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Bricks and clicks business model
from:Since the Internet a new business model has emerged, and it's called bricks and clicks. When using this model, a company is present both online (through the clicks part) and offline (the bricks part). This type of business model is very popular these days. There are a number of other names that people have for this business model, like clicks and bricks, click and mortar or clicks and flips.
You can find companies using this model everywhere now. A quick example is an electronics store that lets people order online. After that, they can pick up the stuff they ordered directly from the closest shop.
Most businesses that use this model are those that already have logistics in place and large supply chains. Since they already have the offline presence established, all they need to do is incorporate the online strategy. In other cases, they're small shops going big on the Internet, with a small offline presence but going big online.
Advantages of this model
While a lot of so called experts thought that normal shops will completely disappear once the Internet arrived, the bricks and clicks model proved them wrong. Since they already have services and products in place, offline companies have an advantage when they start offering their services online. Some of their benefits include:
Their core competencies. When a normal store creates an online presence for them, they will make use of their core competency a lot, in an extensive manner. Once they have a local presence that is strong and they have the brand value, they can use the Internet to attract even more customers.
Their stability. Since they already have a physical store, it's much easier for them to gain the confidence of the customers. Because they have a physical store, people tend to place more trust in them and the warranties that they offer. That happens especially with companies in the financial market.
Their existing customers. When they go online, they can spend less money with promotion, production or buying stock products.
Disadvantages of this model
There are some disadvantage to this type of business though. They don't have the same large costs as a brick and mortar store. In the end, they can afford selling products with a low marginal cost attached. Their problem however, is the larger cost of getting new customers.
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