An Essay on the Magna Carta

An Essay on the Magna Carta The Magna Carta is widely considered to be one of the most important documents of all time, and is seen as being fundamental to how law and justice is viewed in countries all over the world. Prior to the Magna Carta being created there was no standing limit on royal authority in England. This meant that the King could exploit his power in whatever way he saw fit, as he was not subject to any laws[1]. This paper will examine the Magna Carta, the reasons for its creation, its impact on England and whether it fulfilled its purpose or not. I will be making the argument as to why it has gone above and beyond its original intentions and has over time paved the way for liberty. The most important part of the Magna Carta is clause 39, and is as follows â€Å"No free man shall be seized or imprisoned, or striped of his rights or possessions, or outlawed or exiled. Nor will we proceed with force against him. Except by the lawful judgement of his equals or by the law of the land. To no one will we sell, to no one deny or delay right or justice[2].† Now given at the time this wasn’t considered particularly important but over time it became interpreted as guaranteeing individual rights and liberty. This has also been exported into other nation’s constitutions, particularly Western countries namely the United States in the form of the Bill of Rights. The Magna Carta finds its roots in early 13th century England under the rule of King John. Traditionally considered to be a ruthless, authoritarian king[3], John had a myriad of issues facing England when he took the throne and it seems that much of the resentment towards him is unwarranted. It is worth noting that England was practically bankrupt due to John’s brother, King Richard incurring exuberant costs from going on Crusade and later ransom from captivity at the hands of the Holy Roman Empire[4]. After Richards’s death due to injuries sustained while fighting in France, King John faced adversity from the French and English nobility who had supported John’s nephew the young Arthur of Brittany. When Arthur was killed in an altercation while under the custody of John, many implicated John in the killing. Soon afterward the French attacked and took Normandy from English hands[5]. As a result of this John began to raise taxes to build an army to re-take Normandy . The end result of the war was disastrous, the English army was left in ruin and country had all but run out of money. Upon returning to England King John was faced with rebellion from his barons and found that he had very few allies left. In 1215 these baronial rebels forced King John to sign the Magna Carta[6], literally meaning the â€Å"Great Charter[7]†. These 25 barons sought to outline the unwritten customs that had in effect governed the country for centuries and put them into written law that would have to be observed by the king. Now at the time of its inception the charter wasn’t meant to be a principle of law that would apply to everyone, it was simply a way that the ruling elite of the time, the barons could put some limits to the king’s power. The charter itself was really the product of difficult back and forth negotiations between King Johns government and the barons, both really wanting to avoid civil war and trying to find a compromise. The en shrinement into law of feudal custom and the operation of the legal system, one which even the king would have to abide by was the driving force behind most of the clauses. Once brought into law it was made clear that certain aspects were to be made more important and are considered to be the main reason why the barons wanted such legislation in the first place. The biggest issue was the oppressive taxation that King John imposed to fight against the French. Despite making significant advancements in the revenue system within England there had been a general sense of growing discontent with the arbitrary way the royalty imposed heavy taxes. In truth there was little John could do given how the coffers had been drained from his aforementioned brother and from his father, Henry II’s forays into France[8]. As such it isn’t very surprising that more periods of high taxation was all that was needed to incite the barons to revolt and force John into signing. The charter made it clear that the monarchy would have to follow some set of rules regarding taxation and other customs according to the nobles. These included the protection of the English church, the special significance of London and the rights accompanying its status. Others are concerned with family law, transportation across England and what I see as being the most important the clauses dealing with justice. Again I will refer back to clause 39 which is interpreted today as being concerned with what is known as habeas corpus. The immediate impact of this clause was not felt by a great many people, for at the time it was of course intended for those of high privilege. As such at the time it was more of a settlement between the royal head of state and England’s most powerful families. The barons wanted a kind of safeguard against a reckless king having seen far to much of what can happen when one spends with abandon as many kings before John had, while not wanting to go so far as to repl ace the king himself. The Magna Carta itself was in a rather precarious situation as only weeks after being signed by King John it was denounced by pope Innocent III as having been forced on the king[9], and John was happy to agree and renounce it as well. This lead to the barons inviting the French king, Philip to invade and take the crown. A civil war ensued and the fate of the charter was in question. The rebellion ended with the death of King John in 1216, this left the throne to his son 9 year old Henry III. The nobles agreed that young Henry should be the one to take the throne, as despite being the son of the king whom they had despised, they weren’t about to abandon the lines of succession with regard to heredity. The Magna Carta was reaffirmed by Henry with the key focus being on a good reliable government led by the king. Eventually Henry began to deviate from the guidelines the charter had laid out for him and once again the barons went into open rebellion. The reb ellion was put down but only on the condition that the king would adhere to the charter once again. This is important as it set a precedent by which other English kings could not simply ignore the Magna Carta and do as they pleased, out of risking open rebellion. The charter comes in prominence again with the reign of Henry III’s son, Edward I. Once again frustration mounted over the heavy tax burden the king set upon the country and Edward had to admit that he was in fact bound by the Magna Carta, thus giving concession to the nobles. By this time the charter had become prominent enough that certain clauses pertaining to individual liberty were become common practice. As free men in England could enjoy the rights set forth in the Magna Carta. The structure of the charter is as such that it has an open-ended nature allowing for small tweaks and revisions at times when it is warranted. Over time we see events of great importance in England with the Magna Carta being the backbone of the movements. This is apparent with attempts to limit the royal powers of kings following Edward I. It isn’t until the late 14th century do we see however the charter being used in such an all-encompassing way. Under King Edward III the Magna Carta was proclaimed to be the law of the land and that no other law present or future could challenge it. We also see the first instances of the Magna Carta affecting general law, including the expansion of clause 39 making it in effect the due process that all men would be condition to if subject to the justice system. It is around this time that we see the gradual shift from the charter serving only the purpose of giving power to the nobles against the crown, to a general defense of human liberty in England. This can only be seen as a good thing as until this time the charter by and large only served the privileged few. The common people were subject to mistreatment at the hands of those in power in England for a very long time, the idea that they now have rights was an entirely new concept but one that gradually began to take hold, as the Magna Carta was reinterpreted. When taking into account the Magna Carta the role the English church played is one of great import[10]. It is explicitly stated in the charter that the church be given full freedom and unimpaired liberty, the fact that this is mentioned long before any mention of liberties for the freemen of England is important to take into account[11]. Of course it is hard to say that King John considered these clauses a concession, as the church already possessed many liberties given their unique position within England. The church had an expectation that they could practice their spiritual tasks without interference from the king. Society in this period had many dependencies on the church and as such it made sense for the king to observe the freedoms the church enjoyed rather than infringe upon