Value Creation Challenges in Multichannel Retail Business Models

Value Creation Challenges in Multichannel Retail Business Models

Blog Article

Purpose: The purpose of the paper is to identify and analyze the challenges of Seat Track value creation in multichannel retail business models.Design/methodology/approach: With the help of semi-structured interviews with top executives from different retailing environments, this study introduces a model of value creation challenges in the context of multichannel retailing.The challenges are analyzed in terms of three retail business model elements, i.

e., format, activities, and governance.Findings: Adopting a multichannel retail business model requires critical rethinking of the basic building blocks of value creation.

First of all, as customers effortlessly move between multiple channels, multichannel formats can lead to a mismatch between customer and firm value.Secondly, retailers face pressures to use their activities to form integrated total offerings to customers.Thirdly, multiple channels might lead to organizational silos with conflicting goals.

A careful orchestration of value creation is needed to determine the roles and incentives of the channel parties involved.Research limitations/implications: In contrast to previous business model literature, this study did not adopt a network-centric view.By embracing the boundary-spanning nature of the business model, other challenges and elements might have been discovered (e.

g., challenges in managing relationships with suppliers).Practical implications: As a practical contribution, this paper has analyzed the challenges retailers face in adopting multichannel business models.

Customer tendencies for showrooming behavior Tankini highlight the need for generating efficient lock-in strategies.Customized, personal offers and information are ways to increase customer value, differentiate from competition, and achieve lock-in.Originality/value: As a theoretical contribution, this paper empirically investigates value creation challenges in a specific context, lowering the level of abstraction in the mostly-conceptual business model literature.