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Internet Business Models

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Bricks and Clicks

Summary of Internet Business Models. Abstract


The Bricks and Clicks business model refers to internet business models in which there is a marriage of traditional ways to conduct a business (often using direct, face-to-face contacts with customers) and Internet ways to interact with customers (often via websites, email, FTP and other internet technologies).

The Clicks and Mortar business model, as it is also called frequently, suggests that traditional sales channels can be operated along or even in an integrated way with internet sales channels.

Typical advantages of Bricks and Clicks strategies are the leveraging of:

1) Core competencies
2) Existing supplier networks
3) Existing distribution channels
4) Brand equity
5) Trust (perceived stability)
6) Existing customer base
7) Lower weighted average cost of capital (WACC)
8) Organizational learning

The Click and Mortar model offers an advantage in areas of business where it is better to retain ties to a physical company and leverage competencies and assets. Pure dot.coms, on the other hand, have an advantage in areas that stress cost efficiency. They are not burdened with brick and mortar costs and can offer products at very low marginal cost. However, they do tend to spend substantially more on customer acquisition.

Book: Robert Spector - Anytime, Anywhere: How the Best Bricks-and-Clicks Businesses Deliver Seamless Service To Their Customers -

Book: Martin Lindstrom - Clicks, Bricks and Brands -

Book: Martin Brighty, Dean Markham - Winning E-Brand Strategies: Developing Your Online Business Profitability -

See also: Porter Competitive Forces  |  Porter Competitive Advantage  |  Resource-Based View  |  Parenting Advantage  |  Prahalad  |  Just-in-time  |  TDC matrix  |  Outsourcing

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