Brick and Mortar Business Model

Brick and Mortar Business Model Essay

Brick and mortar business model refers to the physical existence of an organization in a building. It enables one-on-one interaction between customers and retailers. It constitutes either one outlet or several branches. Customarily, this model only accepts checks, credit cards, and cash for purchase (Wirtz et al., 2016). Brick and mortar stores mainly embrace traditional advertisement forms to market namely billboards, newspapers, radio, and television commercials.

The fact that customer service exists in the brick and mortar model allows for a customer to have a personalized experience when they have questions. Consequently, the instant gratification that customers crave is fulfilled, working to its advantage.  However, warehousing of inventory, labor, property taxes and rent are just but a few operating expenses incurred with this model.

Brick and mortar business model

E-commerce involves buying and selling products on the Internet by employing websites and virtual shopping carts. Orders are remotely entered then customers receive the goods via the mail later. Sale transactions here are remotely exchanged, with the use of PayPal being a case in point. E-commerce has more payment methods (Laudon & Traver, 2016).

Therefore, they enjoy Omni-channel flexibility, where they advertise on social media, get in touch with their customers through the phone, and use mobile applications to aid shoppers in discovering goods and services. As it operates in an online space, digital advertising, and social media are practical and common forms of marketing.

This model also tends to have a lot of stock in the warehouses as opposed to small brick-and-mortar retail that have a limited amount of space. Unfortunately, clients would instead abandon their carts if they have to wait or search for a response in case they have a question (Laudon & Traver, 2016). Despite the realization of revenue during initial growth periods, competition, expensive shipping, and return expenses among other factors reduce profitability in the long run.


E-business is a commercial process that involves sharing information on the internet related to bought and sold products (Rust & Kannan, 2016). It is a superset of e-commerce, involving procuring goods, educating customers, and searching for suppliers. CRMs, ERPs are used to connect various business processes.

Furthermore, it covers internal methods such as the development of products, inventory, and risk management. It involves the use of either intranet, extranet, or internet and entails managing logistics and surveying the market. Besides its usage in the business to business transactions, it includes pre-sale and post-sales efforts.

Customer Data

For a brick and mortar model, a sure way of keeping the customer’s data safe is achieved by paying fixed costs such as rent and monthly charges for security alarm services. As evident in the name, fixed costs stay the same no matter what operation the business is undergoing. Sensitive personal data in this setting can be locked up in a safe either at home or at work which only authorized personnel access (Rust & Kannan, 2016).

This measure is taken to ensure the information is secure from roommates and workers. If the company has to share information about a client, it will inquire about its need, safeguarding, and the consequences of not giving out the information.

The company can also shred receipts, forms, statements, checks, cards, statements,s and other documents that bares clients’ information that is no longer needed. New checks are not to be mailed at home unless secure mailboxes with locks exist there.

Secure Environment

For a secure environment in e-commerce, outgoing mail must be taken to the post office or the post office collection boxes. The company is also to train employees to be suspicious of emails containing attachments, and reporting unusual ones to IT (Laudon & Traver, 2016).

If another company that has an account with the company asks for personal information, one calls their customer service number to confirm their request. Before the disposal of a computer, wipe utility software is used to overwrite the hard drive.

When changing mobile devices, the transfer of information to the new device is only right. Utilizing encryption software to scramble what is sent over the internet is recommendable. Ultimately, the company needs strong passwords by using both numbers and letters (Laudon & Traver, 2016).

Digital Signatures

For an e-business, encryption is sufficient for access by a sender and intended recipients. Digital signatures confirm the sender’s identity. Digital certificates authenticate these signatures that a certificate authority has digitally signed (Wirtz et al., 2016). Certification depends on the certifying authority and level of certification. Installation of firewall, anti-spyware, and antivirus is good practice.

The employees are always to log off when they finish working while the feature that saves username and password is deactivated so that it becomes hard to get personal information in case a company’s laptop is stolen.

The medium-sized grocery is to undergo global expansion, bearing in mind that security increases and the IT assets are protected. A model that enforces the CIA triad is paramount for the success of this objective (Wirtz et al., 2016).

The model should be capable of controlling access whether in transit or storage. For this to happen, a system configuration is put in place. This arrangement dictates the devices and settings that run the computer. The brick-and-mortar model is simple and not capable of that function, so it gets less consideration compared to the other two models. An upgrade of the same is necessary.

As the store expands globally, millions of shoppers will start flooding the website more often to avoid queues associated with brick and mortar model. Expenditure on developing web hosting is a must to cater to busy shoppers who do not have time to visit the physical store (Wirtz et al., 2016).

Besides, the products in the physical location of the shop tend to be expensive due to the constant fixed costs. Prospects at all times care for the price.

E-commerce and E-business

E-commerce and e-business do not have to care for do not pay for salespeople and high-end retail stores, putting them in a better position.  The two models only spend a lot on Web 2.0 purposes on their sites. Furthermore, online stores order goods from many warehouses dispersed around besides having a wider stock availability.

The model is to ensure that the right people can change the content. E-commerce deals with commercial transactions while e-business conducts the business process (Wirtz et al., 2016). When Dell and Amazon maintain business processes such as email marketing and customer support, it is an e-business affair while buying a flash disk from Amazon falls under e-commerce.

It is clear that with e-business, the company has more duties and arguably better security models. This event gives e-business an upper hand.

Finally, as much as the model is to ensure that the company’s data is free from hackers, the owners should be able to access the information when they want. Having standby facilities, bandwidth and data backup, and stand-by facilities is just as necessary (Rust & Kannan, 2016).

E-commerce uses ICT to enable activities to enable business, while e-business is business using the internet’s help. E-business, therefore, appeals as an interactive environment where managers easily access their data, making it the best candidate for the global expansion of the store with topnotch security.

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