The use of internet has continuously grown due to the changes and improvements in technology and the growth in globalisation, meaning that businesses are able to access new customers in more markets and expand along with existing customers gaining easier access to the company. This then leads to an increase in profits for the business. However it can also be a negative impact on some businesses with the use of high street stores and branches not being used as often and therefore lead to a decrease in profits because of the increased use of the internet.
The use of comparison websites are becoming more and more used especially for car insurance companies, which reduces producer’s profits. Websites like gocompare.com, moneysupermarket.com and travelsupermarket.com are few examples of comparison websites used for the comparisons of holidays and insurance. These businesses let you fill in the needs and information you have, to then show you a variety of products and services to fit this request and then you are able to compare the prices of businesses to find out what the best one is for you. By doing this, consumers do not have to spend long periods of time filling their details in for each individual business and ringing up many of them. This will benefit the smaller firms who may offer cheaper insurance than the larger ones as they are being more recognized and appeal to more people through the comparison websites and even though larger firms spend a lot of time and put a lot of money into marketing and advertising their company they may be affected due to the smaller firms taking over. Customers then have more power and knowledge of a variety of businesses and therefore if they go to one business they can use their consumer power to try and force prices down from some businesses to receive a cheaper cost or will cause businesses to lose customers which they won’t want to do and therefore will be forced for a lower price. However if they are forced to sell at a lower price to be able to compete and still gain customers this will