How can e-commerce help businesses with scattered geographical locations better compete?

• A. By reducing the need for physical storefronts and enabling access to a wider customer base
• B. By limiting the ability to advertise products to local markets only
• C. By making it harder to track inventory across multiple locations
• D. By increasing transportation costs for all products sold online

Answer: (A)

Verified step by step guidance

1. Understand the core challenge for businesses with scattered geographical locations: managing physical presence and reaching customers effectively across different areas.
2. Recognize that e-commerce reduces the reliance on physical storefronts, which can be costly and difficult to maintain in multiple locations.
3. Analyze how e-commerce platforms enable businesses to access a wider customer base beyond their immediate local markets, increasing potential sales opportunities.
4. Consider the incorrect options: limiting advertising to local markets contradicts the broad reach of e-commerce; tracking inventory can be improved with digital tools; transportation costs vary but are not necessarily increased for all online sales.
5. Conclude that the main competitive advantage of e-commerce for such businesses is the reduction in physical storefront needs combined with expanded market access.