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WHICH PATH TO SUCCESS
HAS YOUR COMPANY CHOSEN?
If you don't steal business from your own company, your competitors will. Perhaps this sounds radical, but it's reality. Savvy traditional brick-and-mortar businesses understand this and are moving fast to embrace the Web. Or at least they should be.
Although the development and growth of companies such as Amazon.com and eBay have been amazing, a more important question is how the large, long-standing brick-and-mortar companies can adapt to the Internet economy. Traditional retailers may have been a bit late getting onto the Net, but they have a compelling advantage that can lead them to big successes in e-commerce. That is, if they do it right and reinvent themselves.
To Webify themselves, traditional companies are taking one of three approaches: integrating the e-commerce initiative throughout the company, launching an independent dot-com company, or creating a separate business unit. I believe integration translates into success. Those companies that meld e-commerce into their entire company operations quickly and effectively will succeed. Here's why.
THE BRICK-AND-MORTAR ADVANTAGE
Traditional retailers have significant advantages over Internet retailers. Storefronts obviously attract customers and provide a place where they can view, return, and exchange merchandise. They're good ways to advertise as well. Customers like knowing that there's a branch of the website down the street if they want to visit.
Of all the traditional retailers, the ones who have a substantial advantage are those who are already established in our lives-names like GE, Ford, AT&T, Mary's, Kroger, Walgreens, Procter & Gamble, and Merck. Integration for these retailers is where the real power of the Internet lies. They can capitalize on their competitive edge by quickly establishing a Web-based operation that's as nimble and customer focused as Internet companies. They have the advantage of experience, and the brick-and-mortar operation can complement the e-commerce activities. But these traditional brick-and-mortar companies need to build on their superior market positions and design and implement strategies that capitalize on that positioning.
Another prime advantage is that traditional retailers can leverage their already-established distribution channels, while the e-tailers are just developing this distribution capability. Early entrants to e-commerce like Amazon.com are establishing large distribution networks and building increasing amounts of brick and mortar. The likely outcome: The Amazons will look more...