Ultimately, there are few such issues that will emerge in the normal course of business -- doing business across state lines merely shifts the legal jurisdiction to the federal realm and is by no means prohibited. The company will need to retain legal counsel with respect to ensuring that its website adheres to the Commerce Clause and subsequent rulings pertaining to Internet commerce across state lines. The company will also need to ensure that its Internet activities are conducted in accordance with local laws as well, particularly with respect to the collection and payment of taxes. Tool demonstrations are an interesting area. On the Internet site, these will have to take the form of videos, but the in-store demonstrations with the customer using the tool open the company up to significant legal liability. Should somebody be injured testing a power tool in a Hal's location, the location is likely to face legal action. Even if the location undertook multiple forms of physical and legal protection, this would not stop a suit from being filed. There are an estimated 125,000 injuries associated with power tools each year, with a common cause being inexperience or overconfidence (Belleville.k12.wi, no date). With medical bills for such injuries running into the thousands and the potential for career-disruption as a result of such injuries, the liability for Hal's is likely to far exceed the market benefits of offering this program. It is recommended that the tool demonstrations be removed from the stores, and only trained professionals from the tool company or from Hal's demonstrate the tools.

Overall,...

It has only a few strengths with which to combat the threat of the category killers, and most of these strengths do not apply to the online sphere. The cost of setting up a website is significant, and Hal's would have a difficult time building traffic because its brand is not well-known outside of its home area, and even then likely not as well-known as Home Depot or Lowe's. Hal's needs to specialize, offering products or services to markets that the large stores do not current meet, or Hal's will eventually face diminishing business. Hal's therefore needs to focus more on geographic diversification or target market diversification. The website, when it is designed, should be oriented specifically towards the new, focused target markets that Hal's is going to seek out.
Value Diagram

Works Cited:

Armour, S. (2009). Home improvement projects decline with sagging economy. USA Today. Retrieved July 21, 2011 from http://www.usatoday.com/money/economy/housing/2009-03-23-home-remodeling-projects-decline_N.htm

Belleville.k12.wi. (no date). Power tool injuries. Retrieved July 21, 2011 from http://www.belleville.k12.wi.us/bhs/health/safety/power_tool_injuries.htm

LyrusHQ. (2011). Intranets and extranets: Understanding their business application and value. Lyrus.com. Retrieved July 21, 2011 from http://www.lyris.com/us-en/web-cms/57-Intranets-Extranets-Understanding-their-business-application-and-value

Spector, R. (2005). Category killers: The retail revolution and its impact on consumer culture. Harvard Business Press.