Balancing physical and online stores

Drawing from Minnie’s post, I was gripped by her idea that physical stores and online stores are separate channels that are happening on their own. Yes, it is true that some online shopping has emerged due to its cost leadership strategy, aiming at a broad market from around the world. However, there are also successful online stores that implement differentiation strategy. These kind of online stores are usually introduced after an existing physical store. Therefore, these kind of online stores do not necessarily have low costs, but instead, they offer unique attributes that are valued by customers.

Whilst Minnie argued that physical and online stores are separate channels, I believe that both have merged and a large number of consumers cross channels in their shopping path. Most successful physical stores nowadays also provide online shopping, as consumers expect options when they shop. For example, having an online store allows their products to be attainable by customers from different parts of the world. Also, other consumers can research their products before coming in-store to purchase. Physical stores are also essential, as certain products require face-to-face interactions.

Nevertheless, there are also downsides to a multi-channel sales strategy. There are problems associated with this approach, from difficulty in managing inventory and cash flow to ensuring even demand in both channels. To conclude, I still believe that a company with a good operation management and staying up-to-date with information of customers’ desires, balancing retail this way is an effective approach for a successful business.

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