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Integrating Brick and Mortar Locations with E-Commerce: Understanding Synergy Opportunities1
Charles Steinfield Michigan State University East Lansing, MI 48824 USA [e-mail] Thomas Adelaar Telematica Instituut Enschede 7300 AN, NL [e-mail] Ying-ju Lai Michigan State University East Lansing, MI 48824 USA [e-mail]

Abstract
Little empirical work has directly addressed the sources of competitive advantage of the click and mortar e-commerce approach, despite growing recognition of its importance as a business model. In this paper, we introduce a framework to describe the areas of physical and virtual synergy in click and mortar enterprises, the management actions for achieving synergies and avoiding channel conflicts, and the types of benefits that may be obtained. Case studies of ten US companies, including both business to consumer (B2C) and business to business (B2B) cases are used to illustrate the utility of the framework. In this paper, we explore the relationship between traditional and electronic channels through a series of ten case studies of US firms completed in late 2000 and early 2001, exploring the ways that firms found synergies between their traditional outlets and e-commerce. The goal of the case studies was to provide a framework for understanding where the potential payoffs are when integrating physical and e-commerce channels. In addition, the cases illustrate particular management strategies that firms developed to achieve synergy and avoid conflicts between their Internet and physical channels. The paper is organized as follows. First we review theoretical work that establishes the basis for expecting synergy between e-commerce and physical presence in a market. We then introduce a framework that highlights the areas from which synergies stem, the management actions that can help firms avoid channel conflicts and exploit synergy opportunities, and the anticipated benefits. We then summarize our empirical approach,

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