them and threaten the peace that the church held in the kingdom. King John seemed to regard the freedom of the church as something of paramount import in England, even deferring to the pope on several occa sions. The evolution of the Magna Carta can also be attributed to the privileged status of the church itself. The type of freedom that those within the church enjoyed was outlined in the charter and a connection was made between this and the clauses dealing with the freemen, or the individual. This is important because without the church there would simply be no precedent for liberty in England. The Magna Carta then can be seen as a very important step towards liberty, especially considering the time when it was written. Its evolution from a document which was originally intended to force King John to consult the nobility on issues pertaining to taxes and justice in the realm, to the cornerstone of individual liberty is of great importance. The novel view that a king should be respectful of the rights of the nobility and church would be extrapolated into one in which all people regardless of birthright would be protected by law. As such I would say that yes the Magna Carta has indeed served its purpose and then some. Its continuing influence can be seen even today, enshrined in constitutions all over the western world[12]. The gradual shift in England towards individual rights and movement of government towards democracy can be attributed to the Magna Carta. As because individuals gained more rights including the common people this lead to the rise in the democratic process, including the creation of the English parliament where commoners could participate in government. Looking back however on its inception it is hard to say that the barons really had a specific goal in mind with the Magna Carta’s creation. The extent to which King John was an evil, tyrannical king seem to have been blown way out of proportion, given the circumstances I don’t see how he could have changed much of what he did during his reign. The idea that the barons were these visionaries thinking well ahead of their time is laughable, and seems more likely that they were simply distrustful of King Johns rule and were looking out for their own short-term interests. That is not to say of course that there weren’t some good ideals enshrined within the charter as it is apparent that there were, only that the majority of what was actually included seemed to be a result of various motivations on the part of upset barons. One of the most important aspects of the Magna Carta, and its most enduring is the idea of due process. Now granted due process and the subsequent trial by jury were not of any great importance to the barons at the time of the charters writing, although given the framework it is hard not to say that a few of them weren’t thinking ahead of what may become of it. This malleable framework provided just what subsequent generations needed to reinterpret certain clauses within the charter and make them take on a more general meaning apply to a much larger spectrum. The effects of continued reinterpretations have been profound on western society, first in the form of Habeas Corpus which served to strengthen what due process had already given the general populace. The point being that after Magna Carta and all its various iterations people had a series of natural rights and liberty by law, these influences have helped shape constitutions and how countries are governed today. [1] Jenkins, â€Å"A Short History of England,† 65 72 [2] â€Å"Magna Carta 1215† [3] Warren â€Å"King John† 174 181 [4] Jenkins â€Å"A Short History of England† 65 72 [5] Warren â€Å"King John† 76 93 [6] â€Å"Roger of Wendover:Runneymede 1215† last modified June 1997 [7] DanzigerGillingham â€Å"1215 The Year of Magna Carta† 255 277 [8] Jenkins â€Å"A Short History of England† 57 65 [9] Thorne E. Samuel et al â€Å"The Great Charter† 16 17 [10] DanzigerGillingham â€Å"1215 The Year of Magna Carta† 137 153 [11] â€Å"Magna Carta† 1215 [12] Hindley â€Å"The Book of Magna Carta† 193 201

Digital Fortress Chapter 94-99

Chapter 94 Midge Milken stood fuming at the water cooler near the entrance to the conference room. What the hell is Fontaine doing? She crumpled her paper cup and threw it forcefully into the trash can. There's something happening in Crypto! I can feel it! Midge knew there was only one way to prove herself right. She'd go check out Crypto herself-track down Jabba if need be. She spun on her heel and headed for the door. Brinkerhoff appeared out of nowhere, blocking her way. â€Å"Where are you headed?† â€Å"Home!† Midge lied. Brinkerhoff refused to let her pass. Midge glared. â€Å"Fontaine told you not to let me out, didn't he?† Brinkerhoff looked away. â€Å"Chad, I'm telling you, there's something happening in Crypto-something big. I don't know why Fontaine's playing dumb, but TRANSLTR's in trouble. Something is not right down there tonight!† â€Å"Midge,† he soothed, walking past her toward the curtained conference room windows, â€Å"let's let the director handle it.† Midge's gaze sharpened. â€Å"Do you have any idea what happens to TRANSLTR if the cooling system fails?† Brinkerhoff shrugged and approached the window. â€Å"Power's probably back on-line by now anyway.† He pulled apart the curtains and looked. â€Å"Still dark?† Midge asked. But Brinkerhoff did not reply. He was spellbound. The scene below in the Crypto dome was unimaginable. The entire glass cupola was filled with spinning lights, flashing strobes, and swirling steam. Brinkerhoff stood transfixed, teetering light-headed against the glass. Then, in a frenzy of panic, he raced out. â€Å"Director! Director!† Chapter 95 The blood of Christ†¦ the cup of salvation†¦ People gathered around the slumped body in the pew. Overhead, the frankincense swung its peaceful arcs. Hulohot wheeled wildly in the center aisle and scanned the church. He's got to be here! He spun back toward the altar. Thirty rows ahead, holy communion was proceeding uninterrupted. Padre Gustaphes Herrera, the head chalice bearer, glanced curiously at the quiet commotion in one of the center pews; he was not concerned. Sometimes some of the older folks were overcome by the holy spirit and passed out. A little air usually did the trick. Meanwhile, Hulohot was searching frantically. Becker was nowhere in sight. A hundred or so people were kneeling at the long altar receiving communion. Hulohot wondered if Becker was one of them. He scanned their backs. He was prepared to shoot from fifty yards away and make a dash for it. El cuerpo de Jesus, el pan del cielo. The young priest serving Becker communion gave him a disapproving stare. He could understand the stranger's eagerness to receive communion, but it was no excuse to cut inline. Becker bowed his head and chewed the wafer as best he could. He sensed something was happening behind him, some sort of disturbance. He thought of the man from whom he'd bought the jacket and hoped he had listened to his warning and not taken Becker's in exchange. He started to turn and look, but he feared the wire-rim glasses would be staring back. He crouched in hopes his black jacket was covering the back of his khaki pants. It was not. The chalice was coming quickly from his right. People were already swallowing their wine, crossing themselves, and standing to leave. Slow down! Becker was in no hurry to leave the altar. But with two thousand people waiting for communion and only eight priests serving, it was considered bad form to linger over a sip of wine. The chalice was just to the right of Becker when Hulohot spotted the mismatched khaki pants. â€Å"Estas ya muerto,† he hissed softly. â€Å"You're already dead.† Hulohot moved up the center aisle. The time for subtlety had passed. Two shots in the back, and he would grab the ring and run. The biggest taxi stand in Seville was half a block away on Mateus Gago. He reached for his weapon. Adios, Senor Becker†¦ La sangre de Cristo, la copa de la salvacion. The thick scent of red wine filled Becker's nostrils as Padre Herrera lowered the hand-polished, silver chalice. Little early for drinking, Becker thought as he leaned forward. But as the silver goblet dropped past eye level, there was a blur of movement. A figure, coming fast, his shape warped in the reflection of the cup. Becker saw a flash of metal, a weapon being drawn. Instantly, unconsciously, like a runner from a starting block at the sound of a gun, Becker was vaulting forward. The priest fell back in horror as the chalice sailed through the air, and red wine rained down on white marble. Priests and altar boys went scattering as Becker dove over the communion rail. A silencer coughed out a single shot. Becker landed hard, and the shot exploded in the marble floor beside him. An instant later he was tumbling down three granite stairs into the valle, a narrow passageway through which the clergy entered, allowing them to rise onto the altar as if by divine grace. At the bottom of the steps, he stumbled and dove. Becker felt himself sliding out of control across the slick polished stone. A dagger of pain shot though his gut as he landed on his side. A moment later he was stumbling through a curtained entryway and down a set of wooden stairs. Pain. Becker was running, through a dressing room. It was dark. There were screams from the altar. Loud footsteps in pursuit. Becker burst through a set of double doors and stumbled into some sort of study. It was dark, furnished with rich Orientals and polished mahogany. On the far wall was a life-size crucifix. Becker staggered to a stop. Dead end. He was at the tip of the cross. He could hear Hulohot closing fast. Becker stared at the crucifix and cursed his bad luck. â€Å"Goddamn it!