Lessons To Learn: Bricks and Clicks Success Is Challenging

For those of you with retail stores, it might be apparent that you would succeed better than a pure online retailer. However the NY Times writes that success in a brick and mortar store is not always the case: case in point: Block Buster.
The New York Times writes Blockbuster’s experience shows that executing a bricks-and-clicks strategy entails a high degree of difficulty, managing not just two very different kinds of businesses, with dissimilar domains of expertise, but also a third challenge: integrating two separate systems. An online-only service can remain a best-in-class operation because its executives focus, focus, focus on just the online business.
In the handicapping of likely winners and losers in 2005, Netflix seemed unlikely to survive, let alone thrive. Netflix is “not a sustainable business,” Michael Pachter, an analyst at Wedbush Morgan Securities, told SmartMoney that year. In his view, successful Internet businesses tended to “have a bricks-and-mortar component.” That is, retail stores.
Mr. Pachter made an eminently reasonable point: that adding an online store to the market-leading retail chain should make for a strategically unassailable position of strength, at least on paper.

Read the full article here.