An Enhanced Value Chain Model Using Regression Analysis Method

Abstract

Click and mortar or indirect distribution management refers to an omni-channel eCommerce business model that integrates online and offline operations, whereas traditional brick and mortar or direct distribution management refers to a traditional street-side business that offers products and services to its customers face-to-face in an office or store that the business owns or rents. Customers can shop over the internet on the retailer’s website, and still be able to shop at the retailer’s brick and mortar shop. This study determined the status of distribution management of selected retail stores in Metro Manila based on the value chain model of Michael Porter, along with the challenges encountered and the identification of strengths and weaknesses. Utilizing the descriptive comparative evaluative research design, data revealed that the respondents’ assessment on the activities in the distribution management that fundamental phases of activities are evident and observed. The verbal interpretation of observed on the inbound logistics, operations, outbound logistics, marketing and sales, and services has a verbal interpretation of 3.48 and 3.54 for brick and mortar or direct distribution management and click and mortar or indirect distribution management, respectively. Direct traditional respondents and indirect contemporary respondents, on the other hand, rate general administration/firm infrastructure, human resource management, technology development, and procurement as moderately observed, with a mean of 3.27 and 3.31, respectively. Using regression analysis, the model revealed that outbound logistic, marketing and sales, procurement and inbound logistics have positive effect on the competitive advantage for brick and mortar while outbound logistics, marketing and sales, services, procurement and technology development have positive effect on the competitive advantage for click and mortar. It is also revealed that the enhanced value chain model is contextual and significantly fir to the business management needs of the respondents. It is recommended that store management can be implemented to the traditional and modern in doing their business. Moreover, a thorough review and search of location accessibility must be performed in implementing the enhance value chain model. Keywords—Brick and Mortar, Click and Mortar, Human Resource, Value Chain Analysis