† he screamed. There was the sudden sound of breaking glass to Becker's left. He wheeled. A man in red robes gasped and turned to eye Becker in horror. Like a cat caught with a canary, the holy man wiped his mouth and tried to hide the broken bottle of holy communion wine at his feet. â€Å"Salida!† Becker demanded. â€Å"Salida!† Let me out! Cardinal Guerra reacted on instinct. A demon had entered his sacred chambers screaming for deliverance from the house of God. Guerra would grant him that wish-immediately. The demon had entered at a most inopportune moment. Pale, the cardinal pointed to a curtain on the wall to his left. Hidden behind the curtain was a door. He'd installed it three years ago. It led directly to the courtyard outside. The cardinal had grown tired of exiting the church through the front door like a common sinner. Chapter 96 Susan was wet and shivering, huddled on the Node 3 couch. Strathmore draped his suit coat over her shoulders. Hale's body lay a few yards away. The sirens blared. Like ice thawing on a frozen pond, TRANSLTR's hull let out a sharp crack. â€Å"I'm going down to kill power,† Strathmore said, laying a reassuring hand on her shoulder. â€Å"I'll be right back.† Susan stared absently after the commander as he dashed across the Crypto floor. He was no longer the catatonic man she'd seen ten minutes before. Commander Trevor Strathmore was back-logical, controlled, doing whatever was necessary to get the job done. The final words of Hale's suicide note ran through her mind like a train out of control: Above all, I'm truly sorry about David Becker. Forgive me, I was blinded by ambition. Susan Fletcher's nightmare had just been confirmed. David was in danger†¦ or worse. Maybe it was already too late. I'm truly sorry about David Becker. She stared at the note. Hale hadn't even signed it-he'd just typed his name at the bottom: Greg Hale. He'd poured out his guts, pressed print, and then shot himself-just like that. Hale had sworn he'd never go back to prison; he'd kept his vow-he'd chosen death instead. â€Å"David†¦Ã¢â‚¬  She sobbed. David! At that moment, ten feet below the Crypto floor, Commander Strathmore stepped off the ladder onto the first landing. It had been a day of fiascoes. What had started out as a patriotic mission had swerved wildly out of control. The commander had been forced to make impossible decisions, commit horrific acts-acts he'd never imagined himself capable of. It was a solution! It was the only damn solution! There was duty to think of: country and honor. Strathmore knew there was still time. He could shut down TRANSLTR. He could use the ring to save the country's most valuable databank. Yes, he thought, there was still time. Strathmore looked out over the disaster around him. The overhead sprinklers were on. TRANSLTR was groaning. The sirens blared. The spinning lights looked like helicopters closing in through dense fog. With every step, all he could see was Greg Hale-the young cryptographer gazing up, his eyes pleading, and then, the shot. Hale's death was for country†¦ for honor. The NSA could not afford another scandal. Strathmore needed a scapegoat. Besides, Greg Hale was a disaster waiting to happen. Strathmore's thoughts were jarred free by the sound of his cellular. It was barely audible over the sirens and hissing fumes. He snatched it off his belt without breaking stride. â€Å"Speak.† â€Å"Where's my pass-key?† a familiar voice demanded. â€Å"Who is this?† Strathmore yelled over the din. â€Å"It's Numataka!† the angry voice bellowed back. â€Å"You promised me a pass-key!† Strathmore kept moving. â€Å"I want Digital Fortress!† Numataka hissed. â€Å"There is no Digital Fortress!† Strathmore shot back. â€Å"What?† â€Å"There is no unbreakable algorithm!† â€Å"Of course there is! I've seen it on the Internet! My people have been trying to unlock it for days!† â€Å"It's an encrypted virus, you fool-and you're damn lucky you can't open it!† â€Å"But-â€Å" â€Å"The deal is off!† Strathmore yelled. â€Å"I'm not North Dakota. There is no North Dakota! Forget I ever mentioned it!† He clamped the cellular shut, turned off the ringer, and rammed it back on his belt. There would be no more interruptions. Twelve thousand miles away, Tokugen Numataka stood stunned at his plate-glass window. His Umami cigar hung limply in his mouth. The deal of his lifetime had just disintegrated before his eyes. Strathmore kept descending. The deal is off. Numatech Corp. would never get the unbreakable algorithm†¦ and the NSA would never get its back door. Strathmore's dream had been a long time in the planning-he'd chosen Numatech carefully. Numatech was wealthy, a likely winner of the pass-key auction. No one would think twice if it ended up with the key. Conveniently there was no company less likely to be suspected of consorting with the U.S. government. Tokugen Numataka was old-world Japan-death before dishonor. He hated Americans. He hated their food, he hated their customs, and most of all, he hated their grip on the world's software market. Strathmore's vision had been bold-a world encryption standard with a back door for the NSA. He'd longed to share his dream with Susan, to carry it out with her by his side, but he knew he could not. Even though Ensei Tankado's death would save thousands of lives in the future, Susan would never have agreed; she was a pacifist. I'm a pacifist too, thought Strathmore, I just don't have the luxury of acting like one. There had never been any doubt in the commander's mind who would kill Tankado. Tankado was in Spain-and Spain meant Hulohot. The forty-two-year-old Portuguese mercenary was one of the commander's favorite pros. He'd been working for the NSA for years. Born and raised in Lisbon, Hulohot had done work for the NSA all over Europe. Never once had his kills been traced back to Fort Meade. The only catch was that Hulohot was deaf; telephone communication was impossible. Recently Strathmore had arranged for Hulohot to receive the NSA's newest toy, the Monocle computer. Strathmore bought himself a SkyPager and programmed it to the same frequency. From that moment on, his communication with Hulohot was not only instantaneous but also entirely untraceable. The first message Strathmore had sent Hulohot left little room for misunderstanding. They had already discussed it. Kill Ensei Tankado. Obtain pass-key. Strathmore never asked how Hulohot worked his magic, but somehow he had done it again. Ensei Tankado was dead, and the authorities were convinced it was a heart attack. A textbook kill-except for one thing. Hulohot had misjudged the location. Apparently Tankado dying in a public place was a necessary part of the illusion. But unexpectedly, the public had appeared too soon. Hulohot was forced into hiding before he could search the body for the pass-key. When the dust settled, Tankado's body was in the hands of Seville's coroner. Strathmore was furious. Hulohot had blown a mission for the first time ever-and he'd picked an inauspicious time to do it. Getting Tankado's pass-key was critical, but Strathmore knew that sending a deaf assassin into the Seville morgue was a suicide mission. He had pondered his other options. A second scheme began to materialize. Strathmore suddenly saw a chance to win on two fronts-a chance to realize two dreams instead of just one. At six-thirty that morning, he had called David Becker. Chapter 97 Fontaine burst into the conference room at a full sprint. Brinkerhoff and Midge were close at his heels. â€Å"Look!† Midge choked, motioning frantically to the window. Fontaine looked out the window at the strobes in the Crypto dome. His eyes went wide. This was definitely not part of the plan. Brinkerhoff sputtered. â€Å"It's a goddamn disco down there!† Fontaine stared out, trying to make sense of it. In the few years TRANSLTR had been operational, it had never done this. It's overheating, he thought. He wondered why the hell Strathmore hadn't shut it down. It took Fontaine only an instant to make up his mind. He snatched an interoffice phone off the conference table and punched the extension for Crypto. The receiver began beeping as if the extension were out of order. Fontaine slammed down the receiver. â€Å"Damn it!† He immediately picked up again and dialed Strathmore's private cellular line. This time the line began to ring. Six rings went by. Brinkerhoff and Midge watched as Fontaine paced the length of his phone cable like a tiger on a chain. After a full minute, Fontaine was crimson with rage. He slammed down the receiver again. â€Å"Unbelievable!† he bellowed. â€Å"Crypto's about to blow, and Strathmore won't answer his goddamn phone!