Triangular Strategic Analysis for Hybrid E-Retailers

Abstract

For traditional retailers, the success of an e-channel lies largely in formulating and implementing a sound e-channel strategy that leverages their resource base. Numerous evidences show that poorly developed e-channels have added little value to retailers (Huang, 2003; Prencipe & McCarthy, 2002). Some of the poorly developed e-channels have had a negative impact on business performance due to an excessive investment, disappointing sales, and low margin (Nataraj & Lee, 2002). The poor performance arose from focusing on the Internet as a separate channel not affected by the activities in other existing channels (Kannan, 2001). For many traditional retailers, their costly and frequent e-channel reorganizations could have been avoided if they had adequately analyzed the strategic fit between their external environment and e-channel organization.