Ch 10. Retailing on the Web Major Features of the Retail Sector Major Features of the Retail Sector E-Commerce I Period E-Commerce I Period Online Retail.

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Presentation transcript:

Ch 10. Retailing on the Web Major Features of the Retail Sector Major Features of the Retail Sector E-Commerce I Period E-Commerce I Period Online Retail Environment Online Retail Environment Economic Viability of an Online Firm Economic Viability of an Online Firm Challenges of Online Retailers Challenges of Online Retailers

Major Features of Retail Sector Services Services Durable goods Durable goods Nondurable goods Nondurable goods

Retailing By Firm Types General merchandize General merchandize Groceries Groceries Durable goods Durable goods Specialty stores Specialty stores Eating and drinking Eating and drinking Gasoline and fuel Gasoline and fuel MOTO (mail order/telephone) MOTO (mail order/telephone) Online retail firms Online retail firms

Vision of Online Retailing: E- Commerce I Period Reduced search costs Reduced search costs Lower entry costs Lower entry costs Older firms too slow to enter online are locked out Older firms too slow to enter online are locked out Disintermediation trend in some industries Disintermediation trend in some industries Outsourcing warehousing and order fulfillment Outsourcing warehousing and order fulfillment

Online Retailing Environment Today Online customers are band driven Online customers are band driven Entry costs were underestimated Entry costs were underestimated Older traditional firms are moving into online retailing Older traditional firms are moving into online retailing Disintermediation did not occur Disintermediation did not occur

The Economic Viability of an Online Firm Key Industry Strategic Factors Key Industry Strategic Factors Key Firm Strategic Factors Key Firm Strategic Factors Key Financial Factors Key Financial Factors

Challenges of Online Retailers Virtual merchants (Amazon) Virtual merchants (Amazon) Clicks-and-bricks (Wal-Mart) Clicks-and-bricks (Wal-Mart) Catalog merchants (LL Bean) Catalog merchants (LL Bean) Manufacturer-direct (Dell) Manufacturer-direct (Dell)

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