† Chapter 98 Hulohot burst out of Cardinal Guerra's chambers into the blinding morning sun. He shielded his eyes and cursed. He was standing outside the cathedral in a small patio, bordered by a high stone wall, the west face of the Giralda tower, and two wrought-iron fences. The gate was open. Outside the gate was the square. It was empty. The walls of Santa Cruz were in the distance. There was no way Becker could have made it so far so quickly. Hulohot turned and scanned the patio. He's in here. He must be! The patio, Jardin de los Naranjos, was famous in Seville for its twenty blossoming orange trees. The trees were renowned in Seville as the birthplace of English marmalade. An eighteenth-century English trader had purchased three dozen bushels of oranges from the Seville church and taken them back to London only to find the fruit inedibly bitter. He tried to make jam from the rinds and ended up having to add pounds of sugar just to make it palatable. Orange marmalade had been born. Hulohot moved forward through the grove, gun leveled. The trees were old, and the foliage had moved high on their trunks. Their lowest branches were unreachable, and the thin bases provided no cover. Hulohot quickly saw the patio was empty. He looked straight up. The Giralda. The entrance to the Giralda's spiral staircase was cordoned off by a rope and small wooden sign. The rope hung motionless. Hulohot's eyes climbed the 419-foot tower and immediately knew it was a ridiculous thought. There was no way Becker would have been that stupid. The single staircase wound straight up to a square stone cubicle. There were narrow slits in the wall for viewing, but there was no way out. David Becker climbed the last of the steep stairs and staggered breathless into a tiny stone cubicle. There were high walls all around him and narrow slits in the perimeter. No exit. Fate had done Becker no favors this morning. As he'd dashed from the cathedral into the open courtyard, his jacket had caught on the door. The fabric had stopped him mid stride and swung him hard left before tearing. Becker was suddenly stumbling off balance into the blinding sun. When he'd looked up, he was heading straight for a staircase. He'd jumped over the rope and dashed up. By the time he realized where it led, it was too late. Now he stood in the confined cell and caught his breath. His side burned. Narrow slats of morning sun streamed through the openings in the wall. He looked out. The man in the wire-rim glasses was far below, his back to Becker, staring out at the plaza. Becker shifted his body in front of the crack for a better view. Cross the plaza, he willed him. The shadow of the Giralda lay across the square like a giant felled sequoia. Hulohot stared the length of it. At the far end, three slits of light cut through the tower's viewing apertures and fell in crisp rectangles on the cobblestone below. One of those rectangles had just been blotted out by the shadow of a man. Without so much as a glance toward the top of the tower, Hulohot spun and dashed toward the Giralda stairs. Chapter 99 Fontaine pounded his fist into his hand. He paced the conference room and stared out at the spinning Crypto lights. â€Å"Abort! Goddamn it! Abort!† Midge appeared in the doorway waving a fresh readout. â€Å"Director! Strathmore can't abort!† â€Å"What!† Brinkerhoff and Fontaine gasped in unison. â€Å"He tried, sir!† Midge held up the report. â€Å"Four times already! TRANSLTR's locked in some sort of endless loop.† Fontaine spun and stared back out the window. â€Å"Jesus Christ!† The conference room phone rang sharply. The director threw up his arms. â€Å"It's got to be Strathmore! About goddamn time!† Brinkerhoff scooped up the phone. â€Å"Director's office.† Fontaine held out his hand for the receiver. Brinkerhoff looked uneasy and turned to Midge. â€Å"It's Jabba. He wants you.† The director swung his gaze over to Midge, who was already crossing the room. She activated the speaker phone. â€Å"Go ahead, Jabba.† Jabba's metallic voice boomed into the room. â€Å"Midge, I'm in the main databank. We're showing some strange stuff down here. I was wondering if-â€Å" â€Å"Dammit, Jabba!† Midge came unglued. â€Å"That's what I've been trying to tell you!† â€Å"It could be nothing,† Jabba hedged, â€Å"but-â€Å" â€Å"Stop saying that! It's not nothing! Whatever's going on down there, take it seriously, very seriously. My data isn't fried-never has been, never will.† She started to hang up and then added, â€Å"Oh, and Jabba? Just so there aren't any surprises†¦ Strathmore bypassed Gauntlet.†

E-Retail Industry – The Uk Internet Grocery Market

This study aims to understand the competitive environment of some of the main retailers within the UK market and to demonstrate the different elements of the e-environment that impact on the retailer's business and marketing strategy. Furthermore this study will assess the impact of many factors and constraints surrounding the e-retail industry and specifically the grocery sector of the retail industry. It is known globally that the UK has the most developed grocery e-tailing sector in the world and that is increasingly appearing specially after the failure of many business models which have adopted the internet for distributing and selling there products This study will exclude B2B sector and will focus on B2C sector in the retail market I will be focusing on the online grocery market and the main British players leading this market. I have selected this industry because recently, it has caused a noise globally, and many interested people are wondering whether this industry has reached the mature level or it is still growing or it is only a noise which will lose its importance later. The UK Grocery Market it is estimated that à ¯Ã‚ ¿Ã‚ ½105 billion of groceries are sold in Britain each year, (MINTEL Nov, 2002) , that shows a noticeable increase in sales over the period since 1999 until the end of 2002. The Total retail sales through specialist and non-specialist food retailers were worth some à ¯Ã‚ ¿Ã‚ ½90 billion in 1999 and many specialists predict this market to continue growing to reach 120 billion by 2005 (MINTEL, Nov. 2000) Within the food market itself, fruit and vegetables represent the largest market, with high demand within the sector for fresh produce. Convenience foods – fresh and frozen ready meals – are also highly demanded, as are products which generally fit well with the needs of the much maligned ‘cash rich and time poor' consumer. Key debates within the market surround the use of genetically modified (GM) produce, and this has helped to create niches in the retail market for suppliers of GM-free or organic ranges. The major supermarkets have been moving quickly into the organic sector, in which higher margins can be found. (Key Note) The UK grocery market is driven by economic factors, population structures, household size employment pattern and lifestyle patterns whose impact is shown below as macroeconomic factors: Economic factors – Although consumer expenditure is predicted to continue to grow by 12.6% to 2004, with personal disposable income expected to also grow steadily, it is unlikely that this will impact strongly on spending on food for in-home expenditure; As personal wealth has grown, spending on food has decreased as a proportion of total expenditure, with leisure activities, including eating out, taking most of the surplus. Some premium categories of food, such as organic produce, will benefit. As a result the focus of promotional strategy is moving away from price competitiveness towards other aspects of the retail offer. The population structure – Food expenditure and the overall market size is directly related to the size of the population but the long-term outlook for the British population is for very low growth, implying that the food retailing sector is likely to find domestic profits hard to grow. Household structure – Over the period 1999-2004, an increase of 830,000 (3.4%) (MINTEL, Nov 2000) household is anticipated. This is due to factors other than an increase in population; the growth is coming from one- and two-person households, due to rising divorce and separation rates, getting married later or not at all and the elderly living longer These trends disrupt the economic logic of the superstore model which is designed to offer large families convenient means to buy large volumes of food in one place, relatively infrequently, during the daytime, and to transport that shopping home by private car. Yet only 20% of adults have children under 16 living at home with them. All the major grocery retailers are competing to grow their share of this crucial segment of the population. Smaller households equate to more frequent shops for a few items at a time, often at unsociable hours, a considerably more expensive retailing proposition. Changing employment patterns and practices, with increasing frequency of part-time working, mean there are fewer families in which one partner has the time to shop at relative leisure during the day, and more for whom shopping is a shared duty, carried out whenever busy schedules will allow. In turn, time-pressured shoppers will often want to use a variety of shopping patterns according to circumstance, with retailers being required to offer more channels to market in order to compete. This cannot be done without cost implications. Changes in consumer tastes and lifestyles have an influence on grocery demand patterns. Healthy-food fashions and food-safety scares cause people to change what they eat, while there is a strong trend towards snacking and convenience eating – which involves an increasing proportion of food being bought through channels other than grocery retailers.