Syndication04 Dec 2007 - 02:20:42 pm
Brick and Mortar & Brick and Click
Today, studying the transformation of John Lewis from a brick and mortar company to a brick and click company, we focused on the implications and the possible disadvantages arising from this transformation. Generally speaking, until recent years, successful Brick and mortar companies (as John Lewis) have had very small incentives to start an on line activity. Their business was already enough profitable and there was no need to undertake new unknown project. In addition, because generally these companies are identified with a physical structure there was the danger to affect the costumer’s company perception. So why take additional risk?Especially in recent years things have changed and company simply cannot ignore that more and more people buy products on line. Refuse to adapt to the new environment would mean soon be out of business. One of the biggest issue for brick and click company is deciding how to allocate resources between different channels competing for the same costumer. Now the company has to manage the conflict arising by the competition between selling on store, on catalogue and on line. In recent years, due to this problem, the catalogue channel has decreased sharply. The issue of channel conflict will be always challenging for company having multichannel distribution systems and the managers need to analyze their marketing channel strategy and develop a strategic mix in order to manage potential channel conflict.
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