Bricks and Clicks
In the former years of Web-based commerce, the stress was placed on sources of competitive reward that Internet firms had over conventional ones, mainly employing transaction cost logic. Transaction cost economics underlines the nature of costs that business firms obtain in the procedures of carrying on transactions with sellers and buyers.
Rewards of e-commerce over conventional commerce
In accession to the transaction cost advantages extended by e-commerce, researchers have determined various other advantages that virtual business firms have over physical firms. Web-based busines firms are comprehended to hold many cost, scale, scope and operational advantages over business firms limited to physical channels. These advantages comprise:
- accession to wider markets,
- lower building and inventory costs,
- flexibleness in sourcing inputs,
- improved data mining and transaction automation capabilities,
- capacity to go around intermediators,
- lower menu costs altering more speedy response to market changes,
- relief of compacting complemental products,
- relief of extending 7X24 access,
- no restriction on astuteness of data rendered to potential clients.
The Bricks and Clicks business model
The Bricks and Clicks business model concerns to the marriage of conventional mode to carry on a business and Internet modes to move with clients
The combination of e-commerce with existent physical channels is a intriguing contracting that can create issues for management. Marketing theorists have long distinguished the potential for channel battles that can take place when there are substitute paths that products can take to the end user.
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