Defining online to offline (O2O): a systematic approach to defining an emerging business model

Abstract

PurposeA new business model online to offline (O2O) has emerged in recent years. Similar to many new models at an early stage, O2O has inconsistent definitions which not only inhibit its adoption but also poorly differentiate O2O from other existing business models. To resolve the two issues, the authors propose an approach of definition development.Design/methodology/approachTo show the usefulness of the approach, the authors demonstrate the differences among O2O and other business models with the use of the distinctive definition and thereby evaluate adoption of O2O from a practical perspective and identify research directions from a theoretical perspective based on the differences.FindingsThe authors' proposed approach of definition development integrates the work of Tatarkiewicz (1980) and Nickerson et al. (2013). The approach generates a distinctive definition of O2O with important analytical dimensions which help decision-making of adoption of O2O.Originality/valueThe paper aims to make several contributions. First, on theoretical contribution, the authors confine the scope of O2O studies and facilitate accumulation of more coherent knowledge of O2O. The authors help O2O evolve from a “buzz word” of successful stories in real businesses to a more serious concept from an academic perspective. Second, from a practical perspective, the authors' definition provides business executives with critical evaluative dimensions for gauging the adoption of O2O. Lastly, from a methodological perspective, the proposed approach can be used in future to define an emerging concept in real life businesses.

Learning from the Past Bridging Digital and Physical Markets: A Guidelines for Future Research Agenda of Online-to-Offline (O2O) Marketing Strategy

“…The definitional clarity by Lee et al (2022) provides a methodological scaffold for understanding O2O as an emerging business model. By distinguishing O2O from adjacent business models and highlighting its unique evaluative dimensions, this work offers a foundational perspective for academics and practitioners alike to gauge and navigate the adoption of O2O strategies.…”

Effects of Sustainable Development of the Logistics Industry by Cloud Operational System

“…Businesses are faced with the challenges brought by the global supply chain of establishing a real-time inventory in an intelligent supply chain and implementing a strategy of all channels, as well as an online-to-offline store (O2O) business model [98]. As tripletechnology applications are more rapidly integrated into various cross-domain scenarios, smart retail should be the development trend of the future retail industry.…”

“…However, this study may have specific limitations in utilizing cloud operating systems to achieve sustainable development in the logistics industry. It does not further understand consumers' purchasing intentions for bright retailing to achieve a sustainable online-to-offline (O2O) strategy [98]. This research did not focus on an in-depth analysis of the readjustment of a cloud logistics platform's systemic plan strategy and service mechanism to control the delivery time and variable demand of the O2O retail process.…”

Growing online‐to‐offline platform businesses: How Vytal became the world‐leading provider of smart reusable food packaging

“…But what if a company's business model does not only revolve around an online platform application but also features an ‘offline’, that is, physical product? Many companies including Vorwerk, Philipps, and others pursue so‐called online‐to‐offline business models (Lee et al, 2022), meaning they use scalable online platform applications to attract consumers but also develop and sell a physical product that is connected to that platform. Vorwerk, for example, has been successful with their Thermomix product, which involves a physical cooking machine (TM6) that is connected to an online platform application (Cookidoo) for recipe creation and exchange (Kröper et al, 2017).…”