Search the Web for a company that is purely Web based. Next, find the Web site of a competing company that is a hybrid (they have a traditional brick-and-mortar business plus a presence on the web). The Iconic – premier online fashion retailer/store
Myer – bricks and clicks
* Explain the pros and cons of dealing with each type of company. Pure play internet companies operate solely on the internet, while click & mortar businesses combine a physical presence with online selling or marketing. The Iconic only has an online store; one major problem is that you cannot try some of the clothes before you buy. The store provides free overnight shipping, free return of goods within 100 days, secure and safe banking technology, and phone/email services to provide assistance. Myer store allows you to physically try out the clothes before you buy. Even if you do not have an internet connection you can gain access to those stores and their products. Selection made over the physical stores can also increase you product experience. * Explain the impact of both “pure play” and “hybrid” models on competition in the sector Pure play companies do not have to maintain the physical store and fewer operational costs; hence the cost of running the business will be low, compare to other competitors in the sector. They are able to give greater discount to customers. Product experience can be enhanced through allowing the customers to customise their product online, and thus having more control over their product. These types of business also need to make more effort into marketing their product because compare to competitors with physical stores, people only get to know the product when they actually come across with the website. Clicks & mortar businesses can offer more versatile services. Customers who want to return products can physically go to the store and return it. Under some situations it is also better to have some people here to service the customers, to...
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