Hybrid business

Hybrid business
See also

Hybrid business - means a company that not only uses traditional forms of distribution, but also uses the internet to sell, to easily expand its operations and to make a product or service more accessible to consumers. One of the positive features of running such a business increases the convenience of the consumer in terms of concluding transactions. By doing so, he is not obliged to travel far away because he makes an online payment and the product is delivered by a courier. This kind of business became very popular very quickly. This resulted, among other things, from the possibility of intensifying sales volumes in the network. Through this small family business, they were able to reach national or international consumers interested in purchasing their goods.

Traditional business vs. online business

Traditional form of conducting business is based on the fact that the entrepreneur uses it in communication with the market and consumers:

  • Posters;
  • Leaflets;
  • Animators accosting passers-by in the streets;
  • Publishing products in catalogues and placing orders by post.

Moreover, given entrepreneurs do not use computer software to develop sales strategies. Most calculations are made using a sheet of paper and a calculator. Moreover, accounting is conducted in the traditional form with the use of books than special ERM software supporting business management [1].

This is not the case with online business, which mostly uses the Internet. Sales are carried out using dedicated online shops, which are promoted, among other things, by specialized search engines. In addition, such entrepreneurs use social networking sites, which also provide them with promotional opportunities. Online business also allows you to optimize your sales network by using specialized software. Moreover, the persons responsible for running this kind of business are able to accelerate the process of sales modeling or accounting thanks to new technologies[2].

However, it is not always correct to run only one business. Well, combining the traditional form allows you to build real relationships and presents business as real. On-line business, on the other hand, streamlines the sales process and broadens the sales markets of a given entrepreneur. Therefore, it is important that most companies use the hybrid model combining the characteristics of the above described businesses[3]. Nevertheless, it is essential for these businesses to coexist as a join venture entities for the reason of achieving an economical increase in revenues.

Hybrid business cons

On the one hand, the entrepreneur must optimize sales in order to promote the online shop and on the other hand, he must control the maintenance of the stationary shop or the hiring of employees. In addition, one of the last key problems is the creation of concentration dilemmas. By not being able to assess the efficiencies of a particular shop (due to their hybrid combination), the trader is obliged to carry out these two activities, and forgoing either of them may have negative effects on the trader.

References

Footnotes

  1. Ch. Baden-Fuller, S. Haefliger 2013, p. 419-426
  2. C. DiRienzo, G. Lilly 2014, p. 3-7
  3. N. Haigh, A. J. Hoffman 2011, p. 4-14

Author: Weronika Brach