A Critical Evaluation of Multi-Channel Retailing in the Uk Today

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Contents 1.0 The current retail environment 3 1.1 Pestel Factors 5 1.2 Porters 5 Forces Analysis 6 2.1 Successful Multi-Channel Retailers 9 2.2 Success Stories 10 2.3 Channels Working Together 11 3.0 Important aspects of being a Multi-Channel Retailer 13 3.2 The right Channel for the right Company 14 3.1 The Target Customer 17 4.0 Conclusion 18 5.0 Referencing 19 5.1 Bibliography 20 1.0 The current multi-channel environment A report by the Information Technology consultancy company Chateris recently cited the most popular four retail channels in the UK (See Figure 1, below). These included the internet which dominates sales channel for retailers at the moment (Chateris, UK Multi-Channel Retailing…show more content…
Also, internet confident businesses are offering more valuable goods and services at lower costs. Now with the advent of eBay, many people are assuming the role of seller, shipping merchandise directly to the individual eliminating the need for a physical store. Individuals can have a successful business selling goods of larger companies without having to carry stock. Supplier power is higher when buyers have fewer choices as to what they can buy. As mentioned previously the amount of suppliers has increased. All an individual has to do is form and agreement to sell products for the company. Customers can allow a webmaster such as Amazon to earn money by recommending products from others. This increases supplier offerings. Threat of substitute products or services is high when there are many product alternatives. The internet allows this as the customer can substitute their product by purchasing from companies overseas where labour, services or products can be cheaper, but of comparable quality. Threat of new entrants is high when it is easy for new competition to enter the market and now smaller businesses can start up on the internet for little money and make a lot of money. Rivalry among competitors is high when competition is more intense within industries and additional channels can intensify. Online book shops and catalogue companies are a good example. Amazon.com and borders.com are very competitive. However, there are many smaller niche

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