Risk Factors
Problems and Assumptions
What if no one want to buy enhanced listings or ads?
There have been studies that show that sometimes there is a disincentive when e-tailers are forced to compete solely on price. It is simply a fact that consumers consider price one of the most important deciding purchasing factors, but we must also provide value to our e-tailers to demonstrates our commitment to expanding the market and increasing their sales. It is important that Golfing Gopher provide value to both sides of the market to avoid incentive problems on behalf of e-tailers. Ultimately the benefits outweigh the risks for e-tailers. In a worse-case scenario, we can become an affiliate to one of the major e-tailers and take a 5%-7% commission on referrals.
What if no one wants to partner with us?
In the event that we can’t find an established company to provide us with the technology and infrastructure we need, we will seek additional funding to hire a programmer who will create the required web application and several servers to run the application when completed. This will result in the launch date being pushed past the 2000 holiday season, but will free up 51% equity in the company that would have otherwise been used to secure the partner.
Who are our customers 5 years from now?
The Internet and Web technology is like super-sonic run-away train. No one can stop it and no one knows when it will slow down. And while it is impossible to know what the face of e-commerce will look like 5 years from now, I am confident that golf will remain one of the most popular sports and that consumers will, more than any other time in history, be looking for ways to simplify their lives.
What if someone duplicates our model?
It is our intention to partner with an established e-commerce partner that has a strong enough reputation to discourage another company trying to duplicate our efforts. As a first-mover with strong brand equity, it will take a tremendous amount of resources for another company to take this leadership position away from us. A company large enough to pull it off would be better off offering a strategic partnership or acquisition.
