Simulation Analysis of Omni-channel Strategy Based on System Dynamics: A Case Study of Company X

摘要

To investigate the effect of omni-channel strategy, this study formulates a system dynamics model based on omni-channel retailing practice of company X in China. The model validation and simulations under basic scenario illustrate the applicability of the system dynamics methodology in this problem. In particular, we conduct a sensitivity analysis on users' retention rate (URR). The results show that omni-channel strategy of company X will be practical and enhancing URR can promote the performance of the company. This paper creates a new paradigm to study omni-channel strategy using system dynamics. In addition, intuitively sound insights for both company X and traditional retailers are also provided.