOS, Ocado, Netflix) B2B- Screwfix B2C – John Lewis, Argos

5. Focus on Market Disruption – Threat of New entrants & Substitutes The threat of new entrants is determined by: Extent & significance of barriers to entry Attractiveness of the market (Size, growth rate) Strength of Market Leader (Dominant market share) Competitive response from existing market players to new entrant Extent to which market’s traditional business model can be disrupted due to innovation

6. Focus on Market Disruption – Threat of New entrants & Substitutes The significant & rapid pace of change in e-commerce has made many markets susceptible to a greater threat of new entrants, making competitive rivalry more intense E-Commerce has enabled firms to use technological change to offer substitute products & services e.g. Media consumption. Widespread availability of news on social media, news channels & news websites

7. Examples of markets that have been disrupted by e-commerce Media streaming & consumption – Amazon, Netflix, Spotify News publishing – Buzzfeed, Huffington Post Fashion retail – ASOS, misguided Recruitment – LinkedIn, Monster Travel & Tourism

8. Evaluation Points Not all consumer/ industrial markets affected by e-commerce to same extent as travel, fashion retail and publishing Markets affected most are those where, market size is substantial & existing profits are high, existing business models can be challenged through digital innovation e.g. if delivered by mobile devices