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strategy2 notes for student of Jyoti Nivas College Bangalore University
By Sajjal Rakhecha
Distorted Market Signals
- Companies that have deployed Internet are confused by distorted market signals
- Revenue Side – Sales figures can be unreliable:
- Subsidized sales, such as no sales tax
- Curiosity shopping
- Some revenues from online commerce have been received in the form of stock rather than cash
- Cost Side also fuzzy
- Subsidized procurement
- Understating the need for capital
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