Strategic positioning of the Web in a multi‐channel market approach

Firms often perceive the Web as a threat for their physical channel assets. However, it is becoming clear that synergies can be obtained between electronic and physical channels. Characteristics of “information economics” (i.e. low reproduction costs and strong scale advantages) in combination with channel economics can help explain how electronic channels are taking up some of the functions traditionally performed through physical channels. Two processes in which channel restructuring is most apparent are: sales (including pre/after‐sales support, financing, etc.) and physical distribution (including product returns, installation, etc.). Our case study analysis shows that channels have different strengths depending on the type of customer interaction.