Why do traditional companies have a competitive advantage over web companies in developing multi-channel strategies?
The inability of even the best dot.com brands like Amazon, Yahoo and Lastminute.com to break even suggests that there are flaws in the single-channel web route to market. Francisco Perez-Lozao of Amadeus says, “The web is a relatively small alternative – in the US it represents less than 6% of flight bookings, and in Europe it is less than 2% – though it offers very high potential growth. A multi-channel strategy is fundamental to Amadeus.” John Browatt, chief executive of Tesco.com says: “Tesco.com was founded five years ago and is now the biggest online grocery operation in the world. It has 750,000 registered users and can deliver to 94% of the UK’s population. Whilst US and UK competitors invested in huge picking-centre warehouses, we went for picking goods off shelves of existing stores. We are utilising over 200 of our UK stores to provide this service. And it is making money. The average spend per home delivery is £90 and we believe we can build this business to over £2bn in sal
Related Questions
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- Why do traditional companies have a competitive advantage over web companies in developing multi-channel strategies?
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