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The two biggest advantages that the European traditional brick and mortar companies have over the U. ... dot coms are lack of competition and are able to learn from the American dot com failures. ... dot coms. Without much competition the Europeans only had to worry about the lack of Internet users in Europe. ... 8 million in 1999 is extremely large compared to Europe’s market 12. ... When American dot coms start their business they have to face fierce competition by already established dot com companies. This makes it hard for new dot coms to get a steady base of customers. ... The losses from start up, low prices to attract customers, high advertising cost and a lack of a steady customer base all contribute to total losses for a new dot com. ... If the European companies could hold out until Europe’s Internet usage increased they could build up a good clientele base. ... This lack of competition will not last long; soon the European market will expand to the point that starting new dot coms will become very difficult.
Approximate Word count = 788
Approximate Pages = 3.2
(250 words per page double spaced)
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