(MINTEL) Internet adoption in the UK retail Sector Retailers generally begin on-line activities by providing information and interactive communication. Their site may develop into an electronic shop almost mirroring their offline activities A study by the department of trade and industry (DTI) called, ‘E-Commerce Impact Study: Retail Overview' (www.dti.gov.uk 29 July 2002) shows that: More than 75% of retailers are adopting e-business technologies, Nearly a quarter of retailers surveyed, and more than 56% of micro firms in the convenience store sector, have not thought about the benefits of the e-commerce. This report provides a detailed look at a number of key retail sector, and shows how UK retailers are getting to grip with e-commerce and that modern technologies are helping to change the way they do business. The report mentioned that: – 77% of companies are adopting e-commerce technologies – 71% of businesses use external e-mail – 53% of firms have a website More British food shoppers have converted to online grocery shopping than in any other country. However, Internet sales still represent a tiny, although growing, percentage of the overall UK grocery market. Most people use the Internet as a way of gathering information on products and making price comparisons before visiting their local store.(Key Note) Despite these statistics are showing quite positive numbers, some experts and specialists state that this field needs further research to determine the extent to which the web is likely to promote long term changes in the retail sector . Table 1 A classification of online retail activit 1 Food and consumables: Grocery, including supermarkets and hyper-markets 2 Convenience stores 3 Specialists food retailers, e.g. bakers and confectioners 4 Alcohol retailers, including off-licences 5 Clothing and accessories: Clothing retailers, including female, male and children 6 Footwear retailers, including fashion and work wear 7 Jewellery retailers, including accessories 8 Home: Furnishings retailers, including hard and soft furnishings and Textiles 9 Electrical goods, including brown and white goods and Computers 10 DIY, including gardening 11 Leisure and entertainment: Sports retailers, including sportswear and equipment 12 Toys retailers, including games, hobbies and crafts 13 Books, music, stationery and video retailers 14 News, including newsagents and CTNs 15 Health and beauty: Health and beauty, including chemists and opticians 16 Home shopping: Home shopping, including catalogues and mail order Directories 17 Mixed stores: Mixed stores, including department stores and variety retailers Source N.F. Doherty, F. Ellis-Chadwick and C.A. Hart. 1999 .Cyber retailing in the UK: the potential of the Internet as a retail channel Online Grocery UK Market In the UK online market there are four main grocery retailers dominating the market those are (Tesco, J Sainsbury, Asda, and Iceland.co.uk) According to the researchers the UK leads the world in online grocery shopping. â€Å"Chains like Tesco and Iceland have been much faster than their US counterparts in exploiting the immense potential of new virtual shopping markets.† They estimate that the online grocery market is already worth à ¯Ã‚ ¿Ã‚ ½200m a year and will reach à ¯Ã‚ ¿Ã‚ ½1bn within two years.(Guardian Friday February 4, 2000 ) The online grocery market is characterised by many of the features of the traditional grocery market. Big supermarkets have woken up to the Internet as a distribution channel and are gearing up to dominate the market. Smaller suppliers, using the Web as another side of their portfolio, are sure to lose out in this area. Smaller niche suppliers make up a large element of the market in terms of numbers of firms. In fact, there are so many companies, many of which operate on a very local delivery basis, that it is almost impossible to calculate their actual number. MARKET SIZE Online shopping grew 19 times faster than traditional brick-and-mortar retailing in December 2002, and increased a further five percent in January 2003 to represent six percent of all UK retail .(www.nua.com) Various reported predictions suggest the online grocery market will be worth around up to 10 % of 120 billion which is the predicted grocery market size by 2005 (MINTEL Nov, 2000) The current size of the UK online grocery market has been estimated to be worth à ¯Ã‚ ¿Ã‚ ½1.2bn. (Key Note 2001), while Tesco reported 446 million sales during 2003. Sainsbury's the second market leader announced annual sales of à ¯Ã‚ ¿Ã‚ ½110 million during 2002 (MINTEL Mar 2003) More than half the UK population will have bought something online by the end of 2003. Online shopping will represent 7% of all retail sales in the UK, accounting for à ¯Ã‚ ¿Ã‚ ½2 billion a month.(MINTEL Apr 2003) The total size of the UK grocery market has been estimated at à ¯Ã‚ ¿Ã‚ ½100bn per year. To support the market, the UK has 5.9 million online shoppers, growing to a predicted 8.5 million over the next 5 years à ¯Ã‚ ¿Ã‚ ½500m of turnover, that suggests that average spending per user in 2000 was in the region of à ¯Ã‚ ¿Ã‚ ½83 per head, suggesting that the Majority of users are not regular consumers of online services.(Key Note) Market size is difficult to determine, as figures for turnover from Internet sales are often included in total sales figures. Companies that are struggling to perform in the market may be taking a rather flexible view in how they present figures that may disappoint shareholders. However, Key Note's assessment is that the size of the true online market is currently à ¯Ã‚ ¿Ã‚ ½465m (lower than many estimates suggest). Within this, Tesco claims 64.5% of the market, Sainsbury's 9%, ASDA 7.5%, Iceland 4.7%, , with the balance held by a range of independents, small suppliers and niche companies. Table:2 The UK Online Grocery Market by Online Sales by Supermarket (à ¯Ã‚ ¿Ã‚ ½m and %), 2000 Online Sales (à ¯Ã‚ ¿Ã‚ ½m) % of Total Tesco 300 64.5 J Sainsbury 42 9.0 ASDA Wal-Mart 35 7.5 Iceland.co.uk 22 4.7 Others 66 14.2 Total 465 100.0 Source: Key Note Macro Environment To understand the macro-environment a technique called a PEST (Political, Economical, Socio-cultural, and Technological) analysis is usually undertaken. The PEST analysis identifies all external factors that affect the way a business can operate. What follows is a PEST for the E-grocery industry PEST ANALYSIS POLITICAL FACTORS The UK government sets itself as the target of making the UK the world's best place for e-commerce by developing public internet access and e-commerce awareness among UK businesses To trade in the UK there are 40 different laws that a company may be subject to (chaffey) Stephen Timms, e-commerce Minister, said: â€Å"The UK's retailers are making progress in adopting e-commerce and developing e-business solutions. But there clearly is room for improvement, and we cannot afford to be complacent. â€Å"E-business technologies offer a wealth of benefits. In order to exploit these we must help create the right culture throughout the business community so that UK firms of all sizes can seize the competitive advantage. â€Å"UK online for business is leading the way in getting business online, and the Government's aim to make the UK the best place in the world for e-commerce.†( http://www.gnn.gov.uk) The first Annual Report on the strategy was launched in September 2000. The UK strategy for online development is laid down in the UK Online Action Plan, which details 94 recommendations for action in 25 areas of priority. One specific goal is to develop the UK as the world's best environment for electronic trading by 2002. This, it is stated, will be achieved in four specific ways: * Encouraging competition in Internet access markets * Establishing a new regulatory framework for converging telecommunications and broadcasting markets * removing regulatory obstacles to electronic ways of working * Co-operating with international partners to develop a ‘global framework for e-commerce'. Oftel (Office of Telecommunications) is one of the tools for achieving this strategy, and, as such, has been charged with driving competition in the areas of dial-up access and delivering high-speed access routes to the Internet , specifically the encouragement of adoption of Broadband technology, and NPD (new product development) in the mobile-phone and fixed-wireless markets. Government strategy is to put as many UK consumers as possible online. Those responsible for driving this strategy are aware of consumer concerns about the Internet that must be addressed if the Government's objective is to be secured.