Lecture 9 (E-commerce retail and services)

Question 1

Economic viability meaning

Answer 1

Ability of firms to survive as profitable business firms during specified period

Question 2

Two business analyses approaches

Answer 2

1. Strategic (Focus on firm and industry)
2. Financial (How firm is performing)

Question 3

5 Forces of Porter

Answer 3

1. Threat of new entrants
2. Bargaining power of suppliers
3. Bargaining power of buyers
4. Threat of substitutes
5. Intensity of Rivalry among competitors

Question 4

PESTLE Framework

Answer 4

Consider factors:

Political (Brexit, tariffs)
Economical (Inflation, Exchange rates)
Social (Lifestyle, age)
Technological (Internet speed, automation)
Legal (Copyright, Consumer safety)
Environmental (Climate change, Env. policies)

Question 5

Challenges for Omnichannel (both physical and online) merchants model

Answer 5

[Ikea, H&M]

-High cost of physical building
-Need to coordinate prices across channels
-Need to develop methods of handling cross-channel operations
-Building credible e-commerce presence
Online Retail Business Models - Omnichannel Merchants

Question 6

Challenges for Manufacturer Direct model

Answer 6

[Apple, Sony]

-Channel conflict
-Switching from supply-push model to demand-pull model
-Developing credible e-commerce presence

Question 7

Challenges for Virtual merchants model

Answer 7

[Amazon, Gymshark]

• Building business and brand name quickly
• Low barriers to entry invite many competitors
• Substantial costs to build and maintain website presence
• Steep learning curve
  Online Retail Business Models - Virtual Merchants

Question 8

Challenges for Catalog Merchants model

Answer 8

[L.L. Bean] - operates in B2B

• High costs for printing and mailing
• Need to leverage existing assets and competencies to new technology environment
• Need to develop cross-channel operations
• Building credible e-commerce presence
  Online Retail Business Models - Catalog Merchants