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The most common and most profitable digital business model is that of the traditional retailer.Like any othertraditional retailer has its own Strenghts & weaknesses mentioned below.
Strengths of traditional retail model
1)The traditional retail model is fairly simple to execute.
2)Customers understand the retail business model easily.
3)Traditional retailers spend quality time shaping the business through website.
4)For the traditional retailer, customer relationships depend on the style of retailer. The low cost and cost plus retailer generally focuses on self service or pre-sale service, while the premium retailer emphasizes personal assistance and post-sale service
traditional retail model has some weaknesses those are
1)traditional retail model include additional expenditure and add more in existing expenditure.That include additional marketing and advertising costs, design and implementation of retail packaging, separate retail and wholesale supply lines, retail distribution costs and the cost of managing both customer and retailer relations. The cost of extending credit to retailers also must be considered in budget and financial projections.
2)When any company changes its business model, a loss of focus within the company can occur. This can happen with both management and employees, as well as with existing customers.
3)The corporate structure of a manufacturing business may not be practical or functional for a combined manufacturing-retail model.
4)In order to compete in the retail marketplace, businesses must expand to reach the widest audience possible. This expansion may require additional resources on the retail side of the operations, as well as additional expenditures. The manufacturing side also must be considered with regard to increased output requirements to keep pace with the retail expansion.
One of the best example for traditional retail model is Buynowofficesupplies.com a company serving Online office supplies from past many years in US.
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