(Key Note) ECONOMICAL FACTORS The innovation in information technology (IT) and new business practices facilitated by IT are forming a â€Å"new† economy, Electronic commerce and the IT innovations fuelling it are supposed to be fundamentally changing the logics of business practice, forming new social realities, and new business models. Traditional â€Å"old economy† firms and organizations are busy building bridges to the new economy. A stable rate of economic growth is one way in which the Government hopes to guarantee macro-economic stability, which can assist firms when assessing the risks associated with innovative practices. This, combined with the factors outlined below, has an influential effect on the rate of growth of the online grocery market. Low Cost of Internet Access One of the main drivers encouraging the use of Internet access and e-grocery in the UK is the relatively low cost of time spent online. The UK is the cheapest off-peak location in the world from which to surf the Internet, peak rates have has been dropped. This advantageous position benefits consumers, and the state of competition within the market is strong, with a large number of good quality Internet service providers (ISPs) available and eager to serve the public demand. Levels of Disposable Income The greater the levels of PDI consumers have, the more likely they are to be tempted towards higher margin products. Such high-margin products can make the difference between a profitable online transaction and a loss-making one. Table: 3 Index of Personal Disposable Income (1995=100 and %), 1995-2001 1995 1996 1997 1998 1999 2000 2001 Disposable Income index 100 106 113 116 122 127 132 % change Year-on-year – 6.0 6.6 2.7 5.2 4.1 3.9 Source:National Statistics Table 3 shows that levels of disposable income are rising, and have risen by 32% since 1995. The indications are that the upward trend will continue to apply, suggesting that this economic indicator will contribute to growth within the market in the short term. Rate of Change of Prices The change of prices gives a good sign of the stability of the economy. The UK has a low rate of inflation, and this is confirmed by an assessment of the RPI in Table 4 Table 4: Retail Price Index for All Items and Food(1995 =100 and %), 1995-2000 1995 1996 1997 1998 1999 2000 RPI (all items) 149.1 152.7 157.7 162.9 165.4 170.0 % change Year-on-year _ 2.4 3.3 3.3 1.5 2.8 RPI (food) 151.4 154.9 160.5 166.5 169.4 175.2 % change Year-on-year – 2.3 3.6 3.7 1.7 3.4 RPI – retail price index Source: National Statistics It can be seen from Table: 4 that the rate of change in the price of food between 1995 and 2000 has been roughly in line with the general rate of change in the RPI. Similarly European Currency and Simplification O European Trading Laws The advance of the European currency and the simplification of European trading laws will mean that Consumers will find it increasingly easy to trade with European retailers. The Internet offers International retailers a great opportunity to attack the UK marketplace. British shoppers are already prepared to go Euro to get what they want online. â€Å"Big brand names are in the best position to immediately exploit e-commerce but if they don't start moving soon the threat from foreign competition is real.† (Jolanta Pilecka, E-commerce Marketing Manager, Hewlett-Packard). In future a number of important factors might affect the economic state of the UK and inevitably supermarkets. The first is the possible introduction of the Euro. The Euro has been introduced in various European countries, but most notably France. The introduction of the Euro in France has pushed up weekly shopping bills for the average French household by 10 per cent. Could the same be expected to happen in Britain should the Euro SOCIAL FACTORS To know the barriers to consumer online purchasing adoption it is useful to understand the different factors that affect the level of internet access. Value proposition ease, Security and fear of unknown are the main factors affecting the internet adoption (Chaffey) Over the period July to September 2002 an estimated 11.4 million households in the UK could access the internet from home, that amount 46 percent of all households. This is over twice the number three years earlier and is an increase of 7 percent from 39 percent reported in the third quarter of 2001. (www.nua.com ) Evidence suggests that household formation will continue to grow, but that the profile of home size as mentioned at the first of this paper will stay strongly biased towards homes with one or two people. Table 5: Changing Household Numbers in the UK (million and %), 2000 and 2005 2000 2005 Million % of Total Million % of Total One person 7.3 29.1 8.0 31.1 Two persons 8.9 35.5 9.0 35.0 Three persons 3.7 14.7 3.5 13.6 Four persons 3.5 13.9 3.5 13.6 Five or more persons 1.7 6.8 1.7 6.6 All households 25.1 100.0 25.7 100.0 Source:National Statistics An estimated 62 %of adult in the Great Britain have accessed the internet some time according to figures from the October 2002 national omnibus survey. This is equivalent to approximately 28.6 million adults in Britain having accessed the internet. In the month prior to the survey 52 per cent of adults had accessed the internet. Differences between the countries and regions of the UK Levels of access vary greatly between different parts of the UK. In October 2001 to September 2002 the proportion of households with access was lowest in Northern Ireland (30%), Wales (31%) and the West midlands (34%). It is noticeable that the proportions were highest in the East of England (52%), London (50%) and the South East (50%) were around half of households had access to the internet. Table:6 Households with home access to the Internet by Government Office Region & UK country: October 2000 to September 2001 and October 2001 to September 2002 Oct 2000 Oct 2001 to to Sep 2001 Sep 2002 Per cent North East 26 36 North West 35 41 Yorkshire and the Humber 32 39 East Midlands 40 46 West Midlands 35 34 East 40 52 London 46 50 South East 46 50 South West 38 41 England 39 44 Wales 27 31 Scotland 30 40 Northern Ireland 26 30 United Kingdom 37 43 Source: national statistics According to International Telecommunication Union (ITU) (www.itu.int ) it is shown that in the UK 36.62 per 100 own a PC Table 7: Internet Estimated PCs Hosts total 2002 Hosts per 10`000 inhab. 2002 Users (k) 2002 Users per 10`000 inhab. 2002 Total (k) 2002 Per100 Inhab. 2002 2`865`930 485.03 24`000.0 4`061.74 22,00 36.62 table 7 , shows that a large proportion of the UK population own a PC that makes accessing the internet easer than going to the work place or other places Legal and ethical concerns It is argued that people do not change as quickly as may be believed. They still do not like parting with personal details, especially to those that they do not trust. Firms that request data from consumers need to make supplying information optional and allow users to change and delete the information provided. Crucially, they need to convince consumers that they will treat all information confidentially. Firms that are recognised as ‘good citizens' and with a high reputation in this regard are well placed to ease the anxieties of consumers scared of fraudulent use of details. Smaller companies with an Internet-only presence will find it hard to build up this trust. TECHNOLOGICAL FACTORS E-retailing can be seen as an innovation in retailing that in turn is built around a technological innovation Many reports have summarized technological problems as: The complexity of the user interface bandwidth restrictions and access connection speeds and security concerns A wide range of new technologies have enabled companies to create better and more efficient relationships with consumers as e-retailers: – provide more information in the pre-shop experience; – increase the number of access points to meet customers needs; – offer a wider choice of products than can be held in-store; and, – improve the overall service provision, for example through better stock management. www.gnn.gov.uk Technological breakthroughs are some of the key drivers in building the right conditions for online grocery to thrive. The main technological factors influencing the market include: à ¯Ã‚ ¿Ã‚ ½ The expansion of broadband Internet à ¯Ã‚ ¿Ã‚ ½ The introduction and growth of DTV (digital television) à ¯Ã‚ ¿Ã‚ ½ M-commerce (mobile-commerce) and WAP (wireless application protocol) phones à ¯Ã‚ ¿Ã‚ ½ Automated reordering systems à ¯Ã‚ ¿Ã‚ ½ Systems offering defence against fraud à ¯Ã‚ ¿Ã‚ ½ Automated customer service. (Key Note 2001) Broadband Internet One of the problems many consumers have when dealing with the Internet is the speed of access. Many consumers connect using 56K modems, although the majority never achieve this speed, perhaps because they live a great distance from the central phone-exchange routes or because their phone lines are too old. Broadband connections can alleviate this problem. Broadband connections come in two basic types: digital subscriber line connections (DSL) and cable modem connections In the first quarter of 2001, the number of DSL lines grew by 90% in the UK This market is likely to experience high growth in the coming years.