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ACCA Strategic Professional · Strategic Business Leader · E-business: value chain

Orchid Fashion sells clothing through its website and also lets customers collect and return orders in its physical shops, using one view of stock and customer data across both channels. Which term best describes this strategy?

The strategy is omni-channel integration, where online and physical channels operate seamlessly using shared stock and customer data, allowing collection and returns in either. Disintermediation concerns cutting out intermediaries, and diversification concerns entering new products or markets, neither of which is described.

  1. ADisintermediation
  2. BOmni-channel integrationCorrect
  3. CChannel conflict avoidance through pricing
  4. DHorizontal diversification

Explanation

Seamless use of online and physical channels with shared stock and customer data is omni-channel integration. Disintermediation means removing intermediaries from the supply chain. Orchid is not diversifying into new products, and the scenario is not about pricing between channels.

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