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1. Explain the Strategic Issues a Company Need to Address When Adding Clicks to Bricks

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Unlike their dot-com counterparts, brick-and-mortar players realize that the launch of Web sites will have a tremendous impact on their existing organizations in everything from sales channels to customer fulfillment to call centers. As a result, clients need to understand the overall impact and implications of the technology before a site goes live. Office supply giant Staples, for example, launched its Staples.com online site in early 1999, largely as an extension to its existing retail and catalog business. The expense associated with the Web effort pummeled the parent company's stock price and generated just an estimated $94 million in online revenue--about 1 percent of Staples' total 1999 revenue of $8.9 billion. Staples completely revamped the site in May, adding new search tools, small-business services and a streamlined checkout procedure. It has also promoted the site heavily in its existing stores and by offering rebates in newspaper advertisements to customers who move to the Web for their purchases. Multichannel retail — the merging of traditional brick-and-mortar retailing with online and mobile retail channels — involves far more than allowing customers to purchase items through a website. Multichannel retailing presents ample, seemingly boundless opportunities for brand engagement and interaction with customers across new platforms. Yet inevitably, these new technologies, platforms and sales channels come with new risks and challenges for companies to manage.
With the growth of e-commerce, many retailers are using their websites to enhance their relationships with customers through offerings like live chats with service representatives and educational Web content that helps customers better choose or use the products they buy. However, the popularity of e-commerce has also brought about many new risks for retailers, including increased competition and

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