AWA PromptThe clamor of threat for the physical stores posed by the online retailers has been consistently increasing. Intelligentsia has indulged in hasty laudation of the online model and bashing of the physical model in today’s internet-driven world. These proponents may not be aware that 70% of the country’s top 100 online retail companies had negative profits in the last quarter and 80% of the companies have foreign funding which is often risky, unreliable. Further, the main reason why consumers prefer the online retailers is the high discount offered, often coming at the cost of the investors’ money. How long can this continue? Olympus, a traditional retailer, must certainly believe that the physical stores are there to stay and must focus on opening more stores rather than worry about tapping the online retailing ways.This argument states that the threat posed by online retailers on physical stores has been consistently increasing. Proponents such as Intelligentsia which has lauded the online model over physical model may not be aware that 70% of the country’s top online retail companies had negative profits in the last quarter and that 80% of the companies have foreign funding which is considered risky and unreliable. Moreover, the online retailers offer high discount that often come from investors’ money. Citing these facts, the author concludes that Olympus, a traditional retailer, must focus on opening more stores without worrying about online retailing models. However, the conclusion is not logical as there are various underlying assumptions that need to be discussed before considering the conclusion to be sound.
First, the argument assumes that the negative profits incurred by 70% of the country’s top 100 online stores in the last quarter will impact significantly the future growth prospects or profitability in the long term. It could be possible that the initial investments although made at certain loss are necessary to establish the online store and that in the long run these stores will begin to generate profits. In that case the conclusion of the argument will fall apart.
Second, the argument also assumes that main reason that the customer are buying the products from online stores is the high discount offered to them by online retailers. However, it could be possible that these stores provide user various other benefits such as availability of various products, doorstep delivery, customer care services which are not offered by the traditional stores. In this case, it will impact negatively to the Olympus if it keeps on opening multiple traditional stores without offering benefits that are comparable with those offered by online retailers.
In conclusion, it can be said that the argument in its current form is not logically sound and is still open to debate. There are various assumptions as mentioned above that question the conclusion of the argument. Therefore, without clearly analyzing these assumptions nothing can be said about the soundness of the conclusion of the argument.