• Journal of Korean Institute of Industrial Engineers
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• v.28 no.4
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• pp.379-389
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• 2002

In this paper, we study the competition between two kinds of suppliers, a bricks and mortars(B&M) and a clicks and mortars(C&M). Using the circular spatial market model, we derive and analyze the Nash and Stackelberg equilibria as a function of offline market share and efficiency of online channel of the C&M supplier. The result can be summarized as follows: (1) Stackelberg equilibrium is always superior to the Nash equilibrium, (2) Under certain conditions, the price of online channel can be higher than that of offline channel, (3) It is impossible for the C&M supplier to encroach on all of the B&M supplier's market, (4) In some cases, the C&M supplier has incentive to lower the efficiency of its online channel for more profit.

• Journal of the Korean Operations Research and Management Science Society
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• v.27 no.1
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• pp.95-106
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• 2002

The tilde use of Information Technology (IT), especially the rapid diffusion of the internet, brings us a new paradigm, called "Electronic Commerce," or "Digital Economy." The paradigm is regarded as a business strategy essential to organizations′competitive advantages. Because few studies have been shown in the area of e-strategies, especially in the combined strategies of clicks and mortars, a study of this area is required. The main questions of this study are empirically to validate the usefulness and applicability of a decision roadmap and to analyze the situation of Korean firms in the view of the decision roadmap. Major results of this study are as follows : First, there is an evidence that the roadmap can be applied to Korean firms regardless of their industry and size. Second, the usefulness of the roadmap is proved because companies following the directions of the roadmap show high degree of satisfaction with online sales. Third, Korean companies in general do not achieve an Ideal Integration (or separation), especially In terms of management and operation. In conclusion, this study provides an e-business strategy Planner some guidelines about how to achieve right mix of on-line and off-line business.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2001.10a
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• pp.79-82
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• 2001

The wide use of Information Technology(IT), especially the rapid diffusion of the internet, brings us a new paradigm, called "Electronic Commerce", or "Digital Economy." The paradigm is regarded as a business strategy essential to organization's competitive advantage. Because very few studies have been performed in the area of e-strategy, especially in the combined strategy of clicks and mortars, a research on this area is needed. The main questions of this study are empirically to validate the usefulness and the applicability of a decision roadmap and to analyze the situation of Korean firms based on the decision roadmap. Major results of this study are as follows; First, there is an evidence that the roadmap can be applied to firms regardless of its industry and size. Second, usefulness of the roadmap is proved since companies that followed the prescription of the decision roadmap showed high degree of satisfaction with online sales amount. Third, Korean firms in general do not achieve the ideal degree of integration (or separation), especially in terms of management and operation. In conclusion, this study provides e-business strategy planners some guidelines about how to achieve right mix of on-line and off-line business.