Ikea Case Study Ebusiness

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TABLE OF CONTENTS

1 Theoretical Analysis3
1.1.Background3
1.2 Literature review3
1.2.1 Click and Mortar Strategy- integration of two channels4 1.2.2 Transaction-based and trust-based strategy6
1.2.3 Corporate website & e-commerce system7
1.2.4 Summary9
2 Strategy analysis11
2.1 Business idea11
2.1.1 Business Model12
2.1.2 Vision14
2.2 Global Strategy14
2.3 Future challenges15
3 Web site analysis16
3.1 Informative communication16
3.2 Structure, Navigation and visuality:17
3.3 Information accuracy, security and trustworthiness of the site18 3.4 Web shop19
3.5 Personal opinion20
4 Conclusion21
Referencess23

1 Theoretical Analysis

E-commerce concept goes beyond “the selling and buying goods on internet”, on the contrary, e-commerce involves distinctive strategic positioning and business process restructuring as well as the revolution of market places. Retailing industry is one of the key areas of e-commerce. Established retailers tend to implement a click and mortar approach to e-commerce, integrating both online and offline channels. This case study shows how a global brick and mortar retailer has successfully applied e-commerce strategy in its business processes and how it has integrated both channels with existing resources.

1.1.Background

The internet users are growing robustly. Since 2002, the internet use has grown by 18% yearly, till now, over one billion people using the net. ( Nielsen NetRatings 2006). The great increase of internet-using populations intrigues the dramatic growth of e-commerce activities which make a rapid transformation in market places. Retailing is one of key areas. In the interest of benefits of e-commerce, established store retailers gradually develop different approaches to e-commerce. A review of previous studies shows that the brick and mortar retailers adopt a click and mortar approach , converging two modes of channels, in aims to offer products and services with value added to the customers and suppliers, meanwhile to enhance the competitive advantages.

1.2 Literature review

The literature review consists of three aspects. First, we discuss the benefit, potential barriers, and websites features of click and mortar strategy in E-commerce. Second, we demonstrate another perspective in terms of e-commerce approaches. Third, we review some studies on e-commerce system of click and mortar retailers, presenting the critical design success factors for click and mortar websites.

1.2.1 Click and Mortar Strategy- integration of two channels

Benefits
Technology and globalization are two generators of world economy. Internet as a key distribution channel leads to unlimited market, out of geographic restrictions. In the early stage of dotcom era, pure on-line retailers are more favored than brick and mortar retailers because of lower transaction cost. After the aftermath of dotcom crash, established retailers come to realize the benefit of synergies of both on-line and physical channels.

Ontto and Chung (2000) consider that on-line channel has lower physical cost, unlimited market area size ( open to anyone access to its website), individualized shopping experience, efficient information exchange, a convenient way of shopping etc. Nevertheless, Ontto and Chung also list a series of advantages of offline channel in light of social interaction, touch and feel, shipping cost ,etc. By comparison and contrast, Ontto and Chung propose a e-commerce technique for brick and mortar retailers , called cyber-enhanced retailing , integrating cyber-retailing with physical retailing. Moreover, Ontto and Chung develop a model to converge some on line techniques with physical retailing based on the framework of eight steps consumer mercantile activities (Kalakota&Whinston 1997) .

The authors’ study approach could be defined as combined descriptive and explanatory. Ontto and Chung ‘s...
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