The Channel Strategies for delivering Digital Value to customers
The Internet era has shown that companies have risked damaging relationships in their physical chain to compete in the electronic channel. The ubiquity of the Internet the fact that cross-linkages are possible to any degree, has meant that companies have usurped the role of other value providers in the value chain to gain competitive advantage.
When companies pirate the value chain of the industry they are essentially eliminating layers of costs that are build into the current distribution system.
However pirating the value chain does not mean that the number of intermediaries in the whole process would necessarily decrease.
The emerging economic structure of Electronic Commerce would mean that profits would lie in the intermediate transactions rather than in the final sale of the good.
Companies would aim at cutting down their traditional margins (give up the cost plus pricing structure) and aim at high inventory turnover. In retailing profitability is primarily.
The Internet era has shown that companies have risked damaging relationships in their physical chain to compete in the electronic channel. The ubiquity of the Internet the fact that cross-linkages are possible to any degree, has meant that companies have usurped the role of other value providers in the value chain to gain competitive advantage.
When companies pirate the value chain of the industry they are essentially eliminating layers of costs that are build into the current distribution system.
However pirating the value chain does not mean that the number of intermediaries in the whole process would necessarily decrease.
The emerging economic structure of Electronic Commerce would mean that profits would lie in the intermediate transactions rather than in the final sale of the good.
Companies would aim at cutting down their traditional margins (give up the cost plus pricing structure) and aim at high inventory turnover. In retailing profitability is primarily.