Table IV Theoretical implications...

Table IV

Theoretical implications

Changes in business model due to new digital opportunities	Yes, but it presently does not control any online sales channel. Today, 40% of turnover originates from online sales
Control of online sales channels	Low (dependent upon online retail business partners to gain access to customer data)
Resource-specific factors	Via their online retail business partners, the company can offer global delivery solutions (at the cost of lower profit margins) and position the brand as high-end Scandinavian design
Institutions-specific factors	Formal institutions: Swedish laws and foreign customs regulations do not hamper online business model. Intermediaries manage international institutional problems Informal institutions: acceptance by end-customers is induced: using brand reputation; through the use of high qualitative pictures and the possibility to scrutinise the objects digitally; The end-customers have the opportunity to return products
Competition-specific factors	Internal channel competition: between intermediaries’ web shops Differential competitive advantage: key factors in tackling competition include: brand awareness (which is generally low outside of Sweden), website content and search engine optimisation

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