Bricks and Clicks
Clicks and Mortar

Knowledge Center

12manage is looking for students / contributors...


The marriage of traditional and internet ways to conduct a business. Explanation of Clicks and Mortar / Bricks and Clicks strategy.


  1. Summary
  2. Forum
  3. Best Practices
  4. Expert Tips
  5. Resources
  6. Print

Early E-Commerce: internet firms have a cost advantage

In the early years of Web-based commerce, the emphasis was placed on sources of competitive advantage that Internet firms had over traditional ones, primarily using transaction cost logic. Transaction cost economics emphasizes the nature of costs that firms incur in the process of conducting transactions with buyers or sellers.

Transaction cost economics

  • Information gathering and search costs,
  • Negotiation and settlement costs, and
  • Monitoring costs to ensure that trading partners adhere to the terms of any agreements made.

later e-commerce: More advantages of e-commerce over traditional commerce

In addition to the transaction cost advantages offered by e-commerce, researchers have found numerous other advantages that virtual firms have over physical firms. Web-based businesses are perceived to hold many operational, cost, scale, and scope advantages over firms confined to physical channels. These advantages include:

  • access to wider markets,
  • lower inventory and building costs,
  • flexibility in sourcing inputs,
  • improved transaction automation and data mining capabilities,
  • ability to bypass intermediaries,
  • lower menu costs enabling more rapid response to market changes,
  • ease of bundling complementary products,
  • ease of offering 7X24 access, and
  • no limitation on depth of information provided to potential customers.

The Bricks and Clicks business model

The Bricks and Clicks (also: Clicks and Mortar) business model refers to the marriage of traditional ways to conduct a business (often using direct, face-to-face contacts with customers) and Internet ways to interact with customers (often via websites, email, FTP and other internet technologies). Compare also: Multi Channel Marketing. The integration of e-commerce with existing physical channels is a challenging undertaking that can create problems for management. Marketing theorists have long recognized the potential for channel conflicts that can occur when there are alternative paths that products can take to the end consumer.

The Clicks and Mortar business model suggests that traditional sales channels can be operated along or even in an integrated way with internet sales channels.

advantages of Clicks and mortar strategy

Typical advantages of Bricks and Clicks strategies are the leveraging of synergies:

The Clicks and Mortar model offers an advantage in areas of business where it is better to leverage competencies and assets from a physical company. Ideally the integration of physical and online channels enables firms to capitalize on potential synergies between the two, yielding competitive advantages over pure internet firms, or firms that offer e-commerce channels in a more parallel (non-integrated) fashion. Pure dot coms, on the other hand, have an advantage in areas that stress cost efficiency. They are not burdened with Brick and Mortar costs and can offer products at very low marginal cost. However, they sometimes spend substantially more on customer acquisition.

Avoiding Channel Conflicts

Firms with multiple channels may fall prey to channel conflicts. Channel conflicts can occur when the alternative means of reaching customers competes with or bypasses existing physical channels. One danger is that these conflicts result in one channel simply cannibalizing sales from the other. Perceived threats caused by competition and conflict across channels can have other harmful effects, including limited cooperation across the channels, confusion when customers attempt to engage in transactions using the two uncoordinated channels, and even sabotage of one channel by the other. Management must act to diffuse conflicts, and ensure the necessary alignment of goals, coordination and control, and development of capabilities to achieve synergy benefits.

Aligning goals across physical and virtual channels implies that all employees involved realize that the parent firm benefits from sales originating in either channel. One problem faced by Click and Mortar firms is that the contributions made by the Internet channel may be intangible and hard to measure.

Coordination and control mechanisms include interoperability across channels so that customers may move freely between channels, the use of each channel to promote the other, incentives encouraging cross-channel cooperation, and coordinating customer services to ensure that the unique strengths of each channel are utilized.

Book: Robert Spector - Anytime, Anywhere -

Book: Martin Lindstrom - Clicks, Bricks and Brands -

Book: Martin Brighty, Dean Markham - Winning E-Brand Strategies -

Bricks and Clicks Forum
  When should Firms Engage in Social Business?
Businesses are increasingly attempting to particip...
  Measuring Contribution of Internet Channel
Click and mortar firms often find it difficult to ...

Bricks and Clicks Special Interest Group

Special Interest Group

Bricks and Clicks Education & Events

Find Trainings, Seminars and Events

Best Practices - Bricks and Clicks Premium

Expert Tips - Bricks and Clicks Premium

5 Strategic Best Practices for Mixed Physical-Digital BusinessesSign up

Many (retail) firms run their digital and physical...
Usage (application): Bricks and Clicks Strategy, Clicks and Mortar Strategy, Mixed Digital-Physical, Digical Mashup

Key Challenges of Internet Age for Management and for Product and Service DevelopmentSign up

The Internet age represents a huge challenge for m...
Usage (application): R&D, Product Development, Service Development, Strategy, Marketing, Innovation, Visioning

Strategic Options for Dot-coms and Established FirmsSign up

M. Porter suggests the following strategic options...
Usage (application): Internet Strategy, Business Strategy

The Importance of Customer Differences in Markets with Network Effects: the Limits of ScaleSign up

The network effect (  

Resources - Bricks and Clicks Premium

Introduction to E-Marketing | Internet MarketingSign up

This presentation covers the topic of E-marketing,...
Usage (application): E-marketing, Web Marketing, Affiliate program, Search engine optimization, Email campaigns, Mobile marketing

Integration of Social Media in BusinessSign up

Presentation about the Internet, Social Media and ...
Usage (application): Internet Strategy, Online Strategy, Social Media Strategy, Integration

Pure Play vs Bricks ClicksSign up

In this paper, Xing Pan, Venkatesh Shankar and Bri...
Usage (application): Analytic Model

Speech Kotler on Internet MarketingSign up

Philip Kotler explains some conditions and gives s...
Usage (application): Initial Understanding of Internet Marketing, Trainings, Workshops

News about Bricks ClicksSign up


News about Clicks MortarSign up


Videos about Bricks ClicksSign up


Videos about Clicks MortarSign up


Presentations about Bricks ClicksSign up


Presentations about Clicks MortarSign up


Books about Bricks ClicksSign up


Books about Clicks MortarSign up


More about Bricks ClicksSign up


More about Clicks MortarSign up


Compare with:  4S Web Marketing Mix  |  Multi Channel Marketing  |  Affiliate Marketing  |  Porter Competitive Forces  |  Porter Competitive Advantage  |  Resource-Based View  |  Parenting Advantage  |  Prahalad  |  Just-in-time  |  TDC Matrix  |  Outsourcing

Return to Management Hub: Marketing  |  Strategy  |  Supply Chain & Quality

More Management Methods, Models and Theory

Special Interest Group Leader

You here

About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2018 12manage - The Executive Fast Track. V14.1 - Last updated: 19-8-2018. All names ™ of their owners.