Bricks and clicks is a business strategy or business model in e-commerce by which a company attempts to integrate both online and physical presences. It is also known as Click-and-mortar or clicks-and-bricks. Generally, the business models of service firms are more complex than those of manufacturers and resellers. ... Electronic commerce or e-commerce consists of the buying, selling, marketing, and servicing of products or services over computer networks. ...

For example, an electronics store may allow the user to order online, but pick up their order immediately at a local store. Conversely, a furniture store may have displays at a local store from which a customer can order an item electronically for delivery.

The bricks and clicks strategy has typically been used by traditional retailers who have extensive logistical and supply chains. Part of the reason for its success is that it is far easier for a traditional retailer to establish an online presence than it is for a start-up company to employ a successful pure dot.com strategy, or for an online retailer to establish a traditional presence (including a strong brand).

The success of the strategy in many sectors has destroyed the credibility of analysts who argued that the Internet would render traditional retailers obsolete through disintermediation. In economics, disintermediation is the removal of intermediaries in a supply chain: cutting out the middleman. Instead of going through traditional distribution channels, which had some type of intermediate (such as a distributor, wholesaler, broker, or agent), companies may now deal with every customer directly, for example via the Internet. ...

Advantages of the model

Click and mortar firms have the advantage in areas of existing business models and products. In these cases it is better to retain ties to your physical company. This is because they are able to use their competencies and assets, which include: Generally, the business models of service firms are more complex than those of manufacturers and resellers. ...

1. Core competency. Successful firms tend to have one or two core competencies that they can do better than their competitors. It may be anything from new product development to customer service. When a bricks and mortar firm goes online it is able to use this core competency more intensively and extensively.
2. Existing supplier networks. Existing firms have established relationships of trust with suppliers. This usually ensures problem free delivery and an assured supply. It can also entail price discounts and other preferential treatment.
3. Existing distribution channels. As with supplier networks, existing distribution channels can ensure problem free delivery, price discounts, and preferential treatments.
4. Brand equity. Often existing firms have invested large sums of money in brand advertising over the years. This equity can be leveraged on-line by using recognized brand names. An example is Disney.
5. Stability. Existing firms that have been in business for many years appear more stable. People trust them more than pure on-line firms. This is particularly true in financial services.
6. Existing customer base. Because existing firms already have a base of sales, they can more easily obtain economies of scale in promotion, purchasing and production; economies of scope in distribution and promotion; reduced overhead allocation per unit; and shorter break even times.
7. A lower cost of capital. Established firms will have a lower cost of capital. Bond issues may be available to existing firms that are not available to dot coms. The underwriting cost of a dot com IPO is higher than an equivalent brick and click equity offering.
8. Learning curve advantages. Every industry has a set of best practices that are more or less known to established firms. New dot coms will be at a disadvantage unless they can redefine the industries best practices and leap frog existing firms.

Pure dot.coms, on the other hand, have the advantage in areas of new e-business models 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. A companys core competency is the one thing that it can do better than its competitors. ... Jump to: navigation, search A supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these material into intermediate and finished products, and distribution of these finished products to customers. ... Distribution is one of the four aspects of marketing. ... Discounts and allowances are modifications to the basic price. ... Brand equity is poopy to the value built-up in a brand. ... Jump to: navigation, search Generally speaking, advertising is the promotion of goods, services, companies and ideas, usually by an identified sponsor. ... This article is about brands in marketing. ... ... Promotion may mean: Promotion (chess), a term used in the game of chess Promotion (marketing), a marketing term Promotion (rank), an increase in position in a hierarchy Promotion (academic), German academic degree that is roughly equivalent to the Ph. ... Economies of scope are conceptually similar to Economies of scale. ... Distribution is one of the four aspects of marketing. ... In computer science, and moreso in computer programming, overhead is generally considered any combination of excess or indirect computation time, memory, bandwidth, or other resources that are required to be utilized or expended to enable a particular goal. ... The break even point for a product is the point where total revenue received equals total costs (TR=TC). ... Jump to: navigation, search The cost of capital for a firm is a weighted sum of the cost of equity and the cost of debt (see the financing decision). ... Jump to: navigation, search In finance, a bond is a debt security, that is the issuer owes the holders a debt and is obligated to pay the principal and interest (the coupon), together with other obligations under the term of the issue, such as the obligation to give certain information. ... The learning curve effect and the closely related experience curve effect express the relationship between experience and efficiency. ... In economics, x-efficiency is the effectiveness with which a given set of inputs are used to produce outputs. ...

See also

• Electronic business
• [[Business-to-business electronic commerce]]
• Business-to-consumer electronic commerce
• online auction business model
• e-marketing
• management
• marketing
• marketing management
• strategic management
• business model
• Brick and mortar

the day after tommorerw Jump to: navigation, search Electronic business, or e-business, is any business process that is empowered by an information system. ... Jump to: navigation, search Business-to-consumer electronic commerce (B2C) is a form of electronic commerce in which products or services are sold from a firm to a consumer. ... Jump to: navigation, search The online auction business model is one in which participants bid for products and services over the internet. ... E-marketing is a type of e-commerce that can be defined as achieving marketing objectives through the use of electronic communications technology such as Internet, e-mail, Ebooks, database, and mobile phone. ... Jump to: navigation, search Management (from Old French ménagement the art of conducting, directing, from Latin manu agere to lead by the hand) characterises the process of leading and directing all or part of an organization, often a business, through the deployment and manipulation of resources (human, financial, material... Marketing is the process of planning and executing the pricing, promotion, and distribution of goods, ideas, and services to create exchanges that satisfy individual and organizational goals. ... Marketing management is the practical application of marketing techniques. ... Jump to: navigation, search Strategic management is the process of specifying an organizations objectives, developing policies and plans to achieve these objectives, and allocating resources so as to implement the plans. ... Generally, the business models of service firms are more complex than those of manufacturers and resellers. ... Brick and Mortar refer to companies that have a physical presence and offer face-to-face consumer experiences, as apposed to an internet only presence. ...

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