Impact of the Internet on Business Models - Questions and Considerations

Q1: The impact of online shopping on traditional retail stores

Furthermore, much of the writing in academia has further fuelled the debate and created inconsistencies in our understanding of the real impact of the Internet. For example, there are many divergent opinions in this area as illustrated by the following questions:

Q1.Does the growth in online shopping mean the extinction of the typical ‘high street’ store?

A.What shifts have we seen in the composition of the high street?

B.What products and services can be offered online?

C.Shift in the buying behaviours of consumers?

D.Research in-store, buy online?

Q2.Examine various business models, clicks, bricks,bricks & clicks and finally clicks and bricks?

A.What is build-to-order?

B.Works well with products which are easily categorised?

C.Disadvantages?

 1.evel of stock – inventory costs

 2.Delay between purchase and delivery

 3.Difficulty in visualising the final product

Q3.We are increasingly hearing the term Omni-Channel retailing what does this mean and how can businesses exploit this new phenomenon?

Q4. Why are online travel services such a popular Internet application?

      A.Why do so many Web sites provide free travel information?

Q5. Compare the advantages and disadvantages of distributing digitisable products electronically versus physically?

  A.What is a digitisable product?

  B.Prime example is media

  C.Intangible dominant with minimal co-creation

Benefits of increased catchment, reduced costs , unlimited scalability, long tail model

Additional benefits e.g. cultural testing as a precursor to internationalisation

Ethical and legal issues

Is the product devalued?

Logistics of having a digital supply chain?