CAAE STUDY 1
Technology
1. Online purchasing enables cross-border trading activity. This, Nullifies the constraints of business location, scale and time zone. 2. With better technology, shipment of goods from one type of transport to another will be easy. 3. Reduced cost of long distance transport through improved efficiencies and reduced labour requirements. This result in cheaper goods available to consumers. 4. Save time to travel to shopping centres and provide wide range of items than traditional retail shop 5. Retail industry is in decline as users change to online purchasing. This is expected to get worse with the possible increase use of internet. 6. Sophisticated US internet retailers found that with a few tweaks to their websites and some negotiations with logistics suppliers, they had become global internet retailers. 7. The Australian consumers now purchase goods from US, which was not accessible before. 8. Sometimes search engine helped them to find the products at the best price. 9. The technology helped the retailers to identify the consumers behaviour patterns and have their prior purchase history and help them to “see” the products in their home setting 10. Consumers have access to global pricing and they are likely to check online before making the purchase
Economy
1. The global financial crises forced US business to look for source of revenue outside their normal channel. This result in direct competition with Australian retailers. 2. Increase in logistics employment and an increase in work opportunities provided by the expanding array of online shopping providers. 3. The improvement in exchange rate will help the consumers to purchase goods from US and make import relatively cheap. 4. With the high interest rate and raising home loan pressure on Australian families, the online purchasing