Difference between revisions of "Overestimating impact of online channels"
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| − | + | In [[Marketing Strategy and Organization: Building Sustainable Business|Marketing Strategy and Organization: Building Sustainable Business]] the following arguments for overestimating the impact of online [[Distribution Channels|Distribution Channels]] are mentioned: | |
| + | # The ''transaction costs argument'' | ||
| + | ## optimistic view: online channels enable a company to acquire products and services more efficiently | ||
| + | ## realistic view: interaction between buyer and seller involves a vague trial and error process. | ||
| + | # The ''market expansion argument'' | ||
| + | ## optimistic view: e-commerce enables a better matching of suppliers and faster more personalized access to customers enabling less volatile demand. | ||
| + | ## realistic view: successful contenders develop unique differentiation and build up switching cost. | ||
| + | # The ''Disintermediation argument'' | ||
| + | ## optimistic view: online channels enable the supplier to bypass intermediaries | ||
| + | ## realistic view: setting up a distribution channel and attractive market place is difficult. You can eliminate the middle man but not the middle man's function | ||
| + | # The ''market diversification argument'' | ||
| + | ## optimistic view: internet provides bricks and mortar companies with opportunities to build business elsewhere. | ||
| + | ## realistic view: building business remains harsh. | ||
[[Category:mbi]] | [[Category:mbi]] | ||
[[Category:M11-S1 - Reading - Marketing Strategy and Organization - Chapter 5 - A Concept of the future]] | [[Category:M11-S1 - Reading - Marketing Strategy and Organization - Chapter 5 - A Concept of the future]] | ||
Latest revision as of 20:01, 27 August 2020
In Marketing Strategy and Organization: Building Sustainable Business the following arguments for overestimating the impact of online Distribution Channels are mentioned:
- The transaction costs argument
- optimistic view: online channels enable a company to acquire products and services more efficiently
- realistic view: interaction between buyer and seller involves a vague trial and error process.
- The market expansion argument
- optimistic view: e-commerce enables a better matching of suppliers and faster more personalized access to customers enabling less volatile demand.
- realistic view: successful contenders develop unique differentiation and build up switching cost.
- The Disintermediation argument
- optimistic view: online channels enable the supplier to bypass intermediaries
- realistic view: setting up a distribution channel and attractive market place is difficult. You can eliminate the middle man but not the middle man's function
- The market diversification argument
- optimistic view: internet provides bricks and mortar companies with opportunities to build business elsewhere.
- realistic view: building business remains harsh.
