This gave the customers the freedom to browse and search for their choices on-line, but did not provide information on availability of video nor eliminate the physical need for the customer to go to the store to pickup, pay and return a video. Beyond enhancing the traditional business model, the internet has enabled the creation of a new business model. The traditional business model, where a customer must physically go into a store to browse, pickup and return the movie. The new business model after internet impact, where a customer browses and makes their selection from their PC using a web store front. Under this new model, customers view information on the web, where the site provides search and browsing capability.
Customers place their order through the website and pay by credit card.
Products are then delivered from a centralized distribution warehouse to the customer through an order fulfillment process. Firms currently competing in this space offer different methods of delivery and pickup. We will explore the options and their comparative advantages in our analysis. The new business model offers significant increase in customer convenience. A virtual storefront gives customers real time access to the company's inventory systems from home.