(www.itu.int) Digital Television Advancements in television are running parallel to other Internet-enabled technologies 4.4 million households had DTV in 2000, and the figure is now probably in excess of 5 million. Not all DTV services are fully Internet-enabled, but there are plans to achieve this. The growth rate in subscription to DTV services is believed to be higher than the rate of new subscribers to ISPs. It has been suggested that more than 45% of homes will have digital satellite TV by 2008 (generating revenues for the communications companies of à ¯Ã‚ ¿Ã‚ ½2.4bn per year). One of the major barriers to e-grocers is the high costs charged to the suppliers by the DTV companies. Tesco reported to have found Open Digital's charges too expensive to make a venture worthwhile, however, the majority of the large supermarkets are signing up to the service may have very severe consequences in the long term. M-Commerce and WAP Phones M-commerce for all markets in Europe is forecast to reach levels of around $38bn by 2004.(Key Note) with over half of European companies planning to offer some form of service via mobile phones (particularly in the banking and service sectors). Major multiples are increasingly active in the service sector, and their online successes in other areas could well spill over into m-commerce activities, Mobile communications company Ericsson has estimated that, by 2004, there will be more than 600 million people using mobile Internet services in Europe. In 2000, the market for subscriptions to mobile-phone services grew by 67% and by 84% in 2002 .(www.itu.int ) However, WAP phones, currently the only method of accessing Internet via a mobile, have been relatively slow to catch on in Europe and make up only 15% of overall handset sales globally. Automated Re-ordering Systems All the technologies so far discussed require a conscious effort on the behalf of the consumer. In the future, it is possible that automated re-ordering systems will mean that the retailer is automatically notified when products are being used up within the home and need replenishing. There are two enabling technologies currently under development that may make this less fictional and more everyday. Vendor managed inventory (VMI) is one of these technologies. Another enabling technology in the same area is radio frequency identification technology, also known as RFID. This improves on VMI by using radio waves to scan all products in the fridge at any one time. Those kinds of technologies build and grow up the relationship between the consumer and the supplier learns more about the consumer behaviour to satisfy his demand Also they can create a competitive advantage for the business Systems Offering Defence Against Fraud Concern over fraud continues to scare many consumers away from using the Internet as a route for purchasing items and services. Credit-card companies are already making changes to their services to ease these concerns, but longer-term solutions may be found in encryption technology. Technology is being developed that adds digital signatures to a purchaser's Web browser which may help fight fraud. Such services can only be developed and provided by strategic partnerships between online retailers and Web security corporations such as Inktomi, Ariba, Broadvision, Vignette and Verisign (all leaders in secure-payment processing solutions). INDUSTRY ENVIRONMENT Porter's 5 forces analysis Michael Porter's five forces is The model that widely used for competition analysis in business strategy formulation, states that an organisation exists within an industry. To succeed it must deal with the competitive forces that exist within that industry: (1) Entry of new competition. (2) Threat of substitute products. (3) Bargaining power of buyers. (4) Bargaining power of suppliers. (5) Rivalry amongst existing competitors. THE GROCERY E-TAILING MARRET As an industry in the early stages of its life cycle, the online grocery market is currently very fragmented, with a growing number of competitors. The reasons for this fragmentation lie in several factors: relatively low entry barriers, high transportation costs, the perish ability of grocery items, nontradable goods and services industry, and the ability to specialize in geographic regions and reap the benefits of economies of scale. Much like traditional bricks-and-mortar supermarkets, online grocers are highly localized except for a few that operate nationally or internationally by delivering only non-perishable goods. (Success factors) Barrier to entry Compared to building traditional supermarkets, the barriers to entry in the online grocery market are relatively low, since most online grocers are localized. Set-up costs include establishing the computer system, creating logistics and warehousing capabilities, building brand awareness, and having the necessary alliances with local grocers in place. Many online grocers have already established partnerships or alliances. Entry into the industry is currently relatively easy, because no one has inherent advantages. Innovation and competitive moves, which can be easily replicated, have not prevented new firms or substitutes from entering the market. However, entry barriers may rise in the future as consolidation likely occurs. Market such as groceries, barriers must be built on differentiation through brand recognition by achieving superior customer service and responsiveness. One attraction for the recent surge of Internet startups in the grocery business is that online grocers require less capital and have lower variable costs than bricks-and-mortar stores. Fixed costs are high, but the potential for big returns is great if a large sales volume can be generated. Exit barriers can be moderate to high, depending on the amount invested in logistics and warehousing, the Web site, computer systems, and marketing. PPOWER OF SUPPLIERS Retailers have high bargaining power when they purchase a large volume of goods from their suppliers. Unlike huge supermarket chains, the smaller online grocers typically possess a lower level of bargaining power than their suppliers. But traditional grocers that decide to branch out onto the Net have the advantage in this regard, buying in bulk and enjoying established relationships with suppliers and customers. This allows them to price their goods competitively, deterring new entrants or forcing inefficient incumbents out. POWER OF BUYERS The bargaining power of buyers or consumers is very high in this industry. With many substitutes and competitors to choose from, dissatisfied customers can simply switch to a competitor. Groceries are commodities, so consumers can be sure to purchase the exact same products elsewhere. THREAT OF SUBSTITUTE PRODUCTS The threat of substitutes is undoubtedly high for two reasons: Firstly, the products and services offered online to customers are extremely similar. So similar in fact that supermarket' often have to lower their prices to give them more appeal. Secondly although there is a certain degree of brand loyalty, it can't be relied on, as customer loyalties tend to change when they find they can obtain better value for money elsewhere. E-grocers understand that the threat of substitutes is high, and this then is the main reason for supermarkets branching out and pursuing a broader product line, as a means of calming the intense competition with their competitors. However, in pursuing broader product line grocers open themselves up for further competition from experienced players in other non food retail markets. RIVALRY AMONGST EXISTING COMPETITORS Competitors will do everything in their power to increase their market share. Supermarkets also have high fixed costs due to the sheer number of stores they have open. They must make a sufficient amount of sales to cover their costs and generate profit. As discussed earlier there are a variety of substitute products and services that are becoming increasingly difficult to differentiate thus custom is very much determined by price. This situation is further aggravated because switching costs are difficult to impose, as food is an everyday necessity, many customers will happily forget any loyalties if they really need to obtain it. Conclusion The environment in the online grocery industry is growing more and more competitive as new firms continue to enter. Grocers which established its online purchasing site first is gaining the benefits of the first-mover advantages such as Tesco.com E-grocery has become a considerable industry sector each main player in this industry is trying to create a competitive advantage to attract more numbers of spoiled customers trying to satisfy there demands. The UK e-environment is one of the best e-environments globally that ease the entrance to this industry and generate the potential for more and more customers to buy grocery on line. This industry sector is a quite new industry that makes the flow of information about its success and pitfall factors relatively not enough to know every factor influences this industry We can't say that e-grocery sector has reached the mature level since there are more and more numbers of customers and rivals are entering this sector.

