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The Influence of Digital Transformation on the Retail Value Chain
Abstract
Institutional brick and mortar retailers have significant influence over consumer behavior and preferences because historically, consumers have made their purchases at the store shelf. The emergence of e-commerce, mobile shopping, and smart technology has brought new competitors to the market, posing a threat to the established dominance. From a value-creation standpoint, the authors examine how digitization initiated the decline of institutional retailing as the main means of client interaction. The framework identifies five novel sources of value creation, and the authors suggest how these sources can progress and alter the competition for this particular interface. New actors are gaining this authority due to the growing spread of branded product platforms, such as online shopping platforms and connected devices. It is critical for the players in this complex competition to recognize these shifts and take proactive measures to manage their place in the changing ecologies.
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