RMG 300 Lecture Notes - Lecture 8: Microbrewery, Disintermediation, Order Fulfillment
11 Dec 2018
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Document Summary
The internet has had an impact on many industries: financial, manufacturing, healthcare, travel. Disintermediation: no middle-person (the intermediary, direct from manufacturer to consumer. No need for the internet: walking into a hotel and booking a room, going to a farm to buy jam, buying beer at a microbrewery. But the internet makes it easier: marriott has its own website, the farm can reach more people. Challenges for e-tailing: consumer knowledge, easy to find alternatives, price checking online, showrooming, channel conflict, order fulfillment. Consumer orders product online, generate a purchase order, assemble and create product kits, deliver the products to the desired location. Alternatives to home delivery: pin protected lockers, grab and go groceries, pick up at stores. The view of the customer: dealing with one company, channel agnostic. Retail challenges: managing different business, picking and packing, returns, commissions. Brick and mortar: may have a website, but for marketing only. Clicks and mortar, or clicks and bricks: both physical and online.