The Mission Of The Mars One Program - 1355 Words

RED POWER â€Å"I would like to die on Mars. Just not on impact.† - Elon Musk at SXSW (CEO and CTO of SpaceX, CEO of Tesla Motors and chairman of SolarCity) With Mars being the most habitable and close solar body to our Earth after our moon Luna, it has become the recent target for space travel in the next few decades. The Mars One program is a prime example as they intend to be â€Å"establishing a permanent human settlement† by the year 2025. With this brings a multitude of complications as Mars’ environs are drastically different to ours here on Earth. For example, Mars has an atmosphere over 100 times thinner than Earth’s atmosphere (0.6 kilopascals of pressure compared to 101.3 kilopascals) and is comprised of 96% carbon dioxide, has an average surface of -55 °C and has barely any water in liquid form. For us to be able to colonize Mars in the near distant future, one of the main requirements is a source of energy. Not only will energy be needed for machines to operate and allow communication back to Earth, but the lack of warmth in the environment gives the necessity for heating as well. I have chosen to directly look at the possible methods of power generation while on Mars; the main two viable options being solar or nuclear power. However there are also other less popular options including geothermal or wind energy which I will also briefly cover. Solar Energy Solar energy is created by converting sunlight into electricity using photovoltaics (PV) or the less commonShow MoreRelatedSpace Travel : President John F. Kennedy1168 Words   |  5 Pageshuman into space one must look at the space project and the missions that gave scientists and engineers the data to make safe equipment to be sent to the moon and beyond. Astronauts were bashed with primitive flight tests to help create training programs. America can even give the Russian space program credit for making the space program what it is today. They provided resources to our engineers and likely the most important they were america s competition. The Russian space program was years aheadRead MoreWill Asia Win The Next Space Race?1651 Words   |  7 Pageshave undoubtedly come as a huge shock to the NASA scientists of the Apollo era. China has become one of the most active space-going nations and doesn’t show any signs of slowing down. The other giant of Asia has not been slack ing either; India has developed a space program with a relatively tiny budget but is checking off milestones rapidly. They didn’t send a mission to the moon until 2008 but reached Mars in 2014 [3]. The Americans are still the biggest players in space but their future is uncertainRead MoreThe Eagle Has Landed Essay913 Words   |  4 Pagesthat goal will serve to organize and measure the best of our energies and skills, because that challenge is one that we are willing to accept, one we are unwilling to postpone, and one which we intend to win, and the others, too.† (John F. Kennedy) The nineteen-sixties were the most important decade during the Space Race, because American perseverance overcame a more advanced Soviet space program and reached the moon. Accordingly, national leaders of the sixties were a huge driving force behind the SpaceRead MoreThe Red Planet And Space Travel Essay1296 Words   |  6 Pagesto Mars four years before we even landed on the moon. How did we have plans to get to Mars before we even landed on the moon? Wernher von Braun has been interested in the red planet and space travel since he was in college. Many years after college, Braun still had his dream of making it to Mars. Braun then wrote a novel in 1949 with plans of traveling to Mars in 1965. This plan obviously has not happened yet, but humans then gained more interest in the red planet. Plans of traveling to Mars hasRead MoreWhat Is The Future Of Space Programs?1391 Words   |  6 PagesRussia and China have the largest, most capable space programs of all countries in the world outside of the United States. Therefore, the status of their programs and endeavors in space missions and actions are of the upmost concern to our nation and global scientific achievement. The state of current events point to a future of vast changes in the global space community due to Russia’s mired Roscosmos State Corporation for Space Activities and China’s ever advancing National Space AdministrationRead MoreThe Space Of Space Exploration1207 Words   |  5 Pagesancient theory of â€Å"round sky and square earth† to the Big Bang theory and even sending astronauts to other planets, humans use their intelligence to satisfy their curiosity towards the universe. The new discoveries and achievements along with the space programs show the competence of humans and prove the necessity to keep exploring the universe with human. Although plenty of opponents claim that it is worthless to send humans into the space, they have overlooked the significance of manned space explorationRead MoreLife on Mars?1536 Words   |  7 PagesLife on Mars? For years, planet Mars has been in the NASA spotlight. The Red Planet has been explored as images, atmoshpere samples and samples of various surface formations have been collected to continue research in labortories here on Earth. The year of 1965 marked the beginiing of the Mars Program, and ever since rocket born cameras, spacecraft voyages, and other advanced technologies have been a part of the explorations. The Mars Program has been dedicated to finding what the planetRead MoreThe Future of Space Exploration1522 Words   |  7 Pagescome of exploring the magnificent cosmos. One of the major questions we face currently is the possibility of life on other planets. â€Å"NASAs biggest ambition is the hunt for life and a habitat that can support life. Several planned or prepared missions will specifically explore the question of whether or not life exists, or once existed, elsewhere in out solar system† (Folger 3). Thats exactly what we plan on using the Curiosity rover for. The MSL (Mars Space Laboratory) Curiosity rover was launchedRead MoreHow Apollo 11 Impacted Future Technology1439 Words   |  6 Pages That s one small step for (a) man, one giant leap for mankind. 45 years later NASA calls the Apollo 11 missions one of the crowning achievements of the 20th century. Started after President Kennedy’s speech to send a man to the moon, NASA had to play catch up in o rder to beat the Soviet Union and become the first country to land a man on the moon. Neil Armstrong, the captain of the mission, started off as a test pilot, until he was recruited as a backup to the Gemini 5 mission. In 1966, ArmstrongRead MoreShould We Put People On Mars?1423 Words   |  6 PagesPut People on Mars? These days after the space race has put a man on the moon, some people have asked what comes next. Some people believe that the best next step is to simply use unmanned probes to explore as it is simply too dangerous and expensive for people to go themselves. However, many people believe that it would be foolish for people to not continue exploring space and some have even begun their own programs, like the Mars One Project, to try to get people into space. Mars One is a non-profit