As the importance of E-Commerce is constantly growing, traditional brick-and mortar companies have to consider building up an additional sales channel – the Internet.
In order to be successful, companies have to find an appropriate proportion between full integration and separation of virtual and physical store.
The purpose of this paper is to give an overview of the article “Get the Right Mix of Bricks & Clicks” by Ranjay Gulati and Jason Garino, which was published in the Harvard Business Review of June 2000.To understand the concept better, the author is applying the arguments to two E-business firms: “Zara”, a clothing retailer and “Dell”, a computer manufacturer.
Table of Contents
- Introduction
- Finding the Right Level of Integration and Separation
- How to choose the Right Integration Strategy
- Brand
- Management
- Operations
- Equity
- Application – The Bricks and Clicks Strategy of Zara and Dell
- Zara
- Dell
- Conclusion
Objectives and Key Themes
The objective of this paper is to provide a summary and analysis of Ranjay Gulati and Jason Garino's article, "Get the Right Mix of Bricks & Clicks," focusing on the integration strategies of brick-and-mortar companies transitioning to e-commerce. The paper uses Zara and Dell as case studies to illustrate the concepts.
- The optimal balance between integrating and separating online and offline sales channels.
- Different integration strategies for e-commerce businesses (e.g., spin-off, strategic partnership, joint venture, in-house division).
- Factors to consider when choosing an integration strategy (brand, management, operations, equity).
- The successful application of "bricks and clicks" strategies in diverse industries (fashion retail and computer manufacturing).
- The benefits and drawbacks of various integration approaches.
Chapter Summaries
Introduction: This chapter introduces the concept of e-commerce and its growing importance for traditional businesses. It highlights the need for companies to find the right balance between their physical and online presence to succeed in the digital marketplace. The chapter sets the stage for the analysis of Gulati and Garino's article and its application to Zara and Dell as case studies.
Finding the Right Level of Integration and Separation: This section explores the spectrum of integration options available to companies venturing into e-commerce. It contrasts full integration, where online and offline channels are tightly connected, with complete separation, where they operate independently. The chapter analyzes the advantages and disadvantages of each approach, suggesting that the optimal strategy lies somewhere between these extremes. It introduces four key approaches: spin-off, strategic partnership, joint venture, and in-house division, each with varying levels of integration and control.
Keywords
E-commerce, bricks and clicks, integration strategies, online sales channels, offline sales channels, Zara, Dell, brand management, operations, equity, spin-off, strategic partnership, joint venture, in-house division, business model.
Frequently Asked Questions: Get the Right Mix of Bricks & Clicks
What is this document about?
This document provides a comprehensive preview of an analysis of Ranjay Gulati and Jason Garino's article, "Get the Right Mix of Bricks & Clicks." It focuses on the integration strategies employed by brick-and-mortar companies transitioning to e-commerce, using Zara and Dell as illustrative case studies. The preview includes a table of contents, objectives, key themes, chapter summaries, and keywords.
What are the key themes explored in the analysis?
The analysis explores the optimal balance between integrating and separating online and offline sales channels. It examines different integration strategies (spin-off, strategic partnership, joint venture, in-house division), factors influencing strategy choice (brand, management, operations, equity), and the successful application of "bricks and clicks" strategies across diverse industries (fashion retail and computer manufacturing). The benefits and drawbacks of various integration approaches are also considered.
What are the main integration strategies discussed?
The document discusses four primary integration strategies: spin-off, strategic partnership, joint venture, and in-house division. Each strategy represents a different level of integration and control between online and offline operations. The optimal choice depends on factors such as brand, management structure, operational capabilities, and equity considerations.
How does the analysis use Zara and Dell?
Zara and Dell serve as case studies to illustrate the practical application of different "bricks and clicks" integration strategies. The analysis likely examines how these companies successfully balanced their online and offline channels to achieve their business goals.
What are the objectives of this analysis?
The primary objective is to summarize and analyze Gulati and Garino's article, focusing on the complexities of integrating online and offline operations for established businesses. It aims to provide a clear understanding of the various integration strategies and the factors influencing their effectiveness.
What are the key factors to consider when choosing an integration strategy?
The key factors include brand consistency, management structure and capabilities, operational efficiency and synergy, and equity considerations (ownership and control). The optimal strategy requires careful consideration of how these factors interact and influence the overall success of the e-commerce integration.
What is the overall conclusion (as hinted in the preview)?
While the detailed conclusion is not fully provided in the preview, it can be inferred that the analysis likely concludes by highlighting the importance of finding the right balance between integration and separation for successful e-commerce adoption by brick-and-mortar businesses. The specific recommendations would depend on the company's unique circumstances and the careful consideration of the factors outlined above.
What are the keywords associated with this analysis?
Keywords include: E-commerce, bricks and clicks, integration strategies, online sales channels, offline sales channels, Zara, Dell, brand management, operations, equity, spin-off, strategic partnership, joint venture, in-house division, business model.
- Citation du texte
- Eva Müller (Auteur), 2012, Bricks and Clicks.The right balance between virtual and physical stores, Munich, GRIN Verlag, https://www.grin.com/document/296057
