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
1. Introduction
2. Finding the Right Level of Integration and Separation
3. How to choose the Right Integration Strategy
3.1 Brand
3.2 Management
3.3 Operations
3.4 Equity
4. Application – The Bricks and Clicks Strategy of Zara and Dell
4.1 Zara
4.2 Dell
5. Conclusion
Research Objectives and Themes
The primary objective of this paper is to analyze the strategic balance between physical and virtual sales channels, commonly referred to as "bricks and clicks," by applying the theoretical framework developed by Ranjay Gulati and Jason Garino to two distinct corporate case studies.
- Theoretical evaluation of the integration-separation spectrum for e-commerce.
- Examination of four core dimensions: brand, management, operations, and equity.
- Strategic analysis of the "in-house" e-commerce model implemented by Zara.
- Assessment of the customized, configuration-to-order approach utilized by Dell.
Excerpt from the Book
4.1 Zara
Zara is a Spanish clothing retailer, operating in many different countries all over the world. It is owned by Inditex, the world’s largest clothing retailer. In 1975 Zara started out as a normal retailer, until in 2009 it opened its first online shop. Through entering a new marketing channel, Zara was trying to strengthen its position as a “top global retailer chain” (Universia Knowledge Wharton, 2009).
Since the creation of its Website, Zara gained a lot of success by increasing its sales by over 20% (Universia Knowledge Wharton, 2009).
Zara’s internet store is connected to its physical stores in several ways. First, the clothes offered online, can all be found inside the stores as well. Furthermore, the clothes purchased can be picked up and given back in any store. The online-store can be seen as an “In-House-Division”. Through the tight collaboration between the physical and virtual branches, Zara is providing its customers an overall service and a personalized experience around the clock.
Summary of Chapters
1. Introduction: This chapter defines e-commerce and establishes the paper's goal of exploring the integration strategies between physical and virtual stores using Zara and Dell as examples.
2. Finding the Right Level of Integration and Separation: This section explains the spectrum between full integration and total separation, highlighting the strategic trade-offs companies face.
3. How to choose the Right Integration Strategy: The author details four specific dimensions—brand, management, operations, and equity—that guide companies in selecting their ideal e-business strategy.
4. Application – The Bricks and Clicks Strategy of Zara and Dell: This chapter applies the previously defined theoretical dimensions to the specific business models of Zara and Dell.
5. Conclusion: The concluding chapter synthesizes findings, reinforcing that successful firms must tailor their integration strategy to their unique operational structure and competitive environment.
Keywords
E-Commerce, Bricks and Clicks, Integration, Separation, Zara, Dell, Strategic Management, Online Retail, Distribution, Customer Experience, Brand Strategy, Digital Transformation, Business Model, Marketing, Supply Chain
Frequently Asked Questions
What is the core focus of this essay?
The essay explores how traditional companies balance their physical retail presence with their online sales channels, a concept known as "bricks and clicks."
What are the primary themes discussed?
The document covers the integration versus separation spectrum, key business dimensions like brand and operations, and real-world implementation strategies.
What is the central research objective?
The main goal is to evaluate the model presented by Gulati and Garino by applying it to the distinct business strategies of Zara and Dell.
Which scientific methodology is employed?
The author uses a qualitative comparative case study methodology to analyze how two major companies manage their online and offline presence.
What is the focus of the main body of the paper?
The main body examines theoretical integration dimensions and applies these concepts to the business operations of Zara and Dell.
Which keywords best characterize this work?
Key terms include E-Commerce, Integration, Bricks and Clicks, Digital Strategy, and Operational Management.
How does Zara specifically implement its integration strategy?
Zara functions as an "In-House-Division," where the physical and online stores are tightly linked, allowing customers to pick up or return items seamlessly across both channels.
How does Dell differ from Zara in its approach to integration?
While Dell utilizes a high level of integration, its operations are more focused on customized manufacturing ("configure to order"), leading to a model that is integrated but not fully unified in the same manner as Zara.
- Quote paper
- Eva Müller (Author), 2012, Bricks and Clicks.The right balance between virtual and physical stores, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/296057
