The Dynamics of Click-and-Mortar Electronic Commerce: Opportunities and Management Strategies

ABSTRACT: Many traditional brick-and-mortar businesses supplement their physical outlets with e-commerce capabilities on the Web, but there has been lit tle empirical research on the underlying dynamics of the “click-and-mortar” business approach. This paper develops a conceptual framework that highlights the four types of synergies obtained by integrating e-commerce with physical infrastructures: cost savings, improved differentiation, enhanced trust, and market extension. Case studies of click-and-mortar enterprises provide concrete examples of these synergy benefits and of the managerial actions needed to prevent channel conflicts.