Business Culture

Internet retail operations : integrating theory and practice by Timothy M. Laseter

By Timothy M. Laseter

The expanding approval for on-line purchasing makes net retailing a megatrend that can not be neglected. The collaboration of 2 co-authors bringing educational rigor and broad consulting adventure into the combination, Internet Retail Operations: Integrating thought and perform for Managers offers enduring insights on operational matters and ideas for the administration of web provide chains.

Covering various rising matters supported via quite a few case stories, the booklet info the evolution of knowledge technology’s function in retail offer chain networks, its effect on provide chain networks, and the way this has replaced carrier operations. It addresses details expertise on the subject of provider and retail industries, then explores how provide chain dynamics effect conventional provider and retail supply, the prices concerned, and purchaser pride and loyalty. It contains tables, vignettes, and graphs that make the content material sensible and relevant.

As you'll study, many makes an attempt at net retail don't prevail, a few simply because they fail to understand the basics, others can have easily been prior to their time. a long time of experimentation and development lie forward. Drawing both on idea, learn effects, and real-world adventure, the publication presents thoughts for overcoming the demanding situations of establishing operations potential within the evolving global of net retailing.

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In such an asymmetric model, adding bidders benefits the small population of sellers but harms the disproportionately larger community of buyers because more customer-bidders drive up prices rather than attract more sellers. In other words, sometimes a network, however large, produces little value. Many dot-coms focused on growth in customers as a key strategic tenet under the false assumption that size always translates into competitive advantage from scale economies and network effects. Such was the expectation of the ill-fated “last-mile delivery” companies Webvan, Kozmo, and UrbanFetch, but in reality their costs were largely variable and their customers did not get incremental value from an increase in the customer base.

For instance, media products such as books come in different genres that can be further broken down into a number of subgenres, creating a deep classification array of hundreds of categories. On the other hand, clothing accessories such as handbags and shoes do not have a deep classification array and can be grouped into fewer categories without losing the richness in the description of the contents of each category. Services characterize the value-adding assistance that Internet retailers offer customers in an effort to expand on the benefits that customers receive from buying from them.

However, Value America’s failure does not mean that vertical integration should be maximized. eBags employs drop shipping for luggage quite effectively. Thereby Amazon has avoided forward integrating into delivery, a decision that was a critical part of the business model of its erstwhile competitor Webvan.

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