Multi-Channel Integration Integrating Web operations with traditional physical store operations 6 Provide integrated shopping experience Leverage value of physical store a Types of integration 8 Online order, in-store pickup o Web promotions to drive customers to stores Gift cards usable in any channel Increasing importance of mobile devices social commerce, and tablets Copyright C 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 9-11
Multi-Channel Integration ◼ Integrating Web operations with traditional physical store operations ❖ Provide integrated shopping experience ❖ Leverage value of physical store ◼ Types of integration ❖ Online order, in-store pickup ❖ Web promotions to drive customers to stores ❖ Gift cards usable in any channel ◼ Increasing importance of mobile devices, social commerce, and tablets Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 9-11
Analyzing the viability of Online firms Economic viability ability of firms to survive as profitable business firms during specified period (i.e, 1-3 years) Two business analysis approaches: o Strategic analysis a Focuses on both industry as a whole and firm itself ☆ Financial analysis How firm is performing Copyright C 2014 Pearson Education, Inc. Publishing as Prentice Hall Slideg-12
Analyzing the Viability of Online Firms ◼ Economic viability: ❖Ability of firms to survive as profitable business firms during specified period (i.e., 1–3 years) ◼ Two business analysis approaches: ❖Strategic analysis ◼ Focuses on both industry as a whole and firm itself ❖Financial analysis ◼ How firm is performing Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 9-12
Strategic Analysis Factors Key industry strategic factors & Barriers to entry 令 Power of suppliers o Power of customers .s Existence of substitute products so Industry value chain .s Nature of intra-industry competition Firm-specific factors o firm value chain 令 Core competencies Synergies . Technology Social and legal challenges Copyright C 2014 Pearson Education, Inc. Publishing as Prentice Hall Slideg-13
Strategic Analysis Factors ◼ Key industry strategic factors ❖ Barriers to entry ❖ Power of suppliers ❖ Power of customers ❖ Existence of substitute products ❖ Industry value chain ❖ Nature of intra-industry competition ◼ Firm-specific factors ❖ Firm value chain ❖ Core competencies ❖ Synergies ❖ Technology ❖ Social and legal challenges Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 9-13
Financial Analysis Factors Statements of operations ☆ Revenues ☆ Cost of sales 'o Gross margin %Operating expenses g Operating margin 今 Net margin Pro forma earnings--EBITDA ■ Balance sheet .o Assets, current assets Liabilities, current liabilities, long-term debt 令 Working capital Copyright C 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 9-14
Financial Analysis Factors ◼ Statements of Operations ❖ Revenues ❖ Cost of sales ❖ Gross margin ❖ Operating expenses ❖ Operating margin ❖ Net margin ◼ Pro forma earnings—EBITDA ◼ Balance sheet ❖ Assets, current assets ❖ Liabilities, current liabilities, long-term debt ❖ Working capital Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 9-14