Hp Case Analysis

726 words - 3 pages

What kind of on-line presence do you think HP should have? Why?The traditional brick-and-mortar distribution systems have defied all odds to remain relevant in the supply chain. If anything, e-commerce has become a complimentary transaction channel to the brick-and-mortar store, and vice-versa. The combination of e-commerce and brick-and-mortar helps you maintain your competitive edge.http://smallbusiness.chron.com/benefit-dual-presence-ecommerce-brick-mortar-store-75881.htmlAdvantage of combined approach:Advancing Customer Relationship ManagementGathering Analytical DataIntegrating Value NetworksE-commerceUse of Web-based applications to automate business interactions and transactions. It enables you to conquer geographical boundaries and interact with your customers from virtual locations. E-commerce integrates numerous software applications, such as online ordering platforms, payment systems and downloads portals, to achieve seamless transaction processing and product delivery.A brick-and-mortar store is the physical venue of your business, where customers walk in to view displays and purchase items.CLICK & MORTARhttp://ebusiness.tc.msu.edu/papers/channelintegration.pdfFour broad areas of benefit include: 1) lower costs, 2) increased differentiation through value-added services, 3) improved trust, and 4) geographic and product market extension.Lower CostsLabor savings result when costs are switched to consumers for such activities as looking up product information, filling out forms, and relying on online technical assistance for after-sales service.Inventory savings arise when firms find that they can avoid having to stock infrequently purchased goods at local outlets, while still offering the full range of choices to consumers via the InternetDelivery savings may result from using the physical outlet as the pick-up location for online purchases, or as the initiation point for local deliveries.cross promotions, ranging from online gift certificates that could be redeemed in stores to highlighting in-store specials at the online siteDifferentiation through value-added servicesPhysical and virtual channel synergies can be exploited at various stages in a transaction in order to help differentiate products and add value. Examples of pre-purchase services are include various online information aids to help assess needs and select appropriate productsImproved trustThree reasons for improved trust, relative to pure Internet firms, derive from the physical presence of click and mortar firms, including reduced consumer risk, affiliation with and embeddedness in recognized local social and business networks, and the ability...

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