Final answer:
Small businesses can use the Internet to expand their market reach and compete globally, leveraging technology and globalization. Strategies such as offering guarantees and building a quality reputation can help to overcome challenges associated with non-store retailing.
Step-by-step explanation:
Small businesses can leverage non-store retailing methods such as the Internet to vastly expand their market reach. This shift in market dynamics is driven by two interconnected factors: technology and globalization. With the proliferation of internet connectivity and the rise of e-commerce platforms, small businesses can now compete beyond their local geographical boundaries. They can serve customers who are searching for niche products or services online, regardless of where they are located in the world. For instance, business-to-business (B2B) websites facilitate connections between suppliers and buyers internationally, increasing market opportunities for small firms. Moreover, the challenge of information asymmetry in non-store retailing can be mitigated through strategies like offering money-back guarantees and building a reputation for quality, as demonstrated by companies like L.L. Bean.