AOCRJ-V5I3P5

Relating Organization Strategy and Structure to Different
Types of Retail Formats

Vinayak A. Drave
Department of Industrial and Management Engineering,
Indian Institute of Technology, Kanpur

Prof. R.R.K.Sharma
Chair Professor (Sanjay Mittal Chair),
Department of Industrial and Management Engineering,
Indian Institute of Technology, Kanpur


Abstract:
The blare of e-commerce and variety of products in the market, consumers as well as retailers have shifted to a new age of retailing which brings the experience of buying and selling to next level, generally known as brick and click model. In the current age, the retailers work as a facilitator which gives the platform for buying and selling without investing extra cost on physical spaces which is generally known as e-tailers model. In such context, brick and click retailers are more capable of catering large section of the population as compared to brick and mortar retailers.
The aim of this paper is to identify the different types of retail formats from online (Brick and Click) and offline (Brick and Mortar) markets, and to relate the Organizational Structures to the operational efficiency and performance of different class of markets. Literature review is used to identify various retail formats. Also, secondary data is used to cover the large range of retailers who cater in the vast array of Indian market. The research tries to develop the reasonable argument of the current shift from offline (Physical Stores) to online buying and selling trends.
Organization structure is explained with the help of framework proposed by Pugh et al. and is being used as a measure to define the functioning of organization. The scope of this research is extended to the specific context of Indian market scenario.
The results of this research reveal that in Brick and Mortar Retail Format the degree of Formalization, specialization, trust and rational strategy process, Integration and Synergy, and flexibility is low as compared to Brick and Click Retail formats. Whereas, degree of Standardization and complexity of work-flow is low in Brick and Click Retail format as compared to Brick and Mortar Retail Format. It would be useful to test the findings of this study in other developing countries where industries are still struggling on selling their products on online e-commerce platform.

Keywords: Organization Strategy, Organization Structure, Retail Formats, Brick and Mortar, Brick and Click, e-tailer.


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