In [[Marketing Strategy and Organization: Building Sustainable Business]] the following arguments for overestimating the impact of online [[Distribution Channels]] are mentioned:
# The //transaction costs argument//
## optimistic view: online channels enable a company to acquire products and services more efficiently
## realistic view: interaction between buyer and seller involves a vague trial and error process.
# The //market expansion argument//
## optimistic view: e-commerce enables a better matching of suppliers and faster more personalized access to customers enabling less volatile demand.
## realistic view: successful contenders develop unique differentiation and build up switching cost.
# The //Disintermediation argument//
## optimistic view: online channels enable the supplier to bypass intermediaries
## realistic view: setting up a distribution channel and attractive market place is difficult. You can eliminate the middle man but not the middle man's function
# The //market diversification argument//
## optimistic view: internet provides bricks and mortar companies with opportunities to build business elsewhere.
## realistic view: building business remains harsh.
bag
mbi_public
created
Sat, 08 Jan 2011 15:13:04 GMT
creator
dirkjan
modified
Sat, 08 Jan 2011 15:13:04 GMT
modifier
dirkjan
tags
M11-S1 - Reading - Marketing Strategy and Organization - Chapter 5 - A Concept of the future
creator
dirkjan